Beware of Incremental Increases

Tip #291 - Beware Incremental Increases. Once you have your budget laid out and you are into a routine of spending that you are comfortable with, it is sometimes easy to take things up a notch without realizing it. For example, you may be great about eating your meals at home, bringing along water bottles in the car, and walking the one mile to school rather than driving and staying within your budget. But once you've been doing that for awhile, you might stop "just this once" to get drinks at McDonald's for the kids. Or you might start to order take out when you've had a bad day even if it's not in the budget. And while all of these things may be okay to do once in awhile, when it starts to become habit, that it becomes dangerous (to your finances anyway). Suddenly these changes become the new normal, and without realizing it, you have started spending more money than you budgeted for.

It is these small, incremental changes that you need to be careful about. It is so easy to get used to these new "luxeries" without realizing that you are spending more money. Sure, it may be just a few dollars once or twice a week, but over time, they add up with little notice. For example, suppose you are a working woman and bring your lunch from home to work each day. But one day you are running late and don't make your lunch so you buy at the office. The cost is $6 - about $4 more than it costs to make your lunch at home. The next week, you hit the snooze button one extra time knowing that you can skip making lunch again and buy in the cafeteria. Before you know it, you are buying lunch about once per week at the office. Seems harmless, no? Well, in a given year that means you spent about $200 extra on lunches that you didn't budget for. That may or may not be harmless, depending on your financial situation and your other miscellaneous costs.

Suppose you also have gotten in the habit of picking up a magazine each week at the checkout counter at the supermarket each week. Again, this is something that wasn't in the budget. At about $5 a pop, it puts another $250 dent in your finances. Add in that you start meeting a friend about once per week for a drink for an additional $250 or so. All taken together, you have been spending an extra $700 for small changes that you hadn't budgeted for at the beginning of the year. These might all become important items for you to have in your life in order to keep things going smoothly and stress-free. But, they also add up to a fairly big expense, and if they become habit without being in the budget, you will not meet the financial goals you set for yourself in the beginning of the year.

So stop and evaluate the small, incremental conveniences that may have crept into your routine that you haven't budgeted for. And see if you can put them back into their place as special purchases rather than regular ones, until you can adjust your budget and include them formally.

In Real Life (IRL) - I started this post several weeks ago, and cannot remember what event made me realize that some small habits had crept into my routine that were starting to put a dent in my wallet. It was either the quick stop at McDonald's for drinks for the kids on a very hot day (and I had forgotten to bring drinks with us) or the soda I was suddenly adding into my shopping lists when I had virtually stopped drinking it for months and months. Or maybe it was the packs of gum that my daughter was asking that I buy for her when I stop at the drugstore (with her money at least). Whatever it was, I knew that none of these purchases were expensive on their own but buying them on a regular basis as they were tempting me to do would surely take money away from targeted saving account. I knew I would have to do better.

While I do think big purchases have a greater impact on my finances than smaller ones, I realize that smaller ones occur much more frequently and without nearly as much research or notice. And I know that there is some truth to the saying "watch your pennies, and the dollars will take care of themselves." And while I don't think we should necessarily deprie ourselves of small treats when we can afford them or for special occasions, I believe it is the little things that we don't realize we are spending money on that can set us back on our financial goals. To that end I am making a concerted effort to be aware of when I am started to spend money on little things on a regular basis That I have not planned for. I hope you will, too.

Don't Let Deals Chase You

Tip #269 - Don't Let Deals Chase You. There is a lot written in the online world about how to "save" money. However, in order to "save" money, you need to spend some, which really isn't saving money at all. There are deals being thrown at us from blogs, credit card companies, auction sites, online stores, and emails from daily deal websites. Unfortunately, often these deals often cause us to spend more money than we normally would even if we get a good buy on what we bought.

If you want to truly "save" money - that is put money away in your bank account, the only way to do it is to not spend it. Getting 50 percent off tickets to a football game is not going to save you money unless it was already in your budget to buy football tickets at full price in the first place. Driving to the drugstore to pick up yet another bottle of shampoo when you already have 10 bottles in your bathroom cabinet costs time, gas money, and wastes space for something of which you already have an adequate supply. And clipping that Buy One Get One Free Ice Cream Sundae won't save you money if you can enjoy a similar treat for less from the supermarket.

If you are truly interested in saving money - that is putting away money - then do not let deals tempt you to spend more than you would otherwise, no matter how good of a deal it is. The only way you can save money on deals is if it is an item in your budget that you had planned to pay full-price for already. Then at time of purchase you look for a better price on it. That will lead to savng money. Spending money on haphazard items that were not in your budget in the first place, will only cause you to spend more money and have the exact opposite effect that you think a "deal" will do. So, if you want a deal then go after one on something you had already planned to buy. Don't let the deals chase you and cause you buy something you weren't planning to purchase.

In Real Life (IRL) - I am bombarded on a daily basis from deal sites - some that come into my email, some that are through sites I visit, and some that come in my mailbox out at the street. While I feel I have pretty good restraint when it comes to spending money, I am often tempted to buy something that is a good deal. If I get a flyer for a hotel that is having a special, I will read through it and ponder the idea of making a quick getaway trip since it's such a good price (vacations are a weakness of mine). I am subscribed to some daily deal sites that send me emails everyday about deals in the area. I have yet to buy something from one of them, but I have been pretty close a couple of times. And I read blogs that talk about saving money and have lists and lists of items you can purchase at a good price. Problem is, I don't need most of those items.

And while I can pass on good deals or waste a bit of money frivolously without going into debt, there are many others who are struggling financially now and do not have a dollar to spare, no matter how good of a deal something is. And I am afraid a person who wants to save money - that is build up their savings account, reading all of these deal sites can cause the reader to actually go out and spend more than they even normally would. Yes, they may have more goods and/or experiences to show for it than if they had paid full price for these items, but if they are spending more money on things they normally wouldn't buy, then they are worse off than before they frequented all of these deal sites.

If you are one of those people who is struggling financially and hope to put away more towards savings each year, make sure that you are not sucked into buying things that are a good deal, thinking that you are saving money. Let your budget driving your buying decisions. If you are have $300 in your budget to spend on a hotel for a weekend getaway, then shop around for a deal. But don't let an email promising you 50% off a hotel cause you to take a vacation that you would not have taken. Your budget should control your purchases. Don't let the deals control what you buy. That will not save you money.

Be Disciplined

Tip #266 - Be Disciplined. Okay, this is a very common sense tip. But as I've been thinking over the past week what is it that really separates the savers from the spenders, I've concluded that having discipline is a big part of it. Obviously, there are certain expenses that some of us can't get away from - medical expenses and some education expenses come to mind. But, we have choices in much of our daily spending.

As we are pushing the shopping cart down the grocery store aisle, we can pick up the gourmet brand coffee, the ice cream treat that we don't really need, and the imported cheese. Or we can show discipline to forgo the ice cream altogether, put up with a cheaper brand coffee, and deal with good ole' American cheese. The difference between spending more and less at the grocery store? Pure discipline. Discipline to put up with generic products or to forgo certain foods altogether.

When we are out shopping for a car, we may feel swayed to buy a top-of-the-line luxury vehicle versus a basic model. Or we may be tempted to add in the deluxe options such as heated seats or power doors. It takes discipline to say no to these fancy cars and luxurious options and save money while doing so.

How about when renting an apartment? Do we go for the one with the washer/dryer in the unit updated gourmet kitchen with granite countertops or are we disciplined enough to deal with the apartment that has a laundry room on the ground floor and sports outdated 80's almond cabinets in the kitchen?

Maybe we have a hard time being careful with our money when we go out to eat or to a bar - it's easy to add another overpriced drink to the tab and another appetizer.

This last example is one that seems to cause a lot of problems for people. If we use credit cards, do we have the discipline to only purchase items that the amount of money in our bank account actually covers, rather than use the card to buy things that we do not have money for? In other words, do we have discipline to use credit cards wisely? Or are they used as "free money" instead?

Again, sometimes we don't have a choice on being disciplined about spending money - medical events happen, emergencies come up, and some things just have to be paid for, no matter what. But for those "optional" expenses, it's the discipline that we have that makes all the difference in our spending.

