Learn for Less: 4 Creative Education Options for Frugal Families

Schooling is very important. For the youth to succeed as adults, they must receive a quality education. However, education can sometimes be extremely expensive. College Data reports that the average cost for a year of school at a private college in 2017 was $33,480. 

Unfortunately, it’s not just college that can be expensive. Costs incurred during elementary school and high school can also be a significant financial burden on a family. 

Thankfully, there are ways to save. Below are four creative education options for frugal families you should consider.

Be Strategic about School Supplies

One of the biggest school related expenses, especially for students in high school and elementary school, is the cost of school supplies. An article by neaToday reports that the cost of school supplies on average can be as high as $200 for elementary school students and as high as $375 for high school students. 

However, these costs can be brought down significantly if parents use some strategy while shopping for school supplies. First, try to buy early. If you buy school supplies for the next year well into the current school year when those supplies go on sale, you could slash the cost spent by a very large percentage. 

Also be careful about the stores you choose to shop at. Dollar stores may have better deals than larger retailers. It also doesn’t hurt to save left over school supplies for the next year.

Online Schools

The advent of the internet has completely transformed society. This is no different for the education system. The internet has in fact allowed education to reach far more students than what was previously possible. 

As you should well know, the cost of a child’s college education can be one of the largest expenses a family has to pay for. However, attending an online school can bring down that expense significantly. 

Not only is tuition generally much lower, the student will also save on expenses related to commuting or living on campus. While online school is usually thought of as something implemented by college students, elementary and high school students that are homeschooled can attend online schools as well. This may create significant cost savings compared to attending a private or even a public school.

Be Your Children’s Tutor

Some children struggle with school. While you would assume the school day would be enough to make sure they are up to speed on math, English, science and other subjects, that is not always the case. 

Often, tutoring is required to make up the difference for many struggling students. Unfortunately, tutoring services can also be exorbitantly expensive. According to Angie's List, a tutor can charge as much as $85 an hour. One obvious solution is to tutor your children on your own. 

This will of course require more work on your part, but it’s also extra time to bond with your kids. Make sure, however, you are actually helping them to learn. Completing their work for them or providing them with the answers is not the same thing as tutoring.

Prepaid College Tuition

One cost saving measure you may have not heard of is prepaid college tuition. US News reported that college tuition grew by 80 percent between 2003 and 2013. 

Prepaid college tuition allows you to lock in current rates now so you don’t have to pay for the eventual increase in the future. Investigate whether or not prepaid tuition is available in your state.

Education for children can certainly be expensive. However, it’s an absolute necessity for a person’s long term future. Try to find ways to lower the costs to help ensure that your children receive the quality education they deserve.

Save Your End-of-the-Month Budget with Coupons

 (Photo credit: rose3694)

We may go freely and a little bit arrogant at the beginning of the month. The wallet is still thick and the card is still fully filled. We go to buy some things and spoil ourselves by other things. However, this joy is only temporary, if we can’t control our financial flow. At the end of the month, you cannot hear louder voice than your wallet’s cry. 

If only you were a little bit diligent and organized, you might save lots of money while also having fun at the same time. How can it even possible? Thanks to shopping coupons, everything is sold at so much cheaper price than your budget affords to buy.

Hunting for coupon for some people is troublesome. Some people even don’t care about the coupon. Well, not until they reach the end of the month. You may underestimate 10% of something, however, 10% of many things can possibly equal to hundred dollars! 

Imagine if you combine all your coupons, you can get lots of price cut, which if they are summed up, they can save you from the atrocity of late month. Is coupon hunting troublesome and time consuming? It depends on your perspective and on how you do it. Fortunately, here are some tips you can adopt:

• Think about how coupons can save your budget until the last day of the month. Don’t give up from the very beginning or in the middle of way. Since you will go through the entire month, so start it by planning the spending for the entire month as well. Learn your spending habit and things you would always buy every month.
• Everyone has their own special spending target. Girls, for example, will spend some money for skin care every month. So, were you that girl, your target would be to look for skin care’s coupon. If you can’t find the coupon for your special need, then you can cover it with other coupons. Groceries’ store coupon is the most common coupon you can get.
• What? You don’t have time? Then you can gather the coupon side by side with doing your daily activities. When you are searching for news in the virtual world, spend some minutes to open some stores’ website. 
• Don’t forget to get their email. Some stores allow you to get coupon upon your request. You now can also save with coupons from the mail. Some large stores would ask you to register to their database and they will send you coupon through mail! Whenever you are reading a newspaper, mind to pay attention on advertisement page to search for the coupon. Is it time consuming? No.
• The amount of coupons in the mall is so much. Whenever you go to the mall, spare some times to take their flyer, especially from your favorite store. Learn their discount schedule as well. Normally, a store have different and specific discount schedule.
• Last, don’t forget the expired time. Normally, coupons have deadline, so don’t enjoy collecting the coupons too much to the extent you forget when they end.

