Easy Money Saving

Lights...Camera...Money Saving Action!

2008-03-05T15:48:00.002-05:00

There's something special about movies. Whether it's a comedy you can relate some awkward moments too, a sci-fi or action adventure movie to escape to another world in, or maybe a drama to get the ol' waterworks going, movies are a great way to unwind, relax, and have some fun. The problem though, is to go out to a theater, you need to either get a second job or perhaps get a third mortgage on the house. A family of four could easily spend $80-$100 for a night at the movies...between tickets, popcorn, candy and drinks.

There is always the home rental end, which while it lacks the "energy" of being in a theater with a crowd, has many benefits. No talking moviegoers, no one kicking the back of your chair, and no stepping on something on the floor you're afraid to look at. Plus, you won't miss anything if you have to head to the toxic wasteland of movie theater restrooms. But, it can get expensive as well, though it is cheap, compared to going to the theater. Our local video store charges about $5 a rental, but you do get to keep it for 5 days, so it comes out to about a buck a day, but still, there has to be a way to save more money. Below, you'll find several options on enjoying the movie experience, while keeping your wallet happy.

The two biggest movie by mail are Netflix and BlockBuster. Both offer plans that allow you to create an online list of movies you want to watch (they also have tv series on DVD), and as those titles are available, they will send you the dvd. there is no late fees or cost for returning...both companies include a postage paid return envelope when you are done. When the movie is returned, they send another one on your list, up to the monthly maximum your plan allows. Netflix has a plan starting at $4.99 a month, but it is only one dvd at a time, with a monthly maximum of 2 dvd's. You also get 2 hours worth of movie watching you can watch on your home computer. They have other plans,where you can get up to 4 dvd's at one time, and have unlimited viewing of movies on your pc. Blockbuster has a plan starting at $3.99, with one dvd out at a time, with a limit of 2 dvd's a month. Other plans allow for more dvd's out at a time, with the benefit of in-store exchanges. Some of the in store exchange plans limit you to a set limit each month, while others allow unlimited exchanges. Just figure out how many movies you watch a month on average, and figure out which plan suits you best. The only real downfalls to the plans are that you get your selections in random order...so you may be in the mood for a comedy, but what you got was a romance. Still, if you watch a lot of movies, it's a great deal to maximize your monthly entertainment allowance.

Next you have Red Box and The New Release. Both are dvd vending machines you can find at your local grocery store, like Wal-Mart or Kroger. Basically, you pick what you want from the touch screen display, then all you do is swipe your debit or credit card, and it dispenses the movie for you. Just return it to the machine whenever. At a cost of only $1 a day, it's hard to beat, especially if you remember to return it the next day. No late fees, and your card doesn't get debited or charged until the movie is returned. This is what my wife and I use the most, as we can choose what we want, and not get a selection by random. However, keep the dvd too long, and they will charge you as a purchase.

One way to catch some movies, without spending a lot of money, is to check out your local pawn shops or hobby stores. Our local ones take movies in on trade or loan, and then they can be bought for a dollar or two, sometimes a little more. Also, our chain rental store sells excess copies after the new release stampede wears off, and you can get a decent used copy for less than what it cost to rent it This way you can build your own library at home, without spending more than you would have rented that same title for.

Finally, check out your local library. Ours has a large selection of classic and new release movies for kids, teens, and adults...spanning every genre. And the best part is, no rental fee (other than our taxes, which we have to pay anyway), and we get to keep the movie for a week. I find this a great place to check out a movie that may be kind of cheesy, and not worry about whether or not I'm getting my money's worth.

Let's talk life insurance

2008-02-27T08:27:00.005-05:00

Another one of those topics people do not like to talk about, much like the need for a will . For some reason, we just don't like to think of our own mortality...even though it is guaranteed. Whether from old age, or an accident at a young age, it WILL happen, and we need to prepare for it - especially if we have any family or loved ones. Part of this is some form of life insurance.

There are two basic types of life insurance, term and whole. There are other types, but for the most part, they are similar to whole (also called universal). First we need to define what each is, than we can look at which is best.

Whole is a type of insurance that can build cash value, that you can borrow against (and if you cancel the policy, what you get refunded). It is often promoted as an investment or retirement vehicle, as the amount of money you put into it grows. Sounds good, right? Not so fast...how can you be sure you know what the rate of return on them is, and never mind the high commission fees and costs of the "investment". Not to mention, often the commissions paid can eat up the first year or two's premiums (in other words, the money you pay every month for a year or two goes to pay the agent their commission, not in building any value in your policy). They're right when they say it is a retirement account...but whose? Yours or the insurance agent's?

Term is a type of insurance that only pays upon the death of the insured. It is usually set for a distinct period of time (hence the "term"), which can range from a few months to 20-30 years. The premiums are set (the younger and healthier you are when you start, the cheaper it is). You build no cash value to borrow against, but the premium savings are astronomical.

Here is an example I found from Smart Money :

To get a real sense of the value of term, let's compare a term policy and a universal life policy. Say a 40-year-old nonsmoking male has a choice between a $250,000 Met Life universal policy with a $3,000 annual premium and a same amount of renewable term coverage with a 20-year fixed premium of $350. At the end of one year, the universal policy, assuming it paid 5.7% per year, tax-deferred, would have a cash value of exactly zero (cash value is the amount you would get back if you canceled the policy). But say he had instead invested $2,650 (the difference between $3,000 and $350) in a no-load mutual fund that averaged a total return of 10% annually. At the end of the first year, he'd have $2,841, accounting for taxes on the earnings at a 28% rate. At the end of 10 years, he would have accumulated more than $46,000 in after-tax savings in the mutual fund. Over the same period, the cash value of the policy would have climbed only to $31,819.

See that? That right there...at the end. The difference is almost $14,000, in ten years! That number will only get bigger with each passing year, due to our best friend compounding interest! Why would you let someone else get that money that you worked so hard for, by paying high commissions and fees, when that money can work to make YOU more money?

Now what about when the term runs out, then what? Okay, so it runs out...if you planned correctly, and saved and invested, you should be fine. Over the 20, 30 or even 40 years, you have (or should have) been developing a nice retirement account. Life insurance is there to provide a cushion in the early years, mainly your working years. It is there to replace your income, in the event you pass away, and your family needs to continue to be provided for. A good rule of thumb is to get a term amount of ten times you annual salary. Say you make $50,000 a year, get $500,000. If you or your spouse dies, the interest you would receive off the payout would be close to the salary that partner made while alive. While nothing will replace the loss of a loved one, knowing the income level won't change much is one less thing the family needs to worry about. By the time of term ending though, with a properly funded retirement account, an income won't need to be replaced...the retirement funds should already be providing the income, so when one partner dies, the income won't disappear, because the income is no longer dependent on the work of the person who is gone, but it comes from the investments.

So, when considering insurance, first know, you NEED it. Then choose the best vehicle...namely term. Then with the difference you save between term and whole/universal insurance, invest that money, along with your other investment strategies, and prepare for when the term runs out. You'll be able to save more money, and make more money, when it is all said and done.

It's all about the Benjamin's, Baby!!

2008-02-20T09:15:00.003-05:00

That's right...it's a all about the Benjamin's...Benjamin Franklin, that is. Ben was pretty smart in his own right, and had many thoughts - often humorous - on a host of issues. Money was no exception. Check out some select quotes and thoughts from Ol' Ben, and you'll soon realize why he is on the $100 bill.

A penny saved is a penny earned. Any money saved, is money earned...but Ol' Ben was on the right track.

Beware of little expenses. A small leak will sink a great ship. Things like that coffee latte, cable tv, eating out for lunch, that new pair of shoes, etc...these are little expenses. The great ship is your financial life and freedom.

Buy what thou hast no need of and ere long thou shalt sell thy necessities. Keep buying stuff you do not NEED, when you do not have the cash in hand to buy it, after all other necessary expenses are met, and you'll be selling that stuff to make ends meet...either voluntarily, or at a sheriff's sale.

By failing to prepare, you are preparing to fail. This applies in all areas of life, but if you don't plan on how to make your money work for you...like having a budget, and "pre-spending it" through the budget...you will fail at being debt free, and financially free.

Content makes poor men rich; discontent makes rich men poor. Being content with what you have is the key...whether rich or poor. Desiring bigger and better things, is not bad in itself...it is when you want it so bad, you get those things when you can't truly afford them. Putting them on a loan doesn't count. This is why so many are in debt...they are not content with what they have now, and can't wait to save to buy what they want.

Creditors have better memories than debtors. Do I need to say more? Well, a little bit. Very true words, but when you do pay off a debt, keep a record of it. How long do you keep it? FOREVER!! Sometimes creditors have memories of things that haven't happen. Not to mention they forget sometimes, too.

He that can have patience can have what he will. PATIENCE...the key to saving and building wealth. If you can wait to save up the money to buy something, you can pretty much have what you want, without going into debt.

If you know how to spend less than you get, you have the philosopher's stone. Can't say it any better than that...spend less than you make, and you'll never be broke or in debt.

It is the eye of other people that ruin us. If I were blind I would want, neither fine clothes, fine houses or fine furniture. Keeping up with the Jones'...take a second to evaluate where you are in life right now, financially speaking. How much of your "stuff" and debt stem from things you bought, in order to impress other people. Be honest with yourself. I was, and I realized just how much I was letting what I thought other people would think of me, dictate what I bought. Funny thing is, most people are busy enough with their own lives, what you thought they were thinking about you, they weren't thinking, because they were worried about what other people were thinking about them. Ok, there is to much thinking going on right now...my head hurts.

Our necessities never equal our wants. The "wants" will keep you wanting, financially speaking.

Remember that credit is money. Just very expensive money, and money in the lender's pocket. Don't look at it as a way to get something now, and pay for it later. Look at credit as a more expensive way of buying things. Think about the interest, and how much extra you are paying over the term of paying off that item. Either way you are paying cash for it...either upfront for the actual cost, or long-term, to the lender...with interest.

The Constitution only guarantees the American people the right to pursue happiness. You have to catch it yourself. Not to get too political here, but I think this is a key point. many people here in the US have an entitlement mentality. They feel they "deserve" something, for which they have not worked. They think because they want it, they should have it...NOW! Sorry, folks, but we are not guaranteed happiness in any form...just the freedom to pursue it. Whether we catch it or not, is up to us.

The definition of insanity is doing the same thing over and over and expecting different results. Keep living the way you live, keep getting what you've got. Eat bad food, get bad health. Spend money foolishly, get in debt. If you do not like where you are in life, whether it is money, work, or anything else, it is up to YOU to change...no one else can do it for you. Complaining about it, or blaming other people for you problems will not solve your situation. Only you, can improve your life. Make a change...even a small one.

The power of saving and discipline

2008-02-15T07:04:00.002-05:00

I wanted to share two motivational stories today. I often hear that it is too hard to save, or that wealthy people get the breaks or are lucky. Some people tell me that no matter how hard they work, they can't seem to get ahead (while they are sipping a latte, as they get into the brand new fleeced...I mean leased...luxury car they just got. Well, these two stories show what you can accomplish, if you have the right mindset.

Our first one is the story of Adam Shepard. Adam decided to try an experiment after graduating college. He wanted to see if the "American Dream" was still alive. Adam moved to another city, with the clothes on his back, and $25 in his pocket. His goal was to have an apartment, a vehicle and some money in savings, all within 12 months. Part of his experiment included the restrictions of not using and friends or family or previous aquaintances for help, nor did he rely on his college education, as he purposely left it off any job application.

Adam lived in a shelter for over two months. He worked odd jobs, and worked his way into a steady full-time job. Two months before his twelve month deadline, he surpassed his goal...Adam had an apartment, a vehicle he owned, and several thousand dollars in his savings account. Adam showed that by living within your means, and saving, you can get ahead. The key, is living within your means, which means living on less then what you make.

Story two focuses on Lance Roberts, of Houston. Lance is worth several million dollars now, but he was homeless to begin with. He lived out of his pick-up truck for two years, parking behind a fitness gym at night to sleep. Now, he works as a radio talk show host and money manager. His advice is to pay yourself first, and save 40% of your income, and live off 60%. Strong advice, and not easy, but a worthy goal to shoot for. Lance actually lives on less than 40%, and saves 60% (but granted, it's easier to do, when your worth several million dollars). His next piece of advice is to get rid of credit cards...the debtor is slave to the lender. Can I get an amen? Lance also makes a great point, using watches as an example. As much money as he is worth, he says he will never buy a Rolex. Why? Sure, he can afford it, he says, but he doesn't need it...it is a waste of money. A $20 watch tells times just as well as a Rolex. Lance points out, most people, when they make more money, spend it. They buy bigger homes, nicer clothes, and newer,bigger cars. If you live the same way, you'll never make it, but if you keep and maintain a lifestyle within your means, and put that extra money into savings or paying off debt (while not creating more debt), you will get ahead.

So what can learn from these two examples? People who struggle with money, as a rule, are not held down by the government, some evil corporate entity, or a string of bad luck. No, the thing holding people back, is something closer to home...themselves.

Well, which is it?

2008-02-13T17:29:00.002-05:00

Today, I was checking out my homepage, which I have set to MSN, and noticed to headlines that really grabbed my attention. Both were under the "money" section. The first, "Why you'll never own a home" is kind of misleading. When you click on the link, the title of the article is actually "Why you MIGHT never own a home"...a bit different from never, but hey, they need a catchy headline, right? The second one,"Whats busting your budget?" focuses on "essential" indulgences. Funny how they don't see the solution to one problem in a published article is staring them right in the face in the next published article.