In Real Life (IRL) - Writing and doing are two different things. And while I think I am disciplined about not spending money in many categories, there are other areas that I fall short. So it takes control for me to stay out of the place where I seem to want to spend money in the first place. But if I do go there, it takes every ounce of discipline I have not to spend money on things that I don't need and wasn't palanning on buying.

For example, I love Trader Joe's. I think it is a great supermarket for many items. They have many choices of inexpensive, healthy choices. But there are other more expensive and less healthy (i.e. snack food) choices that are also available. So when I go to Trader Joe's to stock up on hormone-free cheese, frozen veggies, mini-bagles and our other TJ's staples, it takes a lot of discipline on my part to not also pick up their version of Pirate's Booty called Buried Treasure or something like that). Believe me when I say we don't need it in the house. It's usually gone in one hour flat. I don't need it on my waistline, and it's two dollars that I didn't need to spend. There are many other equally yummy snacks there that I don't need to be buying, but it takes a lot of discipline on my part to bypass them and keep the money in our pocket for more useful things.

Thrift stores are another place I need to be more disciplined about. The cheap prices are so attractive to me, that it's easy for me to spend money on things that I didn't plan on buying. It takes even more discipline for me to stay away from thrift stores in the first place, one in particular that is nearby because I really enjoy the treasure hunt. And even though I have a small eBay business, I have plenty of junk, er inventory, around here that I need to sell before I should be think about buying more stuff, so I just don't need to be going in the first place.

These are two places that come to mind that I need to be disciplined about in order to save money. On the other hand, I can freely go to a fair and not be tempted to spend big bucks on rides and games. That doesn't appeal to me that much. A new car dealership doesn't interest me that much either - I'm more of an AB car kind of gal (an AB car being one that works well enough to get me from point A to point B). And I can't tell you the last time I went to a shopping mall - well I can, it was when I went to take my son for a haircut several months ago - and we found out the Cartoon Cuts had closed. I haven't been back to the mall since. It just doesn't interest me at all. But I know some of these places, along with coffee shops, fast food restaurants, electronics stores, book stores, and others can be challenging for other folks in terms of them having a hard time not spending money there.

And the credit card crisis our country is facing? It's not because credit cards are pure evil. It's because many people are not disciplined enough to forgo buying things that they don't have the money for. And credit cards give them a way to buy these things even if they don't have the money.

What it all comes down to is that we need to figure out for ourselves where our personal weak spot is with regards to spending money. Is it the big items that we just say, "What's another $1000?" and go for extras like the bells and whistles on a new car? Or is it everyday stuff that we have a hard time controlling our spending with - coffee shops, drugstores, and eateries?

Perhaps, we are not disciplined enough to say no to salespeople - whether it be the hairdreser trying to sell us shampoo or the high school kid selling wrapping paper at the front door. If we can all identify our weaknesses, then we can work on having enough discipline in those areas to avoid going there in the first place or saying "no" when we do. Easier said than done, I know. But you know what they say? Recognizing our problems is half the battle to solving them. It just takes discipline to go the rest of the way. For other money-saving ideas, check out Life As Mom.

Spend Money On Things You Care About

Tip #230 - Spend Money On Things You Care About. And go cheap on things you don’t care about. On any given day there are plenty of non-necessities we can easily spend money on – convenience food, restaurants, movies, classes, manicures, purses, coffee, books, etc. The list goes on. It is very easy to just spend money for something to do, something to eat, or something to entertain ourselves. But if you are trying to save money, you should be especially careful about wasting money on things you don’t care much about.

If you are a mom with a small child, it is easy to get sucked into paying money for shows, classes, and entertainment just because you think your child would be bored otherwise. A Sesame Street Live show can be over $100 for a small family. A gym class at Gymboree is hundreds of dollars. A visit to a local restaurant can run $25 for mom and two children. Are these things you really want to be spending your money on? Or are there more important things to save your money for? Why not skip on some of these things if they really aren’t that important to you or find cheaper options? A class at the local rec. center is cheaper than Gymboree. A high school theatre production can be just as enjoyable as a professional show. A meal you cook yourself or local take-out place might be a cheaper (and better!) choice than a sit-down restaurant. Then you can save your money for the things you and your children really care about – perhaps a big day at your child’s favorite amusement park or a weekendwater park.

What if you are a working person who goes to the office each day? It’s easy to go to the local restaurant and drop $10 to $15 dollars for lunch or spend $5 each day in the company cafeteria. How about hanging out with the gang at Happy Hour and dropping $20 just because it’s something to do. Is this really what you want to spend your money on? Or would you rather save money on frivolous meals and bring lunch from home so you can save money for something you really want. Perhaps you really appreciate a fine, fancy restaurant, and there’s one in town that you’ve been wanting to try for a date night with your husband? Or perhaps there’s someone you would love to see in concert? Why not spend your money on those things that you really enjoy instead and not waste it on activities that don’t mean that much to you?

When saving money, there is no reason you need to deprive yourself or your family of things that you really love. But you should save your money and put it toward those things and not waste your hard-earned dollars on things you don’t care that much about.

In Real Life (IRL) – In our budget, we have a certain amount of discretionary income in our budget to spend on anything we want to do. I hate wasting my money on things that I don’t really care about. That’s why when my friends do a Mom’s Night Out, I often don’t go. I don’t enjoy spending $25 on a meal that I don’t really care for, even if I enjoy the company. And while I think my four-year old would enjoy gymnastics at a “real gymnastics place, I think she has just as much fun at gymnastics at our local community center for one-quarter of the price. When activities come up like seeing Nick Junior on stage, I think it would be nice to take my toddler there. But, for $35 to $50 per ticket, I’m not sure he’d really get that much out of it.

My oldest daughter, on the other hand, LOVES American Girl dolls. We have ready many of the stories together and discussed the time period when many of these stories are set. She enjoys playing with the dolls, making food for them out of clay, and dressing and creating stories for them. I enjoy the dolls and stories as much as she does. So recently when an opportunity came up to meet one of the American Girl authors and have a tea with her, we jumped at the chance. Even though tickets were $25 each, which is more than I usually like to spend for a two-hour activity, I was happy to hand over the money for an event that I know both of us will appreciate. And the best part was I had the money available because I didn’t waste it on things I don’t care much about.

Bring Your Coupons And Play The Game

Tip #209 - Bring Your Coupons And Play The Game. Today’s merchant business seems to rely heavily on different types of promotions, specials, coupons, and other gimmicks to get us to buy things. Years ago, this did not happen with the frequency that it does today. In the past, department stores had sales maybe once per season. Coupons for grocery stores equaled only 5 cents, 7 cents, or maybe a dime. Every once in awhile a grocery store would do a promotion for totaling up receipts to get a free turkey or to buy dishes. But on most days purchases were straight out purchases without gimmicks attached. Nowadays, promotions take place more often than not. And they are more confusing than ever – buy two packs of cookies, get a milk free; spend $200 over the next three months and get 10 cents off gas; 40% off sale and 25% off that with a coupon. It gets more and more confusing to figure out what to buy, how to buy, and what it will cost when you get to the register.

I did a post a few weeks ago about how to calculate percentages and I’ve done a post or two on doing research before you buy. And it is because of all of these types of promotions that stores have that these two tasks are important. Well with Christmas sales coming up the promotions, deals and specials have gotten bumped up a notch. And if you want to get the best price on an item that you’ve researched and know you want to buy, then you need to play the game the retailers are throwing at us.

Retailers like using gimmicks and promotions to drum up business and get people excited, but they count on only a small percentage of people to actually follow through with their promotion or for customers to buy enough other things in their store to make the loss on their promotion items worthwhile. If they want to play that game then we can, too. Take advantage of what they offer. Just make sure you are buying stuff that you would have bought anyway!

So, before you go to the stores, look at their flyers. Read the fine print about stores’ gimmicks so you don’t get stuck buying something that isn’t covered by a promotion that you thought was covered. Make sure you follow any games, promotions, and gimmicks correctly – sometimes the details are confusing. Bring any coupons you cut out from newspaper inserts with you to the store. Look for coupons in other places such as directly inside the newspaper, magazines and in mailers that come in your mailbox. Find out the stores’ policies on accepting competitors’ coupons.

