Categories: Information, Living Simply, Money Saving Ideas Posted by ElsaBinder on 8/14/2010 7:20 AM

Making small daily decisions to save money can help you afford for bigger, more important purchases and investments.

In this Aug. 1 photo, Ann Brown and her daughter Julie Anne shop for school supplies at a Staples store in Little Rock, Ark. Making small frugal decisions, like waiting for a sale to shop, or turning down your thermostat during the winter, can help you afford bigger, more important purchases and investments.

Danny Johnston/AP/File

By Trent Hamm, Guest blogger / August 13, 2010

This past weekend, I attended GenCon 2010, a gaming convention in Indianapolis, IN, with a group of several friends. I had been saving up to attend this convention for a while, and that savings consisted largely of money saved in the way I described this morning: making lots of small choices that saved money and didn’t negatively impact my way of living.

The Simple Dollar is a blog for those of us who need both cents and sense: people fighting debt and bad spending habits while building a financially secure future and still affording a latte or two. Our busy lives are crazy enough without having to compare five hundred mutual funds – we just want simple ways to manage our finances and save a little money.

During the convention, I had many opportunities to chat with people and I found that at least a few of them had done the exact same thing. They didn’t have the income or resources to travel to such things regularly, but they chose to cut back in other areas. Some of them didn’t own televisions at home, for example. Some of them ran small side businesses for income. Others simply did frugal things, like eating meals at home and putting the savings away for their trip.

In each case, the rule of thumb is the same: they took money away from something of less importance to them to use the money on something of more importance to them.

Translate this to your own life for a moment. What things in your life would you love to be doing but you can’t because you can’t afford it? What do you sit around daydreaming about but never actually do because you don’t have the money?

Maybe you are deeply passionate about travel, but you can only travel once every few years.

Maybe you dream about having the perfect home entertainment setup, but you balk at the price of the television and other equipment.

Maybe your idle thoughts focus on something like attending a convention related to your hobby, but the trip and the expenses are just too much.

You spend years dreaming about these things, but they just keep being out of reach.

That’s where sensible frugality plays a role. The trick is to cut back – hard – in the areas that don’t matter as much to you and save that money where you’ve cut back. This enables you to live your life without misery. (Of course, there’s nothing saying you can’t also choose to make sacrifices in specific areas important to you, too.) At the end of the year, though, you find yourself with the money for that trip or that television or that convention – and you can just do it.

I’ll give a very specific example.

I’ve seen an absolutely gorgeous 60″ LED HDTV for sale at Sam’s Club for about $2,400. It’s beautiful – I won’t deny that. If someone deeply wanted an absolutely amazing home entertainment setup, they might very well make this television the centerpiece of that room. I could see someone who played a lot of video games and/or watched a lot of television purchasing this flat screen and installing it happily in their living room.

But they can’t afford it! What’s a solution to get there?

The person spends $300 a month on their energy bill. Installing a programmable thermostat will cost about $40 up front, but the reduction in energy costs will be about $50 a month or so if properly programmed. This adds up to a total savings of $560 over the course of a year.

The person does three loads of laundry a week. Making their own detergent saves $0.20 a load. Over the course of a year, that adds up to $31.20.

The person drinks a couple bottles of soda a day. Switching to refillable bottles of water stored in the fridge eliminates about $1 a day in spending, giving you $52 more (and it’ll do wonders for your health).

The person commutes 20 miles to work every day for an 40 mile round trip. Setting up a car pool with just one other person four days a week eliminates 80 miles of driving a week. Using the government reimbursement rates, that simple switch will save you $1,040 a year.

The person eats out three times a week. Eating something inexpensive at home once a week instead of eating out saves the person $10 a week, adding up to another $520 over the year.

The person subscribes to a couple premium movie channels that he barely watches. Eliminating these subscriptions and joining Netflix instead reduces the monthly cost from $25 to $9, a savings of $192 a year.

Those moves saves the person $2,395.20 over the course of a year. If he’s socking that money away faithfully in an account bearing 2% interest, he’ll wind up with $2,420 at the end of the year. Time to go buy that television.

Here’s the thing, though: none of those changes required much time investment and they didn’t affect that person’s quality of day-to-day life much at all. He didn’t give up anything life-affirming, but at the end of the year, he had enough cash in hand to make that daydream come true.