In a nutshell, the author of the first article claims you'll never own a home, because they are just priced out of reach for the average middle-class family. What the author fails to take into account is, that while prices are artificially high now, they will come back down to what people can afford. It is simple supply and demand...once you have enough homes that are not selling, the prices will keep dropping until they do sell...prices will come back into balance. My whole take on the article was all gloom and doom about how the current young generation will not be able to afford the "American Dream"...as if everyone will be living in apartments. And how it isn't the fault of people who can't afford the payments. One woman says she fears for her son (who is 29), that he won't be able to buy a home...but he has a nice car and an iPhone. Well, gee, get rid of the car payments and the iPhone, and you could save a nice down payment rather quickly. The article continues on, talking about how the mortgage industry helped push people into more home than they could afford, yet the author never really hits on the LIFESTYLE of the middle-class. The author seems to miss that little...well, actually, BIG...factor in why many people will not be able to buy a home.

But lo and behold, the same author, writes another piece on what is breaking the budgets of the middle class...the "essential" indulgences. These are items that are not necessities, like lattes, designer clothing, new cars, spa treatments, and such. While these things are nice to have, you don't need an iPhone, when the low end free phone you can get with your cell phone contract makes calls just as well. For that matter, you don't NEED a cell phone. Same with satellite and cable tv...they are nice to have, but you won't die without them...but go to a run down trailer park, and you'll be hard pressed to find one residence without a satellite dish. The author hits the nail on the head with this article...the modern standard of what we "need" has changed, and that is what is breaking our budgets. Getting a pedicure may feel great, but getting one every week is not a need. Buying "organic hand wipes" for $10, as the author admits to doing, is crazy, when you can buy a package for about a $1. If people would look at their lifestyle, and get rid of the indulgences they "need", then they would have no problem buying a house. Sure, a 5,000 square foot McMansion may not be what you can afford, but do you need a 5,000 square foot, 5 bedroom, 4 bath house? I didn't think so.

The reason the middle-class is having a hard time living like the middle-class, is because they are trying to live like the high upper-class. If the middle class would learn to stop being so self-indulgent, they would have more money to save and invest, which would allow them to start living like the upper-class, because they will BE the upper-class.

The author has the answer to her own concerns, between the two articles she wrote. So, which is it? Is the housing market outpacing the middle-class, or is the middle-class over-indulging itself? My vote is for the latter.

The Slight Edge

2008-02-10T05:34:00.000-05:00

Today is a review of a book that covers a concept that will propel you to advancement in whatever you choose to do, if you apply the principles. The book is, "The Slight Edge", by Jeff Olson. Jeff is a successful business owner and mentor in the direct sales industry. His theories are applicable across the board, and know no boundaries, regardless of what the reader does in life.

The slight edge is doing the little things that many people overlook or fail to do, and do them consistently over time. Take two people and have one eat an apple a day, and have the other eat a cheeseburger a day. You probably won't see any difference the first day, or maybe even the first few months, but over time, those small things we do, add up and compound overtime (like interest).

Another way to look at it, is reading a book. The average person, after high school, will read one book a year. What if you read one book a month? What about one book a week (my personal goal)? In a ten year span, who do you think has a slight edge, the person who has read 10 books, or the person who has read 120, or even 520 books? It is that small action, over time, done repeatedly, that will set you above others.

Whether at work, or in your finances, it is easy to set yourself apart from the average. You only have to do a little more than everyone else, and you will soon be far ahead of them. Whether it is doing a little more work for your employer, or saving and extra couple fo dollars a day, and investing them, you will soon be where many people only hope and dream they can be.

From personal experience, I can attest that it works. I have been applying the principles that Jeff has been teaching, for several years now, and I find I consistently excel and see growth in all areas of my life, where I focus on getting the slight edge. Remember, something that is easy to do, is also easy not to do, and many, many people easily choose not to do those small things...therefore it is easy for you, to set yourself apart from the masses.

Get the book, and get the edge!

Assets or liabilities?

2008-02-07T18:50:00.000-05:00

The key to financial freedom, and true wealth. What do you have? Do you even know the difference? Can something be both at the same time? Is your head starting to hurt from thinking that your about to get a lesson in accounting? Don't worry, it's not that bad.

Simply put, an asset is something that makes you money, while a liability is something that costs you money. That wasn't so bad, now was it?

The problem people have is they have more liabilities than they do assets...if they even have any assets. Sure, if you are a homeowner, you might think of your home as an asset, but rethink this...it probably will appreciate over time, but so do the costs of owning that home. You have taxes, lawn care, repairs, routine upkeep, and on and on. There is quite a bit of expense associated with owning a home. This does not mean I am telling you not to buy a home, as I own one myself, and frankly, we have to pay to live somewhere. I would rather pay for my own place, and have a pretty good chance I'll build some equity, versus renting, where I build equity as well...but for the landlord. This is one of those things that can be both an asset (through appreciation over the years) and a liability (expenses of owning a home). Just remember, that equity is not liquid (unless you sell the home), or you take out a line of credit against it - but then it becomes another liability.

Liabilities will always be a part of our lives...the wealthy and financially free, know how to reduce their liabilities. We have taxes, we have utilities, we have necessities like food, clothing, education, transportation and such. Some of these liabilities we just can not do without. Liabilities like credit cards, satellite tv, and Starbucks we can do without.

Assets on the other hand, will put money in your pocket. They are a vehicle that puts your money to work for you. They can be anything from a profitable business you own, paper investments (stocks, bonds, mutual funds, etc), interest bearing savings, rental real estate properties (I don't consider one's primary residence to be an investment, per se, as it is not liquid, nor is it throwing off cash every month, like a rental would), etc.

True wealth comes, as well as financial freedom, when you have assets throwing off more money than you are spending with liabilities. Let's look at Mike and Joe. Mike works for a very large company as a regional sales rep. He makes over $500,000 a year in commissions. Mike and his family live a very extravagant lifestyle...they have a huge house, the newest luxury cars. They wear the finest clothing and travel to the most luxurious vacation destinations. They also spend more than they earn, and are financing almost all of it. Joe on the other hand, has $500,000 in investments, and is averaging an annual return of 10%, or about $50,000 a year. Joe is also debt free, except for his home, which is nearly paid off. Joe does not live extravagantly, but neither does he live like a pauper. He has two very nice used vehicles, dresses well (but not name brands), and saves to go on vacations. He also saves for things he wants to purchase, instead of financing them. Joe's total yearly liabilities are approximately $30,000 a year (between food and other living expenses, taxes and mortgage, etc). So who is wealthy? Mike, making over $500,000 a year, or Joe, making about $50,000 a year.

Joe is the wealthy one. Why? He does not have to work, because his assets are making more money than he is spending on his liabilities. Wealth is not a dollar amount, it is a state of being. If most of us would stop trying to keep up with the Jones' lifestyle, more of us would be able to surpass the Jones' lifestyle.

Saving money can be hard at first, especially for spenders like me. But it gets easier as you go along. It actually becomes fun. A close friend once told me, "If you do today what other's won't, you'll have tomorrow what others don't". There is wisdom in those words.

Kids' college or retirement? Retirement!

2008-02-06T18:42:00.000-05:00

I'm sure I probably just lost a few readers with that one, but let me plead my case, please. A hot topic with any parent, is their kid's future, and I won't argue with that. As a new dad, I want only the best for my son, and any future children I'll have...but paying for my kid's college education is not one of them.

Before I lose anymore readers, and before someone reports me for being a bad parent, let me say I believe education and learning is vital to success. I went to college, and i paid my own way...my folks wanted to help out, but couldn't. I saved, and took out student loans. I worked three jobs. I drank pallet loads of Mountain Dew to stay awake. And while the experience was great, funny thing is, like most college grads, I'm not working in the field I got my degree in. Personally, I think a lot of employers just look at the fact that you graduated college, as opposed to what field you studied (unless it's a technical field, like engineering, medicine, etc). But, I'm heading down a rabbit trail, so back on topic.

Lately, in the news, there has been quite a few stories on grads moving back in with mom and dad (not a good idea). Probably kind of tough on everyone involved. But as a parent think about this...how would you feel about having to go to your kids when you retire, and say, "Hey, I need to move in, and have you support me...because I spent my money on your college education, instead of planning for my retirement!"

What do you think is going to be the outcome of that situation? Not a good one, I would wager. This is why when it comes to your retirement, or your kids' college education, you need to be selfish, and lookout for yourself. Your kids have a lot more time ahead of you to get financially stable. If they are young enough, teach them how to properly manage money and make it work for them...they can have a nice college fund of their own to start out with, by the time they reach college age. Teach them to save a portion of their allowances, money gifts, and wages as they get older, and they'll be fine.

Keep in mind, college tuition assistance will always be available, through programs like grants, scholarships, and low-cost loans (last choice). On the retirement end though, unless you plan for it, it won't be there, and if you believe Social Security will be there for you, I have some waterfront property to sell you in Arizona...
Seriously though, Social Security won't be there, and even if by some chance it is, it won't be enough to cover your living costs. And if your kids are following your example, and they are trying to save for THEIR kids' college funds, they probably aren't planning for their own retirement, and they sure as heck can't afford to pay to support you.

So, to recap, take care of yourself first! Make sure YOU have savings and investments for retirement, so you can live after you retire...without asking your kids if you can move into their basement!

SAVING is not spelled S-C-A-M!

2008-02-02T23:03:00.000-05:00

"A fool and his money are soon parted"

This may seem harsh, but it is a reality. But sometimes, the ignorant and their money are also soon parted. People will fall for pretty much anything, and it is either due to trusting someone too easily (the elderly are a good example of the ignorant types), while others are too greedy (want to make a fast buck with little effort...the fools). This often makes them easy prey for scammers. There is not much hope for the fools, but the ignorant can be helped. I don't mean ignorant in a demeaning way, either. I simply refer to those who are unaware of something, not informed or educated, not savvy to something. Savvy?

Now, before everyone gets all huffy with me, let me say, there are many folks who do innocently get scammed. With the huge rise in identity theft, phishing, and spyware, many people will inadvertantly become victims of scams, through no fault of their own.

One scam, that will catch many innocent people off guard, is already barreling down the highway. Clark Howard talked about this on Thursday. We have all heard about the rebates that are going to be sent out later this year, in an attempt to stimulate the economy (that is another topic in and of itself). Well, the scammers are already hitting people from this angle.

You are probably thinking, "Gee, they are going to try to get my rebate check? I won't fall for that!" Slow down a second...it's more nefarious than that. The scammer will contact the victim, and pretend to be from the IRS. They will advise the victim they need to verify the account number at the victims bank, so they can make sure the rebate gets electronically deposited. They verify that is the right account (duh!), and thank you for your time. And then nothing happens. Yet.

What they do then is watch your account...and watch it...and watch it. Not for the rebate check, though...they want bigger fish. They wait and see when you typically have the most money in your account. Basically, they are looking for that paycheck to deposit, or the social security check to credit, or that pension to drop in...then they nail you, and drain your account. Once they figure that out, say good-bye to your money, cause it's on a fast plane to someone else's wallet.

In a nutshell, be very wary of anyone asking for your soial security number, your checking or banking account information, or any credit/debit card account information...legit companies won't ask for them by phone or email.

Super Emergency Fund

2008-02-01T16:18:00.000-05:00

Recently, I have talked about having an emergency fund in place, and paying off your debt (minus the mortgage) as soon as possible. But what about after getting your debt paid off, and you have a fully funded emrgency fund? This where you create a SUPER EMERGENCY FUND (SEF).

An SEF is an emergency fund on steroids. It is there to protect you in the event of something catastrophic, such as a job loss, prlonged illness, or even a disability. Typically, most financial counselors will recommend saving 3-6 months worth of expenses, but I tend to be more conservative, so if possible, I say go for 6-9 months worth of expenses saved up, or better yet, a year.

I hear it now..."Whoa, wait a second! 6-9 months of saved expenses? I can barely make my payments now!". Keep in mind, this is after you pay off all debts except the mortgage. I'll use myself as an example...after paying all our debts off (minus the house), we will have a total of about $700 (as we pay off each debt, the extra goes to the next smallest debt balance, to pay it off faster). Our personal goal is to have $15,000 saved in a SEF, which would take us approximately 21 months to accomplish. Looking at that way, it won't really take that long to accumulate a nice SEF, for a REAL rainy day. Even better, having it in a MMA or mututal fund will help it grow faster, with interest. Using the MMA we use now for our regular emergency fund, we would have about $16,000 with the interest earned.

The peace of mind the SEF gives you, will do wonders for your relationship with your spouse, not to mention your overall quality of life. Not fighting over money, knowing if something happens, you'll more than likely be able to cover it financially without going back into debt is priceless. My wife cinfided to me how much more secure she felt, knowing we had an emergecny fund in place, for those "what-if's" (and fellas, if I had known what THAT would have done for our relationship, I would have had an emergency fund YEARS ago!). Knowing that if you lose a source of income through layoffs or worse, an injury or sickness, you will have enough time to replace that income, or receive disability (disability insurance is very cheap, and should be a part of your overall financial plan, even if not offered through your employer. The SEF will help you get through until your long-term disability kicks in), because of the foresight you had to plan for that big bump in the road we call life.

Go ahead and get that super rainy day fund saved up, for those monsoons life sooner or later is going to send your way.

Save money with FREE digital prints

2008-01-30T17:06:00.000-05:00

As a fairly new dad, I've come to appreciate the value of taking photos...alot of photos. So many though, it's going to be expensive to have any significant portion of them devleoped (and you know how I am about spending money). Yeah, we use a digital camera, and it helps being able to post them or email them to friends and family, but sometimes, you want a hard copy. This deal is going to help.

I was surfing around on Saving Advice, and aneta posted this great deal. Get up to 330 free digital prints. The link she provided actually takes you to Cheap Stingy Bargains ( a new site I'll be sure to look at more closely for future money saving ideas). From there, there is a list of links to various online sources, like Shutterfly, SnapFish, and Kodak, with deals ranging from 10 to 50 free digital prints. Between all the links, you can get up to 330 prints total. That's an avaergae savings of about $30. Not bad.

