Saturday, April 30, 2011

Starting Simple...Baby Steps, People ;) Part Uno

You know there is a lot of articles out there on ways to save. But most of them are crap. First off, I am not going to completely give up cable. Netflix is great, but its not the same. Netflix does not replace cable for me. But...for some its an awesome option. If you watch very little TV, or not alot of current TV...go for it. Netflix is $8 bucks a month for unlimited movies and television shows. I need my cable (ok I want my cable), but I also have Netflix. And if you only want Netflix, cut the other channels. Basic cable can run $30 bucks a month or less. Ok, so my whole big fabulous point is, most articles talk about saving in drastic ways. I am going a much simpler route. Small ways to save...small steps. Saving without feeling like you have giving up extra luxury, treat, want and desire. My theory is...live poor richly. Now live poor...well poorly. So lets start simple with tips to have you save...wheeeeeeee :)

I plan to dedicate a whole entry to cellphones. But here's a little tidbit. I use to pay $150-$200 bucks a month on a family plan. All because I want a cool phone...blah blah blah :P! So I decided to invest that $200 one month into a nice phone, got a month-to-month plan....and I pay $30 for web, talk and text. HELLO!!! So you still have one of the hottest phones, but you pay pennies a dollar a day for it.

Coupons is a whole notha entry itself as well...but use them!!

Ok, I should not even have to list to pros to carpooling; but I will. You are paying usually 1/4 the gas you did before. You don't have to be that angry driver sitting in traffic everyday. Ummm...the environment. Less pollution. I'd think we'd all like to see this Earth last. Many places allow carpoolers to drive in the HOV lanes, which saves time and gas. You can make new friends, get to know your co-workers better. If you pay tolls, you are only paying a percentage of what you paid before. And there is less wear and tear on your own car. If you paid to park, you are just cut that cost down. Lets look at me for example.

Per month I was paying:

$70 - Parking Garage
$75 - Gas (for commute to work and back)
= $145

Carpooling with 3 other people I pay per month:

Parking Garage - $17.50
Gas - $20 (for commute to work and back)
= $37.50

Need I really say more??! Plus less wear and tear on your car increases the value. Maybe you could actually trade it in one day, and get an even sweeter ride!

Shop around, and find off brands that work for you. Safeway brand diapers are awesome. And I pay usually half what I would for Pampers or Huggies. I only buy brand name items when I have a coupon. Otherwise, I always go off brand. Did you know most off brands are made by the same companies as brand names? They come out of the same warehouse. They just don't pay for the advertising. Basically when you buy brand name, you are getting just that...paying for a name. Stores like Safeway, Wal-Mart, Target, Giant and CVS (to only mention a few) have a whole line of off brand items. Toilet paper, medicines, beverages, pasta sides, oatmeal, cereal....on and on. I love Coke. But Coke coupons are a rarity. Last week my Safeway had a sale on their 12pk Cola products. I got 4 cases of Diet Cola at $1.88 each. And as avid Coke drinker and lover, I could not tell the difference. Neither can most.

When I say Dollar Store, what comes to mind? Many of us think cheap. I mean it is. I would not recommend getting clothing there, batteries or baby wipes (bad experience with the dollar store wipes, it was like trying to wipe the baby with a brillo pad...so we said bye bye to those.) But there are savings worth taking advantage of. I often use the Dollar Store for stocking stuffers at Christmas time, or Easter basket fillers. 100% of the time I get gift bags there. Please do not spend $5 on a gift bag. It is almost always used only once. Its basically $5 bucks down the drain. My local dollar store has a huge selection of gift bags, and I will never pay more than a dollar for one again. Now do not get personal care items here, I do not recommend that either. You can get great toothpaste and toiletries at your local grocery store or pharmacy for a dollar or less (just work the coupon/sale system). But there is no reason you cannot stock up on dollar store paper towels, cups, plates, party decor, cleaning supplies and more. You can be that person who always decorates and makes a festive theme for parties; and everyone will wonder how you do it.
Also most Dollar Stores have a pretty good selection of toys. It's fun to give a kid $5 bucks, and let them loose in the dollar store. To get 5 things to them is like hitting the jackpot.
Beware though. Make sure your Dollar Store is really a dollar store. Some call themselves a dollar store, but have items for $2, $3, $5 bucks and higher. So shop smartly.