You can just substitute in your own “dream” and your own frugal methods of getting there right into this plan. Browse big lists of frugality tips and free things to do and be selective with them, trying out only the things that work for you. Keep track of what you actually save and sock away those savings.

Eventually, you’ll find that you’ve built up some money for whatever it is you’re dreaming of. Even better, you’ll find that this kind of savings is very sustainable and it’ll help you keep building for whatever dream comes next after that.

You can use it to pay off debts. You can use it to build an emergency fund. You can use it to fly to Maui. You can use it to redo your kitchen. Whatever it is you dream of, sensible frugality can do it.

You just need a goal – and you need to start taking the little steps to get there.

Are you ready to start today?



 

Currently rated 1.4 by 26 people

  • Currently 1.423077/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Categories: Living Simply, Money Saving Ideas Posted by ElsaBinder on 5/2/2010 2:04 PM

I love stories like these!  This is a couple who delayed their instant gratifacation (debt bearing) honeymoon, waited, and paid for it in cash.  

Click Here to see video.

Be the first to rate this post

  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Categories: Environmentally Friendly Budgeting, Living Simply, Money Saving Ideas Posted by ElsaBinder on 4/20/2010 1:13 PM

Cure poisen ivy, repel insects-and clean you house....all with vodka!

Click Here

I have actually used some of these and they work.  I can't wait (with the exception of poisen ivy) to try the others.  

Currently rated 1.3 by 4 people

  • Currently 1.25/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5

The Simple Dollar

Summer vacationing without breaking the bank

By Trent Hamm, Guest blogger / 04.16.10

This summer, my wife and I and our three children – a four year old, a two year old, and a baby – are going on at least three different family trips. One will be to downstate Illinois, another will be to northeast Iowa and southwest Wisconsin, and the third will be to northern Minnesota. That doesn’t include multiple graduations we’re going to attend in May, either.

How are we going to do this while simultaneously keeping our sanity (yes, you try traveling for several hours in a vehicle with a four year old, a two year old, and an infant) and keeping our wallets in good shape? Here are seven methods we’re using to provide great experiences for our family while also keeping our finances in mind.

Keep in mind why we’re doing this

Why would we want to travel with a car full of small children? For some people, there may be no rational answer to this question at all. For us, though, there are several reasons.

First and foremost, we want the children to see different places and people. The geography where we live is very flat; this summer, they’re going to visit some very hilly areas. There are no large lakes here, but this summer we’re going to visit Lake Superior. We’re also going to go to areas with at least some cultural differences from home. On top of that, we also want to spend a lot of time outside, as fresh air is one of the best things you can give a child or give yourself.

Those are the reasons we’re traveling. Those reasons have nothing to do with seeing some mind-blowing sites or going to spectacular events. We know why we’re doing this and we let those reasons lead the whole vacation. As long as we follow that lead, we don’t need to pour money on other activities or sojourns.

Stay with family and friends

On each of these trips, either in the middle of a travel leg or near our destination, we’ll be staying with family or with friends.

This provides both a social purpose (seeing people we care about) and a financial purpose (free lodging for a night or two). Usually, in exchange for this, we often will buy dinner when we’re there (or prepare it). We also allow any family and friends who are in our area to stay at our home for free.

This is an exchange that does nothing but build relationships and help out everyone involved.

Camp out

At least once this summer (perhaps twice), we will be camping out for multiple days. Yes, with a baby. We did it with just one baby and we did it with both a toddler and a baby, so I don’t think it’ll be a problem doing it again with two young children and a baby.

In fact, there’s one big advantage to camping: unless there’s a storm, when everyone falls asleep, everyone sleeps really deeply. I actually tend to sleep better when we’re camping because there are no night-time interruptions or other such things.

On top of that, camping can be incredibly inexpensive. We often request camping gear for gift-giving occasions, which makes camping nearly free. Usually, all we pay for is the spot to camp on – $10 to $20 a night unless we find a free option. Our supplies are usually inexpensive, too, especially if we collect or make our own while we’re there. It provides exercise, tons of fresh air, and some wonderful time in the great outdoors with the people I care about most.

Plan for the road trips

Road trips can be a very expensive part of traveling (as can flying, but I’m just simply not going to attempt that with three children under five). Between the gas, the maintenance costs, and the expensive food and beverages along the way, it can really add up.

That’s why I do some advance planning. The goal is to prevent stops, because stops are expensive.