5 Ways to Stay on Top of Your Finances in 2013

Finance (Photo credit: Tax Credits)

When you’ve got a family, house, car and everything else to pay for, your finances can often feel stretched. Sometimes it can be hard to pay the bills and still have enough money left for buying food, clothes and all the other things you need around the home. Everyone deals with their finances in their own way, but there are a number of methods that you can implement yourself if you are feeling bogged down by all of the bills. Here are my own tips for staying on top of your finances in 2013... 

Speak to your suppliers

One of the first things you could do would be to speak to your current suppliers of water, electricity, gas, etc. This is so you can discuss other payment schedules and tariffs that might be more suited to your current situation. If you’ve just had a large bill come through the door, the best thing you can do is speak to your supplier as quickly as possible to come up with an arrangement instead of hiding the letter and pretending it doesn’t exist. You don’t want your essential services to get cut off when you need them each and every day. 

Cut out unessential services

If you are currently paying for services you just don’t need, it might be time to call them up and cancel, or where applicable, cancel direct debits that are set up to take payment from you automatically each month. Types of services this might include could be bolt on packages to your satellite or fibre optic television subscription, music streaming or even various insurance policies than you no longer require. Have a good look at your bank statement to see where you can make quick changes. 

Change your supermarket

Another change you can make is to start shopping at a different supermarket each week. You can use online price comparison sites to compare the costs of a basket of groceries from one store to the next - in many of these, Asda comes out as the cheapest of the main supermarkets but you can find deals at economy shops such as Lidl and Aldi too.

Make more money

If these changes aren’t making much difference to your personal economic outlook, you might need to make more money instead. There are so many new things to try, such as simply looking for a higher wage job, asking for a pay rise, or starting up your own business on the side of your current job. 

Seek further advice

You should be able to seek further debt advice from free services online and in your local area. This could help you from getting into debt, stopping you from getting into more debt, or even to how to get out of it. Sharing your worries can take some of the stress off your shoulders, and they should be able to give you additional tips to help day-to-day.

About the author

Lewis McKinross is a financial blogger based in the UK. He often writes about debt advice and other money saving tips.

Are Coupons Really the Only Way to Improve Your Shopping Budget?

There are very few people round these days who are not in need of a few tricks to make their monthly food budget stretch a little further. Money is tight for most people and the cost of food seems to be on a never ending increase. This has led to the explosion of 'couponing' – the art of clipping discount coupons and special offers in order to reduce your spend – which has given rise to books, websites and even television shows explaining how best to approach couponing, but are coupons really the only way that you can improve your shopping budget? Let's compare a few of the alternatives. 

The Basic Problem With Couponing 

Couponing involves collecting discount coupons and offers in order to save money, but it is a time consuming process. While clipping coupons can be a great way to save money, it also comes with the danger of creating an obsession. A large number of coupon clippers report having feelings of anxiety when they miss out on a deal because the store has sold out or because the relevant coupon has expired. It can be a vicious cycle if you become trapped in it, so it makes sense to look for alternatives to couponing. I'm not saying give it up, just that you could supplement it with alternative options. 

Changing The Way You Shop 

One easy way to stretch that shopping budget without coupons is to adjust your shopping habits. If you switch to generic brands you can trim up to an average of up to 25% off of your shopping budget. There will always be some things that just don't taste good, but you can switch to generic brands on lots of things like pasta, sugar and so on. You can also save a great deal by making a grocery list and sticking to it rigidly. 

Saving Money With A Reward Card 

Another great alternative to couponing is to use reward cards. So long as you use your credit card with care it can be a great way to save some money. Look out for a reward card that offers cash back on grocery purchases, or anything that you will purchase regularly, like fuel. With these rewards you can earn back a small percentage of whatever you spend and if you pay of the bill in full at the end of the month you will not even have to pay interest. Just be sure to keep the money aside in your bank account to cover whatever you spend. 

Other reward cards will allow you to earn points rather than cash back. This allows you to save points up over time and trade them in for vouchers, gifts and other items. Vouchers can be used to cover grocery shopping, or you could trade your rewards in to get gifts for family birthdays thus saving some additional cash. 

Couponing is a good way to stretch your shopping budget, but as I have shown it is not the only way. These are just a few of the many alternatives that you could use instead of or alongside clipping coupons. 

Tim Baker is a writer who loves travelling around the world spending as little as possible using his avios credit card and by taking advantage of shopping and travel rewards.

From a Girl's Perspective - Valuable Business Lessons I Got from my old Volkswagen Beetle

English: 1973 Volkswagen Beetle photographed at the 2008 Hudson Auto Show. (Photo credit: Wikipedia)

I grew up as an independent individual. No, my parents aren't divorced and I did not run away from home. My folks have decided to raise me up with little assistance coming from them, so that I can learn the good and the bad that life has to offer. While I do remember the frustrating times when I had to do some menial and odd jobs to get some extra cash for certain things. One of those things happen to be my old Volkswagen Beetle. 

Funny that I should mention that car. It's no longer mine; I sold it off when I moved out from my parent's house. This was years ago. I don't even remember how much money I got out from the old vehicle, but what I do remember are the lessons I learned while I was out earning every single dollar just to buy that car. And from a business perspective, it taught me a lot of things too. 

