Money Up Close

Cutting the Cost: Valentine's Day

2010-01-18T12:16:00.000-08:00

If you are stuck for money for Valentine's Day, if you prefer something personal to the store bought, or if you are turned off by the commercial aspects of the holiday, here is an idea for you: the indoor picnic.

No, it's not a new idea, but it is a good one, and highly customizable too. The traditional would be nice mellow music, a blanket spread on the floor, candles lit, and meal of something like cheese and chocolate, but there are lots of other options.

-For a beach feel, turn on the lights, maybe bring in extra lamps from around the house. Spread out beach -towels, play beach music, and indulge in your favorite seafood.
-Shoot for more of a Coney Island feel with cotton candy and colorful balloons everywhere.
-Use a flat sheet to string up a tent, and by the light of a flashlight, enjoy hot dogs and s'mores.
-Create movies under the stars with a few strands of Christmas lights and a good flick from the local library or red box.

Use what you have on hand to create a new environment: Use objects unexpectedly, and choose foods to match whatever theme you invent. Keep it simple and keep it fun.

A review: Your Money and Your Brain

2010-01-11T15:00:00.000-08:00

Your Money and Your Brain by Jason Zweig is a fascinating read about the science behind money behaviors. This book is really helpful in understanding why we repeatedly do the wrong things when it comes to money, and knowledge is a useful tool in breaking negative cycles.

This interesting perspective on finance sheds new light on a subject much talked about, and would make an interesting read both for people interested in finance, and those interested in psychology. Often humorous, and always easy to read, Zweig leads us though several studies that explain our relation to money, and even lets himself be the test subject a few times.

Adding it Up: Ebay

2010-01-04T19:00:00.000-08:00

If you have a little time, you can make a few dollars on ebay selling media items you no longer want, like books, movies, and games. Since these items ship for a low cost at the post office, and it's fairly easy to packege them in a shopping bag inside a paper bag, It's no problem to make a few dollars doing this.

Ebay lets you post 5 items per month free, so there is no risk to sell a few items. For those with more time, it is possible to make quite a bit of money, but more experience is helpful, to make sure that the enterprise remains profitable.

Personally, I use craigslists to sell most things of any value, but books are a hard sell. Posting a few online every month helps me get them into the hands of people who want them, and generally earn me about $1 per book. This is a great deal because I often pick up a grocery bag full of books from my local library for only $1 and ebay helps me to make that money up.

Cutting the Cost: Vacations and Travel

2009-11-30T15:00:00.001-08:00

When we travel, we are in it to have fun. We do not shy from the museum, no matter what the cost, but when it comes to where we sleep for the night...well, cost counts. This is because our trips are about doing, not relaxing. On the flip side, if you take vacations primarily to kick back, you might look harder for the right place, and worry about entertaining on the cheap.

Either way, the first step is to have some sort of agenda. How detailed it is will depend on your own personal level of insanity. I tend to go off the deep end, with a 3 ring binder of maps and information on my target destinations, but our trips are pretty complicated.

The next step is to put the Internet to good use. My favorite sites for searching for cheap airfare, hotels, and car rentals are Kayak, Travelocity, Orbitz, and HoteslWorld. Using these sites, you can get an idea of what a good price looks like, and eventual book through these sites in many cases. For trips outside the United States, Hostelworld is particularly useful. Sometimes you might want to stay in a small town that none of the sites list a hotel for. In that case, just try googling the words "hotel" or "motel" and the town. This will often take you to website for small ma and pa type hotels, and is a good way to beat the travel websites best prices for hotels, both in the US and abroad.

Also don't forget to shop the Internet for deals for any activities you might like to visit, such as coupons off, or a pass that offers a lower price to visit multiple locations within a city. Also check if attractions have reciprocal membership with an organization you belong to, such as a museum or zoo, that might lead to more discounts.

Plan your routes. If you plan to do a lot of driving, like we do on our trips, having mapquest, Google maps, or Michelin driving directions can keep you on track and give the the quickest route, which will save on gas and time. Michelin was very useful for me in Italy, where mapquest maps just couldn't cut it. I have used mapquest extensively in the US and Germany, and google has worked for us in the US and New Zealand.

Beyond this basic advice, there is the advice for those of you who are a little flexible and a little adventurous. A big part of travel expenses can be paying for where you lay your head. Internationally, and in larger US cities, hostels are a nice solution. For those traveling alone, you can very cheaply share a dorm style situation with others, but most hostels also provide private rooms with a shared bath, that make them an acceptable option for couples and even families. Campgrounds are often even cheaper than hostels, and in some cases are free. So invest in a small, light tent and you can save even more. If you are feeling especially bold, try sleeping in your car. I have done this in many places all over the US. While this option may not always be recommended in other countries, New Zealand in particular is designed for it.

I have found that interstate rest stops, Wal-marts, on ramps, pull outs, and other 24 hour grocers or large empty parking lots are all good places to settle down for the night. If security should wake you and ask questions, a simple and honest answer of being on your way through and being to tired to go on will suffice. Police don't want you to have a wreck. Offer to move on, and oblige. Please use caution in the locations you do use, be sure to lock your doors, and keep your keys within quick reach.

As an example, we spent Memorial Day weekend last year in the Destin area, and never paid for a hotel, saving us something like $200 a night. We paid a few dollars to visit state parks with beaches, and spent the days swimming there, where it was considerably less crowded. When we were done, we were able to make use of campground showers to clean up, then we went for dinner and to stroll the town. We then pulled up in an empty lot (a piggly wiggly in one case) and went to sleep, waking up with the sun the next day. Certainly, this isn't for everyone, but it is a great way to save money for those who are willing.

Finally, keep in mind that in travel, as with all things, it's cheaper to do it yourself. Tours can cost several times the actual cost of a trip, and typically are not going to exactly match your interests, or cover as much ground as you can on your own. We all have our comfort levels, and some countries' languages, cultures, and environments may be more intimidating that others, but in most places, people are friendly, and want to help, despite language barriers.

Cutting the Cost: Home Cooked

2009-11-23T15:00:00.000-08:00

Few things are so all around good for you as home cooking. By choosing our own ingredients and cooking methods, we can save our wallet, our health, and reduce the demands made on the earth every day. This is a broad topic that can't be covered fully in a single short blog, but here are a few pointers for getting started.

Try new recipes If you don't like home cooking, you've got little incentive to make it. Experiment with recipes and flavors, and find what you love. If you can't give up your favorite meal at your favorite place, try to find a recipe to mimic it.

Spice is the ... ah, spice of life. yeah. Many spices and herbs can be got inexpensively, by growing them yourself, buying in bulk, or seeking them out in international groceries, where they go from "expensive exotic" to "price competitive staple" But you will probably still stumble across the odd recipe where the seasoning for it comes in a small high priced jar. Never fear. Some of the more expensive seasonings are really just blends. You can find recipes for mixing up a curry, or pumpkin pie spice from there components, which may already be in your cabinet. But even if you do find you self reaching for a somewhat costly jar, don't cringe too much. Most spices are used rather sparingly, and can last some time. If a good spice can keep you interested in eating at home, or spice up inexpensive staples, it can well pay for itself.

have leftovers cooking in bulk saves time and energy. There's no reason why single people or couples shouldn't cook casseroles or use the big crock pots. For some, like myself, eating the same meal several times in a week is fine. For those who prefer more variety, freeze leftovers, and keep them for a lazy or exceptionally busy evening.

less meat, less money Not the easiest sell point in America, where many of us group up with meat as part of nearly every meal. But meat is costly, and often unhealthy. But before you start imagining blocks of tofu endless salads, let me emphasize that less meat is not no meat. In fact, for some meals, it's actually easy to cut without feeling deprived. When making up some lasagna, skip the ground beef or half it. when making meat loaf, mix more oats into the meat. Try making that beef stew with less beef, and opt for more beans on your burrito instead of ground beef.

follow the recipe Until you get the hang of how foods react, follow recipes as closely as possible. Learn the different meanings implied by words like mix, blend, fold together, chop dice, mince. Set the oven timer to follow cook times.

be not afraid cooking can be fun, and if you mess up, there is always last weeks leftovers in the freezer, or a bowl of cereal if all else fails. So don't be afraid to try things. Find a good recipe, but allergic to mushrooms in the cream of mushroom soup it calls for? Replace it with another cream soup, like chicken or broccoli. Think the recipe sounds interesting, but not sure how well raisins will be in a soup? Go for it. Sometimes you never know.

Giving it away: Your Local Homeless Shelter

2009-11-16T15:00:00.001-08:00

If you are like me, you are reluctant to give money to the homeless directly. There are the typical concerns that some homeless have no aim at improving their circumstances, that they are lazy, that they drink, or do drugs. There are some, who, like myself want to help people out of a desperate situation, but are reluctant to contribute to buying an alcoholic a bottle.

A solution is to give, instead, to a local homeless shelter. Homeless shelters provide the necessities of life, and many have programs offering a hand up, in addition to a much needed hand out. I prefer non denominational shelters, and ones that focus on helping women. When you give to a shelter, you know that the money will go to provide food and care for people.

Even if you don't have money to give, many homeless shelters can use items for personal hygiene, or unwanted food items. They can also use your time and abilities. From helping prepare food, to administrative work, to counseling, there is a place for everyone.

