Thursday, November 29, 2007

Busy shoppers..lets not get carried away

In the heat of battle so to speak ...mall shopping....we can get carried away with the sales and advertising....and the Christmas music blasting from the speakers...and the children lined up to get their pictures with Santa.... and get home and find ourselves in a daze with a mountain of packages, not remembering where we got where or even how much we paid. Vicki Lee Parker or the Raleigh News and Observer writes:
During this season, let's not forget what's important for the holiday shopper- being a smart consumer.
The last thing you want after the glitz and lights come down is to realize that you have over-spent, racked up major credit card debt or forgotten to keep the receipt for a sweater that doesn't fit. Without a receipt, you might get store credit-if you remember where you bought it- but forget about getting cash back.
To avoid such headaches, here are a few things that savvy shoppers should keep in mind over the next few weeks.
  • Hold on to all receipts, including those for gift cards. These can come in handy if the person loses the card. Pass along the gift receipts to your friends and family.
  • Consumer Reports is again warning consumers to avoid paying extra for extended warranties. The magazine says that most extended warranties are a waste of money, because they are overpriced and because products rarely break within the three- year period that most cover. There are exceptions to the rule. For example, Consumer Reports suggests that shoppers buy warranties on rear-projection TVs and Apple computers.
  • When you make purchases with a coupon, pay close attention to the excluded items that are usually listed in small print at the bottom or back of the coupon. It's no fun to get to the cash register and learn that that wonderful gift you spent 20 minutes picking out is not covered by the 20 percent coupon.
  • Earn more coupons and discounts by completing a free registration on your favorite store's Web site. Many stores offer a one-time discount for signing up . Afterward, they will mail you coupons and other information about specials.
  • Pay attention to expiration dates on coupons and gift cards. During the holidays, if you make a purchase many retailers will give you a discount coupon to use toward your next purchase. Often, those discounts are good for a limited time.
  • Remember to ask stores about return policies. Specifically, you want to know: How long will you have to return an item for a full refund? How long do you have to get a store credit? Is there a restocking fee? Will you need a receipt to return the item or is your information saved on the store's computer system? If you make a purchase from a mall kiosk, find out how long the business will be set up in the mall and what its return policy is beyond that date.
  • Finally, remember, the holidays are the busy season for criminals. Be extra careful about entering your PIN and using your credit card. Periodically check your credit card balances to make sure they match your records. You can call the toll-free number on the back of your card or check your account online. Review your monthly statements closely to make sure you recognize all of the purchases.

So, if we are attentive to all these rules for the malls we hopefully will have a little fun..get some bargains and really enjoy this season of giving. Happy shopping!!

Wednesday, November 28, 2007

For richer or poorer...or..financial tug of war

From Marshall Loeb's column; Market Watch, Debbie Stanley a financial psychologist offers up a five point peace plan for couples struggling to get a handle on their finances in her book,"Organize Your Personal Finances in No Time."
  • Choose the "account manager." Most tasks are more easily accomplished when one person takes the helm. Money management is no exception. One of you is probably inherently better suited to the task, so let that person take the lead.
  • Recognize that being the account manager does not equal being the boss."Resist becoming drunk on your imagined power," Stanley warns. Wielding the proverbial purse strings does not give you the right to pull them tight at will. Always remember you're part of a team. Resist the using your role as an excuse to belittle or control your spouse.
  • Diligently communicate important financial information. As the designated money manager in your relationship, you will always have a better grasp of the details of your financial reality. That said, it's important to impart enough information to your spouse that he/she can have a meaningful say in important decisions. Preserving harmony means never using his/her lack of knowledge as an excuse to get your way.
  • Stick to a mutually agreeable system. If your partner has been put in charge of the household finances, don't make her/his job harder than it has to be. If the system requires that you deposit checks on a given day or curb impulsive spending, do your part.
  • Tweak the system until it works for both of you. While its important that both of you try to comply with the system, it's equally essential that the system be allowed to evolve to fit the needs of both partners. If your wife is having a difficult time tallying up each and every purchase, add some padding to your account. If your husband is overusing his ATM card, try using a set amount of cash for daily purchases instead.

