4 Ways to Save Money on Valentine’s Day

February 13, 2013

Although it may seem like we just rang in the new year, Valentine’s Day is right around the corner. You and your loved one always deserve to celebrate, but the last thing you want to do this early in the year is fall into credit card debt. So if your checkbook suffered a setback over Christmas, you may want to rethink your spending strategy on this day of love. Continue reading “4 Ways to Save Money on Valentine’s Day”

Get Rid of Your “Monopoly Iron”

February 08, 2013

I can’t even begin to count the number of times I’ve played the game Monopoly. It’s such a classic, and I had no idea that they eventually get rid of (OK, “retire…”) game pieces. They are retiring the iron now and replacing it with a cat! I’m a dog person and have been known to wear some wrinkled clothing, so I really prefer the iron to a cat…but it wasn’t my decision! And it did take me down a different thought path. Continue reading “Get Rid of Your “Monopoly Iron””

The Tax Implications of Non-Child Dependents Can Be Tricky

February 06, 2013

When tax season rolls around, invariably I get inundated by tax questions.  Every once in a while, a tax question comes along that offers a unique perspective on a common tax issue. Recently, I had two such questions come into my email box.  Here is a summary of the situation, along with a couple of specific questions asked by this employee. Continue reading “The Tax Implications of Non-Child Dependents Can Be Tricky”

Is Your Paycheck Smaller Than It Used to Be?

January 23, 2013

Did you notice something different about your paycheck recently?  For the last two years, we’ve enjoyed a temporary reduction in our Social Security payroll tax of 2%, but that reduction expired at the end of last year, and according to USA Today, that means the average American will see a decrease in income of $100-$150 a month.  For some of you, that might just be enough to wipe out any annual pay increase you would normally receive, but for others that’s just less money available to pay the bills. Continue reading “Is Your Paycheck Smaller Than It Used to Be?”

If I Could Turn Back Time – Financial Advice I Would Give Myself When I Was a New Mom

January 21, 2013

A few months ago, my son asked me an interesting question, “What financial advice would I give my twenty year old self?”  After pondering the answer for a while, since I think he was asking for advice in a very creative but roundabout way (I answered him here.) As I am making plans to take time off in May to help out my step–daughter care for my three year old granddaughter when the new baby is born, I thought of the same thing.  What advice would I give my twenty eight year old self when I was in her shoes as a new parent?  Here is what I came up with: Continue reading “If I Could Turn Back Time – Financial Advice I Would Give Myself When I Was a New Mom”

Do You Need an Oprah Moment Like Lance Armstrong?

January 11, 2013

I read this article about Lance Armstrong booking a date on the Oprah Winfrey Network (OWN), where many people suspect that after years of denial, he will finally acknowledge that he participated in a PED (performance enhancing drugs) program.  This is a story that resonates with me on so many levels that I will absolutely be one of the people who tunes in to watch it even though I have no idea if the OWN is on my cable system.  I guess I have some research to do.  Continue reading “Do You Need an Oprah Moment Like Lance Armstrong?”

5 New Year’s Resolutions You May Not Have Thought Of

January 10, 2013

With 2013 officially upon us, it’s time to put on your thinking cap and create some quality resolutions. The national economy might be unstable, but you can still have a banner year. Strive to improve your finances as much as possible and you’ll be off to a good start. Continue reading “5 New Year’s Resolutions You May Not Have Thought Of”

Want to Live Healthier While Saving Time and Money in 2013?

January 02, 2013

If you’re like most people, chances are you have New Year’s resolutions that involve becoming healthier and/or saving money. What if I told you that there was something that could help you accomplish both goals, while also saving you time to fulfill your other New Year’s resolutions? It’s incredibly healthy, tasty, filling, and inexpensive.  Better yet, you don’t even need to cook it.  I’m talking about a green smoothie. Continue reading “Want to Live Healthier While Saving Time and Money in 2013?”