A Review: Your Money or Your Life

2009-11-02T15:00:00.001-08:00

"Your Money or Your Life" by Joe Dominguez and Vicki Robin takes a fresh look at money, and the roles it plays in our life. This book is a great starting point for those who want to get out of debt, gain control of their money, and do more with their lives. If Dave Ramsey's bugets appeal to the nerd in the family, this books methods of financial tracking are designed for the free spirit. The book covers basic financial principles in 9 easy steps.

This book contains useful information for no matter where you are with money. There is advice on how to track your money, how to learn to spend money where you get the most value for it, and there is even a chapter covering various tips for saving some money too.

The book, however, is somewhat old, and its investment advice is not particularly up to date, considering todays markets, and the low returns of Treasury Bonds, which is the books recommended retirement method. Still, the book is a fun and educational read, with lots of real world examples, and provides the most important aspect of financial control: motivation.

Fun for Less Doesn't Mean Less Fun

2009-10-19T15:00:00.000-07:00

We all enjoy a little fun. Unfortunately, it can sometimes seem that fun is to expensive to be had. Here are some ideas to entertain yourself better for less.

Enjoy you hobbies for less
Whether you hobby is fishing, skiing, or reading, there are ways to reduce the costs. If you enjoy reading or watching movies, check the library for things which interest you first. While you may not be able to enjoy the latest and greatest, you might just come across that oldie but goodie that you always meant to watch but never did. If you hobby requires equipment, shop used. Remember there a probably a lot of people that took up the hobby, bought the goods for a premium, then never really followed through. Help them recoup some of their losses, and avoid winding up in the same situation by buying from them, whether it is ski poles, hunting gear, or crochet needles. Also, be sure to ask yourself if you really need the gear in the first place. While as a hiker you could buy walking poles, moisture wicking shirts, and protein bars, remember that a pair of tennis shoes and a PB& J could suffice.

Free Events
Free events are a fantastic way to enjoy yourself, and to discover new interests. Whether it's Shakespeare in the park, a museum with an annual free admission day, or the local Christmas parade, taking advantage of free events is a great way to enrich your life without adding financial strain. Free events are everywhere. Cities often have movies under the stars, annual events like Pioneer's Day, Earth Day Celebrations, or even an RC Cola and Moon Pie Festival. New businesses may host grand opening events, or sponsor other entertainment. Many opportunities can be found by keeping an eye on the community section of your local paper, checking you city's website, and you can also find free events on college campuses by you by checking their web sites.

Volunteering is Fun
Many of us wish we had the time to volunteer, but can't seem to fit it around our busy schedule, and our leisure. The good news is volunteering is fun. Ringing the bell for the Salvation Army, helping Habitat for Humanity build houses, and feeding the homeless are rewarding activities which if enjoyed in the proper spirit can be just as fun as any hobby.

Staying In
While we all enjoy a night out, learning to have fun staying in is an important part of enjoying a frugal life. Spending time with friends doesn't have to mean spending money. Often just spending the time talking about whatever comes to mind can be better than doing something together. Think of how popular parties are. They are just a fancy (and sometimes expensive) way of staying in. A chance to talk and joke. Don't forget get togethers are a good time to play some board games, or throw around a football. Alone, a person can keep themselves well entertained reading, gardening, doing crosswords, or even surfing the Internet or watching TV.

Happy Holidays: Keeping it simple

2009-10-05T15:00:00.000-07:00

The holidays are coming. This is the time of year to make and extra effort to spend time with those we love, exchange gifts, and fatten ourselves for the winter ahead. For many, it is a stressful time of year, not just because we watch our waistlines grow, but also because we watch our bank accounts shrink.

Take advantage of the discomfort, and use it to get yourself in gear for next year. Remember that budget? It should definitely include a monthly amount to save for holiday gifts, and you should keep a list of who you spend on, and how much you spend on them.

In the mean time, how to handle this year?

Creating Christmas gifts can be fun, and doesn't have to leave your family feeling like they've been cheated. Think Martha Stewart. If you can sew, crochet, carve, or do some other hand craft, take advantage of that skill to produce something useful and attractive. Sweets and treats that are homemade can be a wonderful surprise as well.

Shop around. This time of year, every store is having a sale. Don't miss out. Know what you are looking for, and keep your eyes open. But retail stores selling new items aren't the only places to look. Goodwill, thrift shops and even your local library are likely to have good deals.

Finally, the most precious thing any of us have to offer is our time. Promise to take your niece to the zoo, Take your grandmother yardsaling, clean your mother's gutters, or anything else you can think of.

Combining items from all these categories can make just a little money go a long way. And don't be afraid to discuss doing less with family. It may turn out that your are both only shopping because you feel obligated to, and you may be able to agree to a "for kids only" gift exchange, or limit gifts to one per person or other alternative.

Anecdotal evidence:

If you are like me, then you like hearing examples more than general advice, so here are a few personal examples from my own Christmas shopping from a previous year.

My Dad: I bought my dad a new grill and grilling tools from a discount store. To go with it, I picked up 3 different BBQ sauces from Wal-mart, and a bottle of Sun Dried Tomato and Herb dressing. I plan on including a good recipe I have for grilling chicken using the dressing. I made a booklet of all the crossword puzzles and sudoku I haven't done out of the newspaper, which I receive free in the mail, because I know he likes to do those. I am also giving him a free calender I got from one of the charities I donate to. Since we decided to get rid of a box set we have of James Bond movies, we decided to pass it on to him. Finally, I bought him a puzzle, as putting them together is a bit of a hobby of his. Total cost: $55

My Mom: I got her some clearance "fall" candles, which were red, combined them with some snowflake pattern punched tin pails, and an angel nick knack from Old Time Pottery. I then stumbled upon a sale at the library: a bag of books for a dollar! I grabbed 10 that I thought she would like, and added those to her gifts.From TJ MAXX I bought a gift set of different scented bubble baths for $5. She's also getting some of the DVD's we are getting rid of. I also gave her a free calender I received from Billy Graham, a pair of earrings from Wal-mart, and some cookies. Total Cost: $20.

My Niece: For the budding young artist we bought canvas paper, brushes, acrylic paint and some ceramic figures to paint from Wal-Mart, for about $20. I then went hunting for a copy of the Secret Garden, and I found what looked like an unread copy at goodwill for 1.29. A beaded jewelry kit, and a subscription to National Geographic Kids were added, and then she was done. Total Cost: $40

My Nephew: For our nephew we bought a collection of Curious George stories, a Curious George DVD and a mickey mouse book from Wal-Mart. We found a spring microphone in a dollar bin, and even used some Toys R Us money from the McDonald's monopoly game to buy a cookie monster toy/doll. Total Cost: $30

My Mother-In-Law: She loves magnolia, but it can be hard to find things with that scent. So we went to a locally run custom candle shop, and bought some magnolia scented tarts and a warmer for about $18. We used a coupon at the shop and got our gift nicely wrapped for free. She is also getting a floral scented gift basket of bath stuff, to complement the candles. I am making her a home made tin of chocolate Oreo truffles since she loved them so much when I brought them for Christmas dinner last year. Total Cost: $35

My Father-In-Law: He loves Coca Cola items, so we are giving him a glass bottle of coke bottled at Atlanta's World of Coke from a trip we made a few months ago, and a Coke bottle Key chain we received free from a local gift shop. We also bought him some John Wayne movies, since he is otherwise very hard to shop for. Total Cost: $30

an Aunt and Uncle: A bird feeder, bird feed, and Sibley's guide to birds, which we bought online for much less than it costs in the local book stores. Total Cost: $30.

We also gave a little bit to some of our favorite charities. This years choices were Kiva, the Wildlife Conservation Society, the National Audubon Society, and a local homeless shelter.

I think of that we spend a quite a bit of money on each person, and I know if we were actually financially pressed, we could ask everyone to keep it to $10, and ask the aunt and uncle to not exchange gifts, but we do enjoy Christmas, and this doesn't put any stress on us. The main thing is not ultimately how much you spend, but giving people things they will like and use, and spending the time together. Whatever you do, keep it simple, and enjoy these happy holidays.

Do it Yourself: Home Repair and Remodeling

2009-09-28T15:00:00.000-07:00

Home repair, like car repair, can be intimidating. But with good instructions, and a calm and thoughtful demeanor, it is possible to do many jobs yourself. In addition to saving money, each self repair helps you learn skills which will be useful throughout life.

This is a very broad category, and may cover anything from plumbing repairs, to painting the walls, to roofing you home. But regardless of the specifics, the library, the Internet, and your local Home Depot, Lowe's, or other hardware store can be of great use. Libraries have many books which can show you how to do many of the repairs and home improvements you will want. When there is not enough detail in the books, the Internet can provide information, pictures, videos, and even feedback from other people. As always, Google is your friend. remember to simplify you desire to just a few words such as "stop toilette running" or "install window" can usually bring up more information on the subject than you have time to peruse. When you have very specific, case specific questions, as will occasionally arise mid project, you can head to your local hardware store and talk it over with the experts you can often find there.