All this said, I'd like to add, find a system that works for you both and use it , use it , use it. If you will start young understanding the value of saving for emergency expenses, large ticket items (houses cars etc.) then the everyday stresses of life can become a little less stressful. Just a thought.......

Monday, November 26, 2007

So my light bulb looks like a bed spring......

Hello again and hope everyone had a happy Thanksgiving. Sorry i was away so long. But back now with an idea that seems to be catching on around the country. Compact fluorescent light bulbs....or CFL's. These light bulbs look like a regular light bulb at the base but where the fat part of the old bulb is ..they look like a spring. While these bulbs are a little more expensive than the old type bulb, the Environmental Protection Agency (EPA) says that by comparison to standard bulbs, Energy Star CFL bulbs:

  • Use 75% less energy and last up to 10 times longer
  • Save about $30 over a bulbs lifetime
  • Produce 75% less heat
  • Can fit almost any fixture--indoor or outdoor bulbs are available

One note of caution about these new bulbs:

While CFL bulbs contain traces of mercury. environmentalists favor the bulbs because, by requiring less energy, they will actually cut down on mercury pollution produced by coal burning. The EPA agrees. While mercury doesn't make CFL's unsafe, experts say it does place them alongside many other household products -- paint to batteries-- that need to be used and disposed of in a responsible manor.

Electrical cooperative leaders view energy efficiency measures like CFL bulbs as the "fifth fuel" along with coal, natural gas, oil, and nuclear because of its potential to avoid the need for large chunks of power to be generated at any given time.

So lets see $30 per bulb over the life of the bulb. i can count ten easy right now from where i sit in my house...and if the bulbs last a few years... Seems like a wise choice to me. How about you ? Just a thought . Have a good one.

Tuesday, November 20, 2007

Electric bike...paint it green

With the price of gas going over $3.00 a gallon i think we all are looking for ways to save money on travel. This may be an option for you. The obsession with bigger trucks and suvs has led us to consume more and more gas every year. Enter..or should i say straddle..the lowly bicycle. And for those of us who get winded just riding around the block...the electric bike. In an article in Mother Earth News an electric biker named Rick Parrish of Woodruff S.C. writes: I weigh 220 pounds and the bike will pull me up some pretty steep hills at 13 mph without pedaling and at 16 to 17 mphwith pedaling. I have already done 30 miles on one continuous ride with no loss of power; the charge meter had just begun to drop from full at the end of the ride.Top speed of this bike on level ground(with the speed limiter unplugged) is 24 miles per hour without pedaling, 27 to 28 mph with pedaling.
I am 48 years old and originally decided on an electric bike for health reasons. I have been pleasantly surprised by the exercise I'm getting since i find myself pedaling everywhere. My fuel cost will average about 25 cents a week and the benifits to the environment are fantastic.
The bike cost me less money than it would have to re-register, insure and pay taxes on my car. On top of this it will save me $120 to $150 a month in fuel cost and my health is improving. Rick's choice of bike was a Liberty Electric Bike 643 Town and Country Cruiser. Now i know we all cant rush out and buy electric bikes. Distance of commute and other factors come into play and everyones situation is different. Still..think what would happen if 1 in 100 decided to ride a bike,electric or otherwise, just some of the time. A gas savings of $120 a month is a big incentive..plus the savings on insurance and taxes. Just another push for us all in the direction of a greener and more frugal lifestyle.

closing in on turkey day

We all have a lot to be thankful for. We need only look around a little to find someone who is not as well off as we are. I may be away for a few days during thanksgiving but will be back soon with some new ideas on saving a penny ..saving the world. And of course maybe later today with another post. Please let me know if what youve read so far is helpful in any way or has at least made you think. Take care.