When I saw that car while checking a used cars warehouse, I knew that the car should be mine. It's original colour was yellow, but when I told my dad about it, he was quite skeptical. He said that these types of cars were not that durable and had constant engine problems. Of course, I knew that he was just bluffing; it's his way of saying "If you want the vehicle, then you know what to do!" 

And that I did.

 
Research - The first business lesson I got from that old Beetle was to research everything about the vehicle, starting from its perks all the way to its failures. I even researched about online title loan for fast cash! I have to understand the type of vehicle that I am going to use my money for. It is my money and I earned hard to get it, so I should never waste my money on something that I might end up regretting in the end, right? 

Sadly, I've seen a lot of business owners jump right into a particular business or system without researching. Usually, these people end up losing a great deal of money because of a failed business. Even worse, they end up filing for bankruptcy. 

Do It Yourself - The second lesson I got from my old vehicle is to always do everything myself. When it comes to simple maintenance, like cleaning or changing oil, I'd do it on my own. In business, it pays to be involved with your company once in awhile. Just like a well-oiled vehicle or machine, you learn the ins and outs of the trade and you co-exist with your employees and your clientele. You learn what needs improvement for your business and the things that you need to remove. 

It sounds so simple, isn't it? Unfortunately, it's not. A lot of business owners change their attitude once business starts to prosper. They leave everything to the manager while going on a vacation to Hawaii or to Fiji. Unless your manager is really competent, there's no way he/she is going to repeat exactly what you want him/her to do, so it's quite important to run the business yourself. 

Frugality - No, it's not a Mortal Kombat move. It means being frugal. When I finally got my Beetle, the first thing that rushed in my mind is to customize the car to whatever I like. So, lists of car parts and custom paint jobs filled my notebook. By the time I realized it, the total amount was so horrifying that I immediately tore off that particular page in my notebook into little pieces.

Well, it's a good thing that I did not have the money. Otherwise, I would've gone and spent it all. 

The business lesson here is to be frugal. Even though you're business is running great, you should really find the time to invest in another business opportunity. If not, then save your money in the bank for later use. Don't spend all your money on things that are not really needed. 

Well, that's it for now. While I already have a new car, I will never forget my old Beetle. Thank you, my most cherished possession. I hope you're doing fine. Thanks for all the lessons you've taught me. It sure helped me out a lot, especially during these times of economic depression. 

About the Author: 
Jessica Greenberg is an avid blogger from San Diego, California. During her free time, she prefers to stay at home and update her blog along with a hot cup of coffee.

6 Rules for Coupon Etiquette

Coupons (Photo credit: iateapie)

The growth of online shopping has offered many new opportunities for buyers to get even better deals. They are able to get much better deals because competition by online retailers has driven down the costs of the goods we need. Not only from direct competition but also because retailers are using coupons as incentives to get buyers to their websites.

When using your online coupons with retail websites it is a straight forward approach of entering the your coupon code in the inappropriate place. It is very simple. Other coupons that you print for use at local businesses has a different approach. Retailers appreciate your business and are happy to take your coupons because it mean more business for them and maybe they will get you to return again.

Recently many stores have changed or updated their coupon rules to clear up any questions of how the coupons are to be used. Our local supermarket has published a new use of coupon rules in each store because things have gotten out of hand. The problem is some shoppers are abusing the use of coupons and this may make it harder for the average couponer to shop.

If you are an avid coupon user there are a few simple rules to follow to make the whole experience a little less stressful for the cashier and the people in line behind you.

Rule #1 Check out coupon websites before shopping. Before you begin your shopping it's important to check out coupon websites like Fat Wallet, Retailmenot, and Couponraja. When you check for coupons you not only find good deals for what you need but also discover new shopping destinations that you can visit. Every year new websites pop up to serve the needs of shoppers. Also it adds a little fun to the process of finding these good deals.

Rule #2. Be organized. When checking out have all your coupons organized and not just in a messy pile facing all different ways. It shows respect for the cashier and the people waiting in line behind you. Also make sure the coupons are not expired and that you are following the rules of the store in their use.

Rule #3. Try to plan your shopping at a slow time of the day. Holding up the line with coupon redemption at the peak shopping times shows bad form and is inconsiderate of other people. It irritates other customers when you are trying to use so many coupons, so go when you know its the slowest time of the day. 

Rule #4. Be polite to the cashier and other customers. You may know more about coupons than the cashier but it's no excuse to be rude or impatient. Use your manners and stay calm if there is a problem. Ask to speak to the head cashier if extra help is needed. Also alert customers behind you that you have coupons and that there may be a delay. Let people behind you in line go ahead if they only have a couple of items.

Rule #5. Don't clear off the shelves when you make purchases. It's bad form for you and keeps other shoppers from cashing in on the great deals. Also the store may not know the shelves are emptied out, so its better to only purchase a small amount. If you must make a large purchase either call ahead to the store so they can arrange to put aside enough items for your purchase and not have bare shelves. Also make your large purchase not just in one store, but spread it over a couple of stores.