After this week with the baby and grandma and grandpa, and great-grandma, we'll definitely be putting some of these offers to use.

Just an FYI...

2008-01-28T08:23:00.000-05:00

Just wanted to let eveyone know I'm headed out on a little vacation for a week, so postings may not be everyday. Today, we'll be heading out shortly on what is normally an 11-12 hour drive for us, but with a 4 month old and a dog, things could be interesting this time...wish us luck! :D

End of post.

Manna from heaven? No...but close!

2008-01-27T17:18:00.000-05:00

I am pretty sure I'm not the only one who has noticed the recent increase in food costs. In addition to being an ice cream addict, I'll admit I'm a chipoholic as well. I LOVE potato chips! And so, this is a pretty easy example for me to give. Potatoes are relatively cheap...potato chips are not. A year ago, I could buy a 6oz bag for $0.99...now I can buy a 2oz bag for $0.99, and a the 6oz bag for $1.59. But wait, what is that!?!? The 6oz bag,, is only 4oz!?! The bag is the same size, shape and design, but they've reduced the contents...so now I'm paying 50% for 30% less? My addictions are killing my wallet!

Seriously, though, food has gotten more expensive. There are many reasons for this...fuel costs, added taxes, increased labor force costs, etc. There are not so many ways to save on your food purchases. Besides clipping coupons, or playing The Grocery Game, there isn't a whole lot one can do.

Well, you can possibly add one more thing you can do. Get food from Angel Food Ministries. I first learned about them from my mother-in-law, who said her church is a local distribution point. What they do is call food manufacturers, and negotiate low-cost food purchases, or even donations, of food. These are the same manufacturers that provide the foods you find in the grocery stores. You pre-order as many food boxes as you like, at a cost of of $30 a box, and the contents would have an average retail of $60. Each month features a different "menu", so your not getting the same food each month. This is open to everyone, not just low-income families, as the food is provided based on the number of orders...so you are not taking a box away from someone who may be in a financially harder place than yourself.

A sample box might contain :

1.25 lb. Bacon Wrapped Beef Filets (5 x 4 oz)
4 lb. Individually Frozen Chicken Leg Quarters
2 lb. Lean Hamburger Steaks (4 x 8oz.)
1.5 lb. Boneless Pork Roast
1.25 lb. Meaty Beef Short Ribs
20 oz. Supreme Pizza
10 oz. Deli Sliced Turkey Breast
3 lb. Fresh Apples
35 oz. Crinkle Cut French Fries
16 oz. Frozen Green Beans
16 oz. Onion Rings
14 oz. Fancy Ketchup
26 oz. Pasta Sauce
16 oz. Pasta
16 oz. Pinto Beans
7.5 oz. Macaroni and Cheese
Dessert Item

Now granted, most of the food is frozen, so you'll need some freezer space to keep it, but it's a great way to make your grocery dollars stretch. They will deliver to central location (you can find the drop-offs on their website) once a month, and you bring a box, or something to carry your food home in, and that's it. For US residents, they also accept EBT (food stamps). Check them out, and see if they come near you.

Get MAD!!

2008-01-26T15:57:00.000-05:00

I have been re-reading a book by Dave Ramsey titled The Total Money Makeover. It has some great info in it, quite a bit of it from his personal experience from going from millionaire to bankrupt, and back. His examples range from humorous to downright heartbreaking, but they all get you thinking and put a lot in perspective.

One quote that stuck out was "Get Mad!!" I pondered what he meant about that statement for a minute before moving on. Why should I be mad about money? Money is amoral, it does what you want it to. You ultimately control it, by mastering it, or being mastered by it, by the choices you make, but they are your choices!

Reading further, he expounded a little. There are basically two ways to look at your financial situation, especially if it is a bad one, where you are drowning in debt. You can either look at it logically, or emotionally. Which one is the correct way? Most people would say logically.

That obviously makes sense, to look at something logically, because you are being unbiased (logically). True, you need to take a cold, hard, analytical look at your finances, but logic never propelled someone to action, or spurred them on. No, logic doesn't do that. Emotion does.

Everything I can think of that drives great accomplishments, is emotion. That is the fuel for the fire, the "why" that gets you going. It is your motivation for doing what you need to do. Logic will put the NEED into focus, but only emotion will get the train moving, in getting it done. You need to "GET MAD" at the debt you have, and get sick and tired of being sick and tired. That emotion will propel you into action, and will help sustain you, until you reach your goals. Every time you want to borrow money, think back to how much misery that consumer debt has caused you...how much it has robbed you of, when it comes to truly enjoying life.

Get mad, and get free.

How saving money can buy you a car

2008-01-25T15:32:00.000-05:00

Buying a car (or any other vehicle) is almost a rite of passage. In a way, it says, "welcome to the adult world". I still remember my first vehicle purchase...it was a 1980 Ford F100 pick up truck, two tone red over silver, with an orange pinstripe. I'll always remember that truck. I paid $1200 for it, and I paid with cash, something I had been saving for since I had started my first job. Wish I knew then what I knew now.

You see, I started off right, I bought the truck with cash. I saved my money to buy it, and I saved the interest by not financing it. So far so good, but I stopped there. If I only knew what I should have done next.

Here is what I should have done. If I had continued to save my money, even $100 a month, I would have had a head start down the road, when I needed to replace the truck. But, I was young, and carefree, and I had a truck! I had a whole new world of things to do, open up before me. Well, my truck died, and soon, I was caught in the cycle of car debt...buy a car, finance it, trade it in, roll the balance into a new purchase, and make payments, and on and on.

What I should have done, is kept putting a car payment every month into some sort of investment account. Let's say a growth mutual fund that is averaging 10% (not uncommon). Let's use the average car payment of $400, and a term of 60 months, as that is the most common here in the US. Let's use a current finance rate of about 7.5% for a used car loan. Well, you look at the payment and the term, and you think, "Gee, a $24,000 car for $400 a month, that's not bad..." Wrong, because of interest, to get that $400 payment, you'll only be getting a car that sold for $19,500. So you just lost $4500 worth of car you could have bought, because of the interest payment. Also, don;t forget, this cost did not factor in sales tax, registration, title and inspection fees, either.

What if you bought a clunker (or as we like to say where I live, a "hooptie") paid in full with cash, and you saved that $400 a month for 60 months. Right off the bat, you've got that extra $4500 that would not have gone to interest. But if you had invested those monthly payments in that growth mutual fund at 10%, you would have about $32,000 at the end of 5 years. There is quite a bit of difference in car you can buy with $32,000, compared to $19,500...$12,500 more.

But, it can get better! What if your still really frugal, and you buy a nice, used vehicle at $20,000 cash (and you can negotiate some great deals when you hold a wad of cash in front of someone). That will still leave you $12,000 in your growth mutual fund. Well, pretend you have a car payment, and keep adding it to the mutual fund each month. In another 5 years, you'll have about $51,000 ready for your next car purchase. What kind of car can you get then? Say you splurge, and buy a used vehicle at $30,000...it still leaves you with $21,000 in your fund. Follow the process one more time, and you'll have about $66,000 for a car. Now, you'll never have to pay for a car again. Why? First, keep buying your cars in the mid $20,000 range (you can get really great used vehicles at that price). If you keep $40,000 in that fund, and never add to it after that, every 5 years you'll be back to about $66,000. Also, keep in mind that you will have a vehicle to trade in or sell, as well, which will bring you several thousand more dollars.

In a nutshell, you've saved tens of thousands of dollars in interest payments you would have otherwise paid the bank, you earned some great returns on your investment, you've had some nice used vehicles, and in 15 years, you would have saved and invested enough money that you'll never have to use any of your own money again to pay cash for a car. And this with money you would have been spending anyway, for something you need. So the next time you go to buy a car, ask yourself if you can wait a while longer, and start putting that money into an account that will make you some money...and head down the road to never paying for a car again.

Legal service plans - are they worth it?

2008-01-24T12:34:00.000-05:00

The other day, on the topic of wills, I mentioned that I have a legal service plan, and that is the low cost option route we used for our wills. Today, I'll talk a little bit about them in general, and the reasons I picked the company I did.

First, a legal service could be considered similar to an HMO, but for your legal expenses. Basically, you pay a monthly, or yearly fee, to have access to an attorney or law firm, for defined benefits. Some have no further expenses to them, others have deductibles. Some are worth the money, others are nothing more than scams.

Almost all of them offer some type of consultation services (by phone or in person), letters written on your behalf, wills, traffic ticket defense, document/contract review, and discounts on other more intricate legal procedures. Some will even offer civil, and in certain cases criminal, lawsuit defense, as well as IRS audit help. I know of at least one company that even offers identity theft restoration services.

Now, I'm sure you're probably thinking, why would I need this, I've never used an attorney before. Am I right? Most people think that, not because they did not need one, but because they were priced out of being able to afford one for their situation. Most people have had to make a financial decision, not a legal one. But what would you do, if you could pick up the phone and talk to an attorney about any legal question you had, and did not even have to pay extra for the phone call itself? Would you use an attorney more often? I would think so...I know I have. Take for instance a long distance telephone bill I had, and I KNEW I did not make the call. My phone service would not remove the charge. It was only $14, but it was the principle of the situation. I did not owe, so I wasn't going to pay it. Most people would, because it was so small, and you are not going to pay $100+ for an attorney to handle a $14 problem. It just doesn't make financial sense. Well, I called our law firm through our service plan, spoke to an attorney, and they sent a letter out to the phone company, and the charge disappeared. It cost me nothing extra, other than the monthly fee I was paying already.

"Okay, but I'm sure the monthly fee cost more than the $14 you saved, right?", you are thinking to yourself. True, but remember that will? My yearly cost for the membership is less than what it would cost me for one will, never mind the second one for my wife. So in essence, the other services are free, because the service has paid for itself for at least two years, on the will benefits alone.

Ever signed a contract? I guarantee you have. Whether a lease, rental, mortgage, car loan, cell phone contract, or what ever, you've signed one somewhere. What if you could have an attorney review that contract before you sign it, to make sure you are not being taken advantage of? I did, when I bought our car, and the attorney caught a mistake the lender made, which would have cost me about $2000. Well, that just paid for the membership for another 5 or 6 years.

Traffic ticket defense is another great service. Many times an attorney in the court room, can keep the points off your license, and get a reduced fine or fee (if not dismissed completely). That not only saves you money on the front end, but think about the long-term cost of your insurance rates going up for several years, because of points on your license.

I could go on and on about the benefits of having the service, but the post would be too long. I'll just say having the service has saved me thousand's of dollars since I've had it, and it has paid for itself for at least the next 10 years, in what I've saved. Now I do want to make clear, the law is not always on your side, and you may not like what the attorney has to say (this has happened to me once or twice), but I would rather know where I stand, than wonder "what if...?".

Alright, now you are interested, and want to learn more. Who sells them? Well, most of them are available through an employer as an employee benefit. Some you can buy individually. Some of the companies that sell them are AIG, Arag (the number two legal service company in Germany), and Pre-Paid Legal Services, Inc., among others.

My wife and I chose Pre-Paid Legal (PPL), for several reasons. Cost, portability, no rate hikes on existing customers, it is a publicly traded company (NYSE:PPD), it covers our whole family at no additional cost, and what is called a closed panel system. The other companies we looked at gave you a list of attorneys to call. You had to pick the ones you wanted. But what if you were the first person under that plan to call the attorney? Do you think the service would be good? Do you think he would give you a lot of attention, especially at a reduced rate, if you are the only one who has contacted them through that service plan? With a closed panel system, PPL uses one law firm in each state, that handles all initial calls. They may refer you to a local attorney (usually at no additional cost to you) for some things like traffic ticket defense. But they control who you talk to, so they can make sure you are getting great service. Not to mention by paying one law firm a yearly fee to serve their members, the law firm has a huge incentive to give great service. Would you rather have the attorney who is giving a discounted rate, and you are his first client through that particular plan, or would rather have the law firm who is being paid MILLIONS of dollars a year (through group buying power), to handle your issue as best as they can? That is why we chose PPL.

I am sure you ave seen this phrase in a few of my posts : SAVING MONEY is MAKING MONEY. I often tell you ways to cut back on your spending, in order to save your money, so suggesting you look for a service that will add a monthly cost for you, seems out of place, right? I have learned through the years, that sometimes though, you need to spend a little money, to save some money. This service is a great example of doing that. I estimate we have saved almost 10 times more than we have spent, by having this service for the past 6 years. Ten times!! That is huge! And it's worth the peace of mind to know that legal help is just a phone call away.

Love ice cream? Check this deal out!

2008-01-23T21:35:00.000-05:00

My wife is a card carrying member of ice cream addicts anonymous. She really tries hard not to eat a lot of it. She is afraid of gaining weight. At 115lbs, I don't see that being an issue. But, alas, her evil hubby, me, is constantly pulling her off the wagon, back into the dark despair and hopeless grip that sweet, frozen confections from cows have on one's soul. But hey, it's ice cream, and it's worth it...especially when there is a great deal on it like this one.

First, you need to be near a Food Lion. This week, they are having a sale on Breyers ice cream...buy one, get one free. However, apparently the deal will still ring up at half price, if you only buy one. Add to this the printable coupon from here or here, and save $2.

Now, obviously prices will vary by region, but a half gallon of Breyers at my local Food Lion costs about $5. With the BOGO deal, I can get one for $2.50. Add the $2 coupon, and now it only costs me $0.50 (plus tax) for a half gallon of Breyers ice cream!! The second coupon link should give you 8 printable coupons. Make 8 separate transactions, and you can have 8 half gallon boxes of ice cream for around $5, with taxes. Eight cartons for the price of one!!

Time to slip into the dark oblivion of ice cream addiction. Don't forget the toppings!

Thanks to sunset0703 at Slick Deals for the info on the sale.