For ourselves, we choose to do most things around the house with a few exceptions. When hail damage meant replacing the roof and siding, we opted to use the insurance company's money to have it done. Also, when, after some tinkering we just couldn't get the shower in the guest bath to stop dripping, we called in a professional to help. But for almost any other work, we've done it ourselves. We've learned how to replace toilette innards, tile floors, rebuild decks, put up dry wall, Spackle/sand/repeat, paint, replace the old thermostat with a new programmable one, put in new light fixtures, instal alternators, radiators, starters, end even how to fix our lawn mower. Some of these have been easier, and less time consuming than others, but there is such satisfaction in doing it yourself, without having strangers in your home or money out of hand.

Remember, when doing repairs, it is very important to be safe. Remember to turn off the water before doing plumbing work (not a safety issue, but very important). Turn off the electricity before doing electrical work. Ensure that all new electrical installations leave no bare live wire exposed, and make sure that the ground wire is secured as directed. Be careful with tools, especially power tools, and pay attention at all times. Finally, don't cut through the power cord when you are using a circular saw. They are not fun to mend!

Cutting the Cost: Do it Yourself: Automotive Repair

2009-09-21T15:00:00.000-07:00

There are a lot of services out there for us to buy, from washing your car to buying your groceries. But when it comes to being frugal it is (almost) always more cost effective to do it yourself.

For those on a tight budget, some of the services that can be cut may seem obvious, such as cleaning your own home, or mowing your own yard. Other services, however, such as car repair and home remodeling, may seem too intimidating.

For all those projects, big or small, that you sometimes find yourself thinking: "maybe I could do that", here is the green light. With the proper books and tools, you can (yes you) do most anything.

Behind the Wheel, Under the Hood

Car repairs may seem too difficult, but the basics, such as oil and air filter changes, brake replacement, even replacing an alternator or starter are actually simple, straight forward procedures. My personal advice is to invest in a manual for the year and model of your car. I use Chilton, though there are more expensive and detailed ones you can get, especially the dealers repair manual. To avoid problems, simply follow the directions exactly, regardless of whether you understand exactly why something should be done a certain way.

For the basics, you can buy a few simple tools to help you with tasks, like an oil pan for draining oil into (have it recycled at auto parts locations or your local walmart) a grip to remove the oil filter, and a press for the brakes. When you find yourself repairing something unusual, you will inevitably find that you need unusual tools to fix it, but you don't want to turn your garage into a full service shop! Never fear. Auto zone has a great program called Loan-A-Tool. It's beautiful and simple. They have the odd tools, and they will let you use them, free. Essentially, you buy the tool, and within 45 days return it, and they refund the money. They don't loose money, because if people don't return the item, it has already been paid for.

In addition to this, the Internet is a wonderful wealth of knowledge, and Google can help you find almost anything. When your car is having problems, you can Google some general words describing the issue, and within moments be reading message boards discussing the very problem you have. I have found this to be a great way to get to the bottom of a problem, even when mechanics can't tell me what it is. Also, if your engine light is on, your car's computer system will likely register some error codes that you can use to look up the problem online. How do you find out what the codes are? Just go to your local parts store, like Auto Zone or O'Reilly, and ask if they can check your codes. Usually they have a small handheld computer they can hook up to your car, and give you a readout of the codes for free. Then just hop online, and find out what it's really all about.

If you're like me, and have the occasional serious issue, you might look into a spare car. When I was faced with an estimated $700 car repair, I opted to buy a car for that amount, and drive it, while I fixed the car myself. Now I have 2 cars, and they are both running well.

Finally, don't forget that junk yards can be a good source for some types of parts. Many cars go to the junk yard because the engine or transmission broke, but many of the other components are still in good shape, like pumps for water or fuel, or the window motors, or even a replacement knob for the radio.

So the next time you hear a knock, fix it yourself!

2009-09-14T15:00:00.000-07:00

Cutting the Cost: Freebies

The Internet is a wonderful thing. I would not really have believed you could just get online and within days begin receiving lots of useful free items in the mail. A little googling can provide you with a list of message boards that regularly update with freebies. Walmart even has a dedicated page for samples. I tend to avoid anything I don't feel sure of. Also keep an eye out for freebies with lots of fine print at the bottom, these typically mention that you need complete certain offers to qualify, and you won't realize it until you've already handed over your e-mail.

I will give out my name, address, and a junk e-mail, but I almost always lie on my birth date and phone number, unless I really know and trust the company, and I feel there's a potential gain to giving that information.

Now, what you really want to know is what sorts of things I've gotten. I will say that the availability of freebies has been cut back somewhat since this little economic downturn, but generally, you can still find some interesting items.

By far the most common type of sample are the health and beauty items. shampoo, conditioner, toothpaste,face wash, lotions, deodorant, even mouthwash and 1 time use perfume, foundation and lipstick samples.

Among other common free sample items are laundry soaps, fabric softeners, non perishable food, and headache medicine.

You can also occasionally get non sample sized items, such as coupons good for a 2 liter beverage, a bottle of BBQ sauce, books, Cd's and t-shirts.

So keep an eye out, you never know what you will find.

Buying a New (to you) Car

2009-09-07T15:00:00.000-07:00

When a car breaks down or is wrecked, it may be worth it to fix it, but, if the value of the car in good shape is lower than the cost of repairs, the practical thing to do is to move on. I myself have made the mistake of paying to fix the transmission on a car that I just loved, but that wasn't worth very much. The truth is, I could have bought a much nicer car for the cost of the repairs, and my old car has never really been the same since the repair anyway. So, if you have a major repair on your older car, before rushing to fix it, shop around and see what sort of car you could buy for the cost of the repair.

When you do need to buy another car, it's important to know where to look, and what to look for.

I strongly recommend leaving the car dealerships out of it. Private sales mean that the seller, and the buyer both get a better price. I also believe that individuals will be more honest and upfront about mechanical issues, than a dealer is likely to be, or at least, the average person is not as good at lying about or hiding problems. To find sellers, you can check the local paper, craigslist, or find listings through kbb.com

I have been able to purchase pretty good cars for at or under $2,000. This is a game for me, and I enjoy seeing what kind of deal I can get for that price. If you have more money to spend, some pretty great cars can be had for under $5,000. There are several factors to consider when choosing which car to buy.

Mileage: this is an important factor when purchasing used. Low mileage is good, but it is also a relative term. a low quality car with 100k may have less life left in it than a Toyota Camry with 200k on it.

Popularity: A vehicles popularity is a good guide to the overall quality of a car, especially if the car is an older model. I drive a 1989 Toyota Camry. I see many of these cars on the road still, almost 20 years later. This is important, not just as an indicator of how reliable the car is, but also how easy it will be to find parts that fit, and a mechanic that can do repairs that are beyond our ability to do at home. I also own a 1989 Lemans. It is a small hatchback car that we maintain as a backup vehicle. I have never seen another one in this area. Despite the fact that the car has only 110k miles, it's probably not going to last too much longer, or be cheap to fix.

Simplicity of Design: This is where it can be handy to know someone who is familiar with a range of vehicles. Certain makes and models of cars are notorious for being difficult / expensive to work on due to unusual design features. Some cars fit large engines into small engine compartments, which may make space cramped, and can result in certain things, like a water pump for example, difficult to access. The simpler the design of a vehicle, the less of an issue it will be to have repairs done later

Vehicle History: There are several things to be cautious of when buying a car such as a history of being wrecked, or having been driven by a "speed enthusiast" There are other times when information about a vehicles history can make it more desirable. Some examples are: "It was driven by my grandmother" and "There's nothing wrong with it, we just wanted a new car" Information of this kind, dealers can not give.

Keeping all this in mind can help you make a smart decision when buying a new (to you) car. We took all this into account when we bought out latest vehicle, a grandmother driven 1993 Oldsmobile cutlass ciera with only 81k miles on it.

Spending: You Can't Take it With You

2009-08-31T15:00:00.000-07:00

Some people in this world think that all frugal/cheap people miserly store away hordes of money, only to die old and alone, leaving the fortune to their beloved cat, or perhaps a worthy charity. But this is not the case. As I mentioned when I discussed a budget, being frugal is about not spending a dime more for anything than you have to if it's not what you want to spend money on.

For some people that might mean buying cheap clothes to buy a thick juicy steak. It might mean giving up meat for the feel of a cashmere sweater. Frugal people can, actually, spend money, that other's might consider a "splurge". It is OK to spend money on things that you truly, personally enjoy. It is not OK to spend money on things you don't really care about, because you have the impression that you have to, or it is what you are supposed to do.

Me, I love to travel. I have that itch to see it all. So, while I buy my clothes from good will, ad match, sew buttons back on, repair cars at home, have a small vegetable garden, and go without AC in all but 100 degree weather in humid TN, I am also perfectly OK with spending thousands every year on travel.

That's not, of course, to say, that I didn't TRY to do it for as little as possible. We stayed in cheap lodging like hostels. We drive the smallest/cheapest car available to rent. But we do not skimp on admission fees to museums, archaeological sites, churches, parks and unique tours. We always have a fantastic time. I don't pay a travel agent, I planned everything myself.

So, yes, I know, full well, I could do other things with that money which would be more in line with what many think of as frugal behavior. However, I feel that, while many can accept that there are frugal people out there who save money, it seems that most of them never pause to ask, what we are saving for.