Rule #6. Follow the rules. Know the rules of the store your shopping at. Don't be pushy with your coupons. If you are having a problem with the use of the coupon just skip that particular one. It's not worth arguing over something like that, it's better to not be known as the neighborhood coupon freak. It's better to build a friendship with the store and the cashiers that work there. Also make sure you have the correct item for that coupon and that the coupon is not expired.

Shopping with coupons will save you a lot of money. Following these few rules will make the experience pleasant for all.

5 Luxuries You Can Do Without (And Not Miss)

Image via WikipediaThink back to when you were a kid. What did you have? What didn’t you have? Now, think about what you have now. What do you have that, in reality, you don’t need? As technology has progressed, we have found more and more luxuries become necessities. But is that necessarily true? Do we need everything we think we do? What can you cut out of your budget and never even miss? 

Well, here are five luxuries you can do without. Best of all, you won’t even miss them!

1. Cable television –Everyone has a computer. And I’m not saying it is a luxury (though, in a way, it is). But since you have a computer, why are you paying for cable television? Everything you watch on TV can be found online, and for a lot cheaper. Weather you subscribe to Hulu Plus or Netflix, you can have streaming TV come to you. Best of all, no more commercials. Want to cut down even further? Well, a lot of TV stations now have the latest episodes of their shows on their website- for free! If you already own a flat screen TV, chances are that it can be hooked up to the internet. There are many ways to do that, from being info directly from your computer to inexpensive set-top boxes. Whatever the case is, you’ll save hundreds of dollars a year just cutting the cord.

2. SUV –Do you still have an SUV? What do you need it for? It’s doubtful you are dragging around more than three kids at a time, and that tank is sucking up gas like a camel in the desert. If there is no real, concrete reason for you to have an SUV; get rid of it! And don’t give me any guff about needing to haul stuff. Cars now come with foldable back seats and roomy trunks- big enough for the Christmas tree to ride comfortable. Get yourself a car with good gas mileage and save thousands.

3. Smart phone – Do you have a computer? Sure you do! So, why do you need a smart phone too? Remember the days when having a phone meant you stood next to the wall in the kitchen to talk? Or had a machine to answer when you weren’t home? Remember when you were not available twenty-four hours a day and didn’t check your email every five minutes? Get some peace and quiet back in your life and save money too. Switch your cell to a regular, everyday variety. No internet. No touch screen. Just voice and text. Think about it; do you really need, or want, to be online twenty-four/seven?

4. Bottled water –Not only are you being environmentally irresponsible when you buy bottled water, but you are being financially irresponsible as well. Think about this: over 80% of bottled water comes from tap water. That means what comes out of your sink goes into a plastic bottle and you pay extra for it. Don’t waste your money. If you have an issue with plain tap water, or live somewhere where the water’s not so great, buy a filter and stainless steel bottles. You’ll save money and room in landfills.

5. Coffee– Do you really need that four dollar cup of coffee every morning? I think we all know the answer to that question. If you can’t live without your caffeine fix, buy a travel mug and make your own. Coffee makers can be timed and ready for you every morning. If you crave your Starbucks, buy a bag at the grocery store. You’ll save money, time, and your waistline. Oh, what does your weight have to do with it? Just think about what you add to your coffee and you’ll understand. When you make it for yourself, you are virtually guaranteed to drink healthier.


There are many more luxuries out there, and you know what they are. Take a second look at your checkbook and see if you can’t cut a few things out. Most of the time, you won’t even miss them.

Author Bio:-

This is a guest post by Coleen Torres from phone internet. You can find more about her at her profile.

Older Workers Spend Less and Save More

Image via WikipediaIsn't it great when something you know is true is proved in a survey. On AARP.org there is a great article about how older workers spend less on lunches and coffee than their younger co-workers. Older workers not only spend less money on lunches but they spend a lot less.

The survey taken by recruiting and staffing firm Accounting Principles shows younger workers ages 18 - 34 spend almost twice as much on coffee than workers 45 years and older. According to the Workonomix Survey, they also spend about 40 percent more on lunches. Even though older workers are earning more money they actually spend less than their younger coworkers.

The average U.S. employee spends nearly $3,000 a year on coffee and lunches at their job. This statistic should be an eye opener to what's going on in your daily spending. Even if you just cut that number in half you would have so much more money to save toward your retirement fund.

If you are starting now in your 50's and 60's to save $3,000, at the end of ten years you would end up with a tidy sum in your IRA. Using the AARP lunch saving calculator at the end of 10 years with an 8 percent rate of return you would have $12,690. The big payoff goes to the younger worker who starts to save this way now. 

Try AARP's lunch savings calculator to see how much you could save by bringing your lunch from home.

Check out: Study: Older Workers Spend Less. And You? at AARP.org

Are You Really Frugal Or Just An Old Cheapskate?

Image by epSos.de via FlickrI have been called cheap and I have been called frugal, what's the difference, is there a difference? Maybe people are just being nice when they call me frugal. Cheap has such a negative connotation, maybe they just don't want to hurt my feelings.

What is frugal? 

Frugal is that you are making definite choices to save money. You are spending money in the most wisest way with a dignity and respect. Also no one is getting harmed or losing in the process.

What is cheap? 