If you don’t get a newspaper with flyers inside, then look online. Most stores have their circulars posted on their website. Do an Internet search for coupons for the stores you are considering. Look at the store’s competitors’ sites to see if they have coupons you can use. This early in the season look at Black Friday sites to see if what you want to buy will be cheaper on the busiest shopping day of the year. Go to Retailmenot.com to read about any online coupons for that store – it might be cheaper to buy it online and have it shipped to the store for pickup.

I am not one to encourage shopping for unnecessary things or to buy things because they are free or a very good price. But if you are in need of something – small appliances, gifts for family or friends, or whatever, now is the time to take advantage of some of the deals that retailers are offering.

In Real Life (IRL) – I like to get a bargain as much as the next person. But I will admit that sometimes it takes hard work. Since I don’t shop that often any more I no longer look so hard for the games and gimmicks that I liked to do when I was younger. Yes, it was time consuming to look for the coupons or get up early on Black Friday, but if it saved me money, it was worth it to me.

These days I don’t shop at retail stores so much. I rarely go to the mall. But with two daughters who like to do crafts, as a mom who likes to throw fun birthday parties, and as a Girl Scout leader of my daughter’s Brownie troop, I find myself shopping at Michael’s quite frequently. And that is one store where I refuse to pay full price. It’s amazing to me that at any time I can get 40% off most items in their store. I would be stupid to go in there and pay full price. The catch is that they don’t offer 40% off coupons every week. So if I am in need of something from the store, I either have to be patient for their next coupon offering or I have to give in and pay full price. Right?

Wrong. In our area, there is a competitor store to Michaels called AC Moore. I know in other areas Hobby Lobby and Joanne's are competitors. AC Moore is a great store, but much less convenient to where I live. But the great thing about Michael’s is that they accept competitors’ coupons. Since AC Moore competes with them in this area, Michael's takes their coupons. And AC Moore has coupons every week and online. This means I can print out a coupon every day and go to Michael’s to pick up an item. Since Michael’s is less than 1 mile from my house, it makes it worth it even factoring gas in if I decide to drive. Sometimes I bring my oldest daughter with me and we each use a coupon. For a couple weeks before a birthday party, I will shop there once a day, using a coupon for one item per day. Why not? They’re offering it, so I’ll take it.

It gets even better than that, though. Our Michael’s (and each one is different) does not accept their coupons for books. But, when I asked the cashier about it she said they WILL accept competitors’ coupons for books. Can’t beat that! This makes for some nice and pretty reasonable birthday presents. Many times, especially around the holidays, there will be 50% off coupons from both AC Moore and Michael’s. I like to save any big purchases I want from those stores for days when they offer that coupon.

Other places I have taken advantage of gimmicks is the supermarket. One of our local markets sells gas and for a while they were giving 10 cents off per gallon for every $100 spent at the store. Now I realize that is only $1.50 off a full tank fill-up for spending $100 or a 1.5% savings. But when I was shopping there anyway it made for a nice gas savings as long as I paid attention to the date it expired and used it before then. Some things they offer clearly aren’t worth it to me, so I don’t take advantage of the promotion unless I was buying certain products anyway.

But it pays to look at the various stores that you like to shop at to see what promotions they are having that do appeal to you and make sense with your needs. Especially this time of year, the gimmicks abound. If they work for you, take advantage of them. Again, only use them for things you were planning to buy anyway! For other frugal ideas, check out Frugal Fridays.

Send A Gift; Save On Postage

Tip #207 - Send A Gift; Save on Postage. It is that time of year again – the holidays are around the corner and the post office lines will be that way, too, soon. As November and December approach, more and more people are will be sending gifts to family and friends across the country and around the world. If you only send packages sporadically, it can sometimes be overwhelming on how to send it – First class? Parcel? Overnight? Which method is quickest, and maybe more importantly, which is cheapest?

As a seller on eBay, I have wrapped and sent my fair share of packages, so I will share some information I have learned over the years about shipping items. Generally, the quicker you want an item to get to its recipient, the more expensive it is. But not always. Express Mail is like overnight delivery and that is almost always the most expensive. I have never shipped anything this way, but if you need something to get somewhere in a huge hurry, then this is the way to go if you want to stick with the US Postal Service. There are other shipping options besides the USPS, such as UPS and FedEx, so you’ll want to compare prices. If it absolutely, positively has to be there overnight, FedEx might be the way to go. I used to ship items with FedEx on a daily basis through work and have been very satisfied with their service. Another time when I like to compare prices with the Post Office is when I have large, oversized packages. We have found that FedEx or UPS can often be a better deal than the Post Office in these cases.

But suppose you want to just ship a present of a winter scarf to Great Aunt Ida across the country. Let’s assume you are organized and have allowed plenty of time for it to arrive and you wish to pay as little as possible. Parcel Post is generally the cheapest way to ship a package if you have the time, but there are exceptions. If an item is 13 ounces or less (you can check it on a scale at the post office) you can ship it first class mail package. For an item that light, first class mail package is the way to go. If the item is heavier than 13 ounces, though, Parcel Post is usually the cheapest way to go.

If you are not so organized and want to get something to someone in a few days, then Priority Mail is your best bet. It should take 2-3 days to get anywhere in the country. Cost is based on weight and distance from your house. The other nice thing about Priority Mail is that the Post Office provides the box or envelope for you to ship it in. If you don’t have a box lying around or somewhere to pick one up, then this alone might make Priority Mail worthwhile. Priority Mail prices start at just under $5. However, there is another Priority Mail option that might be better. They have something called Priority Flat Rate which is what it says it is – a flat rate for a specific sized box. A small Flat Rate Box is about $5, a medium box is about $10, and a large box is about $14 to anywhere in the country. So, if you have a very heavy item that is small, a Flat Rate Box might be your best option – possibly even better than Parcel Post.

The best deal for shipping items, however, has to be Media Mail. Media Mail is reserved for sending media – books, DVDs, CDs, and other media types (no magazines or other materials that contain advertising). Media mail is a great bargain regardless of the weight. Send ten pounds of books across the county and it would cost almost $30 for Priority mail; about half that at $16 and some change for Parcel Post, while it’s just under $6 for Media Mail. So if you are considering a gift and don’t want to spend a lot in postage, think about sending media.

The last piece of advice I have for shipping items is to look to buy items online. If prices are the same or better including shipping when compared to a brick and mortar store, then it pays to buy the item and have it shipped directly to the recipient. It beats paying for shipping twice.

The cost of postage has increased quite a bit in recent years, so make sure you take it into consideration when buying a gift for someone far away. And then look at all of your shipping options at the USPS website before sending off your gift.

In Real Life (IRL) – As I said, I have a lot of experience shipping items from my eBay business. As with everything else, there was a learning curve that came along with packing and shipping. Fortunately with all shipping options being online, it is much easier to compare shipping rates. In addition to the actual packing and shipping, my experience comes in handy at the point of purchase. I have learned to look for gifts that are cheap to ship.

--Books make great gifts because I can send them cheaply. Same goes for DVDs, computer games, and CDs.
--The smaller the item, the better. Priority Mail charges extra if the size is above a certain dimension. And if it’s small enough to go Flat Rate, you can save a bundle.
--The lighter the item, the better. Shipping a souvenir t-shirt is preferable to shipping a pound of salt water taffy.

I have also learned how to save even more money.

--If you are computer savvy, set up an online account at the post office. You can get discounts by print your labels at home.
--By printing labels at home, you can often leave your packages with your mail carrier and save a trip to the post office.

So for this upcoming holiday season, make sure that if you are trying to save money, you consider the shipping costs as well as the cost of the gift. No matter how good of a deal it is, it’s not worth it if the cost of shipping is going to be astronomical. For more frugal ideas, check out Frugal Fridays.

Have A Go To List of Websites

Saving Money Tip #181 - Have a Go To List of Websites for Reference. In our information overloaded world, it is sometimes hard to zoom in on the best places to get information. Yes, Google is our friend, but there are other websites that can be crucial to someone who is trying to save money, reduces costs, and make informed decisions on buying – not necessarily financial websites or blogs, but websites that are useful tools to someone who wants to take charge of his financial matters and save a little money. Each person will have different needs and wants in this regard, but I thought I’d share some websites that are invaluable to me on a regular basis for useful information. These are the ones that are bookmarked on my computer.