Gym memberships. Now here's the thing, I would never say give up your membership. But the truth is most memberships do run $40 a month or more. Plus extra for different classes. One thing you might consider is if you have a gym at work. If so, utilize that. You can work out for free! Would it really kill you to come in 30 mins early, or cut your lunch break short to work out. Even stay after work. I mean if you can save $40 a month or more, why not go for it! Or you can see if you have a local community center or YMCA. My daughter loves to ice skate, swim, dance and workout. I love to workout and hit the pool. I joined my local community center (paid the discounted in-county fee) of $78 bucks. So I know that sounds like a lot. But here's how I actually save. For one, the community center is right across the street. I no longer spend any gas heading up the highway to my local gym. Second, most classes are no extra charge. And I have complete access to the gym, dance room, ice rink, swimming pool and in-door beach....for all my family. $78 covers us all. So instead of paying separate gym fees for me and my boyfriend, daycare fees for the kids while we work out, class fees, gas money and so on...I pay a flat $78 and it works for us. And you find even better deals. Many YMCAs based membership fees on your income. Check around, you may be surprised the community programs and centres out there.

Pictures. Simple one. Use your digital camera, upload to your computer and use sites like Snapfish.com to get your prints. They usually have great deals, and 20 free prints when you sign up. Free shipping deals and you can create unique gifts using your photos. Or make a whole album. Bottom line, you you get 100 prints for $20 bucks or less...verses what you pay in most stores for developing.

Electric bills. I am not going to go too deep into this, because we all no the harsh truth. Electricity is expensive. And if you pay for it, you have to learn to cut back. And even you don't pay for it, saving electricity is something that should be a part of all our daily lives. Unplug appliances when not using them Turn off lights when no one is in the room. Fan or AC...pick one, you all. You don't need both unless your menopausal (then have all the air you need, girlfriend.) Turn the TV and radio off when no one is using them. Pre-treat laundry stains, so your clothes only need one wash cycle. Turn the heat and AC off when no is home. Its nice to come home to a cool house, but its much nicer to save money every month. You can only invest in new windows that better insulate to save money. Go Green. Get energy saving light balbs when they are on sale, and stock up. They last longer and use less. You really can't beat that.

I always turn my car off when I am idle. It does save gas!!! Long wait at the drive thru...turn it off. Waiting for your hubby to come out of the store....turn it off. Longest red light in town...turn it off.

Coffee. This is a big one for me. I simply cannot function without coffee. I use to go to Starbucks and spent $4.79 on a venti coffee frap w/extra coffee. Now I spend $5 bucks on a can of coffee at the grocery store. I make it, ice it and drink it. And if I am out, I hit my local convenience store (7-11 in my area.) They have a large iced coffee for $1.49. So let's just look at this for a second...I use to get a frap at least 3 times a week.
So per month I was spending $57.48. O...to the M...to the G!!
Now 1 to 2 cans from the store last me all month. And possibly 5 iced coffees purchased a month. That all runs me about $17.45 a month (even less when coffee is on sale or I have a coupon.) Cutting back and changing my habits on just one thing, and I saved over $40 bucks a month. I mean I was paying $5 freaking dollars for coffee and ice!!! And we all do it. Do you see the insanity, people. I was out of control. I thought Starbucks and I had something serious...but Starbucks was f'ing me over. It was time to breakup ;) Still...once in a while (like 3 times a year) I falter, and I go see my ex. I spend the $5 bucks and I savor the moment. Then back to reality LOL. Point being, no one is saying you can never treat yourself to an old favorite. Just make sure you have a new and much cheaper favorite that your frequent the most. Often I just put my homemade coffee drink into one of my Starbucks cups. So I walk around sipping for about 1/4 what everyone else with that Starbucks cup paid.

Movies. Back to my original thought...Netflix. Still, we all love to go to the movie theater. So go Sunday morning. Matinee pricing is sometimes half of what a regular movie ticket costs. And sneaks some darn candy or something in your purse. I forbid you to spend any money at the concession stand. Its ridiculous. Also, if you are lucky enough to live near a discount theater...go. When I was in Georgia, we went to the $1 theater and saw The Princess and the Frog. It was probably 3 months after it had come out, but it was still just as fun. Regular theaters around here are $11 bucks a ticket. So I just saved $20 dollars right there. So google discount theaters or check your local phone book. You could be right down the street from one and never even knew it.

