Every Day Finances

How to painlessly cut the cost of necessary expenses

Do you feel like you’ve cut your expenses to the bone – that there’s literally nothing else to cut? I want to challenge your thinking on that. Have you looked into what I call the necessary expenses (things that you need or are required to have) to try to get a discount or find a cheaper supplier?

This is what I did for our household:

I contacted our electric company and went from 15¢ to .08¢ per kilowatt. This saved us $40 the first month alone. Now I have reminders on my calendar to check before the next possible rate change in 6 months.

I was contacting our credit card company about a dispute issue and they asked if there is anything else they could do for me. I responded, “I would love a lower interest rate.” They immediately reduced it by 2%. Yes, sometimes it can be as easy as that.

I called our cell phone provider to pay a bill (normally I pay online, but my computer had crashed) and they said they could lower our bill by $20 per month because of our loyalty – without me even asking! Another $20 back in our budget.

If you want to try lowering the cost of your necessary expenses, always be polite and ask simple questions, like….

Why did my bill go up?
What are my options for reducing my bill?
My budget doesn’t allow for me to pay this, what can we do to reduce the cost?

All these little savings add up to more money in your pocket. If you can’t reduce your bill, shop around and see what’s out there. Then, bring your findings back to your current providers to see what they can do.

Let me know how you do.

To succeed in college, you must back up

So, you’ve prepared your child for college, which includes buying him a decent laptop. That’s where he’ll store all his homework, access his assignments and turn in his papers. Should be good to go, right?

Wrong. Imagine this: Your child just finished writing this really great paper and it’s due in two hours. Suddenly, the computer crashes. Maybe it’s a virus. Maybe it was because of the soda he spilled on it last night. The ‘why’ doesn’t matter right now – all that matters is that a full semester’s work was lost in a few seconds.

What’s your kid going to do?

Hopefully, he’ll…

1. Borrow another computer from a friend or the school to…
2. Access his files from the external hard drive in his room or from his cloud backup service, and…
3. Send his paper on time.

If you don’t understand anything in Step 2, read on:

External Hard Drive

This is an external storage device separate from your computer. It’s portable – from the size of a wallet to a small box. You plug it into the computer with a USB cable.

Pros: You don’t need the internet to access your files. It’s portable and you can plug it into any other computer as needed. You pay one-time for the device and not a service.

Cons: It can be lost, stolen or damaged and you need to remember to back up your files.

Cloud Backup Service

In simple terms, this is a service that stores a copy of your files on the internet. It backs up continuously and automatically as long as there’s an active internet connection.

Pros: Backs up for you and you can access your files anywhere on any computer.

Cons: Need to keep paying for the service to access your files. Must have a functional internet connection to access files.

Now that you know the different types, why not both?

Backing up frequently is critical, but so is access. You can get a 1 terabyte external hard drive for around $60 and you can use a cloud backup service for $5 per month.

That’s cheap security considering you’ll be covered for both hardware and internet related disasters.

This all sounds scary, but what are the chances?

Using a computer for school or work opens you up to some major security risks that I think need to be addressed.

1. The actual item can be lost or stolen. (You should have a locate app installed to increase your chances of finding what’s been lost.)

2. Your computer can be infected by a virus or hacked.

3. It can be damaged by liquids, a power outage, or a simple accident.

4. User error. This is where you accidentally delete or overwrite your file.

With so many security issues, the chances of something happening are pretty big. Dorm rooms are crowded work/living spaces occupied by distracted teens. Things happen… a lot.

And, it’s happened to me – a grown up with my own spacious home. Back in June, I crashed my computer. I was saved by backups and the pros to get me up and running again – but it took at least a week. I can’t thank them enough. Now, not only do I have an external hard drive and cloud back up, I have added an automatic backup systems to be double safe.

It’s July – get ready for college living now

If you’re getting ready to send your child off to college for the first time, here is a list of things you need to do, or have them do, before school starts.

Research what it’s like to live on campus. What are the rules and regulations? Where is the best place to do laundry or buy food? What student groups are available? What’s the game schedule? When and where are the plays, the concerts and movies? What stores, restaurants and services are in walking distance? Visit the school’s website and Google Maps to start. From there you may find forums or groups that will help you plan for the place you’ll be living for the next year.

