Every Day Finances

Save Money with Simple Habits

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You know how to spend less on your purchases – shop sales, use coupons, buy used, or trade with a friend. But you don’t want to, because you’ve found that it takes a lot of work and your time is valuable. I complete agree – that’s why I keep it simple.

I am not someone who buys things just because the price has been reduced. I don’t spend hours cutting coupons or scouring sales fliers. I only buy what I need, and I only check for sales and coupons in the Sunday paper.

But, I have found that simple habits have made a big difference in our expenses.

My toothpaste habit: When we need to buy toothpaste, we always look for a sale at the local grocery or drug store. Typically, we can find a standard size tube of brand name toothpaste for 99 cents on sale. Then I check the Sunday coupons and usually find a 35¢ off coupon that the store will double (if it’s the grocery store). When I’m lucky, I only pay 29¢ for toothpaste – compare that to the normal $3-4 dollar price! It’s so easy. I know what I’m looking for, where to find it and it’s there when I need it.

My hairstyling habit: I used to get my hair cut locally, but my friend was shocked at the price I was paying. She suggested I go out of town to a less expensive area to get my hair done. That alone saved me 50% of the cost. But I didn’t let it stop there. I stopped getting my hair colored at the salon, (more money saved) and then I did some research and looked at beauty schools. I can get my hair cut at a school for about $25 including tip. Yes, they’re students, but I trust them because they’re working under the eyes of a professional. In addition, I try started waiting longer between appointments. I now try for quarterly instead of every 8 weeks (4x per year instead of 6). I went from spending $1,400 a year on my hair to $100 – not bad! And I love the way my hair looks.

My library habit: I love my library! Libraries aren’t just for books. You can borrow the whole season of a popular TV show on DVDs, borrow a music CD, audio books (DVD or mp3) and books (paper or for your device). All free. We log onto the library website to research what they have and place holds (saves us time and gas). Our library has free classes, speaking events, and now it offers free passes to local tourist spots. You can borrow a pass to go to the museum for free (or discounted). I can’t say enough good things about libraries. They’re the cornerstone for reducing entertainment expenses.

My friend habit: Our friends traveled to same vacation spot that we’re visiting this summer. They were nice enough to loan us their travel books and brochures so we can benefit from their experience. Then, a friend introduced me to someone who is actually from one of the countries we are going to. She shared her “must see and do” list with us and loaned us a DVD to watch. These are perfect examples of borrowing from friends.

I wasn’t always like this. I used to overspend. I’m good with my money, but I didn’t wake up one morning as a savings convert, going full throttle after deals like a fiscal zealot. It’s all the little steps that add up to big savings. And, I add new steps when I find that they’re convenient and fit into my routine.

If this is something that interests you, you’ll need to think outside the box. Find the little savings habits that are right for you. If you can’t think of anything new to reduce, recycle or reuse to lower your expenses (and reduce your clutter), then do a little internet research or try one of one of my favorite frugality books: Amy Dacyczan’s The Complete Tightwad Gazette or Judith Levine’s Not Buying It: My Year Without Shopping. If you haven’t read Amy’s book, it’s a quick read with tons of tips Judith’s is more of a journal of her year, chronicling what she did and didn’t do.

These are just a few examples of how little habits can make a big difference. I could go on and on.

And if that isn’t enough, in the next newsletter I will discuss increasing your income.

Save Money with Vinegar and Tomatoes

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I am always asked for money saving tips. I’ve mentioned common tips like eating at (and from) home more often, using cash whenever possible, and buying off-season or used. But, what if you do all of these already, and you still want to save more money?

At a recent speaking event, I decided to share my more creative ideas – things I actually do myself – that might not be so common.

So, here are those two tips:

Produce Garden – yes, you heard me. If you’re a long time reader, you know that I’ve always gardened and feel that there’s nothing better than picking something right off the vine to eat right away. I’m not certified organic, but I don’t use chemicals or questionable practices. Let’s just say that if someone wanted to certify me, I’d be fine.

Even if you don’t have room, or interest in working in a garden, you can grow lettuce. It’s probably the easiest produce to grow and can be grown in a pot pretty much anywhere (even indoors). A pack of seeds costs about $1.50 and can give us (a family of two) lettuce for about 6 weeks. That’s a lot cheaper than buying a head of lettuce each week.