So I encourage each of you to pause and think for a moment, what are the things that you truly relish? The hobbies, the food, the comforts that you consciously choose to spend your hard earned cash on. Do not think of retirement, or even charity. What are the things you do for you, and what do you find easy to give up, knowing that a little sacrifice makes the goals truly worth achieving all the easier to reach? What are you saving for?

Cutting the Cost: Water

2009-08-24T15:00:00.000-07:00

We use water in our daily lives for many things. We use it to clean: ourselves, the dishes, clothes, cars, pets, carpets, and more. We use it to cook and drink. We use it to water the garden.

Conservation of water is, from a financial perspective, less important than conserving electricity. Environmentally, it has as great a significance as electricity, particularly in parched areas.

A basic step is to shower rather than fill the bath tub. Low flow fixtures will reduce usage, but I am uncertain if this is cost effective. You can even turn off the water while you lather, and turn it back on to rinse.

When brushing your teeth, only run the water when you are cleaning the brush or spitting, rather than leave it running from start to finish. When I wash my face I like to fill the sink 1/3 of the way, and splash my face clean, rather than use continually flowing water. I always have the image of an old wash stand with a pitcher and bowl when I do this.

When you are using the washing machine or dish washer, be sure to wash full loads. If you do not have a full load of clothes to wash, be sure to use a setting that uses less water. I have found that some dishes need soaking, but otherwise pre-rinsing is not necessary.

When gardening, try to plant native species. These will be well adapted to the climate, and should not require water. You can also forgo watering your yard. Though your grass may brown, it will not die, unless you live in a desert climate, in which case I would recommend some other option for the yard. You might have a food garden, which I would recommend, and this will need water. There are several ways you can "find" water for your garden. One is simply to reuse water that would otherwise go down the drain. This would include leftover water from boiling food, rinse water from the sink, or even left over water from a drinking glass or bottle. All of these can be poured outside rather than down the drain, or kept in jugs for dry weeks and days. There are also rain barrels and grey water systems. Once set up, these can keep your garden well watered. You can also use the rain water for other uses, such as washing the cars, or even the dog.

These are very basic steps, than can have a big impact on water usage, but don't be afraid to get creative.

Cutting the Cost: Cheap Fun

2009-08-17T15:00:00.000-07:00

This past weekend, we took out our inflatable raft and took a little ride down the local "river". Bought for about $50 a couple years ago at Wal-mart, along with a pair of cheap paddles, our raft is far less expensive than a kayak or canoe. and It doesn't sit too low in the water, so it's good for the shallow water we had to navigate.

We put in to the river about noon, covered in sunscreen, with a backpack full of several refilled bottles of water, some generic Cheerios, and not much else. For the next several hours, we paddled our way down stream, and waded the many parts that were too shallow, this being August after all. Along the way we spotted many great blue herons, green herons, several king fishers, gar, bass, carp, turtles, butterflies, dragon and damsel flies, as well as beautiful scenery and even more wildlife. Sometimes, we got out and played in the cool water when we got too hot.

When we reached our destination, we pulled out our boat and deflated it, and loaded into the car we left parked at that end. Our only expense was a little gas used to put a car at the end and then drive back to the beginning of our trek. We got some good sunshine and some good exercise.

That's what I call a good day.

Giving it Away: err, kind of... National Geographic

2009-08-10T15:00:00.000-07:00

The National Geographic magazine is a well established organization which funds scientific research, and is dedicated to the dispersal of geographic information, and they put out a fine magazine. While it is true that National Geographic has an obvious interest in liberal issues, the generally do a very good job of providing balanced and in depth views on important issues, whether they are directly political, or highly debated by politicians. The articles can focus on issues such as global warming, oil usage, pollution, and war, but also devote articles to discuss individual animal species, the work of current researchers and explorers, astronomy, and history and archeology. It is a great way to get a rounded view on a variety of topics. And when you buy a subscription, 10% of the cost goes to the society, and it's efforts.

Buying a National Geographic subscription for someone makes a great gift, while also contributing a little to what I consider to be a positive force in this world.

2009-08-03T07:06:00.000-07:00

Adding It Up: Yardsales

Not only do we need to save money, it certainly doesn't hurt to earn a little more here and there as well.

Yardsales are an easy way to earn some cash and clean out the clutter. In addition to that, they are environmentally beneficial too. It is much better to try to sell things than throw it away, and it's much better to buy used than new.

I am of the "people will buy virtually anything" faction. My husband is always suprised at the silly things I sell. The trick is, the price has to be right. If I think something is virtually useles, but that someone could still conceivably want it, I will usually charge just 5 or 10 cents. But even that can add up. If you are thinking of throwing something away anyway, there is little harm in trying to sell it first.

It is best to set aside a space in a garage and keep a box there. I add to the box until it is full, then close it up, and start a new one. I find that by the end of the year, I have a nice collection of items to go along with the clothes that didn't sell from the previous year.

When I am ready to have my yardsale, I post a listing on craigslist that morning, and set out the signs that morning. This works well for me, because I'm in a great location. The more obscure your location, the more advance your notice will need to be.

I reuse the same signs each year. I lovingly created them with paint and color pencils on white poster board. They simply say "Yardsale Here Today" I put them up when I'm ready and take them down when I'm done. I lay everything out on a tarp and an old sheet, and hang the clothes on a line between the trees in my front yard.

I start by setting out everything with a price from the previous year, then pass the time by pricing the new items and setting them out. As items sell, I work to keep everything neat, and I try to group similar items.

There really is very little effort involved in having a yardsale, and one can bring in a few hundred dollars. I for my part just set the price I want and don't haggle. I find I get more offers this way because the prices are lower to start with, and generally if someone approaches you, they will buy at least some of what they've got.

When you are done, you can box up remnants for a later year, or take good items to donate, and anything else, offer it free by the road side or recycle it.

2009-07-27T15:00:00.000-07:00

Cutting the Cost: Energy

Over the past year, I have not had a monthly electric bill over $100. We use electricity for everything in our home, including heating and cooking. I'm really excited by this, as we've been able to cut our bill even as rates have gone up somewhat.

There is a vast amount of coverage on this subject on the web. I highly recommend doing further research into the topic. As a matter of fact, I recommend you do additional research on all the topics I discuss here. That said, here's some advice.

Appliances

Heating and cooling a home is a pretty big expense. I am experimenting with using air conditioning on an as necessary only basis. We do have a programmable thermostat, so when the air is on, it only cools the house to 85, during hours we are home, and only 90 during the day, though inside temperatures rarely reach that high. We switch the air off when we are gone. Whenever possible, we turn off the air at night, and open windows instead. We use fans in whichever room we're in, and keep the rooms dark to keep things comfortable. When it comes to heating, We keep the thermostat between 65 and 68 when we are home, shut the doors to rooms we don't use, and dress warmly and snuggle under blankets.

These number might seem extreme, but even making a small change in what temperature you heat and cool your home to makes a large difference. Also, the body does acclimate to different temperatures. Use this to your advantage to keep energy bills lower.

Set hot water heaters to 120 degrees, and be sure to turn it down further when you are away traveling. Add extra insulation, especially for older heaters.

For your dishwashers, turn of the heated dry, and let them air dry on the rack, or you can towel dry them when you put them up.

Reduce laundry loads by washing full loads only, and line dry as much as possible. Even in the humid South, I have found I do not actually need a dryer.

Instead of using the stove, cook more with your microwave and crock pot. Crock pots can be put outside or in the garage during the summer so they don't heat your home.

When replacing any appliance, look for energy saving options, and Energy Star labels. Also keep in mind that some of these items may qualify for tax deductions.

Lighting

Keep the lights off as much as possible, and use Compact Fluorescent (CFL) bulbs. They pay for themselves with the energy they save, last longer, and can now be recycled (they do contain trace amounts of mercury and so should not go in the regular trash) at places like Lowe's. Also, reducing the effective wattage you use can save additional energy.

Use natural light as much as possible during the day. I also like to use candle light. In the summer I take a candle outside to read by, and in the winter we sometimes eat by candle light inside, which also warms up the area immediately around us a little bit. Of course, I have about 100 candles left over from my wedding. I'm not sure if candle light is cost effective over electric light, but if you have candles, use them!

At night, when the lights come on, try to keep the family in 1 or 2 rooms. Not only is it good to spend time together, but the fewer rooms used means fewer lights. Also, use task specific lighting when possible. A small lamp is often sufficient over using the overhead lights in a room. The fewer bulbs burning, the more money saved.

Other Things

In addition to lighting and appliance changes, there are other things that can be done to reduce your energy bill.

Insulation can save on heating and cooling bills, and changes can be made on any budget. I installed foam insulator pads behind electrical outlet plates, and used plastic plugs for sockets, to make my walls more airtight. Making sure windows and doors are tight in their frame, and that there is the right insulation in the attic can have a more significant impact.

Unplug everything that is not in use. Items like Chargers and TVs are actually always on. Ever notice that a TV screen glows in a dark room? It is still using electricity so it can respond when you press the power button on a remote. Many devices use low amounts of electricity for things like clock displays and status lights. While the amount of electricity used in this way may seem small, keep in mind that when added up over all the little devices in a house, plugged in 24 hours a day, 365 days a year, the amounts do add up. Accessible Power strips that can be used to shut off these devices are the best option for the hard to reach cables behind entertainment centers and desks.