Buy or rent your text books online if possible. Text books are expensive. As soon as your class syllabus is available, start comparison shopping. What options are available to you? Downloadable? Hardcover-used but with shipping fees? The school book store may be the most expensive source, but if you wait until the last minute it will be your only choice. (Always use the ISBN to verify that you have the correct edition.)

Get to know your roommate. You’ll be sharing a very small space with someone you’ve never met. Summertime is the best time to reach out. Find out about them (likes and dislikes), set up of dorm room (who is bringing what) and discuss any issues you are concerned about ahead of time. If you need a roommate off campus (one that’s not assigned by the school), try roomsurf.com.

Doctors and dentists close to campus. It’s time to think about your child’s medical. Set up a physical before they head off to school. Renew prescriptions now so they can take it with them. Check with your insurance carrier to find doctors close to campus in network because emergencies happen. Out of network costs can be a drain on your budget.

Put Orientation on your calendar and go. This is your chance to get to know the school, campus, services and class information. This is a must for anyone going to college or going to a different school.

Technology. In the summer, you can get great deals on laptops, tablets, software, printers, etc. Find out what you need, and get it while the sales are hot.

Don’t wait until fall. Your child will be busy enough trying to handle living on their own for the first time. While the college dorm may seem like a cozy, self-contained environment, it can be surprisingly challenging for the unprepared.

Plant something!

Welcome to our May Blog Hop!

This month we are so excited to help you in your business and life. You’ll find fabulous articles, how-to’s and resources for you today that have helped each consultant, blogger and business owner on the hop in their own lives and businesses. Get ready to be inspired for a wonderful month ahead of you as you move along through the blog hop.

You may just be starting the blog hop or may have come from 3. M. Shannon Hernandez at The Writing Whisperer on Natalie Bradley’s Blog Hop. If you get off track at any time, the full lineup below will help you move along from blog to blog so you make sure to see and learn from all of the articles featured here today.

Plant Something!

I was brought up with a family that had a backyard garden. Especially now when I am making a great effort to eat more fresh and locally grown food, the garden makes sense. The garden my grandparents had when I was growing up took most of the backyard. Unfortunately, that doesn’t work for me. I have to keep mine small so that it’s something that I can manage and is not too overwhelming for me. I usually start around March with seeds inside (although in some years I buy plants in another month), but you can start your seeds outside in May!

Go ahead and try it. You can have a garden in your backyard or a container on your deck – whatever works for your situation. You can grow whatever appeals to you, from herbs to tomatoes. There is nothing better than going out and picking what you want to eat when you are ready to eat it.

You are probably thinking, “What does this have to do with saving money?” Lots! The more you grow the less money you spend at the grocery store.

Lettuce is a very easy vegetable to grow. Put seeds in the soil and within two weeks you have lettuce for your salads. No more buying lettuce at the grocery store, or wanting a salad only to find out that the lettuce in your fridge is bad. You pick the lettuce leaves as you need them.

Think about what you would like to grow today.

The next stop is 5. Deb Brown at Touch Your Client’s Heart on Natalie Bradley’s Blog Hop! Thanks for visiting and I hope to see you again next month!

Blog Hop participants lineup:

Natalie Bradley at Natalie Bradley Consulting
Rochelle Togo-Figa at RTF Coaching
M. Shannon Hernandez at The Writing Whisperer
Jill Russo Foster at JillRussoFoster.com <<– you are here!
Deb Brown at Touch Your Client’s Heart
Vicki Heise at Vicki Heise ~ Live Your Healthy Life
Kim McDaniels at iBiz Design Duchess
Robin Hardy at Integrity Virtual Services
Heidi Kleine at Worth it Woman
Ronda Neufeld at Ronda Neufeld Relationship & Life Coach

How to Get What You Paid For

I have always been the kind of person who stands up for herself. It’s just something that I learned to do early on, and have gotten better at over the years.

What does it mean to “self-advocate?”

When you have a legitimate issue that is fixable, and you take it to the next level by contacting customer service or a manager, you are self-advocating.

By “taking it the next level”, I mean communicating politely. It doesn’t mean going all Liam Neeson on the issue.

Here are three examples of what I have been able to accomplish with a phone call:

1. I purchased a certain service while on vacation and felt mislead. The written description did not explain the service properly. If I had understood what they were saying (the way they meant it), I wouldn’t have bought it. So, I filled out the online survey and asked that the company call me. When they did, I explained what I understood the service to be and they clarified what it was supposed to be. After advocating for myself and politely saying that I didn’t think it was worded properly, they gave us a free dinner for two in a specialty restaurant the next time we sail on that cruise line.