How a Lost Monkey Can Give Us Financial Hope

December 28, 2012

I saw this article about a monkey lost at an IKEA furniture store when I was doing my morning news reading the other day.  There were some  videos of the monkey on some of the news channels as well and it was pretty entertaining.  The monkey definitely got my day started with a smile.  But the more I came back to thinking about the monkey, my thought process changed a little bit because of a conversation I had… Continue reading “How a Lost Monkey Can Give Us Financial Hope”

Give From the Heart, Not (Necessarily) From the Wallet

December 19, 2012

Christmas is supposed to be a time of goodwill and cheer as families and friends gather to celebrate the holiday.  Unfortunately for some, this will also be a time of nerve-racking stress as they compete with other shoppers to find the best deals on gifts in an attempt to check off every item on their list.  In the end, many will have little more to show for it other than an upset stomach and a large credit card bill.  This year, rather than succumb to the pressure advertisers put on us to buy, buy, buy, let us instead choose to give, give, give. Continue reading “Give From the Heart, Not (Necessarily) From the Wallet”

5 Ways to Save on Christmas Shopping After Black Friday

December 12, 2012

Now that Black Friday and Cyber Monday have passed, you may think that the good deals are gone as well. Fortunately, this just isn’t the case. While it’s true that steep discounts are to be had on those famous shopping days, plenty of items are still discounted both online and at the mall. They may not be advertised as loudly, but with a little effort, the remaining deals aren’t that hard to find. Continue reading “5 Ways to Save on Christmas Shopping After Black Friday”

Get Healthy and Fit on the Cheap

December 03, 2012

Fitness and finances may be more interrelated than you think. I am not just talking about your gym membership fees, thought we’ll certainly address them in this blog. I am talking about your health – namely stress.  Continue reading “Get Healthy and Fit on the Cheap”

Tips to Keep Your Holidays Debt and Stress Free

November 30, 2012

As I write this, it’s only a month before Christmas and all I’ve seen and heard today are ads about Black Friday & Cyber Monday.  I have to admit that it makes me not want to shop at all this year!  (If you’re on my Christmas list, you might want to read another planner’s blog this week!)  Continue reading “Tips to Keep Your Holidays Debt and Stress Free”

The Difference Between Frugal and Cheap

November 28, 2012

I’ve recently learned about a new show on television called Extreme Cheapskates, which features real people going to extraordinary lengths to save money. Their methods have included re-using paper towels by hanging them to dry, doing laundry in the shower to save money on detergent, and even refusing to buy toilet paper! As entertaining as this might sound to watch, it’s unfortunate because it really gives people the wrong idea about what it means to be frugal.

My view is that pinching pennies actually has more in common with spending your paycheck on frivolous purchases than with being frugal, because in both cases you’re using a lot of your time or effort (either to earn money or avoid spending money) without getting all that much in return. These so-called “extreme cheapskates” are likely causing themselves unneeded stress by worrying over every time they might have to spend a dollar. If saving money requires you to live your life with sacrifice, hardship, and stress, that’s frankly no way to live.

By contrast, being frugal isn’t about saving every last dime but rather about getting a good value for your money when you do buy something. What does it mean to get a good value for your money? It’s less about how cheap or expensive something is, and more about whether the purchase will make enough of a positive difference in your life (like saving you time or making your life easier or more pleasurable) that greatly exceeds its cost. In other words, it’s okay to spend more money on something if you’re getting a lot out of it. Here are some guidelines I can share with you from my own experience that have helped me better define how to be frugal and get better value from my spending:

1) Don’t be as concerned about price as you are with buying something well made. We’re often tempted by something cheap to save money but it can be really frustrating to use things that just don’t work right. For example, I used to own cheap blenders that I’d never even wind up using because the blades wore down so quickly and they wouldn’t mix anything well. Then I purchased a restaurant quality blender even though it was $400. It was expensive, but it works so effectively and is such a pleasure to use that I now make delicious, healthy smoothies every day. Life is just easier and more enjoyable when you’re not stressing out about how difficult it will be to do things with a poorly made product. Sometimes it’s even cheaper in the long run to purchase a higher quality thing that won’t break down and need to be regularly replaced; the blender I purchased was more expensive up front but is expected to last 25 years.

2) Well made things don’t need to cost a lot of money. Find something that fits your needs. It’s important to remember that you aren’t always getting the better value just by purchasing what’s more expensive. For instance, a luxury car may be more enjoyable to ride in than a Toyota, but since both can equally be relied on to accomplish what most people need a car to do – get you where you’re going – paying thousands of more dollars to own a BMW probably isn’t worth it. It’s important to find something well made that actually fits what you need it to do.