You may want to consider reducing the number of items you have which require electricity. If you have a little used home phone for emergencies, you might consider replacing that energy draining cordless for a basic corded model. Invest in a hand mixer for light kitchen use, or a manual can opener.

Consider also, reducing the time you spend with your energy using appliances. Replace TV time with a book, video games with board games, photo shop with paint and canvas, an ipod or radio with a instrument, and a exercise video with a sidewalk and some tennis shoes.

Why Buy Used?

2009-07-20T15:00:00.001-07:00

Buying New Cars:
Brand new cars might seem nice, but they are a very poor use of your hard earned money. For starters, the sale price is obviously going to be higher than the price of a used car, which means they put a bigger dent in your pocket book, and a person is more likely to need a loan. It is a really bad idea to go into debt for what is known as a depreciating asset. And depreciate they do. How much do they depreciate? Well, just out of curiosity, I went over to kbb.com and looked up some car values in 2007. Now that the 2010 models are available, I went back and checked the cars again. Lets assume that you drive your car 15k miles per year. Here's an example with both a Toyota Camry standard automatic and a Jaguar S-Type Automatic V8. I used the "what customers are really paying" value for the new cars, and the private party, excellent condition value for the used values. I will leave the default options selected.

Year:	Miles:	Camry	Jaguar
Year 1 (2007 prices)	n/a	$19,076	$53,480
Year 2 (2006 prices)	15k	$17,005	$35,170
Year 3 (2005 prices)	30k	$15,350	$30,465
Year 4 (2004 prices)	45k	$13,310	$24,350
Year 5 (2003 prices)	60k	$12,535	$19,620

This table shows you what those same cars are worth now that the 2010 models are out, and makes the same assumptions about miles driven per year.

Year:	Miles:	Camry	Jaguar
Year 1 (2007 prices)	45k	$13,600	$25,535
Year 2 (2006 prices)	60k	$10,580	$18,150
Year 3 (2005 prices)	75k	$9,125	$15,020
Year 4 (2004 prices)	90k	$7,355	$11,475
Year 5 (2003 prices)	115k	$6,530	$9,115

Compared to the Jaguar, which loses a whopping 9k + per year for the first several years, then and drops to under 5k in loss per year after the car is 7 years old, the loss of value in the Camry seems mild, at only around 2k per year. And that loss seems consistent too. This is because the Camry is one of those cars that "retain their value", if you would call buring 2k every year retaining. So, in the case of a Camry, you could save yourself about 10k over 5 years, by buying a 5 year old car. Then you could take that money, and buy your next 5 year old Camry for cash.

While looking at this, I want you to consider that many people get loans to buy new cars, which is to say, they pay still more money in addition to the loss in value they accept. They also pay higher insurance rates, and depending on the car and the state, higher taxes.

A commonly sighted reason for buying new is to avoid costly repairs. The 2 most costly car repairs I know of are engine replacement and automatic transmission repair. The most expensive of these might run around $3,000. So, given the depreciation, you could buy an old car, which loses very little depreciation over the years, have a $3,000 repair every other year, and still come out better. But, in reality, that probably won't happen. Especially with a quality car like a Camry.

Leasing Cars:
Now, let's take what we've learned about new cars, and consider leasing a new car instead. Let's assume the basic principal that companies would not lease cars if they did not make a profit from it. So it stands to reason that the majority of people pay more for a leased vehicle over the period of ownership, than they do for a new vehicle. I don't really know enough about leases to spout of more than that.

The Ultimate answer: No Car
The one alternative to buying a used car that is 100% OK by me is the "no car" option. It definitely appeals to my green side, and it can be very cost effective if you live in the right place. For me, it would be impossible. I live 25 miles from where I work, and while there is a single bus that does run from my city to near to where I work, I would have to drive to get to the lot to get picked up, then after being dropped off walk several miles along a busy highway with no sidewalk to my work. It's not really an option.

But if you can make it work, you will save on the car, repairs, gas, insurance, and time, as during mass commutes you can read or do other productive things. If you live and work in a major city, having no car might be ideal for you.

Cutting the Cost: Phone bills

2009-07-13T15:00:00.000-07:00

Ah, the telephone, a modern day necessity. Fortunately, this is one utility, where we've go a lot of choices. There are cell phones, traditional land line service, and Voice Over Internet Protocol (VOIP). Each option has its advantages and disadvantages. It can be difficult to decide which is best for your needs. Here is a brief overview of the options

Cellular Service

- prepaid: These services allow you to purchase cards for anywhere from 30 minutes to 150 minutes. Most cards expire after 60 days, but will rollover with additional purchases. Most prepaid companies also sell cards with 100 to 150 minutes, which expire after 1 year.
- contract: Usually a 1-2 year contract is required. With a new contract, you can often get the phone free. Often, service includes free nights, and free calls within network. Additional minutes and features cost extra.
- no contract (cricket): Cricket is the only phone I'm aware of with a regular monthly bill, without a contract. There may be others. Service is to a more limited area, but all calls are included with service.

Traditional Phone Service

- local: Covers calling within your local area. Typically includes features such as caller ID and 3 way calling in the package.
- long distance: Covers calling outside the local area. May be a flat fee with unlimited minutes, or a low fee with per minute cost.

VOIP

- paid voip: A service that uses a high speed Internet connection to carry voice signals to other phones. This service can be used with a standard phone. My only experience is through vonage, who offers a 500 minute package or an unlimited package. International calls are very inexpensive or free.
- free of very inexpensive voip: Works similar as paid voip, but free services usually require PC to PC communication only, for the unpaid service. Special phones can be purchased for this service. Fees to receive calls from phone service is usually a low annual rate, and outgoing calls to phone service is only pennies per minute, allowing for inexpensive calls all over the world.

So... Which One's for You?

It would be impossible to cover all the options, but I will try to give some examples here of what circumstances I think make the various plans worthwhile.

Ex #1: the over the road truck driver, airline pilot, traveling business man or similar (i.e. frequent travelers over large areas): For these folks having a contract cell phone is probably best. They need something portable, and the higher cost of prepaid just doesn't make sense with the number of minutes these guys will probably be using. If they were single, then this would be the only phone they'd need. From my understanding, cricket only serves limited metropolitan areas, so wouldn't be very useful for travel.

Ex #2: The busy non-traveler: Cricket is ideal for people who rarely leave the general area where they live. If you're job and errands rarely take you out of the city, but you really need a cell phone, then plans like Crickets are great. They tend to be cheaper than contract phones, and there's no hassle with minutes.

Ex #3: the vacationer, person with a long commute, or bad luck with cars: Prepaid phones are ideal for someone who sometimes needs a cell phone, but doesn't need one every day. Used judiciously, a cheap phone with a years service and 100 minutes can last. A separate home phone service would probably be required.

Ex #4: You have a high speed cable connection: go for something like vonage, or the free VOIP service. These services offer local and long distance for less than home phone services, so if you already have high speed for another reason, such as working from home, this is the best home phone option. Which is right for you will depend on how much you use it.

Ex #5: You don't need high speed, but need long distance: Depending on how much you call, a land line phone with long distance might be for you.

Ex #6: you don't need any of this fancy stuff: Standard land line for you my friend.

As a final note, be sure to ask to have removed any features you don't need. Companies often offer packages, but removing unnecessary features such as 3 way calling can save you money. Answering machines can eliminate a real need for caller ID, and I've found a second line is unnecessary. If it's important, they'll call back right?

The ultimate example: me: I have a job which allows me to work from home some days, so we already have high speed cable. I have a few long distance friends, but I mostly communicate with them online. What we really need is just high speed with one of the almost free voip, such as Skype or Yahoo Voice. I haven't made that switch yet, and am still using Vonage. Plans are in the works though. I also have a prepaid cell phone, which we take with us when we travel, and which I keep with me in the car, though I need it less for the long commute into work than I once did, because I carpool every day I go into the office, someone always has a cell phone.

The best way to make the right decision for yourself is to consider all the options. What do you really need?

Adding it Up: Online Surveys

2009-07-06T15:00:00.000-07:00

First, let's be clear, online surveys are no substitue for a job. They can be time comsuming, and the rewards are small. However, many surveys can be fun. You learn about new products, and are exposed to advertising campaign ideas. They can earn you some actual money, so, they are ultimately a better use of your time than playing online games or obsessing over social networking sites.

I can only speak of the companies I have had experience with, though there are many more out there. Avoid sites that want payment to enroll. These are more than likely not legitimate. Why pay someone who is supposed to pay you?

There are five companies that I have used. Greenfield, Lightspeed, Harris Polls, NPD and Pinecone.

First is Greenfield

This company gives you tons of surveys to do, but most of them are just for an entry into a drawing. Occasioally, they run specials where the usually unpaid surveys are all worth 50 cents. They will also send out survey invites that do offer money, usually from one to six dollars, but, because Greenfield doesn't really do prescreening, I typically do not qualify. I have been doing surveys for them for two and a half years, and earned $48 total, or an average of less than two dollars a month. I have long since stopped participating in the unpaid surveys, and I think this may have reduced the paid ones I am able to participate in. Still, Greenfield is only just barely worth it, for the number of invites they send vs. and real financial gain. When I started Greenfield payed through check, and it took ages. Now, they pay through paypal, and it takes just one age.