2. I purchased a massage through a discount website but was unable to reach the massage therapist. I contacted the website and asked for assistance in getting a.) the appointment or b.) a refund. Everything was settled to my satisfaction, because I kept records of my attempts to contact the therapist (date, time of call and response).

3. I received a medical bill in the mail for services that were not covered by our insurance, months after the service date. I contacted the billing company to ask why they waited so long to bill me. They explained that they had let the billing person go and that they were behind in the billing. I explained my case, which was we have changed insurance companies since the time of the appointment and I didn’t know if I could go back and dispute the insurance claim since this was several months before. In addition, the H-S-A account we had with that insurance was now closed. We compromised and settled the bill for an amount which we both agreed was fair.

What you need to stand up for yourself

1. The will and desire to get what you paid for.

2. The ability to stay polite and calm. I can’t stress this enough. This isn’t about ruining someone’s day or getting something extra. It’s about establishing the facts – did you, or did you not, get what you paid for?

3. Documentation – What was purchased and when (a receipt is great), what is the issue, how often and when have you contacted the merchant.

If you are doing online chat with customer service, make sure you keep a copy of the chat transcript. I recently learned that if you are dealing with a merchant who records your calls, you can and should get a recording reference number as additional documentation. Even I can learn something new.

It doesn’t always work

You will never know if you don’t try. I think you need to try to get an amicable resolution that is fair to you and the other party. If not, you can always avoid that service in the future, or leave a negative (but fair) review.

The Last Word on Student Loans

The last word on student loans for this series is about repayment. There are lots of things you need to be aware of. I am speaking about government loans. It may be the same for private loans, but not necessarily. You will need to check with your lender.

Never ignore any debt, especially student loans. Student loans are not included in bankruptcy. They have to be repaid. Interest charges add up, so sooner is better than later.

Student loans are deferred while you are in school. If you plan on taking a year or a semester off, you will have to start making payments. Will the loan go into deferment again when you return? Contact the lender to find out.

If you are having trouble repaying your student loans contact your loan servicer. Yes, this can be a scary call. Trust me, lenders want their money and most of the time they are willing to work with you to find a solution that works for you and them. Never promise to pay more than you can afford.

Some students have no idea what they owe or how many loans they have. This is not uncommon. As students scramble to make tuition, they may take out loans with several lenders over the years. They may also consolidate some loans while leaving others intact. If you feel like you’re missing the full picture, check your credit report at AnnualCreditReport.com to see a complete list of all outstanding debts. If you only want to see your government loans, you can go to the National Student Loan Data System (NSLDS).

Stay on top of all your debt to keep your finances in control.

Move Faster on Your FAFSA

It’s that time of year again! I’m not talking about taxes.

You DO need your tax return, but that is only part of it. Any guesses?

It’s FAFSA – Free Application for Federal Student Aid. I personally applied last year at this time and here are some of the things I learned. If you are returning to school or have a child in going or in college, you need to read this.

Deadlines: There are several deadlines that you need to take into consideration – federal, state and the college you will be attending. The federal deadline is June 30. The Connecticut deadline is February 15. Deadlines for your state can be found at fafsa.ed.gov.

How to Apply: First, you need to go to the FAFSA.gov and start your application. Online application are easy, but as with anything, take your time and enter your information correctly. Don’t hit enter yet.

Double Check Before Submitting! If you didn’t qualify, it could be because of wrong or inaccurate information. Did you know that incorrectly filled out applications is the reason why most government grants are denied?

Do Your Income Taxes Right Now: You will have to link your tax return to the application.

“Sign” Your Application: How can you provide your signature on an internet document. You will use a PIN that is provided for you when you start the application process.

Need Help? Either contact the college or university financial aid office, read the instructions directly on the FAFSA’s website or call the number listed there.

First Come, First Served: Remember, that sometimes award monies are based on first application in – first application out. The earlier you submit your application the better, as the money goes fast.

Holiday Credit Mistakes You Don’t Want to Make

Getting ready for the holidays? That will put extra stress on your time and budget. Every time you shop, you’ll be facing temptations that could send your finances off the cliff. If you want to keep away from the edge , keep listening:

Every store will push their own card. They’ll offer a 10-15% discount if you sign up at the register. With your little pile of purchases in front of you, it will sound like a good deal. Don’t do it.