Recommended Blog : Mommie's Home

2008-01-22T16:47:00.000-05:00

There are so many sources of information on the web, it is easy to get lost in a sea of junk, looking for content worth your while. A new feature I'll be adding is an occasional blog or site review, when I feel they have worthwhile content that will benefit you, my loyal readers.

The first one will be a review of a great blog over at mommieshome.net. Mommie's Home is touted as "... a place for all moms to get together, learn, share or just hang out. So grab a cup of coffee, pull up a chair and surf away (even if you only have those precious few moments when the kids are sleeping)!" Do not be scared away guys, there are several of us that participate in the comment threads as well...it's not just for women only.

Mommie will post about a wide variety of topics - anything from being a stay at home mom and the pros and cons of using cash or debit cards, to the grocery game and her experience with online surveys. You will also find a mix of personal stories from the adventures of a stay-at home mom raising an infant and a kindergartener (many of which i can and my wife can relate to, as we are new parents as well).

Mommie does a great job in showing ways that she has been able to be frugal, and will get your brain juices going, getting you to think of ways you can save as well. Be sure to check her out, and say hello - you'll be glad you did.

Make the most of your money when buying health insurance

2008-01-21T13:30:00.000-05:00

I will admit it, health insurance is expensive, but the alternative is even more expensive. But what are people supposed to do, when the costs keep soaring, but our paychecks stay relatively still? Here's what I did.

The first important step, is to have an emergency fund established. My wife and I currently have a couple thousand dollars saved away. Once this is done, it makes the next step easier (you can skip the emergency fund step, if you want to, as you will probably be able to save money faster, but it does come with a little risk, if you get sick or injured prior to having enough saved up).

The next time that open enrollment comes to your employer, take a good look at the difference in your monthly costs, with a high deductible plan. When I say high deductible, I mean like $1000+. When I started my current job, I looked at each deductible available, and what my employer contributed, and what I would have to contribute. The $1000 deductible caught my eye, as I had nothing to pay for it, as my employer contribution paid the entire premium for me. This was looking good, plus I had the money in savings, in case something big came my way, health wise. But, did it really make much financial sense?

Closer examination showed it did. If I were to take a $250 deductible, I would have had to contribute about $125 a month, whether I ever used the insurance. It was gone, money I would never get back, all for the psychological benefit of having a "low deductible". So here I was, looking at a $1500 expense, just so I could say I had a low deductible...and if I needed to use the insurance, I still had to pay that first $250, so my total yearly cost for my insurance would be $1750.

By having the $1000 deductible, I had no monthly premium to pay, so I took what would have been deducted from my paycheck, and saved that each month...it only took me 8 months to save my deductible. That's an extra $500 a year I was able to save for something else, compared to what I would have paid with a smaller deductible. Add to that the fact that I would not have the additional deductible of $250 as well, so I saved $750. In addition, if I was not sick that year (I wasn't), that extra money I would have paid was not lost to me...I still had my deductible of $1000 sitting in an account, just waiting for me, if I ever needed it. So that second year, I saved $1750, because I did not have to pay anything for my premium, nor did I have to save my deductible up again. I also put that money to work for me. By putting it into a high yield money market account, I also had what would be used as my deductible, should I be sick, working to make me some money as well, in the form of interest earned.

As I mentioned earlier, this is much easier if you already have an emergency fund saved up, as you don't have to worry about coming up with your deductible in the event you are sick. That said, it only took me 8 months to save up the deductible based on what I saved monthly from not having to pay premiums. So if you need to go this route, because you don't have an emergency fund yet, it won't be that long that you go without a fully funded deductible sitting there waiting for you to use it.

I will also mention health savings accounts and medical savings accounts. Both are savings accounts for approved medical expenses (ie deductibles, etc) that you can make tax-free contributions to. MSA's will let you roll over any unused portions to the next year or withdraw unused funds at the end of the year, as taxable income. The HSA's will allow basically the same thing, but tax you on undocumented medical expenses, plus assess a 10% penalty, unless you are over 65 years old. Personally, I figured it was easier to just have it in my emergency fund, where I could get to it for what I needed, when I needed it, without having to worry about whether or not it was an "approved" expense, or making sure it was rolled over properly, etc. I did not mind being penalized for this, in the way of having my emergency fund filled with post-tax monies, but that was a personal preference...it may not be right for your situation.

So, the next time you get to change your insurance, take a good look at it, and see if you won't actually come out ahead, by having a higher deductible.

Save money by writing a love letter to your family

2008-01-20T18:57:00.000-05:00

How much do you love your family? Most people would say enough that they would probably die for them. So what happens if you do die - are you ready for it now? Have you prepared for it properly. In talking with people, I would say 9 out of 10 have not (and the 10th one is probably lying) prepared for it, by writing the ultimate love letter for their family...a will.

Yeah, I said it, a will. I think most people do not do it, or want to think about, because somehow they think it will jinx them into an early death. I know that's kind of how I felt. "I'm young", "I'm not gonna die anytime soon", "I don't need a will"..."heck, I don't have anything to leave anyone anyway" - all are common responses I get when talking to people about wills.

I can tell you stories for hours, of people whose lives were torn apart by fighting with family members over something as simple as who gets a particular spoon set. Do you really know who holds what type of emotional attachment, to something you would never think would cause problems? People will fight over the apparently (to you) silliest things, which can leave lasting wounds to family relationships...all while dealing with the loss of a loved one.

Another aspect, is children. Not just what is left to them, but who they are left with. The chances of both parents being killed a the same time are relatively small, but the risk is still there. Actually, about three weeks ago, two streets down from my home, a couple was killed, and their 20 month old daughter seriously injured, when a suspended driver crashed into them (the other driver died as well). The parents were just returning from the hospital, where they had their infant treated for a fever. I would be pretty certain in saying, they most likely did not have a will in place, saying what to do with their daughter and other children, should they both die. It's been reported that the grandparents on both sides want custody, and now the state gets to decide who gets the kids, if the kids stay together, or if they even get to go with a relative at all. What if the state ends up awarding custody to a relative you would never want your child(ren) to be raised by? Sorry, you only had a chance to take care of that while you were alive.

What about remarriage? With so many mixed families, who gets what? Does dad's estate go to his biological children, or to his wife? Speaking of wife, is it the current one, or the ex? Don't laugh, a personal friend of mine broke down telling me about her husband, who died in California, on business. His life insurance and estate went to his first wife. My friend fought it in court, and lost. She now has over $20,000 in legal bills as well. What about unmarried partners? How will you know your final wishes are carried out, if you don't have a will?

There are many ways to get one. First, you can hire an attorney, and pay for it. Actually, you can pay a lot for it. Local attorneys in my area charge a flat $800-$1500 fee for a basic will, others charge hourly. A bit steep if you ask me, and that doesn't include services for more intricate planning like trusts and the like.

You can subscribe to a legal service. These charge monthly or yearly membership fees, but include basic legal services like phone consultations, letters written on your behalf, and will preparation. My wife and I went this route (I'll cover the service itself in another post), for other reasons, besides the will. We each got a will, and a living medical directive (gives us each the power to make decisions for the other should we be unable to make those decisions for ourselves...Terry Schiavo, anyone?), and were able to fill out a short survey on what we wanted our will to do. When we had questions, we called and spoke to an attorney who specialized in wills and estate planning, and had our questions answered. We sent in the survey, and received our wills in a week or two. Only thing we had to do was have them notarized. We also get them updated and reviewed each year at no real cost (about $20)

The lowest cost option, is to do it yourself. There are quite a few "do-it-yourself" will kits out there, and I am sure most of them are pretty good. Next time you are in the store and see one though, read the small print. Every one that I have looked at has some disclaimer about the need to still consult an attorney. Remember my friend whose husband died of a heart attack? After marrying my friend, he decided to do one of those "do-it-yourself" will kits. He had the foresight to get it done, and for that I commend him...he wanted to take care of his family. Something happened though...my friend told me that when he finished the will, and had it executed, he only had two witnesses sign it...the state in which he was residing required three witnesses...something the "do-it-yourself" kit forgot to mention, or something he overlooked. When he passed away, because that newer will was not executed properly, the one he had with his first wife was the one still in effect. That is how the ex-wife inherited all of his estate. That is why it is important to consult with an attorney...to make sure little things like this, do not become big things down the road.

In addition, without a will (and often even with one), an estate will often have to go through probate. This is beyond the scope of this post, and I am sure you can imagine, it is not cheap. A will can protect against this, or at the very least, help minimize the costs associated with probate.

So, now I'll ask you...how much do you love your family?

Enough to write them a love letter?

Patience, patience, and yes, more patience.

2008-01-19T22:44:00.000-05:00

Most of us need it. Very few of us truly have enough of it. Doctors have lots, but not the kind we're talking about. It truly is a virtue, even when it comes to building wealth.

We need patience. It will obviously help us in every part of our lives, but especially when it comes to building a firm financial foundation for yourself. Wishing about being financially free and wealthy, will not get you there. Playing the lottery will most likely not get you there (and if it does, it's been reported the majority of them are broke within 5 years). You need the patience to let the money work for you.

First a disclaimer. I am NOT a stockbroker, or financial planner. I am not telling you to buy any investment product, or a particular stock, mutual fund, or bond. For that, you need to consult a licensed broker and/or planner. What I am trying to do, is show a concept that hopefully you, my readers, might not be aware of...and hopefully put to use.

Let's use the stock market as an example (I know some would argue against this, but that is another topic...this is merely a simple example, and not advice to invest in an index). There is a lot of talk right now about it. The last few days, there appears to be a downward spiral of stocks. There is talk of a recession coming, if it isn't already here. Here is where patience would pay off.

The natural inclination is to sell your stocks (if you have any), before they lose more money. Realize there is an ebb and flow to the market and our economy. There will be bad years, and there will be excellent years, and a lot of years in between...just have the patience to know the long-term average is in your favor, and let it sit.

The S&P 500 averaged 11.8% from 1982 to 2001. If you had invested $10,000 in 1982, and let it sit all the way through, and NEVER touched it, you would have in the neighborhood of $93,000. What if you decided to sell based on a bad year? What if by doing so, you missed some of the BEST performing days? How much money would you have made with that $10,000 investment? If you missed the 10 best days...$56,000. That's a $37,000 difference. What about the 30 best days? You would have about $28,000...or a $65,000 difference. And the best 50 days? Not looking so good...about $16,000, for a difference of $77,000. All for not having that money in there for a relatively few days. Have patience.

Another problem quite a few people have problems with, is letting compounding work it's magic. Ask a kid if they would rather have $1000 a day for 30 days, or a penny doubled everyday, for 30 days, and they go for the $1000 a day, every time. So do most adults. But this shows the magic of compounding. Take the first option, you have $30,000. Take the second, and after 15 days, you have $163.84. Ouch, $164 to $15,000...what was I thinking? But wait, keep going. On day 30, that penny is now $5,368,709.12! Still think the $30,000 was the better deal? The magic of compounding takes time, and happens near the end...but a significant number of people do not have the patience to let it get to that point. Back to the penny...it took it 22 days to catch up with the $1000 a day...but it took off from there. In 8 days it went from $22,000 to over $5 MILLION!! That is the power of compounding (remember I always say, SAVING MONEY is MAKING MONEY?)! Now, realistically, will that happen to you? no, you won't get those kinds of returns, but it is great example to grab you eye, and show how compounding will work for you.

Here is another example ( a VERY basic example). You put $100 into a high yield money market account(MMA), of say 5% annually. At the end of the first year, you'll have $105 and some change (for this example, I'm using rounded numbers). The second year, you will earn 5% on the $105 (you are compounding, because you are making money in the form of interest, on the money you made in interest the first year). At the end of year two, you have $110. Year five leaves you with $135, and year 30 leaves you with $450. Granted this is a small amount, but in my example, other than the first $100 investment, nothing was added to the principal other than earned interest. What if we added $5 a month? Adding a total of $60 a year, would leave you with almost $4600 in 30 years. Want more, just increase your monthly contribution. Ten dollars a month can turn into $8800...$20 a month will get you $17,000. Get the picture? ANYONE can find $20 a month to invest...ANYONE!! You can have any amount you want, if you are willing to cut a few unnecessary purchases out of your monthly budget.

The only other thing you'll need, is a little patience.

Free movie rental

2008-01-18T19:46:00.000-05:00

Got this tip from kimmie628 over at SavingAdvice.com. Sign up for their newsletter, and be able to print off a coupon on your printer for a free movie rental from Hollywood Video. You can use the store locater service to find one near you, if you are not already a member.

I would guess you could get multiple coupons, with different email addresses. If you don't want to use one of your own, go to GuerillaMail.com for a free disposable email address. Just click the link in the confirmation email, and print off your coupon.

Enjoy the movie, knowing you paid nothing for it. And don't forget the popcorn!

Rent a car

2008-01-17T16:52:00.000-05:00

Here's something I just saved several hundred dollars on, and thought I'd pass it on. The family and I are taking a trip in a few weeks, to go see my folks for a belated Christmas visit. This year, instead of me and the wife, and one small beagle, we have me, the wife, the new baby boy, the beagle, and a rather rambunctious retriever/dalmation mix...not to mention all the accessories that come with a new baby (stroller, car seat, diapers, etc), that take up a lot of room. Add to that Christmas presents we're taking with us, and gifts we'll be bringing back. Not going to be making a 12 hour drive in our 4 door sedan with all that. Plus, all the wear and tear on our vehicle for a trip like that. What to do, what to do?

Well, we decided to rent a minivan. We found a great deal for a week, with unlimited mileage, and it will hold everything we need. It was kind of pricey though, first looking at the prices (one rental company wanted almost $800...too much!) Anyway, being the frugal, deal minded guy that I am, I started my hunt for the elusive, outstanding car rental discount deal.