Cheap is more akin to being a hoarder of money and things. You have something and just don't want to part with it on principle. Also when you are being cheap, someone or something is being hurt or losing in the process.

So what separates "frugal" from "cheap"? Here's a list, culled from several blogs: "Frugal for Life," The New York Times' "Your Money," Queercents.com and Bankrate.com.

Frugal: Taking home those tiny hotel shampoo bottles.

Cheap: Taking home the hotel-room light bulbs.

Frugal: Sneaking a snack into a movie theater.

Cheap: Sneaking into the theater itself.

Frugal: Accepting "free samples" at a grocery store.

Cheap: Accepting a free continental breakfast at a hotel where you are not staying.

Frugal: Buying artificial sweeteners in bulk from a discount store.

Cheap: Pocketing sweetener packets from a restaurant.

Frugal: Ordering only free water with your meal at a restaurant.

Cheap: Bringing your own drinks to a restaurant.

Frugal: Eating at less-expensive restaurants.

Cheap: Being a poor tipper at less-expensive restaurants.

Frugal: Finding stray golf balls in the rough at courses and using them.

Cheap: Selling those golf balls.

Frugal: Having dinner at 4:30 p.m. to get the "early bird" special.

Cheap: Eating a meal at a soup kitchen if you can afford to buy food.


So what's the verdict? Are you cheap or frugal. If your frugal, feel good about yourself, you are saving money and helping yourself get ahead. If you are cheap, rethink your motives and move away from the dark side.

The TV is Broken Should I Repair or Replace?

Image via WikipediaThe picture on our TV went out the other day. The sound is OK, but no picture. The repair man came over and said it was a bad X-Sustain board. It would be only $350 to fix it. We spent $1100 for the 42" plasma TV 5 years ago. The question in my head is should we repair or replace the TV.

A new TV the same size could be purchased for $500 today. With the $150 difference from repairing it, I have decided to buy a new one. This decision was pretty easy to make because of the age of the TV and the probability of other things breaking on the set in the years to come.

Sometimes the decision to repair or replace is not so clear. I did have to give this one a little thought and a trip to the store convinced me that the TV's today cost 50% less than when I purchased my TV and the high cost of repair was not encouraging.

A few years ago My roof was in question. Should I repair a 30 year old roof or replace? The repair cost was 25% of the new roof cost. Also the maintenance on the old roof was high compared to the new roof which is negligible.

So how do you decide?

I put together a check list of common things that could be repaired or replace around your home.

Your Roof: 

There is a time in every roof’s life when it needs to be replaced. But, do you really need that new roof now? It’s a difficult decision given that a new roof can be costly. Just because the roof is leaking a bit does not necessary mean it needs a full replacement.

Replace it if:

• It is 20 years old or more. The average roof life is 15 years.
• There 1/3 or more of the shingles are damage, missing, cracked or curling.
• You see sagging roof boards or mold in your attic.
• It was significantly damaged by a storm. Your insurance may cover this

Repair it if:

• You see minimal water damage in your home. Most water leaks can be repaired.
• You are only missing a few shingles. Repairing a few shingles may only cost $75 – $250.

Your TV: 

It’s a sad day when the tube stops working. It’s usually very high on the list of priorities, but a decision has to be made to fix or replace first

Replace it if:

• There is a recall for a defective TV. Sony is replacing certain models of their TVs for a great discount because they have defective parts.
• It’s old. New technology is better than ever and has become more affordable. You will likely get a better TV at a lower price than your previous one.
• The repair will cost more than half the price of a new TV.

Repair it if:

• You bought the extended warranty.
• It’s a really big expensive TV. It will not be easy to afford to replace this and will be worth the cost of a repair.

Your Business Copier:

 An office copier can be an expensive investment. What do you do when you your copy machine isn’t working properly.

Replace it if:

• The cost of repairs over the last six months adds up to more than fifty percent of the cost of the copier.
• It’s not reliable and you are losing money on your business without it.
• Leasing a copier is cheaper than your monthly repair bills.

Repair it if:

• Your warranty has not expired.
• You can purchase the broken part on the cheap and replace it yourself.
• It doesn’t break down very often.

Your Gutter System:

 Gutters carry out an important function for your home: Carrying water away. It’s important that they are functioning properly, so action needs to be taken when you notice something is wrong.

Replace it if:

• You notice that the system is rusting out or the nails are pulling away from your home.
• Water is pouring over even when the gutters are clear of debris. The system may be too small for your home.

Repair it if:

• They simply need to be cleaned. Some gutters leak because they are full of leaves. Gutter cleaning only costs $150 to $300 per day.
• Less than 2 or 3 sections are damaged.

Your Hardwood Floors:

 A hardwood floor can hold up for more than 100 years! Refinishing your hardwood floors can make them look like new again in most cases, but there are a few exceptions when you will need to replace them.

Replace them if:

• You want a different grain or much lighter color.
• There isn’t enough material left to refinish it again. It has been sanded many times and the nail heads are showing at the seams.
• Water damage has caused the floors to warp or buckle.
• They have very deep holes or cracks.