First, I make sure there are plenty of beverages and snacks packed, probably more than we need. I usually pack sandwiches and vegetables and fruits so that we can have a full picnic meal on the road. I also prepare a big bag full of things to do for the children on the trip.

Second, we stop mostly at rest stops and everyone is required to go to the restroom when we stop. This reduces the temptation to spend money on overpriced stuff when we stop and it also reduces the overall number of stops. Another advantage is that many rest stops (particularly in Iowa) have areas for running around in the grass and picnicking, both of which happen on trips.

Use alternative housing

Hostels. College dorms. YMCA lodging. Housesitting. These are all great options for saving money on lodging when you arrive if you’d prefer not to camp. We are actually going to do some housesitting this summer for one of our trips.

Find out what types of alternative housing are available at your destination. This can be done with just a bit of effective internet searching. Reviews of the housing (available on many travel websites) can help you avoid unexpected problems.

Utilize free activities when we’re there

Vacation doesn’t have to be about jumping from high-priced activity to high-priced activity. Most of the best memories from the vacations I’ve taken in my life come from the free things we did: climbing a hillside in Edinburgh, putting my feet in the ocean northwest of Seattle, seeking out petroglyphs on foot in rural Arizona.

Yes, if there’s something your heart is set on that you really want to see that costs money, do it. However, use travel guides that help you identify the free things in the area and use those to fill up your activity schedule. Spend some time doing simple things, like walking in the woods or resting on the beach or building a great campfire.

Be resourceful

Before you go, tell your social network where you’re intending to go and ask if they have any tips or suggestions about traveling there. You might just be shocked at what your receive in return.

Be resourceful when you’re there as well. Don’t buy firewood if you can find it yourself. Don’t buy campfire roasting sticks – use a knife and make them from branches. Don’t buy beverages – carry an empty container and fill up at water fountains. Just by taking a few little steps to avoid buying things, you can save money left and right on your trip without reducing your enjoyment of it one iota.

Good luck!

Click Here for Website

Be the first to rate this post

  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Categories: Budget, Living Simply, Money and Kids, Money Saving Ideas, Quotes Posted by ElsaBinder on 3/29/2010 12:46 PM

This Saturday Night Live Skit is the funniest thing I have seen in a long time.  

http://www.hulu.com/watch/1389/saturday-night-live-dont-buy-stuff

Currently rated 5.0 by 1 people

  • Currently 5/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Categories: Living Simply, Quotes Posted by ElsaBinder on 2/27/2010 10:41 AM
"It is a myth to believe that 'If I only had a little more - - or a lot more! -- money than I'd be happy. Unless you have a balanced "relationship" to money, having a little more money just might make you more unbalanced and miserable. Spenders will overspend more wildly, avoiders feel more anxious, money monks more conflicted, hoarders will save more compulsively. So the goal is to move toward money harmony, not merely to amass more money."  Olivia Mellan

Currently rated 5.0 by 1 people

  • Currently 5/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Categories: Living Simply, Money Saving Ideas Posted by ElsaBinder on 2/26/2010 10:43 AM

From Mark Zaifman's Blog

www.spiritusfinancial.com

"When it comes to managing your personal finances, spending, particularly overspending is one of the most challenging aspects of living within your means. It’s not that you don’t have good intentions, because most people really do want to stay on a spending plan, it’s more complex than that. Spending money causes an emotional rush in our bodies. It’s a natural high. It’s short term pleasure for what could turn out to be long term debt. It’s the nexus between money and your emotional intelligence (EQ) that often creates the problem of overspending.

Create a speed bump on the road to spending

Each time you wake up and go to work, you’re making a conscious decision to trade your precious life energy, the limited time you have on this planet; and trade that time for money. That’s a powerful decision with huge impacts on your lifestyle. Are you receiving the highest amount of compensation possible for the exchange of your precious life energy?

Now take it one step further. You’re hearing about the new 3D TV’s that are about to hit the consumer outlets later this year. Let’s say these new TV’s are going to sell for $4,200 each. Gulp! is your first reaction. Second reaction is how cool it would be to have that TV to watch movies on. Then you think about the cost. Well, you say to yourself, I just received that 1.99% 6 month interest offer on my credit card, I’ll put it on my card and pay that sucker off in 6 months-no doubt about it. Next comes the purchase and the amazing “sugar high” you feel throughout your entire body when you sign on the dotted line. And the finale is the hangover that occurs later when buyer’s remorse kicks in and you wonder why you just spent that kind of money on a consumer item.