Why not? Because they’ll run an inquiry on your credit report, instantly lowering your credit score and costing you more money in the long run. Don’t forget that store credit cards charge the highest interest rates out there. Think about the temptation you’ll face. With one purchase safely tucked away on a new credit card, you’ll find some breathing room in your checking account for more holiday purchases. Before you know it, you won’t have enough left to pay the store card in full. In the end, that discount will have cost you over 15%, putting you in the hole.

You will be off your routine and forgetful. Between preparation, gatherings, and parties, something will probably slip through the cracks. You might even forget to pay a bill on time. Don’t do it.

Why not? Missing a due date will cost you a late fee – sometimes $35. If it’s a credit card payment, they could penalize you with an increased interest rate at a time you need it least. Worst of all, the late payment could end up on your credit report, lowering your credit score.

You will want to spend more than you can afford. Don’t kid yourself. Holidays are a time of giving and sharing. You will get caught up in the moment and spend more than you planned. You may even spend so much, that you won’t have enough left over to pay your credit card in full when the bill arrives. Don’t do it.

Why not? It could take forever to pay off. If you have a $500 balance and only pay the minimum amount due (typically 2%) then it will take you 85 months (or 7 years plus) to pay off the balance. That is assuming you don’t make any other charges. Plus, you don’t want to start the New Year with new debt.

Plan ahead and use cash for holiday shopping to stay within your budget. That way, you can enjoy the holiday season without facing budget busting debt in January.

Bedroom Makeover on a Budget

We’ve been updating the house for the past few years – on a budget. That means doing most of the work ourselves and finding bargains wherever possible. This year, I really wanted to tackle the bedroom.

Here are the details.

If you remember from #30Ways2Save, we painted our own bedroom in a weekend. It only cost a few cans of paint and was easy to do.

The carpet really needed to go. Our older home has small rooms, so we were able to find an inexpensive Berber carpet remnant, fully installed. We saved money by ripping up the old carpet ourselves (and moving the furniture). This was another weekend project that saved us money.

Finally, we really wanted new furniture. We’ve had the same bedroom set for 15+ years and it wasn’t high quality to begin with. It was past time for it to go. We didn’t need, or want, to pay for a full bedroom set, so we were open to different styles if they looked good together and the price was right. I grabbed my good friend Lori, and off we went. She’s an expert shopper and knows where to find the best deals. We were able to find a dresser and armoire, both on clearance, at two different stores. They look great together.

I am getting more comfortable with negotiating lower prices just by asking (and with touching up furniture). I was able to ask for additional discounts because of some minor scratches, which reduced the prices even more.

Bottom line: With time and effort you can have what you want at a cost that works with your budget.

For the Price of a Text Book…

Some of you may know this already, but I’m taking a few classes to finish my degree. For those of you going to college, have a child in college, or about to go to college, this may help your wallet.

I have talked about the cost of text books before, but this was my first experience as an adult in today’s market.

I took a class this summer. The textbook was $60 used or $40 for a rental. Thinking I’d like to keep it for future reference, I decided to buy used. Imagine my shock when I discovered that the college bookstore didn’t carry the textbook for a class the college was offering. I had to prepay and have it ordered in.

After the class was over, I was shocked again when the bookstore wouldn’t buy it back. The college is offering the same class with the same book, so why not? Wanting to recoup some of my costs, I sold it online for $11.75 (postage was paid by the publisher).

Now I am taking my second class and that textbook was substantially more – $200 to buy new and $100 to buy used. I did my research and checked a number of websites for the best deal (remember to search by the ISBN number to get the correct edition). I decided to rent it for $40. On the first day of class, the Professor mentioned that we could have used prior editions. Knowing that ahead of time would have saved me a lot of money.

Lessons learned:

1. Don’t shop at the college book store.

2. Compare prices (new, used, or rental) from several online retailers.

3. Check for digital editions depending on your learning preference.

4. Plan ahead so you don’t have to expedite shipping. The cheaper the shipping the better the deal.

A couple of hard lessons learned that I will put to good use for the remainder of my classes. Textbooks are expensive. Learn from my mistakes to cut a nice chunk off of college costs.