Repair (or refinish) them if:

• There are scratches or traffic wear, but plenty of material left to sand.
• You found them underneath your old carpet or vinyl floor. Old hardwood is very valuable and a refinish will take off any material left from the carpet or vinyl.

My Daughter's Used Car Lives On - Part 2

Image via WikipediaIt was two months ago when the subject of my daughter's possible used car purchase came up. I wrote a post describing it called "She's Buying a Car, What's Better a Rebate or Low Interest? Help Dad." In said post I described how the bane of my daughter's transportation life was starting to cough and sputter like never before. The question of replacing the 200,000+ miles 1999 Mitsubishi Galant was brought to the forefront, again.


We went shopping and got some prices but we never pulled the trigger on the purchase because with a little tinkering by a friendly, trustworthy mechanic ole' Betsy lived on another day. Till this day it's a miracle that the car is running. I am "AMAZED".


The decision has been made to wait and play it by ear till the car finally and forever packs it in. I am proud of my daughter for not having car fever and patiently waiting. Must take after Dad. 


My daughter has her used car fund in place and it's growing every month. It's fascinating that this car is running and running well. Over the years belts, gaskets, timing belts, and other minor service has been done. Yet it still has the original power train. It says something for the car makers.


I drive a 2001 Ford van with 125,000 miles on it and feel challenged to see if I can get that odometer up to 200,000 or more. The notion of driving  used cars with these kind of numbers has not been in our lives before. But with the recession and business problems, a new purchase is out of the question. In the old days I would be worried when the odometer got to 50,000 miles. Not any more.


If there has to be a bright side to this recession it's that we are relearning grandma's and grandpa's frugal ways that they learned in their depression. I can tell you that those lessons were always a part of their lives. It always stuck with them to pinch every penny and spend wisely.


Someday the next generation will point at us and what will they say. Will they say we remembered the lessons learned or did we cast them aside when things got good again. For me and mine the lessons are now a way of life. 


How about You?

The Best Time of Year to Buy Things and Go on Vacations

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It's always time to save some money. Knowing which products to buy at right time of year will lead to more money in your pocket. If you like seasonal shopping and getting the best deals you will enjoy a book called "Buy Ketchup in May and Fly at Noon: A Guide to the Best Time to Buy This, Do That and Go There" by author Mark Di Vincenzo.

He provides a list of the things to buy and which months to buy them:

January: After Christmas he recommends to pick up all the wrapping paper, decorations and cards for dirt cheap prices. Bicycle and motorcycle deals are found because it's time for the new years models to arrive. You'll find older TV sets are discounted to make room for new arrivals.

February: The end-of-season deals on winter coats. Cameras are discounted because they are last years model. Home appliances are at their lowest around Presidents Day sales.

March: January through March is the best time to go boat shopping. With winter gone you can pick up a snow blower at discount prices.

April: Cookware is on sale from April through May. Jewelry is also on sale. Also electronics deals are during this month.

May: Refrigerators sales begin and can also be seen in June. And of course ketchup and other condiments are on sale because it's almost BBQ time.

Vacation time to Puerto Rico, Cancun, and Bermuda are on sale.

Around Memorial Day look for savings on laundry machines and dishwashers.

June: You will see sales on tools so you can do some home improvement jobs during the summer.

Vacations to Montreal and Vancouver are on sale, so you will be able to beat the heat.

July: You will see deals on various fresh fruits and vegetables also butter and dairy products.

Las Vegas vacation deals are best because of the summer heat.

August: If you need a new laptop or desktop computer this the month to buy. The next best time is after the holidays when the newer models come out.

In the fall you will find deals on some sporting goods and swimsuits. Also the new season of cars, RV's and boats are being lined up so you'll get a goo deal on last years models.

September: Get your office supplies because back to school supplies will be marked down. Also end of season goods like outdoor grills, lawn furniture, garden ornaments, lawn mowers are on sale.

Travel bargains abound for travel to Paris, Mount Rushmore and Martha's Vineyard.

October: Gardening tools are discounted and other nursery stock for peanuts. 

Travel Bargains are here for Niagara Falls, Toronto, and Nova Scotia.

November has travel bargains to Disney World, Disneyland and the Bahamas. Also toys are on sale for the coming holidays.

December: You wills see discounts on electronics the only other time would be in April. Also NFL tickets, wedding dresses and champagne.

Jeff Yeager is the author of The Ultimate Cheapskate's Road Map to True Riches and The Cheapskate Next Door. His website is www.UltimateCheapskate.com and you can friend him on Facebook at JeffYeagerUltimateCheapskate or follow him on Twitter.

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She's Buying a Car, What's Better a Rebate or Low Interest? Help Dad.

My daughters car finally went to heaven. After 10 years of life, 200,000 miles and puddles of oil on the driveway, she needs a new  car. I advised her to use the $5,000 dollars she has saved and buy used. But no. She wants a new one. She's just not going to listen to the old man. 


She's been looking around for a while because her car has been on life support for the last 3 months. I went with her down to the dealer for technical and moral support. 