Real Estate:

City-Data – I discovered this site a couple of months ago. If you have a job transfer on the horizon or are contemplating starting over in a new city with better employment opportunities, go over to this site and check it out. There are forums for every state in the union, most major cities, and a few other countries. You can ask questions to residents of the area where you wish to live. You can get the lowdown on neighborhoods, schools, housing, and everything else about an area. If you’ve ever done house searching long-distance, you know how hard it is to zero in on the right place to move. This site can help tremendously in that regard.

Realtor.com – This is a great general site that lists all homes on the MLS (multiple listing service). There are some sites that are better for local areas that give more information, but this is a great place to start.

Vacations:

Trip-Advisor – If you are going on vacation and want to pick an appropriate hotel, this is the site that will give you nitty-gritty information about the hotel, motel, cottage, or bed and breakfast. You must take review with a grain of salt because people are more likely to write up a report on trip advisor if they are unhappy, rather than happy. However, that applies to all hotels, so it is still a fairly accurate comparison. If you read ten complaints that the pool is too small at a certain hotel, and pool size is important to you, then you’ll know to steer away from that particular hotel. This is the type of information you will not get from reading a glossy hotel brochure.

Cruise Critic – A great site to read opinions if you are planning a cruise vacation in the next year or two.

Food Shopping:

Pick Your Own – If you like fresh fruits and veggies in your diet, then check out farms local to you that have pick your own crops. Many times they are cheaper than farmers markets since you are doing some of the work. If you buy large quantities for the freezer each year, this is the way to do it. This site lists pick your own farms for every state in the union. It is pretty comprehensive.

Money Saving Mom – This site regularly updates good deals at many grocery stores, and list other good deals and coupons that come out. Similar to this site and more comprehensive with regard to grocery stores is Coupon Mom. Membership at this site is free and matches up coupons and store sales prices. It doesn’t list every grocery store, but may have at least a few in your area. Use these sites in conjunction with each grocery store’s website, like Safeway before going food shopping.

All Recipes – You can have access to thousands of recipes on this site or others like it (although this is my favorite). No need to buy a cookbook. If you have random ingredients in your house and don’t know what to make, then plug them in to this site, and you will get some ideas. No need to waste money on takeout. The reviews of the recipe are honest and accurate. I have never been disappointed in recipes I’ve made with 4 stars or higher.

General Shopping:

Epinions – Before you buy, look up which product has gotten good reviews from the buying public, compare prices at different retailers, and learn more about what features you need and want. This is a great place to start for buying many products.

Craigslist – If you are in the need or want of purchasing something, check here first! After you’ve done your research and decided you really want to buy a certain brand-name popcorn popper, look on Craigslist before you buy new. You may be surprised how many gently-used popcorn poppers you will find for a fraction of the price of new. If you are not in a hurry for said purchase, then check Craigslist on a regular basis. It’s likely the item will come up if you are patient enough.

Public Library – Library websites are almost as good as being at the library itself. At least one of any reasonable size is. If I want to check out a book from our system, I can check the “card catalog” from the comfort of my own home. If a book isn’t available, I can put it on hold without wasting gas to drive there. This is cheaper and just as easy as buying from a brick and mortar store or online.
Other sites that pertain you – If you have a hobby or other interest, find other like-minded individuals online. You will become more informed and maybe learn how to participate in your hobby at a discount or how to turn your hobby into a money-making career.

Retail Me Not – If you are getting ready to make a purchase online, this is the site to check out to see if there are any discount codes available before you put in your order. There are many sites out there that do this. But this one seems to be the most comprehensive. And you can use this site in addition to a Google search that you might do.

Financial Products:

CNNMoney – This site is one I like to read periodically to learn about new financial products or to see what is going on in the financial world. It keeps me up-to-date on news and products in clear, easy-to-understand terms. It also has on its site comparisons of mutual funds, CD rates, mortgage rates, and the like. I also like the Kiplinger’s site that does virtually the same thing.

Other:

Swagbucks – While you can always Google sites that you need, sometimes it pays to Swagbuck it instead. If you do Google searches on a regular basis, then check out Swagbucks instead. For every few searches you do, you earn some Swag points that can be accumulated and then cashed in for giftcards or other products. In several months’ time I’ve accumulated about $20 worth of gift cards to Amazon – not bad for searches I’d be doing anyway.


In Real Life (IRL) – All of the sites listed above are ones I use regularly or when the time is appropriate. They are not all money-saving sites, necessarily but tools that I use to help me make wise spending choices and be more informed on items I am purchasing. Of course there are many other good sites out there, and not everyone will use the same ones that I do. But each one has helped me tremendously in keeping costs down or being informed on a product, whether it is a mutual fund, a new home, or a toaster.

I’d love to learn about more great websites out there that are useful for saving money or becoming informed before buying something. If anyone has any to share, please put them in the comments. Thanks!

Consider Ancillary Costs

Saving Money Tip #165 - Consider Ancillary Costs. I have always advised to use a budget and to do your research when making a decision to buy a relatively expensive product. For example, when you want to buy a computer, a gaming system, or a new cell phone, I suggest making sure that there is room in your budget to buy it. Then I advise to do your research to find the best product for you at the best price. But what I didn’t warn anyone about is ancillary costs. Ancillaries are the “other” costs that go along with a product. For example, when you buy a digital camera, you need to buy the battery that goes with it, a battery charger, a memory card for it, and maybe a case. Those are all ancillary costs that we may not have factored into our purchase price. But they are very important costs because they often add up pretty quickly and can sometimes exceed the cost of the original product itself.

In fact, the marketing of some products is based on selling the main item cheap and then making the money in the ancillaries. Think about computer printers. You often see ridiculously low prices on printers. But then the ink cartridges are very expensive to replace. Or think about cell phones. How many times can you get a cell phone very cheap, but then the calling plan you have to take is expensive?

Sometimes there may not be ancillaries with the product, but other related extra costs on your end. You buy a new television, but it doesn’t fit on your t.v. stand, so you have to buy a new t.v. stand. Or you buy a new comforter but the dust ruffle you own doesn’t match it so you need to buy a new dust ruffle. Or you buy a new, bigger desk for your office, so now your old bookcase doesn’t fit, therefore you have to buy a new bookcase.

When you are doing your research to buy a new product, make sure you take into consideration the ancillary costs - the cost of the games for the gaming system, the add-ons for the digital equipment, and the extra costs that you didn’t take into consideration. Then reevaluate the purchase to see if it really is a good deal at that price or if instead another product that includes the ancillaries or doesn’t require you to buy something else new because what you already own won’t work with what you are buying would be a better purchase. Make sure you are aware of all of the extra costs with your new purchase so that the whole purchase fits into your budget.

In Real Life (IRL) – I mentioned a few weeks ago that our computer crashed. My husband, who likes to get things done right away without doing proper research went the next day to a computer guy who does work for his office. The guy sold him a refurbished computer, much faster than our old one, but which allowed us to use our same memory. My husband brought it home, spent a couple of hours setting it up and loading on it what we needed. He then attempted to hook up the printer. Unfortunately, the printer cable was an older type and did not match up with the computer. So he called the computer guy who said we needed a special cable for a cost of about $50. The whole computer was only $300, so this was a significant percentage of our new purchase and one he hadn’t taken into consideration. At that point he went ahead and bought it and now the computer and printer work fine. Could he have gotten a better deal with a computer that did not require a new printer cable adapter? Perhaps. But the point is, we didn’t take into consideration the total cost of the new computer and once we got sucked into it and devoted hours of time to set it up, we were reluctant to not go ahead and pay the extra ancillary costs.

Now I am not busting on my husband. So I will give an example of some ancillary costs that I often encounter. My daughters and I all like American Girl dolls. While I realize they are expensive, I prefer this type of play over video games or more mature games. Plus we almost always buy our dolls on the secondary market. For a long time my daughter wanted a “Kit” doll. We read the stories and saw the movie. When I found one on Craigslist for $65 right before my daughter’s birthday, I bought it. My daughter loves this doll and loves to imitate Kit. So the next thing my daughter wanted was a typewriter like Kit has. Fortunately, typewriters aren’t in great demand and I was able to buy one for $10. We also like to dress Kit in period clothing (she’s from the depression-era) and with period accessories. So I have now bought Kit a vintage camera set, a depression-era work lamp, and some period clothing. So while the cost of the doll wasn’t too bad (and even new she would have been “only” $95), it’s the price of the extra clothing and accessories, where the costs really add up.

