A Quote I Just LOVE… Friday, Aug 14 2009

I have a money tree at home but it hasn't produced leaves like this yet!

 

“The safest way to double your money is to fold it over once and put it in your pocket.”

 

~Frank Hubbard

 

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Penny Wise! Friday, Feb 20 2009

They all add up!!

I know I’ve mentioned quite a few times that saving money and avoiding spending money when possible is a big priority for me.  I try to balance enjoying my life with saving for a comfortable life later (e.g., buying a few small things every now and then instead of hoarding every penny for retirement). 

I will say, though, that it has been much more difficult for my husband to learn to save than it was for me to learn over time (my dad used to always emphasize saving 10% of everything I made and said, “it’s easy– if you just do that, you’ll be a millionaire later”).  Somehow this just made sense to me and I loved the feeling I got from saving.  Husby has actually been doing a really great job with this… and shockingly, he has been impressing me with his money-saving ideas and techniques.

By avoiding buying things we don’t really need, cutting back on dinners out, grocery shopping with coupons, and shopping around for good deals (Amazon is awesome for this), we have managed to spend about $500 less a month without dramatically feeling an impact.  Hey, not bad!

Here are a few things he has taught me without realizing he was even teaching me anything:

• If you love something and it’s on sale, stock up.  I have always gotten excited about seeing some of my favorite brands on sale, but never really thought to buy tons all at once– I’m not sure why.  I guess I felt like it becomes a big hassle to buy 10 boxes of oatmeal at once (my Kashi hot cereal was on sale and he convinced me to go for it)?  Either way, if it’s something I really like (that doesn’t go bad quickly) and there is a great sale going on, it only makes sense to buy quite a few.  This adds up to a bigger amount spent at the register all at one time, but also adds up to greater savings over time.
• Don’t get flustered when you see large totals.  When we first started buying things in bulk I would freak out thinking about spending $25 on cereal at one time.  Husby explained that, because of the sale, it was a big amount to spend just on cereal, but that we actually would be spending $8 less for our favorite stuff and we wouldn’t have to take more trips to the store for it later on.  It was convenient and smart! 
• Look online for almost everything.  I know I mentioned Amazon before, but a simple google search can often lead you to deals on all sorts of products.  I found a slightly-used ceiling light on Craiglist for our rental property for $40.  It would have cost us over $100 if we bought it new from Home Depot.  It was a proud moment
• Just ask.  I have gotten better at this over time but it doesn’t come as naturally to me as it does to him.  Sometimes I feel embarrassed to ask someone for a deal face-to-face (I’m good over the phone), but he has no shame.  I love it.  He’ll just say, “is there any way we can get a better deal on this?” and every now and then we find out there is a way.  We also learn about upcoming sales by doing this and sometimes just wait a couple of days or a week for the sale to kick in and save tons of money– just by waiting and doing nothing (we did this at Arhaus for the dresser in our room to match the set we got as a wedding gift).
• If you’re not happy with something you paid for, just say it.  Before husby and I started dating, he had NEVER returned anything to a store…ever.  I was shocked (yeah, I judged him for this)!  I taught him that it’s okay to return clothes that you realize you don’t like/want/need,  and showed him that it was easy to send food back that wasn’t cooked properly or ended up not tasting the way you had hoped.  He was really excited when we went to the movies about a year ago and walked in to a packed theater.  After scanning the room and realizing that we would be forced to sit in the very front row, I suggested we just return our tickets for a refund and come back later.  “You can do that???” was his reaction.  Oh yeah, you can do that.  I think that was the turning point for him.  Now he’s really into it and I’ve created a mini-monster (mini because he can still spend money faster than what’s considered humanly possible and his love for pricey electronics will never waver).
• Pay a little now to get more back later.  This one is simple, but it wasn’t something I had considered before… because I didn’t need to.  We learned together that it’s a much better idea for us to spend $150 on getting an expert to do our taxes than for us to do it all ourselves.  This isn’t necessary for everyone, but we went for it because I had school expenses and we have a rental property.  Our tax guy ended up saving us tons of money and we were excited to get thousands back at tax time last year.  It’s almost that time again– and we’ll be paying him a visit in March.

…Because you can learn something from everyone.  Yes, even the annoying tall guy that won’t shut up…

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Financial Tips I love! Friday, Oct 3 2008

Warren Buffet shared his secrets, 10 Ways to Get Rich and I thought a few of them were really great. 

My favorites:

1. Reinvest your profits.

2. Be willing to be different. Don’t base your decisions upon what everyone is saying or doing.

5. Watch small expenses.

6. Limit what you borrow. His advice: Negotiate with creditors to pay what you can. Then, when you’re debt-free, work on saving some money that you can use to invest.