Monday, November 19, 2007

Christmas green..if we will stop and think

According to this months issue of AARP magazine the average American spends nearly $1000.00 during the holidays. And they offer up two plans for us to choose from.
PLAN A
Charge $1000.00 of holiday expenses to your credit card. If you pay $50 a month on that debt, you'll still owe $550.24 after paying this $50 for 50 weeks. And you won't pay it off for almsot another year(with 14.57 APR). Almost 2 years paying for Christmas present(yes Christmas present..I didnt say Christmas presents) What do we do about Christmas future. Plan A isnt sounding so good is it. And yet thats what so many of us do ..paying with plastic puts off the pain until the bill comes in. But there is a price for this waiting. We pay out huge amounts in interest for things we maybe should have waited until we had cash to buy. Or we can look at Plan B......
PLAN B
Deposit $20 a week in a "Holiday Club" savings plan at your bank. After 50 weeks you'll be $1007.84 dollars ahead of the game and ready for the 2008 holidays (with 1.5 APR.)
Plan B sounds best to me. How about you?? And yet every year it seems we Americans rack up the debt and struggle to pay it off before the next Christmas when just a little planning and a fairly painless weekly sacrifice would save us a whole lot of stress.
And it isnt even Thanksgiving yet.............

Just a thought......

My friends....
Just think with me for an instant...suppose you have a weekness for bacon,egg, cheese biscuits. These are readily found at our local fast food restaurants for about $1.29 or so..and with tax that comes to $1.29 * .1.07=$1.38, not a lot right..but wait are we going to chock this biscuit down without a drink..bring on the coffee or soft drink and add what....lets say $.99*1.07 =$1.06. Ok add that to the $1.38. Now if ive done my math right thats $2.44 and now we have our daily dose of colesterol and were out the $2.44. Nothing to worry about right. But lets back up a little here....how about substituting a bagel for that biscuit...lets see bagels $4.19 x1.07=$4.48. OK i dont think we're going to eat the whole pack at a sitting...lets start with one..and do our own coffee at home for lets say...40 cents a cup maybe. $4.48/6=.75cents. Now dont forget to add the coffee .75 +.40+$1.15...bettter huh. And youre eating healthier not driving the extra tenth of a mile into the fast food place and eating at home which you can do without your shoes on which always makes it taste a little better. Now lets do the math$2.44-$1.15=$1.29 a day. Now granted...thats not a lot,but lets say you treat yourself on friday with the biscuit...I dont recommend it..but thats your choice ...In 4 days we've saved $5.16...not bad huh..and lets see...say we get liberal vacation time off and work 48 weeks a year...That comes out to 48x$5.16=$248.16. Anyone else out there saying wow right now...or is that still not enough ..ok..lets say we take that $248.16 and put it in a mutual fund averaging about 8 percent per year..for lets say...5 years......$1476.87..anyone want to say wow with me now..but lets go out 10 years.....$3742.33. now lets stretch it out there to 20 years.....$11961,99. now lets say youre 25 and plan on working until you60 or so ..35 years....yeah ..lets go out to 35...comes to $41624.58. Do i have your attention now? Forty thousand dollar biscuits tend to do that. Just one little lifestyle change hmmm. Maybe we can make sense of this penny saved thing...and oh...your bagel at home....eaten on a saucer that you wash.....drinking your coffee from a cup that you also wash. Youll keep several hundred pounds of discareded paper waste out of the landfill over the years....Think about it.

Saturday, November 17, 2007

First Entry..or...getting my feet wet

11-17-07
Hello my readers. This is my first attempt at putting my ideas and notes i have accumulated on saving money and using our world more gently into print. So bare with me until i get the kinks inroned out. Hopefully along the way you can get some ideas from this space that will help you. All thoughts are welcome . Please feel free to email or post here. Hopefully will add more tomorrow.