So next time you are making a purchase or comparing two items to buy, take into consideration the ancillary costs that go with the product. You might be surprised at how much you will really be spending.

Invest In Products That Last

Saving Money Tip #149 - Invest In Products That Last. When spending money on things, invest in the future. Buying things that are just one time use are often not the best use of your money, unless of course you will never use that item again. Instead, buying things that can be used over and over will give you a better bang for your buck, even if the initial outlay seems to be high.

For example, buying a one-time use camera each time you go on vacation or to an event seems foolish. At $5 or more a pop, you will have spent $100 after just 20 events. Instead, spend $100 on a camera that will last for years. After about just one year of use, the initial outlay will be much less than paying for a camera each time you use it.

What if you want to do an activity that will give you exercise and get you back to nature? You could easily rent a kayak or canoe or bike each time you want to go out. And until you figure out what it is you are very passionate about, that makes sense. But once you know what you like, it usually makes sense to buy the item, even if the initial outlay seems expensive. The cost of initial outlay of maybe $300 for a bike might seem high. However, bikes can easily last 20 years. The cost of renting, while the outlay each time is lower, would cost much more in the end.

Of course there are many times where buying one-time use products or renting would make sense. If you don’t plan on using a product very often then renting may be a better financial move. Or if you truly will only use a product one time, then go for a one-time use product to save money overall. But once you figure out that there is a product that you will use on a regular basis, then it makes sense to spend more money upfront for a good quality product that will last a long time. This idea can be applied to big items such as cars (buying versus leasing), homes (buying versus renting) or everyday items such as batteries (investing in rechargeables that can be used over and over versus buying regular ones that are one time use). Think long and hard about the item in question before you make the big purchase. But when you figure out it’s an item for the long-term, then the higher initial outlay will end up costing you less down the road.

In Real Life (IRL) – I recently started riding my bike again after a short hiatus. I rode it up the grocery store yesterday to pick up a few things. And the minute I got back on my bike, I felt at home. I bought this bike about 15 years ago! I bought it brand new (this was before the days of Craigslist or I’m sure I would have looked for a deal on there). And I purchased a nice, mid-level quality bike from a bike store for about $275 along with some extras. That $300 investment took me on bike rides throughout the countryside week after week all spring, summer, and fall for about 3 years. Each summer, I brought it to the beach with me for our family’s week-long summer vacation. Now I bike it around town for errands or for short rides with my children. The upkeep costs are minimal and I expect it will last another 10 years or so.

Was $300 a good investment for me? I think so. It wouldn’t have been plausible to rent a bike each time I wanted one. And while I could have bought a cheaper bike from a store like WalMart, it wouldn’t have held up as long or been as easy to ride. It has saved me from renting a bike at the beach and paying gas for short car rides when a bike will do. It has given me entertainment over and over again with each bike ride I go on, saving me money on alternative forms of fun. And its useful life isn’t over yet. Investing in this quality bicycle has saved me money over the long-term.

Another item we have invested in is a steam cleaner. At first we were renting them from the grocery store for $20 each time we wanted to clean our carpets. The costs added up. Instead, we got a steam cleaner (which was actually free) that needed some fixing up. My husband bought the replacement parts and now we own a very good steam cleaner. Even buying one new for a couple hundred dollars would have been worth it. We steam clean our carpets about four times per year. In about two years, an investment in a new cleaner would have paid for itself over the cost of renting one at the market.

Last example is our moonbounce. Even though we only paid $25 for it at a thrift store, we would have easily saved money by buying one new for $250, as well. For each birthday party we have at our house (3 parties per year), we set up the moonbounce. For a carnival camp we held at our house, we set up the moonbounce. On long holiday weekends or when friends from out of town are visiting, we set up the moonbounce. While we wouldn’t have rent one for each of these occasions, just three rentals (once per each child’s birthday) would have cost more than the initial outlay we would have spent retail. And it saves us from having to purchase other entertainment for our kids.

While I know it doesn’t always make sense to make big investments in products, it oftentimes does. It pays to do your research and know truly how much you will be using your product before you buy it. But once you determine that this is a product that you will use for many years, it makes sense to put up that high initial outlay and then reap the benefits later.

Figure Out Cost Per Use

Saving Money Tip #144 - Figure Out Cost Per Use. When buying things such as food, it’s pretty easy to figure out cost per unit – a pound of meat for $5, an ounce of cereal for 10 cents, etc. But how much is the cost per use – not just for food but for other things as well? Let’s say you buy a book for $10 and read it once and then give it away. The cost per use was $10 for that book. Suppose you read it and your husband reads it, too. Then the cost per use is $5. If you buy a kitchen table for $500 and it lasts you 10 years then the cost is $50 per year (I suppose you could break this down further to cost per day or per meal, but I don’t think that is necessary.) Let’s figure out the cost per use for food. Suppose you buy a ½ gallon of ice cream (or 1.5 quarts as it seems to be these days) for $3 and you get 10 bowls out of it, then each dish of ice cream was 30 cents.

Figuring out the cost per use is important because it puts costs into perspective. If you want entertainment for the evening, you can go to the movies for $10 (cost per use $10 per person) or you can rent a movie for the night for $5. If five people watch it, then cost per use is $1 per person. Or you can buy a movie for $20 and estimate how many times each of your family members or friends will watch the movie to figure out cost per use. It is a great comparison tool. Let’s say you want to spend an afternoon out on a summer day. You can go to a state park whose admission is $5 per carload (or $1 per person for a family of 5) or you can go to a museum which costs $6 per adult and $2 per child for a bit over $3 per person for a family of 5.

Suppose you are contemplating buying a high-end wooden swing set. You might shell $1200 to buy one, which is a lot of money up front. But suppose you have 3 children and your oldest one is 5 years old and the youngest is 1. You will probably be able to use that swing set for about 10 years, so the cost per use is $120 per year. If it will entertain 3 children and some of their friends all summer long year after year, then it’s actually not such a bad deal. Compare that to the cost of a swimming pool, which might only get used 3 months per year in northern climates. The cost per use is much higher. Or compare it to the the cost of a swim club membership at $5000 over the course of 10 years for a yearly fee of $500.

Cost, of course, is not going to be the only factor in your decision-making. Sometimes interests carry more weight. If your three children love to swim and wouldn’t be happy without being in the water all summer, then the swim club membership may be more worth it to you than a playset. Only you can decide what is worth it to you, but by figuring out a cost per use of the item or event, it puts the things you are comparing on a level playing field.

In Real Life (IRL) – The idea for this post came to me yesterday when I was pulling our moonbounce out of our garage. I found this particular moonbounce for $25 new in box at a local Goodwill. My husband didn’t want me to buy it because it would be one more thing laying around our garage (which it is). And I actually didn’t. I left the store, went back to work, looked the item up on the computer, saw that they sell for over $200 and went back to the store to buy it. Luckily it was still there! This was over 5 years ago.

I cannot begin to tell you the great use we have gotten out of this $25 purchase. We have probably used this moonbounce more than 25 times to date - for birthday parties at our house, barbeques with friends, playgroups, and regular everyday use. Cost per use is already at the under $1 mark. I probably never would have bought one for full price, but now owning it, I think it would be worth it even for a couple hundred dollars. I like to do birthday parties at home and a moonbounce adds an extra “Wow” factor to a party. For three kids over the course of 8-10 years, we could clearly get more than 25 birthday parties out of it. Even a $250 moonbounce would work out to only $10 a pop at that rate, while renting a moonbounce is at least $100 for a single weekend.

I do a cost-per-use with classes as well. At young ages, my kids aren’t picky about what they do for fun. While a professional puppeteer would truly delight them, an amateur one would be almost as good in their eyes. Our county recreation center has a music class geared for young children 2-3 years old. The cost is $53 for 8 classes or just under $7 per class. Our community center offers a music class a their site that is taught by a private company. For 8 classes, the cost is about $160. While I have heard great things about the music class, I cannot justify paying $20 per hour for a class for a toddler. And I don’t think my kids would get 3 times the enjoyment out of it. I don't have to tell you which class we are signed up for this summer. In almost all things I do, I try to figure out the cost per use. Many times it's just an estimate, but it gives me a good idea of the true cost of an item or event. And then I can decide whether it is worth it to me to purchase it or not. For other frugal tips, check out Life As Mom.

