How Much Should I Spend?

Although newcomers to the USA arrive from every corner of the world, they all seem to have similar questions once they get here. The most frequently asked questions seem to revolve around money:

"How much should I spend on my apartment rental?"

"What is the real cost of owning an automobile?"

"Do I really need to pay so much for my telephone service?"

The answer to all of these questions is simple: it depends.

To the surprise of many a newcomer, the USA abounds with choices. Consumers must choose from an endless array of options, sizes, colors, brands, styles and, of course, prices. And to make it all even more confusing, price doesn't always correspond to quality. A generic product usually works just as well as a brand-name one, but the packaging on the brand name product is invariably flashier, and the price bigger.

But what does all this mean for more permanent purchases, such as a house or car?

When searching for a place to live and a car to get around in, keep in mind that your choices will be very broad. Salespeople of all types will try to sell you things you don't need or want. The best thing to do before you shop is to know what you want.

Apartment shopping

If you need a place to live, sit down and write a list of the things you absolutely need in an apartment. Keep in mind that in the USA, a typical apartment comes with a kitchen with basic appliances like a stove, sink and refrigerator and at least one bathroom, which includes a toilet, sink and shower or bath. Sometimes water and heat is also included in the rent. Other amenities, such as extra bedrooms, microwaves, fitness centers, and tennis courts, are up to you to choose.

When writing your list, think about your lifestyle. If you are single and you don't have many things, you probably can get by with a small "studio" apartment, which is a one-room living space that includes a bathroom and kitchen. If you're single and need a bit more space, you can opt for a one-bedroom apartment. If you're married, have kids, or just like having more space, think about a two- or three-bedroom apartment.

If you like to entertain friends or family, you might want a bigger living room. If you like to swim or spend time outside, think about an apartment community that has a shared swimming pool or tennis court.

When you have completed your list, you should then think about prices. Prices vary widely depending on your location. For example, the monthly cost of a one-bedroom apartment in a city like St. Louis can range from $500 to $600, while a smaller one-bedroom in San Francisco can be $1,200 to $1,300. Several Web sites, such as Rent.net, SpringStreet.com and Apartments.com can give information about local apartment prices in your city.

The best method for making sure you aren't being cheated when looking for apartments is to ask around. If a landlord offers to lease you an apartment for $800, call other landlords in the area and see if they are offering about the same. If you are an outgoing person, you might even want to ask people you know how much they pay for apartments and houses. Keep in mind, however, that sometimes Americans are reluctant to talk about finances. But if you preface your questions by saying you are just trying to make sure you're getting a good price, many people will be happy to help you.

Car shopping

When shopping for a car, use a similar method. Consider your lifestyle and needs, and make a list of what you want in the car. How far will you be driving each day? If you will only be staying in the USA for a short time, you might want to get a car that has a good resale value, since you'll have to sell it when you leave. Don't forget maintenance costs. A luxury import may be fun to drive, but routine maintenance of such cars can become expensive. You might be attracted to the safety of a sport utility vehicle, but these gas-guzzling trucks can wreak havoc on your fuel budget.

It's best to do a little research before heading out to the automobile showroom. Consumer Reports offers a wealth of unbiased information for people buying or leasing new or used cars. Check out Automobiles.com for information about manufacturers, prices, buying and selling cars. If you're in the market for a used car, look at the Kelley Blue Book for essential pricing information. Assemble all your information - your "wish list," as well as your research - and take it with you when you go shopping. That way, the salesperson knows you've done your homework and might be less likely to take advantage of you.

Car salespeople are notorious for convincing people to buy more than they had originally wanted, so you will have to hold your ground when negotiating. If you don't need all the "bells and whistles" the salesperson tries to foist upon you, simply repeat your needs and ask the salesperson to help you fulfill them. And if you feel like you're getting a hard time, leave. There are plenty of car dealerships in the USA, and you shouldn't ever allow a salesperson to push you into buying something you don't want. If you're buying from a private party, take the same precautions. If you need more time to think about a deal, tell the person. If you're not interested, let them know politely, but firmly.

Long-distance telephone services

While your basic local telephone service will cost from $20 to $35 per month, the price of long-distance service varies greatly. You will probably have to choose a long-distance telephone company for your non-local calls. Most long-distance telephone companies offer domestic and international calling plans. The domestic rates are generally cheaper in the evenings and Saturday and Sunday, when business calling is light. Some plans offer a flat rate for all domestic calls made anytime. You can compare domestic plans at the company's Web sites. The three main telephone companies are AT&T, MCI, and Sprint.