Second there is Light Speed

Lightspeed sends e-mails when they have a survey for you. You have to log into the site to take them. Though I have done fewer surveys for this company than Greenfield, I have earned more money. However, instead of money, Light speed lets you earn points that you can trade in for gift cards or various other items like electronics, home decor, etc. Over the same 2.5 years, I've earned %90 dollars worth of $10 gift cards to amazon, papa johns, and other restaurants. In my first year of doing studies, I also received from them a PDA to do a 2 week survey, for which I was paid $60. Overall, I like this company quite a bit, and feel they have made good use of my time. I would earn more if I did a better job taking the surveys in a timely manner.

Third there is Harris Poll Online

This company doesn't send out to many survey invites, and for each one completed, you earn points, as with light speed. When you have earned enough points, you can trade them in for items, the best of which, I think, are $5 gift cards for various companies. I earned $30 worth of rewards through harris, generally only receiving 1 e-mail every week or so lately, which is actually a lot more frequent than it was for the first year I was a memeber. The great thing about Harris Polls is that if they e-mail you, you will be able to complete the survey and receive the reward, not always the case with Lightspeed, and actually the exception with Greenfeild.

Fourth there is NPD Online Research

This company, is the only one I no longer use. You never directly earn money for completing any survey I have seen. Each survey earns you points to use in Sweepland. Sweepland then lets you play in various sweeps with your points, rather than letting you exchange them directly for a prize. The items available to win change regularly, but after over 6 months this site had not earned me anything. I discontinued my membership, and cannot recomend this company to others.

Finally there is Pinecone

Pinecone is easily the best of the 5 companies. They pay a flat $3 per survey, which will be deposited into you paypal in a timely manner after completing each survey. Pinecone usually sends 1 screening questionaire (for which you are not paid) and 1 survey per week. There are deadlines, and it is important to complete the surveys quickly. I joined Pinecone 4 months after the others, and have since earned $60 through them. Over the last 6 months I've missed several opportunities, due to being to slow to take surveys.

At the time I joined Pinecone, You could not sign up directly on their website. You had to find their bannner ad looking for new recruits somewhere. As far as I can tell, this is still the case.

As you can see, the amount payed by survey companies is typically very low. Still, for a very tight budget, the small amount of money provided may be enough to provide some of those little luxeries, and the surveys themselves are a sort of free entertainment.

Cutting the Cost: Restaurants

2009-06-29T15:00:00.000-07:00

If you are like most people I know, you are spending more than you'd even like to admit, eating out at restaurants. I know I was definitely part of this group. Before we started budgeting, I estimate we were spending about $500 a month eating at restaurants. This is based on the fact that the first month we were on a budget, we blew through our budgeted $150 is about 9 days. For me, that was a huge wake up call. We quickly learned to control our spending in this category at one point limiting ourselves to only $110 a month. We now that we've accomplished some major goals, we allow ourselves $150. So, what did we change?

Our most significant change was simply to reduce how much we ate out. When we ran out of groceries, we would find ourselves eating out for the next week, before we finally got around to buying groceries again. So an important first step was to develop a regular grocery shopping habit, so there was food in the house, and to stock some staples like rice and pasta, so we could usually scrounge something up if we did run out.

Beyond simply reducing how often we ate out, we needed to reduce how much we spent when we did go out. I had already made the switch to drinking only water at restaurants, for my health, but my husband was still frequently getting cokes or sweet tea. With tax, a single drink is over two dollars. This was a small, but also relatively painless cut in our eating habits, and it's healthier, too!

We also pay more attention to the cost of items on the menu, and the overall cost of the restaurant in general. When different size cuts of steak are offered, we always choose the smallest one. When getting fast food, we never get the larger size, and sometimes purchase kid's meals instead.

By far the second most effective way, beyond reducing how much we eat out, is to use coupons. We get coupon magazines and envelopes in the mail, chock full of restaurant coupons. The Entertainment book is also a great deal, especially for eating out at the nicer restaurants (on special occasions!) and eating at smaller hometown eateries.

Take for example our experience with Dairy Queen. If we buy 2 adult combo meals, we get 2 burgers, 2 fries, and 2 cokes for around $10. If however, we buy 2 kids meals, we get 2 smaller burgers, a small order of fries, applesauce for me, a small coke ( refills are still free) and a chocolate milk for me, as well as 2 ice cream treats, for exactly $7. Now, imagine how excited we are to get the "buy one kids meal, get one free" coupon in the mail. That's a whole meal for two for only $3.50!

Also, especially with the current shift in the economy, many restaurants are offering good deals on midweek dining. Don't miss out, find our about specials at restaurants near you. Personally I'm happy because it's become relatively easy to get a good steak, side and salad for only $10.

One place not to cut is the tip. In the United States, servers are not paid a living wage, with the expectation that tips will make up the difference. We always tip 20% unless there is genuinely poor service. If you don't have enough left in your budget to enjoy a meal and the service, consider a restaurant without service.

Giving it Away: Kiva

2009-06-21T15:00:00.000-07:00

Of course we save and earn money so we can do more fun and useful things with it. One of thos things is giving to charity or other good works organizations. Giving money away isn't throwing it away, and it's not entirely an altruistic act either. Giving is a really easy way to lift your own spirits, and find happiness and satisfaction. What's even better is that giving comes in every dollar amount. If you have only a little, you can give that. If you have billions, you can give that (to me!). If you haven't got one penny, you can give your time. If you haven't got time, then a gracious smile and a thank you to all you come into contact with will do. But, we are talking about money here, so I'd like to promote some of my favorite organizations under the label "Giving it Away".

Kiva provides interest free microloans to business owners in developing nations. Your donation contributes to the loan of your choice, you will receive notice as payments are made, and a portion of your loan is returned to you with each payment. Loans are made in $25 increments, and you can make as many loans as you like. Every time you have been repaid $25, you can give it again. Or, you can actually have your money returned to you. Hopefully, you will be inspired to give again and again, to people who need it to buy livestock, plant seed, seating for their roadside restaurant, or wood to make furniture.

Kiva

Cutting the Cost: Groceries

2009-06-14T15:00:00.000-07:00

When it comes to food purchases, I have a simple mantra: It must be healthy, or it must be cheap. Preferably both.

What this boils down to is that I do not eat the cheapest food possible, which would consist mostly of ramen noodles and macaroni and cheese. Instead, I tend to eat a wide variety of produce, meat, pasta, and dairy products. I'd like to focus on the actual process for now. We can talk about recipes later.

The first thing to do is to make a list. A grocery list is like a budget, only it uses food, not money. Decide beforehand what you are going to eat for the next week or so. Include breakfast, lunch, dinner, and maybe a snack. Make a list of ingredients you need to purchase. This is the list, and this is what you will buy when you go to buy groceries.

Second, go through your food coupons. You have been clipping coupons haven't you? I don't buy the paper, but I do get some coupons through the mail, and I do sometimes get coupons with the free samples I order. You are looking for only 2 kinds of coupons. Coupons for items which are on your list, and coupons that expire soon for nonperishable staples, such as cooking oil, flour, cereal, etc. Which, while it may not need replaced on this trip, will need replaced in the future. Also keep in mind that you should be willing to buy a different brand if you have a coupon that makes it cheaper than your regular brand. It is OK to have some brand loyalties, but always be willing to at least give other brands a fair chance.

Third, pull out those sales papers. During the week I set aside Kroger and Food Lion, and Aldi, and anyone else who sends me a sale paper. When it comes time to buy food, I skim the ads for items I already intend to purchase. For the truly obsessive, you could scan the sale ads for items you regularly buy anyway, such as chicken, and plan your meals around that purchase, but I choose to do it this way.

Fourth, the above doesn't require too much time, but this tip is for those who have time to commit to it. Use a price book. Keep a notebook with prices for items you buy regularly, at various stores. This book will help you decide which store to buy what at, and what a good price vs. a bad price looks like.

Finally, with your coupons, sales ad, list, and an idea of which stores you plan to buy what at, you are ready to go.

When you arrive at the store:
first: stick to the list
second: be willing to buy what's cheaper, even if it means not using the coupon for items you need
third: if you have a coupon to replace a staple, but it doesn't give you the best price, don't buy the staple item. Wait until it needs replaced, or you have a coupon that is a better deal.
fourth: remember to actually ad match and use the coupons. This is by far the hardest part for me.

Also, when it comes to produce, don't forget you have other options than the store. You can grow your own, you can purchase from a farmers market, and you can even visit some farms directly to buy from their stand, or pick your own.

When possible, buy in bulk. Items I use regularly, or non perishables, I buy in bulk. I always buy the largest chicken breast or hamburger packages I can get, and freeze what I am not using that week. I buy the largest containers of rice, spaghetti, and olive oil I can. Olive oil: not cheap but healthy.

If it's something that typically spoils if you buy too much, buy as little as possible, and try freezing any extra. In the best case, what you froze will be reusable, at worst case, it will go bad, just like it would have if you hadn't frozen it.

And finally, try to be creative in using what you have that is perishable, before making the next shopping trip. This is where that big bag of rice and olive oil come in handy. Most vegetables can by sauteed and served over rice, add some herbs, maybe cheese or what have you and voila! dinner.

What's your best grocery store bargain buy? What do you get that's healthy but maybe not so frugal?