Be Behind The Times

Saving Money Tip #121 - Be Behind The Times. One sure way to keep your expenses down is to not jump on the latest and greatest thing – the latest electronics, the latest books, the latest movies, the latest decorating scheme, etc. When things first come out, they are generally the most expensive. The marketing folks try to make us think that we cannot live without this latest item. Everyone around the proverbial water cooler is discussing it, and frankly, you can feel left out if you don’t have one. But don’t jump on that bandwagon; it will only lead you to spending more money than necessary. Instead, wait until the item has been out for a while. Competitors often jump on scene with similar items bringing the cost down and kinks are often worked out after the item has been out for a little bit. By waiting sometimes as little as a few months, you can save yourself lots of dough. Let’s discuss some examples.

Electronics are one area where there is constant updating of technology or features. Take for example DVD players. When they first came out they were a couple hundred dollars. Those who were anxious to jump on this latest technology paid a lot of money for their players and their DVDs. Meanwhile, many people happily stayed with their VCRs, holding on to their money, while still enjoying watching movies. Now that we are several years into the DVD player technology, a person can pick one up for much less money - the cost of the players is well under $100 and DVDs have come down in price to nearly half of what they were when they first came out. And of course some people looking for the next in movie technology have already moved on to the next great thing. By waiting just a few years you can enjoy what others were enjoying, but for a fraction of the cost.

Let’s talk about movies and books. When movies first come out, they are in first-run theaters with regular prices. The first day or first week of the movie, the theaters often won’t accept discount coupons. Is it really necessary to see a movie the first day or two it comes out? Wait a week and use a discount ticket. Wait a couple of months and see it at the discount movie theater. Wait a few months and rent it for a couple of dollars for several of you to see it. You still get to experience the same movie – just at a later date. Books are the same way. When they first come out, you are forced to buy the hardback edition from a retail bookstore. Wait a few months and you can get the paperback. Wait a year and you can buy it used for a fraction of the initial cost. (Of course, getting it from the library is always an option, too).

Lastly, let’s discuss decorating - things like stainless steel appliances, front-load washing machine, wood vanities, and granite countertops. As soon as we see these things on decorating shows, it is appealing to want to run out and buy them. But remember, the first company to come out with a technology like a front-load washing machine often have a monopoly until a competitor comes out with a similar model. After a year or two, you start to hear about problems that people had with the first models. The company perfects the item and more companies come out with similar models. All of these things bring the cost down and improve the product. Wait a few years for that technology and you will get a better deal and a better product. Even items that don’t have technology involved with it, like stainless steel decorating, come down in price as competitors offer a similar style.

These are just a few examples of things that go down in price after a few years. We can apply this thinking to cars (e.g. hybrid cars), cleaning and storage products (e.g. vacuum bags, Swiffer mops, Magic Eraser), sneakers (e.g. having the latest cushy features), food (e.g. in special containers, with improved ingredients). My thinking is that we survived just fine up until this point without these products. I can wait a little longer to try them out when they don’t cost as much.

In Real Life (IRL) – I usually take a lot of thought with my purchases, so it is not my personality to be the first person to try out a product. This trait has served me well financially. I guess I go by the motto, “If it ain’t broke, don’t fix it.” Our 27-inch t.v., which a mere 15 years ago seemed pretty hip is definitely outdated. But, it works for me and I see no reason to run out to buy one that is bigger, clearer or flatter. When this one breaks, I probably will do so. And by that time, not only will the costs have improved dramatically on it, the technology will have too.

I am still using the same white refrigerator that came with the house when we bought it 8 years ago. And while we replaced our dryer when our old one broke, we stuck with a simple model. Meanwhile, some moms in my Moms’ Club have been discussing many problems they have had with their new high-efficiency front loader machines. I am glad I did not pay to be a guinea pig for that product.

While I do admit to running out and paying full-price for a brand-new movie last summer that I really wanted to see, I generally wait until it comes on DVD or I go to the theater after it has been out for some time – often using a discount coupon after the movie has been out for just a week or going to a discount theater after a couple of months. Waiting helps not only the pocketbook, but also acts as a screener by allowing me to hear reviews of the movie from others if it is even worth seeing. I almost always put a book on reserve at the library. The newest releases sometimes take a couple of months to make it to me, which is fine with me. And if it’s a book I want to add to my personal library, I wait until I find a good used copy of it to buy.

These are just some examples of things I do. By waiting to buy things I save money and usually get an improved product. To me it is worth it. I don’t have to be the first one to try something. It doesn’t make me feel more important. Personally, I’d rather be smart and save the money.

Reduce, Reuse, and Recycle - Part 1

Saving Money Tip #117 - Reduce, Reuse, and Recycle – Part 1. I am a big fan of the environment. Anything that has to do with keeping the Earth clean is important to me. And fortunately, keeping the Earth clean often works very well with saving money. We all know the saying, “Reduce, Reuse, Recycle.” Well, let’s focus on the first part of that saying today. Reduce means to cut down - as in cut down on our consumption of materials, cut down on our driving, cut down on our eating, and cut down on the size of our homes, among other things. The more we reduce, the better it is for the environment and the better it is for our pocketbook. Of course, all of this is within reason.

First and most important in my mind is cutting down on our consumption of materials – buying things with less packaging, buying fewer convenience items, buying fewer toys, buying less clothing, and buying fewer gadgets. Buying things without bulky packaging costs less. Buying items that are not pre-packaged conveniently cost less. And of course buying fewer toys, less clothing and fewer gadgets cost less. If all of us cut down on these types of items, we would not only save money, we would help our planet.

Secondly, reducing our driving. How many times do we just get in the car because we feel like it? We just want to take a ride somewhere. How about all of the extra driving we do because we fail to pre-plan? We drive to the bank and pass the grocery store we need to shop at but don’t stop in, instead taking a second trip to the grocery store later that day? Or the times where we drive our daughter to camp and our neighbor down the road does the same thing instead of sharing a drive? I know it’s impossible for our society to live without cars. But we are often wasteful in our use of them. By reducing the amount of driving we do, we will save money in gas and car upkeep.

Third, cutting down on our eating. Now I know not everyone has this problem, but a large segment of society overeats. Our waistlines have gone up dramatically over the years, and not for the better. Our portion size has gone up, our amount of snacking has gone up, and the overall amount we eat has gone up. If each of us cut out one snack per day or reduced the amount of food on our dinner plate we would not only save a lot of money on our food bill, but on health costs down the road as well as effects of the environment. More food equals more raw materials used, more packaging used, and more energy to purchase and consume them.

Fourth, reducing our home size. The average home size in the US has more than doubled since the 1950’s and our family size has gotten smaller. Larger homes mean more furniture, more items to fill it up, and more resources such as oil or gas to heat and cool it. Why do people need to live in such large homes? To impress the Jones family? Well the Jones family got smart years ago, and are living in a small home they can afford, while others of us are working two jobs to make the payment for the home we have less time to spend in. And when we are there, half of the rooms sit unused. When buying a home, buy one that is appropriate in size for your family. Every person does not need his own bathroom. Rooms can serve multi-functions. You will enjoy the lower house payments and the lower energy costs as well the less money it takes to furnish it, clean it, and decorate it. And the environment will be grateful, too.

There are lots of other things we can reduce in our daily lives to keep costs down and help the environment, but those are the big ones. Think about what you can reduce in your life to save some money and help out the Earth as well.

In Real Life (IRL) – I was always that annoying co-worker who went around the cubicles to make sure everyone put their paper was in the recycling bin, and then I pulled paper out of the recycling bin to write on the other side. I collected paper clips scattered about the copy machine to make up a box in the supply closet to reduce the use of new ones. I’ve been bringing my own bags to grocery stores for well over 15 years to reduce my use of disposable bags. My husband and I bought a 1750 square-foot house for a family of two to grow into. And we turned it into a 1900 square foot house by adding a wall and enclosing a porch when we became a family of five. By buying a relatively small house we have been able to reduce the use of energy to run it and reduce the amount of things we need to decorate it.