10. Know what success really means. “When you get to my age, you’ll measure your success in life by how many of the people you want to have love you actually do love you. That’s the ultimate test of how you’ve lived your life.”

…Because learning from really, really rich people is always a good idea.  They’ve obviously done something right.

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Everyone Can Save a Dollar! Wednesday, Sep 24 2008

4 of these puppies a day and you're golden!

I think that when it comes to saving money, it’s good to start small and develop good habits.  Anyone can save $1 a day…anyone!  Before you know it you will have more money in your account and may sleep a little sounder at night knowing you’ve got a cushion for emergencies.  After a while, saving money will be second-nature.  Also, as scary as the thought of being 90 years old is to me, time goes by really fast.  I’m learning that it’s never too early to think about retirement; compound interest is my friend.

Here are some great dollar-a-day tips I found on a cool money-saving website called Stretcher:

10 Creative Ways to Save a Buck

1. Instead of buying coffee at Starbucks, go to McDonald’s or Burger King or a deli and get a cheap cup and then add your own flavoring. You can buy huge bottles of flavoring that last forever for around ten bucks (or small ones for your desk drawer for about two bucks). Or just drink regular coffee.
2. Read the newspaper on the Net.
3. If you drink soda for lunch and have a machine at your office, get a can or bottle from the machine and quit paying for watered down fountain soda.
4. You could also get cans or bottles on sale at the store in a box or pack and get a foam insulator for them. You won’t spend any drink money at lunchtime that way. One of our local stores has the six-pack of 20-ounce sodas for $2.50 about once a month.
5. If you like snacks, buy them in a bargain pack at the store and take them to work. They cost as much as a dollar more in some machines.
6. Quit the lottery, especially the scratch-offs.
7. Quit smoking, but everyone knows that. I was surprised to see that a box of cigarettes at the train station to which I commute was nine bucks a pack. That would be incentive enough for me to quit.
8. If you buy water, take the bottle home and refill it at the tap, and refrigerate it overnight. A Brita or other filter will be useful to you in this case. Note that it’s not a good idea to refill bottles from a fountain and carry them around. Apparently, they get quite germy.
9. If you like to read magazines, get subscriptions for them. You can sometimes save as much as three bucks a shot, depending on the magazine. Conversely, do you have a subscription to something you rarely read? Cancel it.
10. Last, combine errand trips. I leave my laundry claim slips in my glove compartment and pick up my shirts and laundry on the way back from the grocery store. Depending on where you live, you might save a dollar a day by avoiding that second or third trip.

…Because the dollar store is awesome…

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Ask and You May Receive! Wednesday, Sep 3 2008

It’s really surprising that sometimes all you have to do is ask in order to save money. 

For example, in July I purchased dining room chairs from a company in the area known for excellent customer service and prices.  When I received an automatic email this morning highlighting new sale items, I noticed that the dining room chairs I ordered are now listed at about $200 less than I paid.  I picked up the phone, talked to someone from customer service telling them about my situation, and she immediately apologized and credited me the $200 plus the difference in tax I already paid. 

The same thing goes for getting lower interest rates on credit cards, hotel rates and room options, airline upgrades, using expired coupons, cell phone specials, cable and internet packages, and much more!  Hey, I have no problem asking.  Often when I ask, I am surprised to find out that I could have been paying less for something all along.  It’s always a good time to get a good deal.

Because if you don’t ask, you really won’t get anything…

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Saving Money Every Day Adds Up!! Friday, Aug 8 2008

Money, money, money!

I am a big fan of The Nest– a website with tips, tricks, and advice for couples.  If you haven’t heard of it before you should check it out. 

Anyway, I found a post called “10 Ways to Save Money Now” that I thought was a mixture of a little bit of common sense and a little bit of information that could be really useful to the average person… so I thought I would put the tips up on my blog.

1. Trade Starbucks for, well, more bucks. If you’ve already spent $6 on a beverage alone and it’s not even lunchtime, you’ve got a bad breakfast habit. If expensive coffee drinks are draining your funds yet you can’t give up the caffeine, brew your own or give the old deli coffee a try. At less than $1, you’ll be able to save up to $25 a week and a whopping $1,300 a year!

    

   “Reigning in mindless spending — and wearing what you already have — can save you hundreds, if not thousands, a year.”