Cutting the cost: Insurance

2009-06-08T15:00:00.000-07:00

We all need some insurance, whether it's Home owner's or renter's, Auto Insurance, Health insurance, or life insurance, there are risks in life that we need to prepare for. Insurance is a necessity, and it's important to pay attention to what our coverage is and what are costs are.

The first step for any insurance is to shop around. Find out if you can get a better deal by carrying multiple types through a single carrier. Every couple of years, you should check your rates against those for similar service from different companies.

Home Owner's and Renter's Insurance

First, make sure you have the right coverage. I have found that the agents tend to well overestimate the value of my personal possessions. This is perhaps because I don't own a lot of name brand or expensive items, but this is worth looking into. Go through each room of your home, and estimate the replacement cost of your personal belongings. Include furniture, electronics, clothes, nick knacks, pots, pans, etc. Take this number and round up a bit. You want your coverage for personal property to be around this amount. Homeowners will want to make sure the policy allows for enough to rebuild their home, and any outlying structures.

Secondly, make sure that the policy is for full replacement costs. This means that you will be able to replace items by buying them at fair value new, instead of getting only the value of your used items.

Finally, make sure your deductible is as high as you can afford. It's a good idea to have at least a $1000 savings account, though 3-6 months of expenses is ideal. This level of saving will allow you to comfortably take the higher deductible, and higher deductibles will save you money

Auto Insurance

As with home owner's insurance, you will want to make sure you have the right coverage. Everyone needs liability at the very least. If the car is worth much, or you are a bad or unlucky driver, you will want full coverage. I have always felt comfortable knowing that I'm a safe driver, and I have an emergency fund to replace my car, if the worst should happen.

There is a lot of competition in this market, and it is especially important to shop around for car insurance. Make sure you have the minimum required by your state, but carefully consider the necessity and benefit of additional coverage.

Health Insurance

for some of us, our health insurance is provided affordably by our employers. If it is not provided, or not provided at a good rate, then, just as with they other types of coverage, it is important to shop around.

There are a handful of ways to save, no matter who provides the coverage. One way is to have a high deductible. Another way to save is to have an HSA, which allows you to avoid income taxes on health related expenses. Finally, be sure to take advantage of any mail order programs for prescriptions, as these tend to be a good bit cheaper than filling at a pharmacy. Unless, that is, you have one of the prescriptions that can be filled at Wal-mart for only 4 dollars. Other pharmacies are quickly following Walmart's lead, so some presciptions may be very inexpensive to maintain. Please remember that generid drugs are a great option because the FDA requires they have the same active ingredients in the same quantities as name brand drugs.

Life Insurance

As with all the other insurances, the first step is to get the right coverage. In some instances, this may mean very little or no coverage. Life Insurance should do two things. One is to pay for your burial, and the other is to provide for your dependants. Your dependants may include children, a spouse who depends on your income, or other family members your income may support. If you are debt free, have a good emergency fund, and no dependants, you do not need life insurance. If you have no dependants and no emergency fund, you will need just enough coverage to pay for burial. If you have dependants, you should have enough insurance to provide for your dependants by replacing your annual income, until such a time as they would no longer need it.

I'll use myself as an example. My husband and I make equal income, and we have no children. We have no debt and a paid for home. We don't have any real need for life insurance, since either of us would easily be able to support ourselves independantly. We are provided with some life insurance through our employers, at no additional fee, and we have no need for anything beyond that. If we were to have a child, we would seek 20 years term insurance to replace 50% of our household income, which would provide for the child until they became an adult.

Term life insurance is the best form of life insurance. Not only is it cheaper than whole life, but it also provides the right amount of coverage. By the time the term ends, your children should be self supporting, you should be debt free, and have an emergency fund, and probably enough retirement savings to support your spouse or other remaining dependants. Essentially, once the term is up, you will no longer need life insurance coverage. Keep in mind, it is very, very important to always maintain health insurance coverage, as hospital bills are capable of wiping out retirement funds.

What type of coverage fits your life?

Cutting the Cost: Line Dry Your Clothes

2009-06-01T15:00:00.000-07:00

A simple way to save on the electric bills is to air dry your clothes. With a few lines and a couple of hooks, clothes can be dried using free solar power. People with limited outdoor space may want a retractable line, or an umbrella style hanger. I've used a metal plant hanger with 3 arms and a tree. I take the lines down when not in use, and the plant hanger fits in well in my suburban landscape. I bought a sturdy model, but it's still not quite as tall or as strong as traditional clothes line posts, but it does the job.

If you don't have outdoor space, you can use drying racks, or if you have enough open floor space, a few discrete hooks on the wall can let you hang clothes indoors. This is also a great way to dry clothes during cold winter months, or rainy days. In the winter, the drying clothes add humidity to the air, which can be a comfort after the dry heated air.

Because I live in the South, I can hang dry clothes outside for most of 9 months of the year. When it becomes too cold for me to dry outside (They will still dry outside, but I know I don't want to be the one to hang them!), I use lines inside that go from inside my laundry closet to my kitchen wall. It's true that I am walking through a clothes forest for a day while they dry, but I personally find it more amusing than annoying.

Start up costs for line drying your clothes are relatively low, and it can be done a little or a lot. You don't have to do it year round like I do for it to be a money saver. But if you do, you may find, like I did, that you no longer need the dryer. I sold mine, and am enjoying a little extra space. I live within a mile of a 24 hour laundromat, so I am covered in case of an unforeseeable need. No matter how often you do it, though, hanging clothes will help you get a little extra exercises, and likely extra sun and fresh air, which are all good things.

What obstacles have you faced in finding space to hang dry clothes?

A Budget! No way!

2009-05-25T15:00:00.000-07:00

Ah, yes, the budget: It's that thing poor people have, that thing cheap people have. It keeps you from spending money, and enjoying life.

If that's the way you feel about budgets, it's time we changed your perspective. A budget is not a fence, or a leash, it is a plan. If I had enough money, a year long trip around the world would absolutely be in my budget. A budget is a statement of what you have to spend AND what you want to spend. You use it to figure out how much you are spending on necessities, such as food and gas, but you also use it to find where you can save to do all those other things you want to do with your life. Most people wouldn't want to work for a company that didn't make a regular habit of budgeting to pay its employees. You may not realize it yet, but running a household without a budget isn't much better, in fact it's probably worse since you are the CEO of your own house.

If you ever find yourself wondering at the end of the month where all the money went, you should know that a budget can help, without even changing your spending . Perhaps this is the best place to start. Write up a zero based budget for the next month. A zero based budget means that you spend all the money you will make for a month, on paper. If you won't need some of it for necessities, add the remainder to a "savings" category. Here's a brief list of what to include, feel free to add your own categories.

Debt: this category is at minimum all your debt payments. It should also get every extra penny until there are no debt payments. This excludes your house.

Blow money: some for each contributing household member to do whatever with. Keep it reasonably small. I spend about $20 per month, my husband spends about $60. Those are numbers we are comfortable with, and this is not a competition.

Emergency $$: this should be from 3-6 months of expenses. I like 6 months. Once the debt category is empty, put extra here, until it is fully funded. Dave Ramsey recommends you build this to $1,000 before working down the debt.

Utilities: try to use last years bills for a good prediction for each month

Housing: what you pay for your mortgage, or rent, any insurance, repairs, etc. don't forget the extra principal. If you own a home, you should be saving a small amount monthly for repairs.

Food: restaurant and grocery. Use separate cash envelopes to keep track of each

Medical: prescriptions, doctor visits, insurance, etc.

Transportation: insurance, gas, maintenance/repairs (again, save monthly for repairs)

Toiletries: I tend to put any sort of necessity here that isn't a home improvement or a car related expense. Toilet paper, shampoo, light bulbs, super glue

Recreation: vacation, entertainment, gifts (if you don't think gift giving is fun, you're doing it wrong ;p )

Clothing: I find very little is actually necessary for this. Clothes will last a long time. Buy classic styles and learning to sew will go a long way.

Charitable: I chose to only give a limited amount around Christmas until I was debt free. Now I give year round. Do it how you feel necessary.

most categories should have something in them. plan ahead. if you spend 240 for Christmas, you should budget for 20 a month savings in your budget. I don't budget for health insurance, or retirement, as I budget using my take home pay, and these are taken out of my paycheck beforehand.

for a better, more complete list of items to budget, check here

For probably 3 months, you will just be figuring out what you currently spend, and hopefully curtailing that some towards what you want to spend, just by being conscience of the amounts. I suggest you put cash into separate envelopes for things like restaurants and groceries, and entertainment. This helps you know where you are in the month and limit spending. You can do this with any category you feel you have trouble with, and use your bank statements to figure out the rest at the end of the month. You will be able to see where your money goes, then you can decide: is that where you want it to go? If so, great! you have a budget. You are in control! For most of us, however the answer will be "no".

Take me for instance. I have always been the frugal type, but my husband and I had developed a real habit of eating out. I also was just throwing money in the bank, I wasn't doing anything with it. My budget helped me do two things:
1. It helped me realize I was spending way more than I wanted to on restaurants, and I was able to reduce how much I ate out.
2. It helped me realize that yes, I really could put $1,900 extra towards my house each month to pay it off.