Now if you know me, you would know of my absolute love of going down to the dealer to talk to car salesmen. Talking to car salesmen or getting root canal, which would I rather do,  I think the later. Our salesmen was an elderly gentleman, his fire had long gone out, but he was interesting to talk to. Everything went well for a while until he had to throw a curve ball. He advised us there was a rebate. Then he said instead of the rebate she could have 0% interest. What to do? 


When buying a car you have a choice between low or no interest and a rebate. How do you know which is better. It's a matter of doing the math. Huh! Do math? I know. Why not get some online help!

Several websites have online calculators that will help you decide. AutoTrader.com and Cars.com each have one, as does Bankrate.com . It's simple, just enter the loan amount, the rebate amount, and the interest rate if you take the rebate, and the interest rate if you don't take the rebate.

Lets put in some numbers and try it out. Say you have a 48 month loan for $25,000; the rebate is $3,000, and if you take the rebate the interest is 6%. If you leave the rebate you get zero percent financing. The answer: "It's a Wash", the calculator tells us. But if the interest rate was 8% instead of 6, you would come out $1,000 better by taking the zero percent loan and no rebate. One other deciding factor is if you are short on a down payment, you can use the rebate to help with that.


Now we had the facts to make an informed decision. I thought finally we were going to be done with this car hunt. Yet it was not to be. My daughter was starting to get cold feet, thinking about that long commitment of payments every month. We went home to think it over. To be continued........

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Recession Lessons Learned In 2010

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The last few years we all have been going through tough financial times. Expenses have been going up and incomes have been going down. We have been forced to do a reset on our financial lives. We don't spend money the way we used to, we can't, we don't have it to spend. The smart ones that haven't been effected, our cutting back for fear of things getting worse. They are saving more and spending less; they are reusing, reselling and recycling. The best lessons are learned in the tough times and hopefully they are integrated into our lives and endure.

I have listed a few of the lessons learned, I hoped you learned them to. 

Savings Accounts. If you are already saving your income every month your way ahead of most people. If your not, it's time to start. Make this your top goal for the coming year. Start small and as you begin to see that balance rise you'll be encouraged to increase the amount. Be sure to put it somewhere it's not easily accessed, so you won't be able to get to it easily when your tempted. And you will be tempted. 

Your home is not your piggy bank or a retirement account. What I have learned and most of America to is that home equity is not guaranteed. I have owned 2 homes in my life and always thought their price would always rise, it never occurred to me their value could be cut in half. My retirement plan was partially dependent on selling my house in ten years and retiring, using the proceeds to setup income producing investments. The idea of producing equity out of home appreciation, may be a thing of the past. The lesson to learn is, your home is not an investment.

Home Equity Lines of Credit (HELOC) are another thing to be avoided. They are a foolish way to borrow money. You putting your home in jeopardy, when you can't pay it back. That new kitchen or bath you borrowed the money for, will sink you when you lose your job or can't work due to illness. Do it the old fashion way, save for it, pay cash or don't do it. 

Living within your means. Americans are blasted everyday from the media that we need to buy things to make us happy. It's not true. Only buy what you need with cash that you save. Rule #1: If you don' have the money, you don't buy it. Rule #2: If you need to buy it, save ahead of time for it. Rule #3: Setup and maintain an emergency fund for those unexpected emergencies.

Credit Cards are not our friends. The main purpose of a credit card is to get you to use credit for your purchases and ask for only a small payment every month in result you pay interest to them. This interest is their way to make money on you. If you pay back your balance every month they make no money and actually lose money on your use of the card. Their goal and only reason to be in existence is to keep you in debt. Some debt always grows into massive debt. Your best move is to avoid credit cards altogether. They are built to keep you in debt. 

Car Loans will keep you poor. Keeping up with the Joneses is a trap you will never satisfy. If you think you have to be defined by what you drive your deluded. If you have a car loan, pay it off. If you need a car, buy a used car let someone else take the depreciation hit. Here's a plan, save for that car purchase and live within your means.

Job security is an illusion. Don't fool yourself. We are all self-employed. Your only as good as what you can do for the boss today. I don't care how many years you work for a company, your an asset on their books until your not needed anymore and then you will be put out. 

Frugality is a must. What we have must be used longer. Our money must be spent in the most economical way. We can't just go in a store and put down our money. We have to shop sales, deals and always get a bargain. Coupons and coupon codes are a must. Ask for discounts everywhere. Nowadays, it's become perfectly permissible to ask for discounts from your dentist, doctor, plumber and kids' tutor. Don't forget to ask for drug samples whenever your doctor writes you a prescription.

The recession has taught us many things we already should of known. Making your hard earned dollars do that much more is not a option anymore, its a necessity.

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Ways To Live The Frugal Life

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Is the new frugality a fad or a new way of life for Americans. What is it like to practice frugality? Does it mean sitting in your home wearing tattered clothes and making your own soap? Or is it about having a different view on life and money. Frugality isn't just about pinching pennies. We all know people who can pinch a penny till the the Brylcreem comes out of Lincolns hair. My wife is like that and she's taught it to me. Thank you, Dear. 