If you don’t eat salads at home, just because you feel bagged lettuce is expensive and doesn’t keep well, this is your solution.

Someone raised an objection about time. Lettuce is not time-consuming or fussy. You’ll need to thin the leaves out during the growing stages, but you’ll be eating it as baby micro lettuce – so it’s not like it’s fussing just because it has to be done.

This year I am trying vertical gardening. My whole garden, once it’s planted, takes me less than 30 minutes a week to maintain, and I have many plants – tomatoes, peppers, zucchini, squash, green beans, peas, a few types of lettuce and herbs. This year I am trying corn, blueberries and butternut squash.

Cleaning Products – make your own – I do! I use vinegar diluted with water in place of glass cleaner. Works great. I use baking soda with water to make a paste to clean the bathroom. These home-made products are completely safe, effective and chemical free and cost pennies.

What I haven’t yet found is a replacement for dishwasher or laundry detergent. Although, I do know that vinegar in the rinse cycle can get rid of excess detergent in your towels and get rid of that moldy smell if your towels have been out by the pool too long.

Ideas for home made cleaning supplies can be found on the internet, but make sure you’re looking at a trusted source for reputable information.

Let me know how you save money.

Maybe my garden photos will inspire you.

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Ghosting the deceased: Identity Theft Prevention

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Even after a loved one dies, they’re still not safe from identity theft or more specifically “ghosting.”

It’s reported that $2.5 million deceased Americans become victims of fraud – anything from new credit cards and loan applications to new utilities and cell phone accounts. Just when the family is dealing with their loss, before they’ve even touched the probate issue, they now have to take additional steps to protect their loved ones.

How does it happen?

We give our loved one’s identity to the world on a silver platter. For starters, most of the important identifying information can be found in the obituary.

Full birth name and married name
Mother’s maiden name
Home town
Date of birth
Nearest relatives and their relationships to the deceased
Last place of employment

It’s been reported that thieves take this information and purchase the deceased’s social security number for $10 from the Social Security Office’s Death Master File. With that, they have everything needed to set up new accounts, all while the family is still grieving.

You might be thinking, “Why do I care? It can’t come back on us because the person is dead.” Well, by using your loved one’s information, they can take yours as well. Remember, your name is in the paper too, listing how you’re related to everyone in your family, your probable home town, and your approximate age. At the very least, it will cause the surviving family members stress when new bills arrive at the house along with collection calls.

What can you do about it?

Limit the information listed in the obituary column – in this case less is more

Send copies of death certificates to all three credit reporting agencies, as well as to the banks, investment firms and credit card companies used by the deceased. Ask them to place a “deceased alert” on all accounts – this is especially important if they’re going to stay open until probate is completed.

When closing accounts (including utilities, phone, cable, rental services, etc.), ask them to tag the account as “account closed – holder is deceased.” That way, the account will be flagged as permanently closed. Closing an account may seem final enough, but it’s not. All paid services want you to continue service, so they won’t question a reopen request unless the word “deceased” is on the file.

Report the death to Social Security. If you let it go through normal processes, it can take months – in that time, an identity thief will have set up hundreds of accounts in your loved one’s name.

Cancel the deceased Driver’s License through your state’s Department of Motor Vehicles, so that duplicates will not be issued

Since deceased people don’t check their credit, I would recommend that you request a copy of their credit report from one of the three credit reporting agencies about a month after you’ve taken the above steps – just to double check their account status. Then check again a few months later.

Zip Code Harvesting

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Ever wonder why the cashier asks for your zip code? Maybe you thought they needed it for credit card approval (like a gas station). Maybe you thought they were looking to open a new store closer to the people who actually shop there.

Most of the time, they’re collecting zip codes so they can target you with marketing or to sell your contact information.

When you pay with a credit card, they can keep your full name in their records – add the zip, and they can find your exact address. They’re determining who their customers are, where they come from, what types of products they purchase, etc. They can develop a whole file of information about you with those two pieces of information which they can use themselves or sell to retail partners.

You may have noticed that some retailers will ask for your zip code no matter how you pay. They’ve asked for my zip code when I pay with cash. They might not know my exact address, but they may choose to target my neighborhood with flyers.

You can choose to be a part of this by giving the cashier your zip code – you’ll most likely get more mail and/or coupons. Or, you can decline to give your zip code to the cashier. I am vigilant about my mail (and privacy), so I personally choose not to give out my zip code. The choice is yours to make.