So I pretty much bought lunch out every day at work for a long time. Most of my co-workers did as well. One told me, he always budgeted an extra $200 a month for eating out every day. $200!!!! Reality check time. I would go to Cosi and get a $10 Chicken Caesar salad. I would grab some Five Guys, a burger, fry and drink ran me 9 bucks and some change. Of course the food is good. Its quick, and its hot and fresh. I was being idiot! I could have good food, hot and fresh and not spend $10 dollars a day. A head of lettuce costs $2 dollars at my local Safeway. I can make a good 4-5 salads from that. Grilled up some chicken breasts, season and store in the fridge. Stock on a shredded cheese, usually $1.88 when on sale. For around $8 dollars I just got enough food for at least 5 lunches. Now I like variety as well. I started making a little extra certain nights for dinner. If we were having lemon pepper chicken and rice, I know that saves and travels well. So I make extra. At least enough for one lunch, sometimes two. As I am serving up dinner plates, I also go ahead and plate my Tupperware containers for the next two lunches. In the morning I can just grab and go. I also watch for awesome deals on TV dinners. On sale and with a coupon you can sometimes get them for $2 bucks. And I am talking the good ones, not the $1 banquets. Stoufers, Marie Calender's, Lean Cuisine, Hungry Man. You can stock up and save.

Lastly for Part Uno, I want to talk about our cable again. When I first moved, I ended up with Cox cable. I had Comcast cable before. Cox offered me their rebate special, $300 cash back for signing up. A few months later I gave them a call to ask if they had any other special rebates or offers going on. They did. I could lock in my pricing for 2 years and get $100 dollars cash back. So I did it. It was a win win. My rate can not increase for 2 years, and I got $100 bucks cash. So then I told my friend to give them a call. She had been a Cox customer for years and had just renewed for another year. Turns out she could get the rebate deal as well, and received $100 dollar check in the mail. Moral of the store is...ask. Always ask. Anywhere you go, any service you sign up for. There are unadvertised deals and rebates happening all the time. I make it a point to give Cox a call every 6 months and ask. It doesn't hurt, and it has only helped me so far. Stores have unadvertised deals. Cellphone companies. Cable companies. Internet providers. Rental companies. You gotta speak up.

So just for this blog, lets tally up the possible savings.

3 movies out a month for 2 $66.00
3 matinees a month for 2 $36.00
3 movies out a month at the dollar theater $6.00
Netflix unlimited movies right to your television $8.00

So a $60 dollar difference between the least and most expensive option.

Cellphone Family Plan for 2 $179.00 (plus tax, fee, overages, etc)
A month-to-month plan for 1 $30
Month-to-Month for 2 $60.00
Month-to-Month for 3 $90.00
Month-to-Month for 4 $120.00

So a $149 savings between the least and most expensive option.

Carpooling we looked at. a drastic $107.50 savings.

Jumbo Pack Pamper Diapers $19.99
Jumbo Pack of off brand diapers $10.99

A $9 savings example for buying off brand items.

Planning a party? You could spend:

$30 - decorations
$10 - plastic cups, plates, silverware
$15 - gift bags and wrapping paper
$5 - napkins or paper towels
= $60.00

Or you can spend at the Dollar Store:

$8 -decorations (8 items)
$3 - Plastic cups, plates & silverware
$4 - gift bags (4 presents)
$2 - 2 packs of napkins
= $17.00

Gym membership $40
Use the free gym at work $0

Picture developing, you could spend $8 for 24 prints or $8 for 40 prints.

Budgeting for lunch, I got to a point where I was spending about $1.50 a day. I use to spend $10. $200 a month!! Now I spend $30 or less!! That is a $170 dollar savings.

When I stopped heading to Starbucks, I saved $40 a month easy.

And in the last year I have become so much more aware of my electricity use. We are talking $30 dollars a month in savings or more.