I spent a good amount of time searching, and finally found a huge, fairly comprehensive list of discount codes, at Slick Deals. It's broken down by most of the major rental companies. Now, it might take some time to sift through them, but it is well worth it. Also, be sure to read the terms of each company. I found an AWESOME deal on renting a Suburban (that was my first choice), which was less than the minivan...but it only had limited mileage for a select few states, and since we would be leaving those states, the cost per mileage, made it too expensive. Just make sure you look, because some codes give a cheaper price, because of some restrictions like the mileage. Read the small print.

So, we ended up getting the van, after using a code I found, and we saved about $200, and have unlimited mileage. Again, it might take a little leg work to sift through the codes, as some are no longer valid, but you can find that one, that will give you enough savings, to make it all worthwhile.

Turn your pocket change into wealth

2008-01-16T13:10:00.000-05:00

We all have it. Loose change. All those pennies, nickels, dimes and quarters - even the occasional $.50 and $1 coins - weighing our pant's pockets down. Never mind that all that loose change might make you look like a plumber, but it is not doing you any good just sitting there in your pocket. Put it to work for you!!

The other day I posted about not spending your dollar bills. If that is too much to start with, narrow it down to one $1 bill, or just take your loose change, and put it into a jar. Try to do this everyday. Some days you may have more, some days you might have less, but you should be able to average $30 a month. At the end of each month, pop it into an investment account (IRA, Roth IRA, mutual fund, MMA...something!). There are a good selection of excellent funds out there, that average 10% returns...find them, and use them.

So, what will $30 at 10% get you? Quite a bit. If you are faithful with putting that $30 a month into your account, and you average the 10% return, you'll have just shy of $70k in 30 years, with a total amount actually contributed by you of about $17K. Pretty neat, having that $17k work for you, and make you around $50k. This is the whole idea behind my belief that SAVING MONEY is MAKING MONEY. The little areas in life that we can cut back on, and save a little bit here, and a little bit there, can then be used to make you more money, helping to secure your financial future.

It doesn't stop there...as you find more ways to save, you can invest more into your accounts. You can invest $60 a month, and make over $130k in the same 30 year period. What about $100 a month? Over $200k in 30 years. Geez, that cable bill with all those premium channels is really looking to be more expensive than you thought, isn't it?

Do the thing today, that others don't, and you can have and do the things tomorrow, that other's won't.

Save some money by switching your car insurance to...

2008-01-15T12:22:00.000-05:00

Ha!! I bet you were expecting me to name that insurance company with the reptilian mascot with a really bad Australian accent (Australian accents are way cool, just not the one with the little green guy). Sorry, but I don't want to get sued (definitely not going to be saving money that way, right?). Ok, seriously though, car insurance is something we all need, and in most states, are required to have. So how do you get the most chitty-chitty bang-bang, for your chitty-chitty buck-buck?

There's a couple things you can do. First, be a good, safe driver, and do not have any teenagers in your house that can drive. Those two tips alone will save you hundreds, if not thousands of dollars. But, I see how most people drive on a daily basis, and sooner or later, most people will have a teenager, as they are an almost inevitable by-product of a very popular and enjoyable activity that I don't see anyone stopping anytime soon. So how else can you save some money on your car insurance?

Start by shopping around. Keep in mind though, you want lowest possible premiums, for highest possible coverage. Also, do not go by discounts alone. You might get a lot of discounts from one company, but still get a lower cost from another one that doesn't give discounts. Take some time to shop around online. While you may not get a personalized quote, without giving up some personal information, you can get a rough idea on what the average person is paying at each of the different insurance companies. Just remember, yours may be higher or lower, based on coverage selected, driving history, credit history, claim history, type of vehicle, age of vehicle, and a myriad of other factors. Just use the online quotes as a means of creating a baseline, to point you in the right direction.

Having a higher deductible can save you some significant money (and SAVING MONEY is MAKING MONEY!!). A lot of people opt for the lower deductible ($250, for example), thinking that if they need to use the insurance, they will pay less out of their pocket with the lower deductible. If you have an emergency fund established, try for a $500, or even $1000 deductible. With a higher deductible, you'll save more - sometimes 15-40% more. If you pay $1000 a year, and you saved 40% by switching to a $1000 deductible, your savings would equal your deductible in about 30 months. By staying with the lower deductible, after 30 months, you would be paying an extra $400 a year for the convenience of only paying $250 out of your own pocket, if you are involved in an accident? That makes no financial sense at all.

Consider the age and condition of your car. Perhaps even have it appraised. If it is older, and well used, it may not be worth having the comprehensive and collision coverage on it. No sense paying extra to replace your car if it's totaled, if it's a $1000 beater.

Check with your employer to see if an insurance company will offer a group plan through your place of work. Also, ask your insurance company if they offer discounts if you carpool, or drive fewer miles per year than the average driver (less time driving, means less chance of being involved in an accident).

Check out companies that offer multiple lines of insurance. If you combine homeowner's/renter's/life/disability/etc insurances with your auto insurance from one company, you may be able to get reduced premiums on all of them.

Finally, just ask for discounts. Find out what they offer. Some companies may offer discounts for no accidents or speeding tickets in a set period of time; students with good grades; completion of a defensive driver course (and not a court appointed course...take it BEFORE you get a ticket); certain safety equipment (air bags, ABS brakes, etc); anti-theft devices and so on. You won't know until you ask, and it just might make your wallet happy!

Save some SERIOUS money - quickly!

2008-01-14T19:38:00.000-05:00

I assume we have all heard the old adage, "Watch your pennies, and the dollars will take care of themselves", right? Not a bad piece of advice. But there has to be a faster way of getting those dollars, right? Yep, and I actually heard about it from a very unlikely source.

I don't want to talk politics here, as this is not what the blog is about. However, I do listen to Neal Boortz occasionally. Sometimes Boortz has me saying "Right ON!", and other times he makes me want to tear my hair out. But he's almost always good for a laugh, regardless of which side of the political fence you sit on...maybe because he just doesn't care who he offends. Anyway, I digress...

So I happened to catch a few minutes of his show one day, and he talked about some advice he had gotten from someone when he was younger. What astounding, life changing advice was this? Do not spend your dollars. Huh? Say what? Don't spend my dollars? What kind of crazy idea is that. Well, Boortz went on to explain, and that light bulb over my head turned on (albeit, dimly). Simply put, do not buy anything by using dollar bills. Use change, use fives, tens, twenties, etc. Just do not spend a dollar bill...anywhere. If you buy a cup of coffee, use a $5 bill to pay for it, and put those $1 bills you get back as change into a savings account or investment account. If you use a $10, keep the $5 for another purchase, and save the $1's.

I thought about this, and actually realized there is a two-fold benefit to it. First, the actual $1 bills you physically are not spending but saving or investing. The second benefit is you'll stop making unnecessary purchases of "splurge", items if you say disciplined enough to save the $1's. Imagine buying a $1 cup of coffee, and basically putting $4 of your cash out of play for ever, since it will be invested where you can't spend it.

So, to recap, you will end up saving more, by not spending the $1's, plus you'll save more by actually reducing the amount of spending you do on "splurge" items.

That Boortz guy is pretty smart.

Avoid overlimit, overdaft, and NSF fees, with a money bumper

2008-01-13T16:31:00.000-05:00

Today I've got a few really quick tips, that are easy to do (but also can be easy to screw up...so be careful). I was responding to a comment from Mariam at Money Relations, and it reminded me of this simple trick.

If you have a checking account, try this out. Just a precaution, you have to be disciplined not to "add" it as money actually in your account. Think of it as "phantom". Put and extra $100-$200 into your checking account, and FORGET it is there. The key is FORGET it is there. I can not stress this enough, FORGET it is there. Did I mention to FORGET it was there? Deposit it into your checking account, but do not record that deposit into your register. Keep it there as a "bumper". On the chance you might make a mistake in your balancing, you will have a little buffer there, to cover any small overage or miscalculation, and it will save you overdraft/overlimit fees, and NSF fees from the merchant end. The problem a lot of people seem to have with this trick, is they "remember" it is there, and end up spending it. They see something they want, then rationalize the fact they "know" they have the extra money in their account, so they spend it, fully intending to pay it back. But, life usually happens, they forget to pay it back, then they overdraw for whatever reason, and their "buffer" money is no longer there to protect them. Just put it there, and forget it...spend your other money as if you DO NOT have the buffer money there. I know a lot of banks will offer a line of credit (usually like $500) that will cover those overdrafts, but almost everyone I talk to, end up spending it like a credit card, then they keep overspending anyway, plus they now OWE more money. Keep the cash in there, you get the same protection, and if you do spend it, it's not debt.

A little tip on saving that extra money as a buffer, is when you make a purchase, make sure you round up to the next dollar amount when you record it in your register book. Say you buy an item for $4.50. When you write the purchase down in your register book, write it as a $5 purchase. It will keep the $.50 in there as a buffer. This will add up fast...I saved up almost $600 in a year, simply by doing this. Not bad for rounding up a few cents here, and a few cents there...it really does add up quickly.

Playing games

2008-01-12T17:53:00.000-05:00

Well, I was browsing through some new blogs of like-minded folks, and came across Mommies Home. She has a cool little post called the "Grocery Game". This caught my eye, as I personally challenge myself to save as much money as possible while grocery shopping each week. So, just what is this "Grocery Game"?

Well, I google the site, and check out the Grocery Game website. It's a pretty cool concept actually. For a small fee ($10 every 8 weeks), you get a store list, where they post upcoming sales at your area grocery stores, and then match those sales to manufacturer's coupons. Basically, you are paying for them to do the leg work to sift through the sale and coupon flyers, so you can maximize your savings.

Like I said, a pretty cool concept, and one I'm going to try out (you get a 4 week trial for $1). If I can save 25% off my grocery bill each week, that would be well worth it. But check out an example they give of an actual receipt with savings. To go from a $40 original total, to less than $2 is pretty phenomenal (albeit I assume rare). But still, if you can save $20 every 8 weeks (which you should have no problem doing), and it only costs you $10, that is still a decent savings, and comes out to $60 bucks a year...not a huge sum, but $60 bucks here, and $60 bucks there can add up fast...and SAVING MONEY is MAKING MONEY!!

I'll post in the coming weeks to let you all know how it works for me. Thanks again to Mommies Home.

Do you and your spouse speak the same money language?

2008-01-11T14:43:00.001-05:00

Sharing finances...probably the biggest cause of stress in relationships. Why? I would say the two key elements involved - communication and money.

When two people decide to start sharing their lives, money obviously is going to be a central focal point on which the relationship will hinge. If you have two savers, you'll probably be ok from the get go. Two spenders...not looking so good. A spender and a saver, here come the fireworks.

We are all raised with certain views on money. Combining those views with those of another can be a challenge. I'm a spender by nature, and my wife is a saver (she finally brought me to the light a few years back). I would spend, spend, spend, and tell her not worry about it, I had it covered (in credit card debt). When she found out we didn't have it, things were not happy in our household. Especially after I realized I had wiped out her $3000 savings account. Ouch! This caused some stress, to say the least. Ok, it caused a LOT of stress. Our first mistake was not communicating.

What we should have done, is sat down, and had a really thorough, and honest, discussion about each other's views on money. This was not only to find out where we differed, but where we agreed, so we could use that as a foundation of common ground to build on. From there, we really should have agreed, in writing, what we were going to with the money, and how it was spent. Again, this can lead to stress, but it's good, because it will help you work through it, and result in less stress later on in life. Some would say we argued...me, I say we had "intense fellowship".

Second, we needed to define what role money would have in our life. Would we master it, or would it master us? Sadly, I have to say, it mastered me most of my life. But when we started to communicate, and I realized I didn't know everything (my wife had been trying to tell me that for years now), especially about money, I realized I was a slave to the benjamin's (I know, a bad attempt at inserting pop culture references into my posts). That was my Spartacus moment. I rebelled against the role of master that money had taken, and led a financial revolution in my house. To quote Darth Vader, "I am the master now..."

Now, my wife and I talk about our finances more openly. We talk of ways and share ideas, on how to save more money, and get better deals. We set goals together, and encourage one another in accomplishing them. We sometimes compete to see who can find the better deal on something we need or want (after saving the cash to buy it, that is). It's actually become fun, and we have very little stress in our marriage, due to money. Why? Because we communicate.

Keep a financial journal

2008-01-10T23:01:00.001-05:00

Tonight's going to be a short post, but one I think that will be powerful. Just like good things come in small packages (though my wife would say I'm a good thing that came in a big package, as I stand 6'5"), sometimes powerful words come in short posts.

Today's tip for saving money is to keep a financial journal.

A what?!? Yeah, you heard me, a financial journal. And no, it doesn't have to have a cute little heart on it, with a small locking clasp and really small key, that you have to keep hidden from your nosy little brother.

Personally, I had problems spending money. By nature I just LOVE to spend. I could not for the life of me find anywhere to cut corners on though, when i made the decision to cut back and save where I could, so I could have money to put into savings, so I could invest, and so I could get out of debt.

This is where the journal came in extremely handy. By simply writing down what I spent, when and where I spent it, and what I spent it on, I started to see patterns. I also started to tally the amounts up, and started to see some pretty significant figures. All those purchases were starting to hurt...they felt like a thousand cuts (ok, that was a shameless, gratuitous plug for yesterday's post).

Alright, now I have the information, you say, what do I do with it? Simple...look it over, and find the one spending pattern you can do without (we can really do without most of them, but we think we can't...that's why we spend in the first place), and stop spending that way. Whatever it is, make a small change in your habits, and focus on that one change, until it becomes a POSITIVE habit. When you have control over that spending habit, choose the next easiest one to give up from the remaining list. Sooner than you realize, you will have knocked that list down, and changed your spending habits, and you'll have stopped making your wallet thinner (wouldn't it be nice if we didn't have to focus on keeping everything thinner?).

Death by a thousand cuts!!