2. Don’t get taken to the cleaners. If you’ve ever been to the dry cleaners, you’ve no doubt scratched your head at the diabolic pricing structures. How can it really cost that much? Spare yourself the bitterness and reevaluate your dry-cleaning needs. Try to cut your bill in half by laundering some items at home. 
3. Brown-bag it.If you eat lunch out five times a week and spend about $5 a clip, you’re looking at about $1,300 a year in sandwiches, soups, and other fast foods. But bringing your lunch doesn’t have to suck. If you stock up on readymade items like soups, burritos, and frozen meals, you can save up to $2 to $3 a day. The only thing you need to do is remember to bring it with you! 
4. Dine in rather than out.Craving that Indian spot you love to hit on Friday nights? Try making that chicken tikka masala at home. By digging up your favorite recipes online and then heading to the store for all of the ingredients, you’ll save money and have leftovers for the next day. Plus, you’ll get to congratulate yourself on your amazing samosas and pakoras! 
5. Ditch the brand names. We’re not just talking about Coach and Polo; we’re talking about Tylenol, Hellmann’s, and Charmin too. Whenever possible, choose the generic store brand over your favorite label. Most of the time, the formulation is exactly the same; you’re just paying for the packaging. A dollar or two here and there adds up! 
6. Give the horse a rest. If you’ve been called a “shoe horse” or a “clothes horse,” this message is for you. If you’re known for buying clothes, makeup, pillows, or home decor in excess, it’s time to cut back. Reigning in mindless spending — and wearing what you already have — can save you hundreds, if not thousands, a year. 
7. Jump on the wagon. Alcohol can be a diet-wrecker and a budget-buster. When you’re drunk, you think nothing of buying a round of Grey Goose shots for your nearest and dearest friends (and the awesome dudes you met 10 minutes ago). Later, you go home and wash the booze down with eight slices of pizza and a side of wings. When you control your drinking, you’ll have more money in your pocket and less flab around your waist. 
8. Carpool. A year or two ago, we would’ve laughed this idea off. We’re all down with saving money, but carpooling? Doesn’t sound very easy! Fast-forward to 2008 with gas prices climbing higher and higher; suddenly, saving money is no laughing matter. By splitting the drive and cost of gas with just one other person, you can reduce commuting costs by half — add another person and save more! 
9. Watch at home.With the average price of a movie ticket at almost $7 per person (and even more in some areas), a night out at the movies is no longer a cheap date. Add two kids to the mix and it’s bordering on “special occasion” status. Why invest your hard-earned money in what could be a Hollywood flop? Instead, consider a service like Netflix for less than $10 a month. If you hate the movie, you’ve only spent a dollar or two (the more you use it, the more cost-effective it is!) and you can ship it right back to where it came from. 
10. Indulge yourself at home.If manis and pedis have become weekly must-haves, it’s time to cut back. Extend the life of your mani/pedis by repolishing rather than running back to the spa for every chip or smudge. By investing in the tools of the beauty trade (remover, polish, and a manicure set), you can save a good chunk of change a month. Now that’s beautiful.

I think that everything in moderation is the key to long-term financial success.  I enjoy eating at King Street Blues just as much as the next person…but I would kick myself later for doing it every day at lunch.  The $5 estimate in the post above calculates food as costing far less than it costs in the DC/Arlington area.  I think that the total around here for eating lunch out every day would actually end up being at least $2,000 a year for one person– ouch.  I’d rather save that money!!

…Because it’s hard to make cheap decisions on an empty stomach…

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401k Time! Friday, Aug 1 2008

In order to fully enjoy life and enjoy the money you have, you need to be financially prepared for the future.  This will be a HUGE weight off your shoulders later on.

People that know me well know that I am obsessed with saving money.   This means that ultimately, I am obsessed with saving for retirement and am always checking up on my 401k.  I am always shocked to hear that friends and family members are not worried about their retirement and have no clue how their 401k plans work!  The money you are saving is for YOU and you WILL see it again– it’s not going into a dark hole! 

I found an awesome set of tips for understanding 401k stuff.  Here they are:

1. Start participating in your employer sponsored plan now: Time is on your side. The sooner you start contributing to a 401(k), the longer your money has to grow. Even if you only contribute 2 or 3 percent, it’s a start.

2. Know your rights: By law, you are eligible to start contributing to a 401(k) plan after one year of service; your employer can’t make you wait longer than that.

3. Pay yourself first: Out of sight, out of mind. Your contributions are taken directly out of your paycheck and deposited straight into your 401(k) plan.

4. Contribute to the max: It’s simple, but true. The more money you put in a 401(k) plan, the faster it will grow. Participants can contribute up to maximum of $15,500 annually ($20,500 if you’re 50 or older). Pretax limits are adjusted each year for inflation. These plans are portable and can be rolled over into an IRA or to another 401(k) if you change jobs.

5. Free money: Many employers offer matching contributions. Take advantage! It’s like a tax-deferred raise.

6. Pretax benefits: 401(k) contributions are not taxed until you pull your money out. Saving pretax gives you more money to invest. Because taxes take a large bite out of each dollar you earn, you have to save more after-tax dollars to get the same impact as pretax saving. Plus, saving pretax dollars lowers your taxable income, which means you’ll pay less to the IRS.