Since you will probably make most of your international long-distance calls to your friends and family in your native country, it shouldn't be too hard to find a plan that caters to your needs. AT&T and Sprint, for example, offer a one-rate international plan that offers flat rates to certain countries, no matter when you are calling. A monthly fee applies for this service, but if you call home often, the fee could be worth it. New2USA has compiled a chart that compares international long-distance prices from several major companies.

The bottom line when making purchases in the USA is to be informed, shop around and take your time. Rarely is there a deal that's truly "too good to pass up," and if there is, it's probably a scam . If you're unsure about any purchase, don't rush it - you'll thank yourself for it.

Bill Paying Options

Bills, like taxes, are inevitable: every month you must pay for the services you use. If you pay your bills on time, you'll save yourself the pain of late fees, interest charges and a negative credit rating. The best way to keep track of all the companies you owe is to keep organized records.

First, create a system for paying your debts. Keep all your bills in one place, such as in a folder, file cabinet or even on your kitchen table. When you receive a bill, put it in the place you've designated so all your bills will be together.

Companies have come up with ways to make the monthly drudgery of paying bills easier for consumers and bill collectors. You may want to test a few different methods to decide which is most convenient for you.

Automatic Draft

Some companies will allow you to sign up for an automatic payment plan. Automatic drafts work like direct deposit in reverse. You tell the company your checking or savings account number and they will arrange for funds to be taken from your bank account on a specific date each month. Most banks will allow you to authorize the transfer of funds from a checking or savings account to pay recurring bills this way. You then don't have to worry about finding postage to send the bill or being late.

You can also arrange to have money withdrawn at your request by telephone. When you receive a bill, simply call the company and have them deduct money from your bank account. Always write down all transactions with the date and amount in your checkbook. Compare these records to your bank statement for accuracy at the end of the month.

As with all services, make sure you're dealing with a reputable company before signing up for this convenience. Check to make sure drafts are for the correct amount, and are only taken once per month.

Personal Check

With a checking account, you can easily mail your bills. The canceled check gives you proof of payment. Paying your bills with checks is safe and convenient.

When writing checks, use a pen and clearly fill in all the blanks. Do not abbreviate. Sign your name as it is written on your bank statement. For good record-keeping, use the blank in the lower left corner to mark which bill you are paying and your account number.

Never write a check unless you have enough money in your bank account to cover the full amount. When someone tries to cash your check when there's not enough money in the account, the check "bounces" back to you. You must then pay numerous service fees to the bank and late fees to the company the check was written to.

Online Bill Payment

Several online companies offer bill-paying services. If you travel often or have numerous bills, this service can be worth the monthly service fee of about $5 to $20 per month. You can arrange for all your bills to be sent directly to an online company. With your approval, the company will take money from your checking account and wire the funds to the companies you owe. You can pay your bills online through these services even if your bank doesn't offer online banking or a bill-paying service.

Online bill-paying services are relatively new, and it's important to do thorough research on such services before signing up. Make sure the company uses security software that will encrypt and protect your sensitive financial data. As with automatic drafts, keep a close eye on your bank statement to make sure the bill-paying service deducts the correct amount of money from your accounts.

Money Orders

If you cannot pay in person and do not have a checking account, a money order may be your best option. You may purchase money orders from post offices, banks and some convenience stores for a small fee. Fill in the blanks on the money order immediately, and keep a copy for your records.

Cashier's Checks

Cashier's checks are usually written for larger amounts of cash than a money order. You can purchase a cashier's check from your local bank for a fee. Always keep a copy of the check as proof of payment.

Paying With Cash

Never send cash through the mail because the money could be stolen. When paying a bill with cash, you should always pay in person. Then get a detailed receipt with your name, the date, the amount you paid, and the signature of the person receiving the payment. This method has several limitations. In order to pay with cash, the company you are paying must have an office nearby. Usually, it's only possible to pay local utilities in person.

If you are low on cash for a few weeks, you can pay some bills with a credit card or arrange for an installment plan. A combination of all these methods will be the best for you. The success to paying your bills is being prompt and organized. Pay your bills before the due date. Keep a record of the date and amount paid. Save money by avoiding late fees and interest charges with an organized system.