I recently decided to purchase a laptop, and because I knew I was going to use it every day, I didn’t want to buy something cheap that would run slowly or be a chore to use. I then seriously considered getting the new MacBook Air, which was a lot of fun to use when I tested it out at the store but also would cost me $1,000. After a lot of thought, I realized that for what I needed my laptop to do – web surfing, word processing, watching videos, and listening to music, I didn’t need a $1,000 laptop. I opted instead for a Samsung Chromebook, which is designed primarily for Internet browsing and saving documents online. It’s a low cost item at only $250, but it’s not poorly made; it’s less expensive because it’s designed to do fewer things more efficiently. I was able to find a high quality product that I would really enjoy using without needing to spend a lot of money.

3) Consider how often you’re going to use something. Even if something is a really well made item, if you only plan to use it a few times a year (or less), you still may not get much value out of buying it. In that case you’d be better off purchasing something cheap or perhaps renting it instead of owning it. Also, if you make a habit out of buying things that you’ll rarely use, even if they’re low cost or on sale, those costs can add up over time. Even worse, if you’re paying for a larger house or apartment just to have all that stuff you’re never going to use collect dust in the closet, you might actually be spending thousands of dollars a year in housing costs for it.

4) Bulk purchases on things you buy often. If you need to buy a lot of something frequently, it can often be a better deal to buy things in bulk. I find this to be true about non-perishable food staples (flour, grains, beans, rice, oatmeal, etc.). I like to buy organic items, and packaged staples at the health food store can give you a sense of sticker shock. But most health food stores usually have bulk bins for these items where the prices are very reasonable. I purchase organic oatmeal at Whole Foods for $1.50/pound, compared to my local grocery store that sells packaged non-organic oatmeal for almost twice as much. Being frugal doesn’t mean you need to sacrifice.

5) Experiences that improve your relationships with people or improve you as a person. Something you can spend money on that will almost always have a benefit that greatly exceeds its cost is building stronger relationships with the people in your life that are close to you. You may overpay for a beer at your local bar, but if it allows you to have a great time with good friends then it’s always worth it. You can’t put a price on the value you get from getting closer to the people in life that you care about. One area which I strongly believe highlights the difference between frugal and cheap is being a good tipper when you receive good service. For only a few extra dollars, you help out someone who’s working hard for you and you can build a stronger relationship with the service providers you rely on for what you need.

In addition, it’s often a great value to spend money on learning new skills that stay with you for life. I spend about $300 a year on martial arts classes, but what I’ve gained in improved strength, fitness, and mental clarity, vastly exceeds what I’ve spent. Once you’ve learned new skills, they improve your life every day and no one can ever take that way.

Remember that the goal of being frugal is supposed to enhance your life, not subtract from it. That’s why frugal beats being cheap – it’s a win-win that saves you money and also makes your life better.

 

6 Ways to Save on Your Thanksgiving Celebrations

November 14, 2012

Now that Halloween is behind us, it’s time to gear up financially for the holidays right around the corner, the first of which is Thanksgiving. It can be very easy to let costs spiral out of control when planning your Turkey Day feast – but remember, holiday shopping will be here before you know it. Continue reading “6 Ways to Save on Your Thanksgiving Celebrations”

5 More Ways to Boost Your Retirement Savings and Retire Early

November 12, 2012

It’s not so much how much you make; it’s what you do with what you make that can help you create wealth. Case in point, a friend of mine just retired at age 53.  In today’s economy, retiring early is tough to do – virtually impossible—yet she did it and her husband has never had a “regular job.”  She worked as an administrative assistant at the University of California in Davis, California.  Without a college degree, she never earned six figures but what she did earn, she and her husband saved.  They were very frugal and what they saved they invested in rental property, which he managed, as well as in her 401(k).  I love reading her recent Facebook posts sharing things like “It’s a rainy day and I don’t have to go into work!”  She and her husband achieved financial freedom and so can you. Continue reading “5 More Ways to Boost Your Retirement Savings and Retire Early”