Here are some suggestions on creating a speed bump to at least slow down the momentum on your potential road to purchasing an item. First, make sure you avoid impulse purchases. These are usually emotionally driven and tend to be the reason most people suffer buyer’s remorse. Stop yourself before making the purchase, and give yourself a cooling off period for at least 24-48 hours. If, after that time, your purchase still feels right, at least you’ve given yourself time to really think it through.

Second suggestion is to calculate how many hours of work it will take to make this purchase. Don’t use your gross hourly rate, instead be honest and use your net hourly wage, taking out taxes, cost of commuting, clothes, etc. Then say to yourself, is it worth trading x amount of hours of my life energy for this purchase? This exercise has usually stopped me dead in my tracks when I’ve been tempted to exceed my spending plan.

Keeping yourself honest

Making a new year’s resolution to stop overspending or even creating a “budget” are all good things on the road to living within your means. But even with the best intentions, it’s harder than most people think. The only true solution to the problem of overspending is to develop the discipline to stay within a  spending plan. Otherwise, consumption quite naturally becomes excessive, and the rude awakening arrives with the monthly statement.

To guard against overspending, I recommend creating and maintaining a credit card expense journal, which is similar to the check stubs in a checking account. Keep a weekly running total of credit card expenses and deduct the end-of-week total from your checking account balance. Then when your credit card bill arrives, you have already deducted the expenses out of your checking account and you’re able to pay your balance in full that month. If you’re unable to pay the full balance off each month, that’s ok short-term, but realize that month you borrowed money and you didn’t live within your means. If this occurs for more than 3 months, you have a trend that needs to be looked at closely.

Increase your money consciousness

Awareness into your relationship with money is one of the greatest gifts you can ever give to yourself. Does it take courage to look inside and understand what’s causing the fear, anxiety, overspending, under saving, under earning, conflicts with your spouse/partner, etc-you bet it does. Yet at the end of the day, what most of us truly want, is not the house up on the hill, or the latest sports car or other material possessions, and yes, many of us desire these items, but at our core, what I would argue we’re all really in search of is peace of mind.

It’s the feeling that your financial house is in order and you feel at peace with your money and your life, you feel secure about your future. And security in regards to your finances is a big thing. When you feel out of sorts with your money, and especially about your financial security, you’re causing yourself undue stress, which can ultimately lead to illness and even disease. Nothing can be more important than your health.

If money has often caused you stress and anxiety, tell yourself this year will be different. Become fearless. Summon the courage and look inside at what’s causing you to feel the way you do. Monitor your thoughts carefully. Remember, as you think, so shall you be.

As you embark on this journey of self-discovery, know that what’s waiting for you on the other side is financial freedom. This feeling of liberation is worth its weight in gold."

Currently rated 5.0 by 2 people

  • Currently 5/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Categories: Living Simply, Quotes Posted by ElsaBinder on 1/7/2010 1:54 PM

"Instead of a family outing revolving around a shop or an eatery we're now likely to take a walk along the river.  We've seen we can subsist on much less." 

Molly Nee

Be the first to rate this post

  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Categories: Environmentally Friendly Budgeting, Living Simply, Money and Kids Posted by ElsaBinder on 12/23/2009 8:31 AM

"When a family member wants to give our children a gift, we suggest they buy them dance or swim lessons.  We also request gift cards to such places as pottery-making stores or Build-A-Bear Workshop, which we can use any time of the year.  Our children do receive some regular presents for holidays and birthdays, but getting a few lesssons and gift cards means they aren't overwhelmed with stuff at the holidays.  Plus, they get to reap the benefits all year long."  Jessica Brown (from an article in Family Fun Magazine)

Be the first to rate this post

  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Categories: Environmentally Friendly Budgeting, Living Simply, Money and Kids Posted by ElsaBinder on 12/20/2009 8:37 AM
"One of our favorite outings is to the zoo, but for our family of eight, it's cost-prohibitive.  That's why when Christmastime comes around, and relatives ask us what to get the kids, we ask for annual passes to the zoo.  For several years, two uncles have in together to get us a deluxe pass.  It saves us a lot of money, and, for the uncles, buying just one big present is much cheaper and less stressful than buying for six nieces and nephews!" Debbe Carson (From an article in Family Fun Magazine)

Be the first to rate this post

  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5