7. Keep your hands off your retirement savings: Financial advisers warn against borrowing from your 401(k), even if it’s to get rid of credit card debt. Essentially, you’re robbing your retirement. If you do borrow, the loan has to be paid back in five years or you will be slapped with a 10-percent penalty. Plus, in most cases, if you leave your job, you’ll also pay the penalties and tax unless you repay the loan in full.

8. Be flexible and look long-term: As the years go by, life changes; so should your retirement savings strategy. Review your 401(k) plan quarterly, and definitely annually to ensure it still meets your needs as retirement approaches.

Because a penny saved is a penny earned.

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Saving Money on Gas. Saturday, Jul 19 2008

“Vacation used to be a luxury, however, in today’s world, it has become a necessity.”

I love to drive to new vacation desinations… but I hate to pay for gas   Actually, I’m not a big fan of paying a lot for something that used to be pretty reasonably priced.  Sad, but instead of complaining, I just try to make do and work around the ridiculousness.

While I am a big fan of staying home when I can, I think it’s really important to get out of the house and enjoy vacations whenever possible.  Mark and I have been known to go on random vacations to small towns across the country that we’ve never heard of– and I have had some of the best times of my life figuring out where to go and what to see in places like Nashville, Indiana (my favorite small town of all time). 

Mark and I on vacation (December, 2006)

I found a blog called Bargainist with a post listing 20 ways to save money on gas.  This way you can drive until your heart’s content– but still have a little bit of money in the bank to spend once you get to your destination.

Here they are:

1. Maintain your vehicle. A vehicle that runs smoothly uses less gas than one that is poorly maintained. Regular oil changes, air filter and other recommended maintenance will all help to give you a fuel-efficient vehicle.

2. Keep your tires inflated. Actually, studies have shown that the savings on gas isn’t huge, but it does make a small difference to keep your tires inflated to the recommended pressure. And more importantly, this is also safer and makes your tires last longer.

3. Don’t drive during rush hour. Go to work, and come home from work, either earlier or later if possible, to avoid the rush hour. Getting stuck in a traffic jam, and stop-and-go driving, is one of the worst ways to waste gas.

4. Telecommute. Working from home can save tons in gas, not to mention giving you more time, productivity, and happiness. If you can telecommute even one or two days a week, this can be a substantial savings.

5. Remove weight. Driving with more people, and more stuff in your car, drags the car and requires more fuel. Lighten your load by removing excess cargo.

6. Minimize idling. One of the worst offenders in lowering your gas mileage, idling gets you zero miles per gallon. If you are going to idle for a minute or less, leave your car on, but if it’s going to be much longer than a minute, you should turn off your car.

7. Drive slower. Driving the speed limit is more fuel efficient than speeding.

8. Accelerate and brake easier.Driving too aggressively, especially starting fast and braking fast, is bad for fuel economy. Accelerate gently, and try to minimize use of your brakes, if possible.

9. Use higher gears. Driving fast in low gears is bad for fuel economy as well. Drive in as high a gear as possible, unless you’re down-shifting in order to slow down or control speed.

10. Buy a fuel-efficient car. Actually, this is the most important tip on this list. A heavier car wastes gas. Get a lighter car, especially one with a fuel-efficient engine and design. See the federal government’s article on choosing a more efficient vehicle.

11. Roll up windows on highway. While many people think they’re saving money by turning off the air-conditioner, it actually creates a strong drag if you are driving fast with the windows down, and is worse for your fuel economy. If you are driving slow, around town, turn off the air-conditioner and roll down the windows. Roll them up on the highway.

12. Don’t top off. Topping off while you are filling up your tank is a waste of gas, as any gas that you top off will spill or otherwise be wasted.

13. Park in shade. A hot car evaporates gas. If it’s a hot day, park in the shade, and use your garage.

14. Walk. Driving less is a great way to save gas. If you have to make a trip of only a few blocks, try walking instead. You will burn fat instead of gas.

15. Cycle. Many people live close enough to work that they can commute by bike. It’s not hard, and you get exercise while saving money.

16. Live closer to work. Of course, you probably won’t be able to implement this tip today, but the next time you’re considering where to live, try to find a place close to your workplace, or try to find a job closer to your house. It will save a lot of driving.

17. Group errands. Instead of doing one or two errands a day, try to group them all on one day, and plan an efficient route to cut back on driving.

18. Carpool. It’s not usually hard to find friends, family, or neighbors who live in your area and work near you. Take turns driving each other to save gas for all of you.

19. Use cruise control.This method has actually been proven to save a lot of gas, as it reduces heavy acceleration and heavy use of the brake. A steady driving speed will improve fuel economy.

20. Don’t buy hot gas. Buy gas during the morning or evening hours, when it’s cool, or you will be buying gas at a time when it’s expanded (and thus getting less).

      “Happiness consists of living each day as if it were the first day of your honeymoon and the last day of your vacation”

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