Also, I got a great deal with my cable package. I pay $150 for Internet, phone and TV. I also locked in that rate for 2 years, and got $400 dollars in rebates. So basically they paid for my service for almost a full 3 months! And if you aren't a big TV buff, cut down to basic. Add Netflix and you could be paying $38 a month. Saving $112 dollars off what I pay. Ok, I am jealous now ;)

You want to know the grand total in savings $768.50. I was a little taken aback by that. Of course, not every step works for everyone. You won't be planning a party every month, or developing pictures every month. But most of us do drive to work, or use public transportation each day. We eat out at lunchtime, we go to Starbucks. Most of us work out at the gym. We catch a movie on Saturday night, and everyone including my grandma has a cellphone. And we often shop on a weekly basic, spending a lot more on name brand stuff that we can get sometimes 50% cheap if we went for the off brand. This is about small changes that save big money. Even if you only saved half of the total possible savings, that's $384.25 a month. One third is $256.16. One fourth is $192.12. I mean who couldn't use an extra $200 a month or more. Heck, 1/8 of the total is $96 bucks!! So you can save...sometimes a little, sometimes alot! And this is just the beginning.

The truth is we have all heard saving tips before...but we don't utilize them. Then we complain how broke we are, or how we have no savings and our credit cards are maxed out. It does discipline. We go the extra step. But if that extra step can save us over $700 dollars...I'd walk 10 miles (forget one step)!!

My bff magazine, Cosmo has this fun section where it states the habit, the cost and what you could have bought with that money. So borrowing their idea a bit; here's a few reality checks.

Eating lunch out every day $200 a month

You could have got in 1 month A Ten Piece Stainless Steel Emerilware Cook Set

In 3 months you could have got an iPhone 4




In 6 months you could have got 40 pairs of shoes





In 12 months you could have got an all expense paid trip for a family of 4 to Disney World for 5 days!!

Saturday, April 23, 2011

Retail Prices...I Think Not!

A fact...we all get lazy. But that is pretty understandable considering the fast pace life most of us live. Work, kids, school, sports, fitness, romance; yada yada yada. So we find the areas we can be more lax in. This is hurting our pockets. Often we place an online order, plug in our CC number and hit submit. STOP!! You could be missing big savings. When I need to purchase something online, I first make a list of the items I need.

Example:

2 Summer dresses
3 pairs of flip flops
1 belt


Then I go to my good buddy Google. For this particular list I would do a search for women's fashion. Let's say the first site that pops up is Fashion Bug. I click, I browse and I fall in love with a few items. Add them to my cart and checkout. What did I do wrong? Well...almost everything. When Google first brings up my results for women's clothing, I make list number 2. List the top clothing sites that come up.

Example:

Fashion Bug
JC Penny
Kohl's
Old Navy
Nordstrom
Victoria Secret

Now for the next stage of our savings plan. New Google search. This time for coupon codes. Do this for each store.

Example: coupon codes for JC Penny.

Or go to one of my favorite sites http://www.retailmenot.com/ that keeps a complete list of coupon codes for almost every store imaginable.

Lets move on to our 3rd and final list. Write down the best coupon code for each store. Do a comparison then go check out the store with the best coupon deals. Find the clothes you love then it is checkout time. Apply your coupon code during checkout and see your instant savings.

Now you may find nothing you like at the store with the best coupon codes. And you should not settle for a dress you hate. So go to option B, the store with the next best coupon code. You shop around and find the best deal. It does take time. But it can equal huge savings.

Some great codes I have seen are FREE SHIPPING, 10% OFF, $2.99 SHIPPING, 30% OFF
You don't know what deals are out there unless you look.

Another thought. Shop online as much as you can. You get great deals and special online pricing. There is usually way more selection as well. Stores want you to shop online, and they are willing to offer great discounts and awesome deals to get you to do so.



Now some of us, discount or not...we refuse to pay retail. I am proud to say I regularly shop at the local Goodwill and go online to Craigslist.com. You would be amazed the deals you can score at consignment shops. Brand names, most items in great condition. If I have a $30 dollar clothing budget, I can go to Wal-Mart and maybe get 3 outfits with that. Or I can go to Goodwill and possibly get 10. Items range from $1 to $3...some $5.

Or for bundle deals, I am always searching craigslist. Last winter I got 70 outfits...yes 70!!! I paid $50 bucks. A woman was selling all the clothes her daughter had outgrown. They were well taken care of, many were name brand and there was a ton of variety. You can't beat that.