I try hard not to buy new toys and things – especially those with unnecessary packaging. I try to carpool when I can and combine trips when I can. I even walk or ride my bike to reduce my car use whenever I can. I do not buy many convenience items, and have been cooking from scratch more lately, which reduces food packaging tremendously. I am working on eating less. Ahem. Moving on.

I mostly do all of these things because I care about the size of our landfills and the air that my children and future grandchildren will breathe. I get the added benefit of saving money when I do these things. In what ways can you reduce your consumption of materials to help save you money and help keep our planet clean?

Research Before You Buy

Tip #111 - Research Before You Buy. Don’t buy the first thing that comes along, even if it looks like a good deal. When you are in the market for purchasing a product, it is important to figure out exactly what you want and then research the best price for it. This is far preferable than seeing an item and then buying it. For example, suppose you are in the market for a bread machine. You get a flyer in the mail for a store that shows bread machines for a special price of $69.99. It is very tempting to run over to the store to pick it up, after all you are quite anxious to make some fresh bread. But that is not the best way to go about buying something. How do you know that it is the best brand for you? Most likely, it is not. And even if it is, how do you know it is the best price? It probably is not.

Instead, if you decide you need a bread machine, research bread machines – talk to friends who have them, read reviews on the Internet, look at Consumer Reports. Then decide which brand and model you would like to buy. After you decide that, compare prices. Look at local stores. Look at online stores. Consider a pre-owned one on eBay, Craigslist or other used-item source. Sometimes you will find that prices are very comparable at many stores. Other times there are great differences. Let’s say that the best price you see for the model you want is $80 at an online site including shipping. A local store, on the other hand, sells it for $85 including tax. However, you know that the local store sends out 20% discount coupons on a regular basis. You wait until you get one in the mail, bring it to the store and snag your item for $68. Now you can be confident that you got the model you want and for the best price. Aren’t you glad you didn’t run out and just buy any old model for $69.99?

In Real Life – I tend to research things pretty thoroughly before I buy, especially if it is a high-dollar item. I like to figure out which brand or model I am buying, and then I shop around for the best price. Sometimes, even after I buy something, I tend to keep looking to see if I could have gotten it cheaper (bad habit I know because it just causes me frustration if I find it for less). My husband on the other hand is very impulsive. If he wants something he wants it NOW. And I often have to be the voice of reason to get him to slow down and research what he wants and to wait to purchase it for the best price.

About two years ago, our old model vacuum cleaner from my mother-in-law was not working well anymore. My husband kept saying that we needed to buy a new one. Being that I am the more frugal one in the family, I felt that we could get by with what we had for a little bit longer. He, however, did not agree, and one day he came home from work with a new vacuum cleaner. He was in the store – saw one for $100 that looked good - and bought it. I was not pleased to say the least. In my mind, he approached the situation all backwards. He saw the item and then decided to buy it rather than figure out what he wanted to buy and then find the item. Who knows if it was the right vacuum for us, let alone if $100 was a good price for that particular brand and model?

At that time I had been hearing great things about the Dyson vacuums and was leaning toward saving up for one of these more expensive models. Well, here it is two years later and that $100 vacuum isn't working properly any more. So now we are in the market for a vacuum again, and this time we are going to approach it the right way. We're going to research which one is the most appropriate for us and then we will find that best price for it. In the meantime, I am still fuming because we wasted $100 on that other vacuum. For other frugal tips, check out Frugal Fridays at Life As Mom.

Prioritize Your Wants

Tip #107 - Prioritize Your Wants. When you are trying to save money, it’s easy to try not to spend money on fun things and then look at someone who is eating at fancy restaurants or going on big vacations and judge them for not being responsible with their money. But looks can be deceiving. When trying to save money, you do not want to deprive yourself of all things you like to do. But you cannot do it all. Therefore, you need to prioritize. What is most important to you? What is least? What is your budget for these fun activities?

If you have $100 per month to spend on what you want, you can buy a cup of coffee every day at a fancy coffee shop, and do nothing else. If you love fancy coffee and you enjoy drinking it at a café, then who am I to say that you are wasting your money? On the other hand, it would be downright wasteful to drink it out every day if you don’t even enjoy it that much. Your money can be spent better on something you do enjoy. So maybe a relaxing massage is more important to you than an everyday cup of coffee, so you spend $80 on that per month, while only drinking a cup of coffee at a café once per week. Or maybe you prefer fancy dinners so you spend your $100 to eat out at a fancy restaurant once a month. Or maybe travel is more important to you, so you save up the $100 per month and take a big vacation once per year with that money.

The point is, you can be responsible with your money and still do things you like. I think it’s important to write down how much money you have to “play” with for fun. Then prioritize your wants, and figure out much money you want to put toward each activity. You can use your money all on one purchase or activity or several small ones, based on your priorities. And then if someone gives you a look when he sees you eating out at the fancy French restaurant in town, you will know inside that you are there because you can afford to be there based on your priorities.

In Real Life – After all of our household expenses, kids’ expenses, and our savings, we have about $300 left per month that we can use for ourselves. Three hundred dollars per month sounds like a lot – this includes entertainment, vacations, dinners out and anything else that is not in our budget. If I were another person, I suppose I could easily spend $300 going to fancy restaurants and nights on the town each month. Or I could eat out more often at middle-of-the-road restaurants and get my hair done at a fancy salon. But I am neither of those people. While I do like a break from cooking, take-out burritos or Chinese food for relatively little money usually satisfies that need. What I do like to do, however, is travel. Without travel, I would not be as happy as I am. I love to experience different places, different cultures, and different geographic locations. And frankly, I love to just get away from it all. Oh, and I also like a break from the cold each year. So from our $300 per month, we put $200 of that toward travel. We generally take a trip to Florida each winter and to the beach each summer. And in between we often do a few weekend trips. The remaining $100 per month goes toward eating, entertainment, and any other miscellaneous activities.

For me, my priority for my leisure time and my discretionary money is travel. So that gets first dibs on our extra funds. Getting a break from cooking is probably secondary, and going out is probably last in my book. I am sometimes almost apologetic when I tell people we are going away yet again. But I shouldn’t be because I skip those Moms’ night outs and expensive restaurants to enjoy the activities that are important to me. You should prioritize your wants, too.

The More Changes You Make, The More It Will Cost

Tip #105 - The More Changes You Make, The More It Will Cost. Years ago, people did not move around as much as we do today. They often were born, lived, and died in the same town, and sometimes even in the same house. They usually had one job throughout their lifetime. They bought things to last as long as possible and used it until it broke. Not true today. Today, our society has become such that many people are constantly changing, constantly upgrading, constantly moving and trying to improve their lifestyles. And those changes cost money.

Each time you buy a house, you have mortgage closing costs, clean-up costs for the old house, moving costs, possible storage costs, realtor fees, and maybe other costs. In addition, each time you buy a new home, you start a mortgage over again. And most of us know that the first years of paying a mortgage are primarily interest payments. So by moving, you are delaying your opportunity to build equity in your home. In short, it costs money to move.

What about your job? Many of us look for better jobs that pay more money, are better suited for us, or have better benefits. But each time you start a job at a new company, you may be losing out on other benefits from your old company. Many companies have a 401(k) match that they will pay you after you have been “vested” or working there a certain number of years. Other companies give you more vacation time when you have put in a certain amount of time. Still others offer an Employee Stock Ownership Plan (ESOP) or similar plan. And that company may provide a match once you’ve worked at the company a certain number of years. And don’t forget seniority and reputation that you have built up at a company. All of those things are lost when you change jobs. That’s not to say that you should not look for a better job or one more suited to you, just that you need to take into consideration that there are lost benefits or costs associated with starting a job at a new company.

Lastly, there are things in our life that we often upgrade or change. We may want a newer, smaller, more technologically advanced cell phone. Or maybe we want a different cable television or satellite system. Or perhaps we want to upgrade our washing machine. In addition to the obvious cost of the new product, there are other costs associated with these changes. A change to a newer cell phone may mean you need another type of replacement battery or a new charger. With the new television cable or satellite, there is often an activation fee and a setup fee. And that new washing machine you want to buy may cause you to buy a new dryer in order for them to match.