You can do a budget with pen and paper, or you can use something like excel, or you can even use a budgeting website. Mint
is a popular option, though I have never used it personally. Whatever tool you can find to help motivate you is great.

Then pick a date. What is your fiscal month? Mine runs from the 25th-24th of months. So on the 25th of every month I sit down, record all my ins and all my outs by category and balance the previous month's budget to see how I did. This includes all transactions from on or after the 25th of the previous month, to the 24th of the current month. Then I sit down to figure out the next month's budget. Am I going to need to buy grocery staples this month? or do I have a weeks worth of leftover Easter ham? that will help me set groceries. Do I need gas, or did I just fill up yesterday? are the prices going up? any birthdays or trips planned? Every month is different. You can't just make one budget and follow it all year. So each month I sit down and make my estimates, based on last month's figures, my current situation, and now that I've been doing it for a while, last year's numbers. Remember, a budget is your best estimate. If you happen to go over, that isn't failure of the budget. You just need to learn to be more realistic, or work a little harder, or just remember to check the fridge before you jot down you grocery budget.

Once we finish our estimates, we figure up the cash we need for the envelope categories, head to the ATM, and fill the envelopes.

That's all there is. Most of the work is getting started, and unlike losing weight (at least for me) it gets easier and easier as you go along. So what are you waiting for?

Of Debt

2009-05-18T15:00:00.000-07:00

There are a lot of things you can do with money. You can save, spend, budget, bargain, invest, earn, and give it. You can also gamble, lose, blow, and burn it, though I wouldn't especially recommend any of those things. I like to focus on all the positive things money can do for us, and the positive things we can do with it. I think all too often, people fear to really look at their finances. Sometimes, this is because their finances do look a little scary, but I think some have a view of money that is unfavorable. They may think it is a wicked thing, and to actually focus on it or think about it necessarily makes one greedy or selfish, cheap or miserly. As a consequence, people often make poor financial decisions, or refuse to make decisions at all, a choice in itself. That is why I want to talk about all the good and useful things you can do with money here, and I hope you will soon be doing all of these important things: Save, Spend, Budget, Bargain, Invest, Earn, and Give. You could call them the significant seven.

But before I focus on what you can do with money, I'd like to briefly go into what you can't do with money. You can't pull money out of thin air, and you can't spend it before you've got it ... or rather you shouldn't. Of course we all know there's no such thing as a money tree, but many of us have come to believe that the "lending tree" is the same thing. We've come to see loans as a source of income. Spending student loan money, taking out Home Equity Lines of Credit, and swiping our credit cards as if we have a right to the stuff these things buy us. And when the economy falters due to our excesses, rather than realize the weaknesses of overspending, many have made increasing spending a call to arms to "save the economy".

Now I will be the first to agree, that a home loan is a sound investment. But it's only actually a good idea if the buyers are out of debt, and willing to pay it off quickly. And they aren't paying too much. I really don't think 15 years is very fast. I think 7 years, or less, is much better. However, home loans are the only exception I like to make. With regards to everything else, if you can not use actual cash to buy something, you should not buy it. It's a simple rule, but one that seems difficult for most people to follow. It's true, people may sometimes find themselves in difficult circumstances. You need food and shelter, and a little heat sometimes. Fortunately there are programs and organizations out there specifically to help people in those circumstances. If you will remove the option of debt from your life, It is my firm belief that you finances will improve. Certainly it is POSSIBLE to use debt to leverage higher returns. But few and far between are the people who manage this successfully. Using debt to get wealthy, rather than using diligence, saving, and a little sacrifice now and then is something akin to forgoing school to practice basketball to make it into the NBA. Sure there is money to be had, but the odds are pretty stacked against you.

Living without debt can be difficult because we are conditioned to buy. No matter what we have in savings, or what we've got invested we tend to feel that if someone drives a better car, or wears nicer clothes, they're somehow winning, no matter how much debt they have, or what their overall net worth is. What's really ironic is, we will slave away at jobs to pay for the nice clothes and new car, that we deep down don't even care about, all the while denying ourselves the things we really want, whether that is a European vacation, more time with the kids, more education, or cheddar from the deli instead of American all the time.

The truth is, to really control our money, we have to ignore the option of debt. If you want something bad enough, you will find a way to save for it, just as well as you could have made the payment for it. When you become debt free, it's like breaking an old addiction. You can look back with wonder at some of the things you bought, or how on earth you spent so much clothes, a car, that souvenir nick knack snow globe.

You can do a lot of things with money, but you can't truly spend it if you haven't got it. Debt is just pretending we can. It's a weight on our shoulders, a knot in the pit of our stomach. It's a risk of losing what we "own", and it will only cost you 13% after the 0% six month introductory rate of your actual money to purchase this wonderful product. What do we need with that? What does that add to our lives? What joy does debt, or most of the things we buy with it really bring us? Life is too short to spend it making payments.

In order to control our money, to either pay off debt or to save money to buy the things we want in life, we need a budget. I'll talk to you about that next Monday.

How to Get Rich

2009-03-27T10:32:00.000-07:00

There are so many "get rich quick!" schemes out there, it's hard not to be tempted by them, even though most of us know that what sounds too good to be true usually is. But I do believe that anyone can become wealthy, if they are willing to work hard, and sacrifice a little. I and my husband work hard, and with our 401(k) and a little luck we will be millionaires by the time we retire.

That's a revelation for me. I grew up poor. The phone got cut off. I wore hand me down clothes. We never had junk food around the house, or any of the other things other kids seemed to have. I only ate at restaurants a handful of times growing up, and never seemed to do any of the other things other kids seemed to do. My parents even filed bankruptcy at one point when I was too young to understand what that really meant.

But that's not where I am now. Now my husband and I have a household income of over $100,000. We have 6 months of emergency money. We have paid off our home, and are contributing 15% of our income to 401(k). We are also contributing more than that to non retirement funds, in anticipation of early retirement. There still isn't much junk food around, but I can handle that.

So how am I here? Well, simply put, I worked hard, and refused to believe that it wasn't possible to do what I wanted with my life. I worked hard in high school. I took the ACT 3 times and won a college scholarship. I majored in Computer Science. I moved into an apartment with my boyfriend, and for two years we barely slept, went to school, made A's, worked full time jobs, and ate meat maybe once a month. We made a meal out of a coupled baked potatoes or a generic box of macaroni and cheese. But not because we had to. We were saving. We decided, after I finished my sophomore year in college it was time to buy a home. We found one selling for below market that we both loved. We didn't have any credit, because we have never had credit cards or car loans or any other kind of debt. We were still able to secure the loan on the house because we had something more important than credit. Because we never had to pay interest to somebody else, because we scrimped and saved, we had enough cash to put down and we had letters of good payment from the utility bills we paid while at the apartment. We moved into the house, and continued to live very cheaply.

Eventually, we both graduated and moved into our current, good paying jobs. We still only have limited basic cable, and only that for the career necessity of high speed Internet (OK, maybe also so we can play some Halo 2 online). We keep the house cold in the winter and hot in the summer. We carry simple emergency pre paid cell phones, and on and on. We are still saving like we did in college, but eating a lot better. We are still on a tight budget. My friends would say we are "cheap". But we have a lot to show for it. We have the money to travel where we want for vacations. The budget is large in this area, because it is something we consciously want to put our money into. We eat out and have fun. What all this boils down to is that we can spend money on things, live how we want, and get all we want out of life. The key is, we can't do everything at once, today.

How is this possible? To me it seems crazy. If I can grow up so poor and do this for myself just by sheer force of will, why isn't everyone a millionaire? The truth is it's because saving money is a lot like losing weight. You have to cut back on some things and work hard at it. There really are no miracle pills or 10 minute fixes. You have to choose what it is you want most. The majority of my clothes are about 8 years old. I wear clothes until they are worn through; I rarely buy new ones. When I do buy clothes, it is usually from goodwill. I've spent probably about $50 on clothes in the past year. I sew buttons back on, and repair holes. When we take vacations, we usually sleep in the car every other night to save on hotel rooms. We really only deprived ourselves completely for those first couple of years, but we still live well within our income. Because we save money, we can also afford to spend it.

We do have some luxuries. The big TV, the Xbox 360, the movie collection, the CD collection, some fairly expensive overseas vacations and weekend trips under our belts. But there isn't too much stuff that we've "blown" money on. We don't have the new cars, the expensive clothes, the latest cell phone. Things are bought on purpose. There are no impulse buys, no regretted splurges.

This is the way to live, to be happy with one's life. I do not have to worry about money. We don't argue about bills in my house; money's not an issue. And it shouldn't have to be. Stop trying to get rich, let go of the "afford the payments" mentality, and start living within your means, and you, too, can discover that doing that just for a few years really, will let you realize you dreams.

If you want a plan, a method to achieve this stress free life, I highly recommend reading Dave Ramsey's books. He has a good basic plan, and provides a lot of motivation. I plan to use this site to provide more in depth information on specific things that you can do to cut your budget.

A New Beginning

2009-03-25T08:28:00.000-07:00

After nearly a year of putting this blog, dedicated to money management and frugality, on hold, I'm going to begin again. First through updating and re posting the basics, and then by going forward with more hands on detailed explanations of how to make and save money. As of today, I'm putting my old blogs back into draft, and starting tomorrow, I will begin again.