1. Frugality means consumers are putting needs above wants, sticking to budgets, deferring purchases and spending less — and they aren't shy about letting others know about it. In fact, those who have embraced the new frugal mindset are proud of their accomplishments, and they should be.

2. People with a frugal mindset view money as a tool, not a status symbol. They don't see money as the end result but rather as a means to help achieve a more balanced, comfortable life. So they tend to transfer their spending from things that are less important, such as brand-name products and luxury items, to things that are more meaningful, such as freedom from debt, a home or an emergency fund.

3. Those who practice frugality more effectively distinguish wants from needs. They don't interpret essential needs — food, water, clothing, shelter and transportation — as their more upscale counterparts — eating out, Perrier, designer clothing, luxury homes and new cars each year. Instead, they look for value when purchasing necessities. They also recognize extras, like cable TV and magazine subscriptions, as desires — not must haves.

4. Frugal people track their bills and manage their cash flow. Disciplined spending and budget tracking are at the core of the frugal mindset. Every dollar and expense is accounted for. Saving before spending is the norm. And credit is a last resort.

People who are frugal focus on their long-term goals instead of short-term indulgences. They rarely spend money on immaterial purchases that give them immediate satisfaction. Instead, they are committed to saving for future financial goals, such as college for their children or retirement.

For consumers who embrace it, frugality has an upside. It's a shift to a new value system and provides relief from the burden of "keeping up with the Joneses." It's even helping to bring some households closer, with more opportunities to spend time together at home playing board games, participating in outdoor activities, preparing meals and watching TV as a family. And here’s one ancillary benefit to this lifestyle: Parents are leading by example, teaching their children how to save and spend more responsibly.

So is the era of conspicuous consumption gone forever? Evidence suggests that, as with the Great Depression, this change in consumer behavior toward frugality will last even after the economy gets back on its feet, largely because consumers have less confidence in the economy and are less willing to run up debt. But only time will tell if the new frugal mindset is permanent. One thing is for certain: Living within our means could be a very good thing.

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Black Friday Survival Guide

If your like most people your getting ready to hit the malls today. It must be what running with the bulls is like. You may be getting a late start, but its never to late to go through a checklist of great shopping tips. I am including a broad array of tips from shopping to shipping and warranties to rebates. Here we go.

Avoid Debt

If you spread grocery purchases for holiday meals over several weeks, freezing perishables and storing staples; it can leave a lower impact on your food budget.

Make a budget and stick to it. Get the whole family in on it. You will be saving money and it's a great chance to teach the kids about money management. Most of all pay cash this season for all purchases.

Shop Safely

Shop only at reputable brick and mortar retailers.

If shopping online be sure to read the return policy and make sure the website is has industry seals of safe shopping like Verisign and the Better Business Bureau.

Websites and Shopping Online

Be sure to check out websites like Blackfriday.com, Blackfriday.fm, Tgiblackfriday.com, and Theblackfriday.com. These websites should give you a broad look at all the online and brick and mortar stores. When comparing prices be sure to check out Amazon and Ebay. It's always good to be signed up for email from Target.com, Walmart.com, and your own favorite web stores.

Gift Cards

When you can't find that special gift for that hard to shop for person, why not get them a gift card. They are available for all major retailers in town and online too. If you receive gift cards as a Christmas gift be smart and take precautions. Its always good to photocopy the card so you have all the pertinent information in case you lose it. Also keeping the receipt as proof of purchase whether you are are giving or receiving. But the best advice of all is, if you receive one as a gift, use it as soon as possible. This way it won't get lost or maybe expire.

Rebates

This is the most troublesome aspect of modern shopping. Retailers know we like to get a good price with the rebate incentive. But they know most of the time we won't follow up on the rebate process. We either forget, lose some forms and file it wrong.

If you have to use a rebate follow these steps. Check the expiration date of the rebate and mail it way before then. Don't throw away receipts or product packaging in case you need to resubmit. Make photocopies of all paper work you send in. Consider sending your paper work by certified mail. So you will have proof you made the deadline. Lastly be patient because it does take a few months to process it. Make a note of the web site or phone number where you can check on the progress of the rebate.

Green Shopping

Buy gifts that are made with recycled materials and are energy efficient. Bring reusable shopping bags and avoid plastic bags. When wrapping presents try to use any left over or used packaging from last year. Shopping online is a very efficient way to shop. Lastly when decorating use energy efficient led bulbs in your decorations.

Warranties and Returns

Returns can be a headache if you have no receipt or do not know the rules that your retailer has about returns. Save yourself the hassle and familiarize yourself with these rules before making that purchase. Also keep that receipt in a safe place and for at least a year.

Warranties and expiration dates are different for different products and for different stores. Again familiarize yourself before the purchase to save you headaches after.

Package Shipping

Be sure to ship your gift packages early enough to use standard shopping rates, by Dec 15-17 will be the last days. After that you will have to use the more expensive shipping rates to get it there on time. Other deadlines are Dec. 20 for first-class mail, Dec. 21-22 for priority mail, and Dec 23 for express or over night.

These hints will get you started on this seasons coming events. Remember the holidays are only a few weeks away. Don't put things off to the end. Get a head start tomorrow and it get done.