Anytime we make changes, those changes cost us money in lost benefits, extra fees, or additional associated costs. So it is important to take this into consideration when making big purchases. Is it worth it to buy a starter home and then move in five years or should we buy our long-term home now? If I take a new job, will I lose out on some vesting on my 401(k). Maybe I should wait a year until I am fully vested and then leave. Do I need to upgrade our computer/cell phone/camera/television or will the associated costs make this upgrade unreasonable at this time? These are questions you should ask yourself or consider when you are thinking about making a change to your job or when you are buying a long-term product like a house or a car or even a refrigerator or a service such as telephone or cable. If you know you will want to upgrade it in coming years, consider if it is worth it to buy the product that will last in the long-term from the getgo. It may be or it may not be. Just realize if you don't, that there are costs associated almost every time you make a change.

In Real Life (IRL) – In addition to being conscientious about saving since I graduated college, I realize that I have made other decisions in my life that have helped me save money. I didn’t necessarily do them knowingly, but it seems that is how it has worked out. Since college, I have only had two jobs. And I have been out of school for 20 years this May. Many of my friends have had five jobs or more. I didn’t have a dream job when I graduated. I was only making $19,500 in 1989 in the expensive city of Washington, DC. I had friends working at Big 8 (as it was then) accounting firms who were making $30.000 or more. But the company I worked for had good benefits. They even had a pension plan which was unheard of even in those days (they have since gotten rid of it). I stayed at that company for 9 years. Because of that, I am vested in their pension plan. I was able to move up internally to a completely new department for significantly more pay ($34,000) a few years later because I had a good reputation within the company because I had been there a number of years. I contributed to the 401(k) match after waiting the typical one year for participation. When I left that job for one better suited for me, I already had built up a nice retirement nest egg. I may not have been able to do that if I left before the vesting of the pension or if moved frequently and lost out on that one year of waiting to make retirement contributions each time I switched jobs.

For the company I am with now (I am not actually working, but I am still currently employed there on an hourly basis if they had hours to give me, which they don’t), I am not fully vested in their ESOP plan. It takes 1 year of waiting plus 5 years of full time work to be fully vested. Because I only worked there full-time for 4 years (the remainder hourly), I am only 60% vested. I hope to go back within a few years and at least get two full-time years in to get the rest of that ESOP match. Sure I can look for a job elsewhere, but the least I want to do is get the rest of that ESOP match before I do.

Another area where we have kept costs down is by buying just one house. When my husband and I (no kids) bought our house in 2000 we were looking for a home that we could live in for at least 5 years. But we knew we would like the possibility of living in it longer if we could afford a house big enough. Our budget at the time was $250,000 for a home. However, $250,000 would only buy a 3-bedroom ranch with one bathroom. I was really adamant on having a second bath so we looked at higher priced homes up to $300,000 (which we could still well afford). By doing this, we went into a whole other level of homes – bigger ones made of better materials with more square footage and that second bath. As it turned out, it was probably the best decision we've made by buying a bigger home. We now have three children and we are able to stay in this home comfortably until our kids are grown. We considered moving to a bigger house when I was pregnant with my third child, but when factoring in the closing costs, the realtor fees, and moving costs it didn’t make sense to move. Instead, turning a porch into a bedroom made the most financial sense for us, in addition to emotional sense since we love our home and our neighborhood, too.

I would say we have incurred more costs on the small electronics front than I would like. My husband is constantly upgrading his cell phone, which necessitates a new case, a new charger, etc. I know it’s a small cost compared to cars and homes, but the extra costs are there nonetheless. When we changed our cable to satellite back to cable to fiber optics over the past 9 years, we have had to pay start up fees, connection fees, service fees, etc. Fees that you don’t incur if you stick with what you have. Again, it doesn’t mean it wasn’t the right move for us, but it did cost us. So when you are thinking of making a change to a job or a new home or buying something initially like your first home, think about what extra costs you will incur from this change now or if you make one in the future and whether it is still worth it to make the purchase.

Take Inventory

Tip #74 – Take Inventory Of What You Have. You can probably cut back on buying many things if you just go around your home and write down exactly what it is you have on hand. You may have purchased plenty of an item a long time ago that you have forgotten about. Or your house is cluttered with so much stuff that you don’t know what you have or where it is.

How about taking a piece of paper and listing all of the items that you use on a regular basis? Then take stock of the things you have in the house. It will give you a good idea of what you do not need to buy and what you need more of. You may not use everything on this list, but here is a sample list I wrote up:

Toiletries:
shampoo, lotion, tissues, toilet paper, nail polish, razors, bandages, feminine protection, diapers, wipes, cotton balls, cotton swabs, toothbrushes, toothpaste, mouthwash, nail files, Tylenol or similar medicine

Office Supplies:
pens, pencils, paper, markers, tape, staples, paperclips, rubber bands, glue, envelopes

Clothing:
socks, pantyhose, underwear, undershirts, hats, gloves

Electronics:
batteries, film, blank DVDs, video camera tapes

Cleaners:
washcloths, laundry soap, bars of soap, dish soap, dishwasher soap, household cleaners, sponges

Food Staples:
canned goods, flour, sugar, ketchup, cereal, salt, pepper, spices, bottled water

Kitchen supplies:
napkins, paper cups, paper plates, paper towels, trash bags, baggies, aluminum foil, plastic wrap

Do you have your list made up? Good! Now go around and put down a count of how many you have of each item. Then estimate how long it will be until the supply you have will be used up. For example, suppose you counted 26 tubes of toothpaste. If you estimate that you normally use one tube per month, then you have more than a two years’ supply. If you are one of those people who likes to have a one-year supply of things, then there is no need to buy any more toothpaste – regardless of how good the deal is. You have more than enough on hand. However, if you only have three pairs of pantyhose and you know you go through about 12 pairs in a year, then you need to add it to your list of things to buy.

If you are like me and thousands of other Americans, you will probably find that you have way more of many items than you originally thought. And because of that, you can probably hold off on buying things for a while. Use what you have on hand and save some money.

In Real Life (IRL) – I was reading a blog the other day with a link to some super environmentally-friendly sponges that are available called Skoy Cloths. Since I am pretty environmentally conscious and they got good reviews, I considered buying them. Then I thought to myself, the best thing to do for the environment and for my pocketbook is to use what we have on hand before I buy something new. I remembered that when my mother-in-law had visited her sister in Germany last year, she brought us back some dishcloths. I put them away in the closet and forgot about them. So I went on the hunt in my house and found the package of 6 reusable cleaning cloths, along with a few sponges. No need for me to buy those environmentally-friendly cloths right now (although I might try them out in the future).

That got me thinking about other things in the house that I have laying around that I can use up before buying more. I looked in the medicine cabinet and counted 12 bottles of nail polish! I am not a nail polish kind of gal; therefore many of them have been sitting in the medicine cabinet for years. However, my girly girls like to have their nails polished. I think the supply that we have in the medicine cabinet will last them 5 more years, at least.

I then moved on to paper party plates. I don't use paper on a regular basis, but I do if I throw a big party. I counted plates and figured I have enough for the next two or three parties we hold. Of course some say "Welcome Baby" and others have Dora on them. But it will make for some interesting conversation at the next party, and I’d much rather use up what I have before I buy more. I haven't finished taking inventory, but it's been interesting to find what we have stocked up in this household, and I'm not a person who necessarily stocks up much.

I have a friend who is constantly shopping, and her house is pretty cluttered. She and her husband have been on a cleaning spree lately. The husband told me the other day that he is happy that they are finally cleaning up, because they be able to find some of the stuff they have ‘lost.’ He said they have bought so many duplicate things because they couldn’t locate the one they owned. Now that’s a topic for a whole other post! But the waste is the same if you are buying stuff you already have, as some it may never get used or could go bad before it does. And there is really no need for duplicates of certain things.

Of course I know that many of us like to stock up on things when they are free or a great deal. And I agree that it is a great practice to save money if you will use all of it. But once you have a year’s supply of something, you should be able to stop buying it no matter how good the deal is. The bargains will always be there. So take stock of what you have, and if you have plenty of something (a year's supply or a three-month supply, whatever you are comfortable with), then save yourself some money and don't buy any more.