The key is planning ahead. You know summer is around the corner. You are going to need new summer clothes, shoes and so on. Start looking now. Check out craigslist and head over to your local consignment shop. Or better yet, plan a year in advance. I often find amazing deals on clothing, decorations, shoes and more when I shop out of season. Come September those $10 flip flops will be marked down to $4 dollars. In January those Christmas decorations will be half what you would have paid a month earlier. Come November...stock up!! Halloween costumes are usually half price. Buy the next size up. If you find a really good deal, buy costumes for the next 2 or 3 years!

A lot of this we all already know. We just don't do it! But retail is expensive. It just is. So we have to find a way to beat the system.

I was lazy for years. I walked right back clearance racks. Nowadays I can't wait to get to the clearance section. We do have to humble ourselves a bit. You would be pleasantly surprised to see how many of the best dressed people around town did it on a budget.

So do not pay retail. When shopping online, always find the best deals, promos and coupon codes. You should almost never have to pay shipping. There are promo codes for free shipping all the time. Stock up and plan ahead. You don't want to impulse shop. That is when you make mistakes and end up broke. You have to hunt out the deals. I love thrift shops and consignment shops. And there is not a day I do not check craigslist. There is a Free section where people give away everything under the sun. But there are cheap deals to be found including furniture, clothing, electronics, games, toys, fitness equipment and more. Just use caution. I never go buy anything from anyone without a buddy system. Or I choose to meet that person in a public place. I only do cash transactions. I never divulge information about myself besides a first name. I have never had a bad experience, but it also pays to be cautious.

Last note. I am a shopaholic. It truly is therapy for me. But doing is the smart way is just as much fun. In fact, I get more for my money. More stuff equals more happy! So do not think you are depriving yourself. I am telling you to get out there and shop. Just save too.

A Few Sites I love that allow you to spend smartly

http://15dollarstore.com/ (Everything is seriously only 15 dollars)

http://www.chicstar.com/  (I always check out there Sale section. Hot sales at great prices)

http://www.zappos.com/ (LOVE THEM! Check out there complete Sale section for great deals)



Tuesday, April 19, 2011

Break Down

I wish my situation was unique. But its not. The truth is too many of us live paycheck to paycheck. Bills get behind. Groceries deplete. We run our gas tanks on empty. I have more than once washed my clothes in the bathtub because I had no money to wash them elsewhere. I have taken out payday loans and sold too many things at the Pawn Shop. I have called off work because I had no gas to get there. I have written bad checks to get groceries in the house. Closed bank accounts because I was so far in the negative. I have had nights where I ate bread and butter for dinner. Cellphones turned off for weeks at a time. I was drowning.

I will be the first to admit I have not always been great with money. I budget poorly. But I am learning. I hated the fact that I would work hard all week, but could not afford to get an ice coffee every day. It was a small thing. A luxury. But I just wanted to be able to pay all my bills, fill the fridge and the tank and still be able to treat myself or my children from time to time. So maybe I could not completely change my desire to have more. But what I found was that I got more...if I did it wisely, I wouldn't be broke every week! I could make it until the next payday. I could even find that extra cash to put into savings. Because we all struggle at times, but it shouldn't be extra day. Life should be enjoyable. We work hard. Shouldn't we get some reward for it?!

So we all know there are ways to save. But too often we don't utilize them. Couponing is a big one. Now I do not claim to be an extremist. You can google extreme couponing and find a thousand sites. Some are totally easy...some more confusing than their worth. Couponing takes a lot of time, patience and effort. You will not become an expert overnight no matter what some sites may claim. You will not have a stockpile within a month. So as a real mom and a real couponer I can teach you what I know. Its on a smaller scale than the extremists. When I tried to go extreme I started lacking in other areas of my life (work and family time.) Some people can do it all. But I had to scale down my couponing and still save hundreds. Which I did. And I can teach you how to do it as well.

There is also a ton of information out there about saving money. Many sites like Groupon and Living Social. Cheap eats like Restaurants.com. I got pretty overwhelmed by all the sites out there, and the hundred emails I started getting every day if I created accounts on some sites. So... I will give you the breakdown on different savings sites. What works and which ones just waste your time.

There are ways to save every day in every way. Sound cheesy? Maybe. But so true. Once I opened my eyes, I was amazed at the ways to save. I realized I had spent so much time complaining and feeling down on life and money that I missed opportunity. You can get free meals at the nicest restaurants in town. Stock up on toothpaste for a year on budget of $5 bucks. You can save on electric, cable and phone. I want to help you open your eyes. To become a wise spender. To break it all down, so saving doesn't seem more overwhelming than spending!