2008-01-09T17:40:00.000-05:00

Sounds painful, right? You bet it is (not that I know from personal experience, but hey, I've had my share of paper cuts, and just one of those hurts...imagine a thousand!). This was a method of execution in China for hundreds of years. The condemned would be subject to multiple small cuts, none of which by themselves would be fatal, but the combined effect would be lethal. But what in the world does this have to do with saving money, you ask? Good question. And I have an answer for you (whether it's a good answer, is up to you).

My belief is that many people kill themselves financially, by "cutting" themselves in very small, seemingly insignificant ways, that actually add together to finally kill you. Okay, actually your budget, but work with me here.

All these little cuts, are the little splurges we treat ourselves to. A soda here, a coffee there, dinner out here, a new cd or mp3 download, a new pair of shoes, a quick snack on the run, a pack of cigarettes, lottery tickets, and on and on. These little purchases don't seem like much, and normally would not be enough to hurt you financially, by themselves. However, the power of those purchases compounded, will bring your financial heart to a flatline.

Some quick examples, to show you how much they add up to at face value over a year, but also in lost earnings if you had invested that money (figured from a 25 year old retiring at 65, with only investing the first year savings...no further contributions for the remaining 39 years) :

Starbucks coffee, with say an average of $3 a cup, 5 times a week for 52 weeks equals $780. If you put that into a Roth IRA and earn an average of 9%, that $780 would turn into $24,499. That one years worth of Starbucks actually cost you $23,719 in lost earnings. Starbucks is good, but it's not THAT good.
The average meal out in the US costs $32, and figure on dining out an average of two times a month. That's $768, which if invested would be about $24,122, or $23,354 in lost earnings.
The average American spends $177 a year on lottery tickets, which if invested would give a return of $5,559.
Smoking a pack of cigarettes a day, at an average cost of $4.49, with taxes, would be $31.43 a week, or $1,635 a year. That would give a return of $51,354
A bottle of water at $1.20, adds up to $8.40 a week, or $437 a year, which would give you a return of $13,726.

Just using these averages, by cutting out these small purchases, and investing them in a Roth IRA, you would have turned $3,797 into roughly $120,000!! And that is if you only saved that first year's savings, and never added any further contributions until you retired. If you added the same amount to the IRA every year, you would have approximately $1.5 MILLION saved in your retirement account. See how SAVING MONEY is MAKING MONEY?!?!

Does it make sense now? Is the picture coming into focus? These small, daily purchases, that we don't need, but that we want, are bleeding us dry financially. A couple dollars here, and a couple dollars there, add up quickly...have them add up the right way for you...in your asset column, not your expense column!

Roth IRA calculations based on a calculator at DinkyTown , with dollar amount added for first year contribution and zero annual contributions thereafter, at a rate of 9%, from age 25 to 65.

Here's a FREEBIE for ya!!

2008-01-08T17:22:00.000-05:00

Today's post is gonna be short and sweet, and I'm going to give you a little present. Whether your a gamer, or you know a gamer, you'll want to take advantage of this offer. Keep it for yourself, get it for your kid, or give it as a gift to a friend or relative, sign-up for a free subscription to Electronic Gaming Monthy

Ok, so you have to fill out a little survey about yourself...have no fear, EasyMoneySaving is here! The biggest hassle is giving your email address, and more likely than not getting spammed. I hate that, and I'm pretty sure you feel the same way (though I have to admit I like Spam, fried, with some eggs and toast). So here's the FREE fix for that, as well. It's called GuerillaMail, and it gives a quick, disposable email account you can use, that lasts for 15 minutes. Just go to the site, and it tells you what email to use, and starts a countdown timer. When you use the address, and receive the mail, it will display it on the screen for you...you don;t even have to log in. This is perfect for stuff like this magazine offer, or just getting an activation confirmation email, or just anytime you think you might be spammed as a result of giving out your real email address.

You'll save about $72 off the cover price, and anywhere from $12-$20 by subscription...but hey, $72 is a nice savings (heck, $12 is a nice savings)...and SAVING MONEY is MAKING MONEY!!

Hat tip to jlvkfyang at SavingAdvice.com for the heads up.

OK, so what type of budget should I have?

2008-01-07T13:18:00.000-05:00

That is a common question I get - what type of budget should I have? That always reminds me of a joke I heard along time ago (and the answer is surprising similar). A parishoner was asking her pastor if it was ok for women to wear make-up. The pastor replied, "I don't know, dear, how bad is your face? If your face needs it...DAB IT ON!!" Same is true with a budget...everyone's situation is different, so the budget needs to be tailored to that specific situation.

If you are like most people though, there are some basic elements you need in the budget. These are things like mortgage or rent, food, vehicle expenses (car payment/gas), clothes, loans/credit cards, and utilities. After that, pretty much everything else is unique to each person or family.

Two non-negotiables before we did anything else, no matter how hard it was financially that month, was we tithed and saved...we paid God first, ourselves second, and everyone else last. I'm not here to preach to you, but something happens when you give...whether through a church (or other religious organization), or some other charity of your choice, if you give, you WILL get back. I can not explain it, but it happens. By paying ourselves, we made sure we saved something every month, in our emergency fund.

After the first two thing, my wife and I started with the biggies...Food, housing, car, debt. We further broke them down into smaller subcategories. Food included groceries and dining out. Groceries included stuff like food (duh!), but other items you would normally find at the grocery store...paper towels, toiletries, plastic garbage bags, pet food, laundry detergent, etc. We became very good at pre-planning our weekly meals based on what was on sale that week. By having a plan before going to the store, we knew what we were spending, instead of just walking up and down the aisles, choosing stuff as we went along (try it, you'll be surprised how much extra you spend on stuff, when you just wing it).

Housing we broke down into our mortgage payment, our property taxes, utilities and home owners insurance. We also added a little extra to set aside for home repairs and maintenance (like when the lawn mower breaks down). We kept the thermostat a little lower in the winter, and a little higher in the summer. We got a very basic local phone plan, for about $20 a month, with no long distance. We have a great cell phone plan with unlimited anytime minutes, and no roaming charges and free long distance, so we used that for our long distance calls. That helped keep our cost down, as both the cell phone and land line are only costing us about $50 a month combined. We looked back over out electric and water bills, figured out the previous years average, and set that as our monthly budget for each item.

The car category covered our car payment, car insurance, and fuel costs. We were a little tight income wise, so we opted not to have a car repair fund, and relied on our emergency fund for the time being). The big challenge was fuel, primarily because of the fluctuating prices in gas. We started putting into practice some of the tips we previously outlined in this post. I remember one week, we ran out of cash, and just BARELY made it to the next payday on fumes. Lesson learned there...plan a little more cushion in the gas fund...if you have left overs, add it to the next month (normally, if you over budgeted, I would say, reduce the amount budgeted, and put that extra money to work somewhere else, but with gas prices the way they are, I recommend keeping it and carrying it over to the next month, if it is under $10 extra).

Debt is the big hang-up, where most people get off track. First, it took a while to get in debt, it will take some time to get out. Do NOT be discouraged. Second, this requires an attitude change. I am not in anyway shape or form telling you to NOT honor your debts and pay them off. You made a contractual agreement to pay them, you have that moral, legal and ethical obligation to pay them. Bankruptcy (other than for massive unexpected legal or medical bills) is in my opinion, stealing. If you are at the point you have to declare bankruptcy because of consumer debt, you are stealing. Your choices got you there, you need to make the right choices to get out (the right way). That said, we had to make a choice about our debts. We finally decided to pay our debtors last, with what we had left over, not first, leaving us with nothing left over (one month, we had $40 for food for the whole month). Now you have to pay the rent and the car loan, because you need to get to work, and you need a place to live. This meant taking the risk that we would damage our credit rating. Once we made that decision, we felt a tremendous weight off our shoulders. It might hurt us in the beginning, but we knew that eventually we would be better off, and have a stronger score in the long run.

If we had enough to meet all our minimum payments, we did that. If we had extra, we threw all of it on the smallest total balance we had, and paid that off as fast as possible (I'll cover that strategy in a future post). IF we didn't have enough to meet all the minimum payments, in the interest of being fair, we listed all our debts, figured out the percentage of each one compared to the total, and then figured out the total we had available to make a payment with. We then broke down the available money we had to make a payment, into the same percentages that each debt formed, of our total debt. That was what we sent in to the creditor that month. We would call them, or write a short note explaining what was happening with all our payments that month. Guess what? We never had a problem...most were actually happy to help (lowering percentage rates, lowering minimum payments, waiving late fees, etc), and glad they were getting something, instead of being the last one or two who got nothing that month. We only had to do this one or two times, if I recall correctly, and we made it through just fine. Our credit score only dropped a few points, and is now actually higher than before because of lower balance to credit limit ratios, and consistent monthly payments, without being late (we thought we were being fair by rotating which payment would be late each month, so we always had a huge late fee somewhere, every month). That was the hardest part, changing our attitude about our debt, and being willing to sacrifice our credit score if necessary. You can always build it back up, and do it with a stronger foundation, once you change your attitude, and get financially straight.

After those main areas, we didn't have any money left over each month, the first month or two, and we did make some major changes the first few months, as we learned what we could live on, and what our true spending needs (not wants) were. The picture soon started to come into focus, and we actually started making some headway
in cutting our debt down. We started to increase areas of spending (bigger food budget, entertainment, clothing, etc), but making sure we always put most of the extra money into savings and debt reduction. A quick example to hopefully motivate you...by paying that extra money into our debts, not only did we free up those monthly payments, but I figured we saved approximately $1800 in interest payments, our first year. Think about that...$1800 that stayed in my wallet, not the creditors wallet. How long would you have to work to make an extra $1800 a year? See what I mean when I say SAVING MONEY is MAKING MONEY!!

Budget?!? I don't need no stinking budget!!

2008-01-06T20:34:00.000-05:00

"It's too hard..."

"I get confused trying to figure out how to set it up..."

"It never works the way I planned it..."

"What happened to my money? It worked on paper!"

"Isn't that a car rental company?"

Ahhh...the wonderful world of budgets. Just say the word budget, and you think overspending governments...nerdy accountants with glasses, pocket protectors and adding machines...denying yourself the fun things in life.

I'm here to tell you different.

The first two (overspending governments and nerdy accountants) are a given. The third...denying yourself, doesn't have to be. Budgets are a template, a road map...think of a budget as your very own financial GPS system - it tells your money where to go.

I think the problem most people have with a budget, especially one they can stick with, is they are unreasonable about what they want it to do.

First off, know that it won't work the first month...or the second...probably not even the third or fourth. Actually, your budget is a living, breathing document, and needs to be adjusting and evolving each month. Your life doesn't stay the same, so your budget can't stay the same. Just make the decision to do a budget, and see how it goes for the month. After the first month, you'll see where you over budgeted some items, and didn't budget enough for others. Make some adjustments as needed, and see how it works the second month. Tweek it again, and again, and again, and again, and again...you get the idea. For example, once you pay off a credit card, you'll have that monthly payment you budgeted for suddenly available (that is a GREAT feeling). The next month, you'll have that money free - you need to adjust your budget to tell that available money where to go, and what to do. It could be used to pay another debt of faster, or to save for vacation, or put into a retirement or investment account, or any of a multitude of things. As each month is a little different, you'll have to adjust accordingly...that is what makes your budget a living, breathing document.

In order to be the master of your money, you need to know where it is going and what it is doing. To do that, you need to tell it where to go (I don't suggest actually telling
it where to go, as people might find it odd seeing you talking to a couple of bills). Whether it's paying a utility bill, paying the mortgage or rent, going into savings or investments, renting a movie and going on a date, or paying off all those pizzas you put on the credit card back in college, you need to have a plan on how much money is going to it, and where it is going. If you fail to plan where your money is going, than plan on failing in most, if not all your financial matters.

"But what about denying myself? I NEED that organic tofu seaweed, facial cucumber seed, cleansing, wrinkle reducing cream I just saw on the late night infomercial!", you say. Well, just put it in your budget! This is one of the BIGGEST lessons we learned...budget money you can "throw away", "blow", "waste", "have fun with"...whatever you want to call it. You know you're gonna spend it...you just may not know what you are going to spend it on yet. By putting it in your budget, you have a plan for it, so when you do spend it, there is no guilt with it, AND you haven't thrown your whole budget out of whack, by spending money you had allotted for something else.

In other words, if there is something you really, really, REALLY want, do not deny yourself, just include it as part of your budgeting strategy. It will keep you motivated, and keep you budgeting. And when you know where your money is going and what it is doing, you actually end up saving money in the long run, and SAVING MONEY is MAKING MONEY!!

Money Saving Secret - FOCUSED EMOTION

2008-01-05T20:39:00.000-05:00

So, I was sitting in my easy chair, surfing the web, trying to decide what I was going to blog about today. I like to multi-task, so I was catching up on the news, visiting some airsoft forums, checking out what tomorrow's CrossFIT workout was gonna be, etc, and I decided to visit a favorite site of mine...Dave Ramsey's site.

For those of you not familiar with Dave, he's a heavy hitter in the world of personal finance. He is the author of "Financial Peace University", and outstanding 13 week course on getting your finances in order. This is what jump started my wife's and my financial journey. He has his own radio show, and makes numerous guest appearances on television, including Oprah. I do not agree with him in everything he says, but most of it is great stuff.

Anyway, he was able to put into words, something I had been thinking of a way to describe, but I couldn't figure out how to do it(maybe it's the sleepless nights with a 3 month old). Saving is simple, but it takes discipline. Anybody can do it, but what motivates the actions of saving and the discipline to put them in to action (as Jeff Olsen says, "Something that is easy to do, is also easy NOT to do!")? Dave has the answer:

Saving money is not a matter of math. You will not save money when you get that next raise. You will not save money when that car is paid off. You will not save money when the kids are grown. You will only save money when it becomes an emotional priority...The secret to saving? FOCUSED EMOTION. The secret to saving money is to make it a priority, and that is done ONLY when you get some healthy anger or fear and then focus that emotion on your personal decisions...