Note – this is not the case with unmanned transactions, such as self-service gas stations. In an unmanned transaction, you may be required to enter your zip code on the key pad to authorize the credit card transaction. In this case, the credit card company itself is attempting to verify your identity. This is NOT zip code harvesting because the gas station isn’t keeping your information.

Remember the choice is yours.

The Biggest Savings

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The Biggest Savings

In honor of Financial Literacy Month, I want to show you the biggest savings we’ve come across in our family. Any guesses?

It’s lunch! We used to eat out for lunch every day. Who has time to make lunch before work, right? But we gradually learned that we could save a lot of cash for things we really want if we could just get used to bringing our own food.

Lunch shouldn’t cost that much. It’s not dinner at a nice restaurant – it’s a sandwich at the cafeteria or a McD’s. But, it does add up. Let’s say you spend $10 a day for food at work or school, combining lunch, a vending machine snack, and coffee, bottled water or pop. It’s just a few little items throughout the day, but let me show you the numbers.

$10 x 5 days a week = $50
$50 x 50 weeks a year = $5,000
$25,000 is what it will cost you for 5 years

And that’s for one person. If there are two of you in the household, then you can double the numbers. I bet you can find something better to do with $5,000 or $10,000 a year.

I used to have all the excuses – not enough time to make my lunch, it’s too boring, etc. Well times have changed.

Part of that change was accepting that we like different types of lunch foods. He’s a sandwich person and makes his lunch the night before. Sandwiches keep well in the fridge overnight. That doesn’t work for me. I like leftovers, soups and salads. I might make extra for dinner so I can have leftovers for lunch the next day. Or, make soup on a Sunday, then have soup for a few days. I like combining my leftovers with salad greens to make a fancy salad. My lunches need to be freshly made in the morning. Because I have the ingredients, and a plan, it takes less than 5 minutes.

What about beverages? My husband is a coffee drinker. He makes his coffee the night before with a programmable coffee pot. The money savings made the pot a really good investment. I’m a water drinker, so I use a washable metal water bottle. I just refill and put it back in the fridge when I get home from work, so it’s ready to go in the morning.

Just by taking these little steps, we are able to save money and use it for other purposes. How about you? Are you ready to try bringing your lunch to work? What system would work for you?

Shop around before opening an IRA

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Opening your own IRA is a great idea, but do your research first.

Make a few appointments to interview banks and investment companies. What are their fees? What types of investments do they offer? There are many options to choose from.

Saving for Emergencies

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Emergency savings are for when your car breaks down. It’s for an unexpected medical expenses. It’s for covering your bills if you’re between jobs. It’s for unexpected home repairs. An emergency is something that must be taken care of right now or you won’t be able to get to work, have a place to live, or when you might have to choose between medical bills and utilities.

What it’s not: a savings account for things you think you need. No matter how much you think need to book a cruise, a nice vacation is a want. You will survive if you vacation at home with trips to the local beach. You will also survive without a smart phone, or cable TV, or a Kindle. You get the idea.

Once you have an emergency savings equal to one year of your expenses (yes, I said one year), then you can start saving for the fun things you want in life. Today, plan on how you are going to start saving for emergencies. Set up a regular savings amount from your pay that automatically goes to this account.

Living Within Your Means

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Whatever your goals are, you have to learn to live within your means. That means that you cannot spend more than you earn. For every dollar you bring in, you need to spend less than a dollar so that the remaining amount can be saved.

Go back to the numbers you did earlier this month. Are you including money for savings? If not, you need to figure a way to do that. In a perfect world, you need to have savings for emergencies, savings for retirement and savings for wants. Today, think about how you will get that money to save.

What do you want financially from your life?

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It’s Day 20 of Financial Literacy Month – time to make a list of things you really want. Maybe it’s money to pay for your children’s college? Maybe it’s more money to save for retirement? Maybe it’s enough money to be able to live monthly and not worry about how to pay your bills? Whatever you want, today is the day to make a list and meditate on your goals.

Greeting Cards

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Do you spend lots of money on greeting cards and postage? Do you forget to send cards? Try an online greeting card service. I use one that’s less than $10 per year (with no postage). I get reminders for special dates, and can schedule ahead of time, or send right away. No special day slips by me. …Of course, nothing beats markers, paper, and hand-delivery. 🙂