And please share your thoughts and saving tips. I really want to reach out and help inform others; but also inform myself. I do not claim to know everything. I discover new deals and ways to save all the time. So I would love your feedback and personal saving stories.

Here are just a few saving strategies you will learn throughout this blog;

How I got a $45 dollar Outback dinner for 0 dollars
How I got my cable company to pay my bill for 2 months
How to create a coupon system and strategy
Planning a party for next to nothing
How I learned to get paid to eat out
Teach your kids to be wise spenders
The magic of craigslist

And so much more. I wish I could fill up this whole blog in one day. But I really want to build a following, and touch on real money saving issues. I want my readers to have time to dive into each blog, use the resources, master strategies and send me questions, comments or concerns.

Let me say this...life is not always easy. We all know that. I was fifteen the first time I truly fell in love. It seemed at the time all I needed was him. So after high school we moved in together. We both got jobs, and I put college plans on the back burner. I was 21 when I got pregnant with our daughter. He left me about 4 months later for some girl he had met in North Carolina. I had the baby without him. And he seemed to disappear off the face of the Earth. I couldn't find him, therefor I got no support financially from him. Back then I thought he loved me too much to ever leave. He treated me like I had hung the moon. Young love is naive. You think life belongs to you both. Can't imagine ever being apart. Now I realize the only thing he ever gave me was Makayla. And I also realized that is all I ever needed from him. All I wanted from him. 4 years later when he contacted me, I felt nothing. Such a deep nothing. Life goes on.

A few years after Makayla was born, I fell in love with a guy I had known my whole life. Our families were good friends, and we had just always crossed paths over the years. We fell pretty hard pretty fast. And oops...I got pregnant. Best oops ever let me tell you because a year later Leah came into the world. Now he and I are working on things, but unfortuntely he is not working. He just quit his job one day because he got mad. So it all falls on me again. I swear I live under London bridge and it jsut keeps falling down :)

You know, I wish I had gone back to school. I did a year of online college, but didn't finish. I will talk more about that in another entry. I know I still have the option to go back one day.

I also wish I had a better job and made a boatload of money. But in truth, I have a good job and make decent money. So let me get really personal here. I make around 35K a year. Now let me break down my bills and show you what my budget was.

Monthly:

  • RENT $926.00
  • DAYCARE $337.60
  • CELL PHONE $30.00 (and yours can be too, more on that later)
  • DANCE CLASS $45 (my daughter is in one activity now, hope to add more later)
  • ELECTRIC $100
  • CABLE/PHONE/INTERNET COMBO $150
  • PARKING $70 (At work garage)
  • AFLAC $72.36 (Strongly recommend this, more on that later too)
  • DENTAL/HEALTH $75.80
  • CAR NOTE $240
  • TAXES $602.58 (State and federal, they come out of my paycheck. I claim only 1, so I get a bigger refund check. Not for everyone. More on this later to see what works best for you)
  • GROCERIES $400.00 (Typically)
  • GAS $120 (Typically)

Total $3169.34

My gross pay a month is $3190.52 

So minus my expenses and that would leave me a whopping $21.18 leftover for clothing, household supplies, diapers, a pizza delivered on a Friday night and of course my ice coffee. Doesn't work out, does it??

So I had made some changes. My old cellphone plan ran me $100 a month or more. And I gave up shopping for myself. I even gave up my ice coffee. But I still wasn't making it. So I learned how to save money in every way possible. And you can, too. Take out a pad out paper or visit http://www.budgetsimple.com/ to create a budget free. Write down your bills. Break it all down. Be realistic. Then break down your income. This includes tips, child support, grants, bonus' and so on. You need the complete picture. Now total up your expenses and your income. If the figures alarm you, you are not alone. If the reality of your finances feels like a brick on your chest...you are definitely not alone!

But here's the point. You can be poor; and let me explain how I define poor in this instance. More expenses than resources. Living paycheck to paycheck. Zero savings. Overwhelming debt. Because living this way, we are truly only a paycheck or two away from poverty. So we are poor. But with that being said...you can live richly! I promise. Just read on.