Read Dave's full article here.

Eureka (there I go using that word again), that's it!! That was what I was trying to find a way to express. Ask anyone, and almost all of them will tell you they want to be wealthy. Many even have the knowledge and skills to get them there. But they lack the emotional motivation to do what needs to be done (legally and ethically) to reach their dreams. As a friend of mine, Darin Kidd says, "Their why isn't big enough!"...in other words, what they want do be able to do with that wealth (or whatever else their dream or goal is), is not tapping and driving their emotional level to the point that they take action to do the things that need to be done.

Fuel your emotional drive, and you can save money, and SAVING MONEY is MAKING MONEY!

Get up to $80 from the government

2008-01-04T19:44:00.000-05:00

The digital age...gotta love it! From iPods, bluetooth technology, high speed internet, and yes, the blogosphere, everything is going digital. You can even get a digital picture frame with a LCD screen, that you load your digital pictures into, and it rotates them like a slideshow. What will they think of next? Anyway, what we're going to talk about to day, is digital television, and how to save some money...namely, $80.

Starting in February 2009, all broadcast stations in the US will stop using analog signals, per the federal government. That means no more getting to use those nifty rabbit ears on top of your tv, unless of course, you just LOVE to watch static and snow on the tube. What to do?!? Do you rush right out and buy a brand new high definition (HD) tv, with built in tuner? You can...if you have the cash (remember, we don;t use credit cards unless we actually have the cash to pay it off, in hand), and if you want to take the time to find a good deal (I saved my cash, and found a deal on a sweet HD LCD, and saved $300). Or, you can just connect a digital tuner/converter box to your current television, and continue watching on your old tube tv.

HEre's the low-down...digital is different from high definition. It's basically the way it is broadcast. So while you need a digital signal to get HD, you do not need HD to watch digital - Clear as mud? Good. All the converters do is capture the digital signal, and convert it to play on your old analog television. And you can even use the ol' rabbit ears as your antenna - I did (they look marvelous resting on top of my sleek, 3 inch deep LCD). Seriously, I still use my rabbit ears...I went from 5 channels I could pick up and watch (with static) with analog, and with digital, I get 15 channels, and they are all clear, with no static. It's great! And cheap, because I'm not paying for cable or satellite, either.

Here's the money saving info. Visit dtv2009.gov and you can apply for up to two coupons for $40 each, good towards the purchase of digital tuner boxes. The site also has a list of approved converters. It appears the boxes will be on the market in a month or so, and the coupons will actually mail out then. Prices appear to be in the $60-$100 range, before using the coupon, depending on the make of the box.

So, do yourself a favor, and save some money, and get the coupons...that's $80 still in your pocket, plus the cost of a new tv with built in digital tuner (hundreds of dollars), and SAVING MONEY is MAKING MONEY. Plus you'll keep your faithful, bulky tube tv from sitting in a landfill somewhere, growing bitter that you left it for the newer, sexier, SLIMMER models on the market.

Gonna be a little selfish with this post

2008-01-03T21:47:00.000-05:00

So, to be honest with you, I struggled with today's post. I've been wanting to hit the importance of budgets, and how easy they really can be, but I also needed to do something to help myself out a little bit as well. So, I wondered, how can I work this where I get done what I need to get done, but can tie it into the blog...hmmmm.

EUREKA!!! Holy cow, did I just actually type "eureka"?!? Who uses that word anymore? Apparently I'm stuck in some time warp of old cliches and archaic words and phrases. Anyway, back on topic.

Let me lay it out for you all...this little blog of mine will someday, I hope, be a resource for many, MANY, MANY people such as yourself. In order to do that though, I need traffic.

Now, how do I get more of it? Seeing as this site is about saving money, I'm sure as heck not going to be paying a lot for it ( a lot = just about $0.00), not to mention, those companies that claim to deliver thousands of visitors for a small fee are not what I'm looking for...I want great quality readers, like yourself, who are actually interested in the material...not people being slammed onto my site who don't plan on staying. Quality or quantity? I'll take quality, thank you!

So, I stumble across rssHugger. It appears it costs $20 to get started. Oh well, not gonna save any money there...but wait a tic', what is that I see? The $20 is waived, if you post a review of rssHugger on your own blog? Now that is what I'm all about! All I gotta do is write an honest review, and I'm in? Well let's go...this is the answer to my dilemma. A means to possibly generate some quality visitors, while saving money (it's cool to practice what you preach)...because SAVING MONEY is MAKING MONEY!!

So here's the skinny on rssHugger...it is designed to serve both bloggers (like yours truly) and readers (such as fine upstanding folks as yourselves).

For bloggers, it can help with traffic, backlinks for search engine optimization, and hopefully building a list of rss subscribers, who just can't live without their daily money saving tip fix, courtesy of...me! For readers, it helps to categorize blogs by topic, and make their search for their areas of interest that much easier. Find a blog you like, and subscribe to the feed, and voila (there's another one of those obsolete words), you get updated info from that blog instantly. It also has a "Top 100" list, which apparently resets every month, giving even the little guys (like me) a chance to get ranked, as it is based on views for that month - very cool feature! You click on the blog you want to read, and it lists all the updated content, click on the headline you want to read, and it takes you straight to that page. That saves the reader time as well...not that time IS money, but time is money, and SAVING MONEY is MAKING MONEY, so I guess following that logic, SAVING TIME is MAKING TIME!! (Ok, cut me some slack, I've been up since before 5am, and I've only eaten a frozen pizza today...it seemed profound at the time).

So in closing, rssHugger appears to be a solid idea that is working. Will it work for this blog? I hope so, as it appears to be a unique way of generating traffic. I'll keep you all posted.

Can't see yourself saving money?

2008-01-02T05:46:00.000-05:00

Here is a SUPER deal all of us vision challenged folks need to use. If you can't see yourself saving or making money, maybe you just need your eyes checked (or perhaps you really don't have much of an imagination...I'm willing to bet though, you just need some glasses). This is where Zenni Optical comes into play.

Zenni Optical is one of those places that just makes me smile...after all, where else can you save so much money on an item that is VASTLY overpriced. The suggested retail of most glasses on the market are rip offs. I mean, really, hundreds of dollars for a little wire and some plastic lenses? The amount of money people pay for brand name frames is crazy! Honestly, who is going to come up to you and say they just love those brand name frames? No one, that's who! So why waste the money?

Alright, are you sitting down? Zenni Optical offers complete single vision eyeglasses starting at $8.00. That is NOT a typo...$8.00!! Now you can add features (such as the lenses that darken in sunlight, for an extra $37.00), or even get multiple vision lenses (bifocals for $25.00, progressive vision lenses for $37.00, etc), and they are a little more, but the savings are still huge. Think about...my last pair of glasses cost about $150.00, for a no-name frame, and single vision lenses. Looking at Zenni's selection, I could have gotten a similar frame with lenses for $8.00...over a $140.00 savings! How long would you have to work at your job, to make that much money? Quite a while, i would wager. Starting to see the big picture here (ok, maybe you still need the glasses, but you get my point)? Anyhow, use Zenni for your next eyeglasses purchase, and keep you wallet fat and happy, because SAVING MONEY is MAKING MONEY!!

Stop pumping extra money into your gas tank!

2008-01-01T08:26:00.000-05:00

It is affecting everybody from truck drivers and taxi companies, to soccer moms and vacationing families; from daily commuters and vacationing families, to police and fire departments...the high price of gas is hitting everyone.

While we can not do a whole lot about the actual price of gas itself, here are some ways to stretch the mileage you get from each gallon, and to find the lowest prices in your community.

First, get your vehicle tuned up...if it runs smoothly, it burns less gas per mile, so you get more bang for your buck. Also, keep your tires properly inflated. If the tires are too low, or two high, they will wear out prematurely (causing you to buy tires more often, which costs you more money). In addition, by not being properly inflated, the vehicle has to overcome more resistance when moving, so it needs more power - which comes from using more gas.

Try to run all your errands at one time...combine things to do, so your only out driving once.

Shop at wholesale dealers. More and more stores like Wal-Mart, Sam's Club, Costco, etc, have gas pumps now, and offer lower prices on their fuel. My wife and I buy our gas at Kroger. By using our Kroger Plus card, we automatically save between $0.03-$0.05 per gallon, depending on what grade of fuel we purchase. But after we have reached $100 in food purchases in a given month at Kroger, we get $0.10 per gallon! At today's prices, that $0.10 adds up fast!

Finally, you can check out GasBuddy.com. It is a website where you can check out the prices of gas of almost anywhere in the United States. Just choose the location you want to check out, and you'll get a list of stations and what their current prices are, all submitted by members of the site. Become a member, and if you find a good deal, post for others to check out as well. This helps you avoid running all over town looking for the lowest price.

All these tips, by themselves won't save you a lot of money, but combine them together, and the savings start to add up significantly, and SAVING MONEY is MAKING MONEY!!

Saving money like Grandma did (and not in a mattress)!!

2007-12-31T16:24:00.001-05:00

Today's tip on saving money is going old school. That's right, we're going to talk about a very inexpensive, simple way to save money, and it won't cost you a thing to start. You'll be amazed and astounded at how well it will work for you, if you give it a chance.

I'm talking envelopes here, people. That's right, plain old white envelopes...the kind we all use to use to mail letters to each other with, before we became addicted to email, instant messaging, instant chat, and yes, even blogs! Seeing as we don't use them any more (for the most part), I'm sure you have some lying around your home somewhere.

This is so simple, it will blow your mind. I'm not kidding. Seriously. This works best with a budget (which I'll probably talk about tomorrow), and will actually help you stick to the budget as well. Here is what you do...put the cash you have allotted or budgeted for something, and stick it in an envelope. That's it. That alone will save you money. How, you ask? It's not earning interest, you say...it is just sitting in a paper envelope. True, but the magic lies in the psychological aspect of it.

Years back (a LOT of years back, like early last century), society did not have credit cards, especially not easy access to them like we do now. People saved their cash, whether in a bank, or in you guessed it, envelopes. Whether saving for vacation, a car (or mule, depending on how far back you want to go), or even a house, people would save their cash, and only spend what they had on hand. See, the great thing about cash, is once you are out of it, you can't spend more of it, until you get more in your hand.

Take for example your weekly (or bi-weekly, or even monthly) food budget. My wife and I use a monthly budget. Just for easy math, say we budget $400 a month for groceries. Break that down to weekly (as we base our menus on what is on sale each week at the grocery store) sums of $100, having a separate envelope for each week. Now when we go shopping, we buy whatever we need or want, as long as it is under $100...if we are over it at check-out, we have to put some stuff back, until we are under the $100 limit. By paying with the cash in hand, we can not overspend, because that is all we have. If you buy on a credit card, or even a debit card, you often will rationalize the extra purchase ("it's only $2 over"). Well, that $2 (or whatever sum it was) has to be taken from somewhere else, now, possibly leaving you short for a bill payment. Worse, you can easily overdraw or go over limit your checking or credit account, costing you huge fees, that can quickly reach hundreds of dollars extra (now that is NOT saving money). A quick personal example, I tried to transfer some money into my checking account, from another account. The bank messed up on their end (I had a print out showing it had been completed). Well, I made a purchase, and it overdrew my account, and long story short, I had ELEVEN bounced checks, which the bank tried to charge me $385 in fees for, not to mention the fees the other business wanted to assess me. What a headache it was getting it fixed (thankfully, I ended up not having to pay anything). This just shows how quickly those fees can add up, and paying the bank hundreds of dollars is not saving money.

So give it a try! Just pick one area of your financial life, and test it out for a few weeks. Set a limit for something (food, entertainment, gas, etc), and put that amount of cash in an envelope (remember to carry it with you), and write on the envelope what it is for. When it's gone, it's gone, until the next time you would refill it (ie - a paycheck). You'll be surprised at how quickly your money will stretch, and how quickly you'll save it, using this method. And remember, SAVING MONEY is MAKING MONEY!

Barter your unused stuff for other stuff - free!

2007-12-30T20:47:00.000-05:00

Here's a website I came across today, that is perfect for this blog. U-Exchange is a website where you can register, post what you have to trade, and what you want to trade it for. It also allows you to search other members and what they have to to trade, and what they want to trade for. They have it set-up for the United States, Canada, and the United Kingdom. You can then break it down further by state.

Have a fish tank you want to get rid...you can swap it for a side-by-side refrigerator in Danville, VA. Got a heavy duty air compressor just lying around? Trade it for a Toyota Land Cruiser, in Berrett, MD. In Orange County, CA, you could trade a 14k gold watch for a laptop. The list is endless...check it out, you might be surprised at what you see, and who knows, maybe you can get rid of some of that stuff you have packed away or sitting around, and trade it for something you really need. Bartering is as old as time, and conjures up images of ancient civilizations, and crowded markets and bazaars, where customers and vendors haggle back and forth over price or products. U-exchange brings bartering into the 21st century, and into your living room. Take a few minutes to check it out, and see what kind of money you can save by swapping something you no longer need or use. Think of it this way, you paid for one item once, and more likely than not, got your use out of it. Now you can trade it for something else, and not have to pay extra money. Your original money that bought your first item, has basically doubled, as you are getting a different item. It's a great way to save and keep money in your wallet, and SAVING MONEY is MAKING MONEY!!

Free Cinemax!!

2007-12-29T06:03:00.001-05:00

Ok, so it's not 100% free, but it's close enough. I was surfing over at a great forum called Slickdeals and saw this great offer! Cinemax for a year, for only $0.01 - that's right, ONE PENNY!

Basically, if you have Dish Network, and call customer service/billing, you can get Cinemax free for a year for $0.01, provided you sign up for autopay and paperless billing. IF your already a Dish customer on autopay and paperless billing, you can still get simply by calling them and asking for it. This will easily save you over $100 a year, if not more, and we all know SAVING MONEY is MAKING MONEY!!

Hat tip to kevinsoni, the original poster on slickdeals.

Saving money while eating good

2007-12-28T21:26:00.000-05:00

I love to eat...and I love to eat really great food. I really love to eat great food when I don't have to pay a lot for it. This is where Restaurant.com comes in. At this website, eating great for less is as easy as 1-2-3.

Simply type in your zip code of the desired city you plan on eating in (or choose by state).

Pick the restaurant you want to eat at from the available list

Order gift certificate...get a $25 certificate for ONLY $10!! That's a 60% savings!!

I share this with you, because most of us are going to eat out, even occasionally, and there is nothing wrong with that...even when you tighten the belt to work your way out of debt, you need to have some fun now and then, and let's face it, for most of us, eating out is fun. We don't have to cook, clean, or do anything else...just eat. So saving 60% on something your probably going to do anyway, is an awesome way to keep more money in your wallet. Not to mention, now you have no excuse to not try some different restaurants...who cares if you don't like the food at every restaurant you try, because your saving so much money...you can afford to experiment a little bit.

But, it doesn't stop there...it gets better! I just saw an email that they are offering 70% off their prices - do you know what this means? Their regular price is $10 for a $25 certificate, so 70% off their regular price of $10, makes it $3!! Can you believe it - $3 for a $25 certificate. That's an actual savings of 88% of the $25 face value...and SAVING MONEY is MAKING MONEY!!
Simply use promo code COUNTDOWN at checkout, to get the 70% off.

Hurry, this offer ends on 12/31/07.

Stop being a slave to debt

2007-12-27T05:59:00.000-05:00

Okay, the last couple days, I posted some great deals that I thought might be of interest to quite a few of you. And I know some of you were wondering why I was encouraging you to spend money, when my blog is about saving money, right? Money is made to be spent and there is nothing wrong with that...our goal here is to help you do it wisely, and get the most out of each dollar you spend. My hope is that I can help you learn to master your money, and have it do what you want it to do and have the money work for you, not you slaving away for it. Whether it's getting that awesome deal or discount, or finding some way for the money to make more money for you, take control of it. In the relationship between man and money, ONE of them is going to be the master of the other...which do you want?

The easiest way to become a slave to money is through consumer credit. Yes, I understand that sometimes we need it (say to buy a house, or even a car, though we should aim for cash at least with our vehicles), but more often than not, we do not. We get trapped by it, because we want to have something now, and convince ourselves that we can afford the monthly payments. Then we promise ourselves, "we'll only use the card for emergencies", and pretty soon, that dvd rental and take out food is a dire emergency (I cringe every time I think of how much those pizzas I bought in college are still costing me). Then, when a REAL emergency arises, we are more often than not, stuck, because we're pretty much maxed out on our available credit. Barely able to make minimum payments, we soon find ourselves struggling to keep our financial heads above water.

So, how do we break these chains holding us a slave to debt? First, realize, it took you many years to get into debt, so it's gonna take some time to get out of debt...there is NO overnight, quick fix. You need to also make the commitment to stop buying on credit, so cut up your cards...you can't pay off debt, if you keep adding to it. The next step is to save...that's right, save. But, Steve, how is saving, going to get me out of debt? By helping to make sure you don't need to go back into debt. This is the part that often trips people up and discourages them. Save $1000 in a special account that is reserved for true emergencies - this way, when they do come (and emergencies will always happen), you've got the cash to pay for it, and you can start to break the cycle of going into debt. It seems like a lot of money (and it is), but you'll be amazed at how fast you can actually save it. My wife and I were able to save about $1500 in less than a year, when we started down our road to financial freedom, and we still made all our monthly payments on our credit cards, loans, etc. The trick is to pay the minimum payment on each line of credit, and put all your extra money into savings. We chose to put ours into a money market account (MMA) that we linked to our checking account. This way we could get to it in a day or two if we truly needed it, but it was hard enough to get to prevent impulsive spending of it...not to mention we were making a lot of interest on it, compared to a regular savings account (almost 5% compared to .5%). Bankrate.com is an awesome website, that you can search, and find a list of really good MMA's, and what interest rate they are paying you on your money (this is the part where the money works for you). Just another way that SAVING MONEY is MAKING MONEY!

So to summarize, cut up the cards, and start saving some money. Does $1000 seem out of reach? Make your first goal saving $100 in an emergency account. The more you save, the more addictive it becomes...just develop the HABIT of saving. When you reach $100, make your goal another $100...cut it down in smaller steps, and have smaller victories to celebrate. Each goal reached will make it easier to reach the next goal. And remember, that light at the end of the tunnel, is no longer a freight train coming straight at you.

Holy cow!! A PS3 for under $300!!!

2007-12-26T11:18:00.000-05:00

Alright gamers, here's a steal, er deal, I missed on the earlier post...get a 40Gb Sony Playstation 3, for under $300. Here's how it works...

Get $100 credit plus 12 months no interest after purchase of Playstation 3 at Sony Style. The 40Gb version retails for $399...apply for and get it with the Sony Style card, and you get $100 credit (see terms for details), dropping it to $299!! This is a deal if for nothing else than the Blu-Ray DVD player it comes with. Now, normally, I don't recommend buying on a credit card, but seeing as you get $100 credit, and no interest for 12 months, I say go for it, as long as you have cash in hand. Make the minimum payments until the $100 credit appears on your statement, then pay it off (with the cash you had set aside for it), and close the account. You also get 5 FREE Blu-ray movies by mail, when you buy the PS3, so figure another $100+ in free stuff right there, for a $200 savings overall. See how easy it was to make $200 on something you were probably gonna buy anyway...SAVING MONEY is MAKING MONEY!!

(Sony deal ends on 12/28/07)

Christmas money burning a hole in your wallet?

2007-12-26T09:01:00.000-05:00

It's the day after Christmas, and all through the house, not a creature was stirring...except for all the gamers and their new games! And I KNOW a bunch of you got some Christmas cash that's burning a hole in you wallet! Well, these deals should help you lower that burn to a smolder, and keep more of your money in you wallet, because SAVING MONEY is MAKING MONEY! Enjoy!

Halo 3 for the Xbox 360 is on sale here until midnight 12/26. It's selling for $29.90 (50% off), NEW! WHILE SUPPLIES LAST!

World in Conflict for the PC is 60% , at $19.99

Call of Duty 4 is on sale at Best Buy for $37.99 with free shipping or instore pick-up.

Assassin's Creed for the PS3 is on sale for $37.99 with free shipping or instore pick-up. If you go instore, print and try this coupon for $10 any PS3 game, for a sale price of $27.99 (YMMV - Your Mileage May Vary). Hat tip to Dr. Evil at SD for the coupon.

Xbox 360 Gamer Points at Toys 'r' Us are on sale as well. Buy 3 of the 4000 point cards, and automatically get $10 off. Enter TRUPAYPAL 20 in the promo code box, then checkout with Google checkout, and POSSIBLY get another $10 credit, if you are a first time Google checkout user. YMMV. Total cost of $119.97 (possibly $109.97 with Google checkout), from an original retail of $149.97...a $30-40 savings.

There are tons more deals out there, at the same sites I posted above, just look around, but these are some of the HOTTEST!!

Free 1GB Scandisk Secure Digital Card

2007-12-25T22:22:00.000-05:00

Merry Christmas! Since we're all about saving money here, I wanted to pass this little deal on to you. I gave my wife a new digital camera for Christmas, but stupid me, forgot a memory card for the pictures...the built in flash memory hold only SIX pictures!! Not good! So, I get online and start looking around at Buy.com and I found this...a 1GB SD card on sale for $10! Woohoo! But, wait, Steve, you said it was free, and now your saying it cost $10 - what's gives?
Well, I looked below the checkout button, and saw a little link for buying it through "Google Checkout", and first time users of Google Checkout get $10 off their first purchase! On top of that, that particular item qualified for free shipping (if you choose 7-9 day shipping at checkout), so it ended up being free (when looking for products that qualify, look for "Free Shipping" under it, in GREEN lettering)!! Now, I'm not in so much hot water with the wife, which is good for everybody involved.

But hey, if you don't need a SD card, see what else they have...there was quite a few items that were under $10 that had free shipping as well, or maybe you see something else you need to buy (or were going to buy anyway), and now you can use the "Google Checkout" and get $10 off your order...and like we love to say here...SAVING MONEY is MAKING MONEY!!

BLINGO!

2007-12-24T14:09:00.001-05:00

So, this is pretty cool...a search engine that gives away stuff just for searching. It's called BLINGO! and it's powered by Google, so you get the same great searching power, with a twist.
When signed in, you simply search like you normally would. You get stuff if you happen to be the first person to search for something, after a prize is released. Prizes include gift cards, iTunes, movie tickets, cash, and even the occasional vehicle. Also, with every search, you get entered into the Publishers Clearing House contest. Normally, I do NOT recommend playing a lottery, or anything else where you need to pay money to participate, as it is basically a losing proposition...however, as this is free, and it's done while doing something you do anyway, I felt it couldn't hurt to put it out there. Even if it's something small, like a movie ticket that you win, that's still a couple dollars that end up staying in YOUR pocket, and SAVING MONEY IS EARNING MONEY!! Give it a try!

A Christmas present from me to you!

2007-12-23T21:01:00.000-05:00

Alright, it's Christmas time, and we all know it means family, friends, good food, gifts...and long lines, bumper to bumper traffic, and more likely than not, some holiday debt. Okay, for a lot of people, A LOT of credit card debt. And that means more interest payments, and more chances to be late or miss one payment, and have the interest rates on all your cards jacked sky high.

So, what can you do about it? A few simple things. First, an attitude change. STOP buying on credit, unless you know for sure you can pay the balance off, or have the money in your account, that you can have payments auto drafted from your checking account each month (be careful of bounced check/insufficient funds fees as well). Credit has it's place, but not as a means to satisfy the "I gotta have it now" mentality. I talk to people all the time who want to find a great investment that will give them huge returns, so they can retire later in life. Know what I tell them? Look at your credit card statement. What interest rate are you paying? That's your investment right there. But wait a minute, you say, how can what I am paying, be an investment? If you weren't paying that interest to a credit company, who would have that money? You would...it would still be in your pocket. If you have an 18% interest rate, SOMEBODY is getting a pretty good return on their investment (their loan to you), but it isn't you.

Let's pretend you have a small balance of $1000 because you found a great deal on an HD LCD big screen tv, and it is the first purchase on a brand new credit card card (assuming you make no further purchases on that card after the tv). At 18% interest, with a minimum payment of $25, it would take you 60 monthly payments to pay it off...and you would have paid a total of $1500...that's right, you paid $500 in interest, half the cost of the tv to begin with. If you had saved $25 a month, it would have taken you 40 months, just over 3 years, to save enough to buy it. Seems like a long time to save (which it is), but you also save the $500 to begin with. Now, after the 40 months, you keep putting that $25 a month you were saving into an investment fund (say a money market account - MMA) for the last 20 months you would have been paying on it if you bought it on credit. There are currently some MMA's paying you 5% interest, and you need as little as $1 to open it. If you continued to make that monthly $25 payment, but put it in your investment instead, you would make about $60. After that, if you never put another payment in that account, but let it sit there and grow, in 20 years, you will have just shy of $1500. Granted, this is a simple example, with a low dollar amount, but it helps to prove my point...if you don't have to pay the interest on a credit card, you've just saved and made yourself a nice little return on your money, by simply keeping it in your wallet. SAVING MONEY IS MAKING MONEY!!

Another simple thing you can do to save around Christmas time is to save before Christmas time. Banks and credit unions have Christmas Club programs, or you could simply put money aside into your own account (like the money market accounts mentioned above), for next year. By only buying in cash, and saving for it ahead of time, you'll keep more in your wallet. If you spend $1000 on Christmas gifts, that's only saving $100 a month, from January to October. Put it in a MMA at 5%, and you would actually have about $1075 to spend. Put it on credit cards, and in order to pay it off in 10 months, you'll pay $108 a month, for a total of $1080. But it really cost you $155 extra, between the interest paid and the lost interest you could have earned, so we could say the true cost of putting it on your credit card would be $1155. SAVING MONEY IS MAKING MONEY!!

Finally, you can try something my wife and I do with our families (this works really well with big families). Draw names. Yep, it's that simple. Put everyone's names in hat, and draw one name per person. That is who you are buying a gift for. Just between our adult siblings and our parents, my wife and I would have 14 people to buy for. Trying to buy a nice gift of somewhat decent value for each of them can get pretty expensive, for EVERYONE involved, even if the gifts are relatively inexpensive (say $20-30 a piece). By picking one name, we eliminate the pressure of having to find and fund all those gifts, and we can spend extra money to find a really nice gift for that one person we are shopping for, and still save a couple hundred dollars. Of course, we still buy small gifts for all the kids, nieces and nephews, and our own spouses, but by not having to buy a gift for all the adults, everyone saves money, and SAVING MONEY IS MAKING MONEY!! (notice a theme, here?)

MERRY CHRISTMAS and happy savings!

What we are about.

2007-12-23T15:52:00.000-05:00

Hello, and welcome to Easy Money Saving. My name is Steve, and I love to save money when I make a purchase, and make money too. I have been helping friends and family find those good deals, and finally decided to broaden my audience a little bit. I will post tips from my own experience, and from other trusted sources as well, on how to keep more of your hard earned dollars in your pocket! Whether it's saving money on a pack of batteries, to saving money on buying a car, to how to make money on the internet, or some other home based business, we'll cover it all. You can also email me for suggestions on a specific topic you would like to see covered, or if you have a question, I will do my best to answer it, or find the answer for you. Again, welcome to Easy Saving Money.

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