The Save Money Blog

Archive for July, 2010

It's been awhile since I blogged about my effort to cut down on my energy costs by joining the EcoEnergy grant program. I have done quite a few things around the house, mostly air sealing and caulking but I recently just finished the biggest part of the project. I had my basement walls and headers Spray Foam Insulated. I don't really have any ideas on the energy saved, that will come this winter. Already I notice a huge reduction in the musty smell down here. It's pretty much non-existant.

Here are a few photos of the project. I used steel framing but I think wood would have been cheaper and more efficient. We had to brace the steel with wood anyways as the foam without the bracing would have ripped the steel apart.

When you go shopping does everything have to the newest model? If you are like me and trying to save some money then you have to get your mindset off of the urge to want to have newest models of items you are buying. Buy an older model of a gadget or electronic toy is a sure fire way to save money. I will give you a couple of examples.

We all love our music, right? When you are going out to look at ipods why do you have to have the top of the line newest touch version when an older nano will do the trick. In the end you just want your mp3 play to play music. Even an older generation ipod touch is much cheaper than the generation or bigger gig model.

I am looking to upgrade my cell phone. The one I have now has a battery that dies all the time. It's become a pain. I reall want an iphone but I am not willing to spend the new cake on an iphone 4 just because it's new. I am holding off to see what happens with the older versions of the 3Gs. Right now they can't be found as Apple isn't sending them out to the stores but I am holding off to see what happens after the version 4 release.

I have fought my urge to buy the newest thing because I really don't need it all that bad, an older model will do what I want and I will save money by doing so. Next time you are standing in front of the latest widget, ask yourself if you really need it or not? Your wallet will say thanks.

Saving money doesn't have to be an awful task or something that seems to be hard work. It can be fun as well. Frugal living brings all sorts of negative condentations but people that believe in a frugal life actually enjoy saving money and find pleasure in saving. In the end it doesn't even matter how much, just that they have saved something.

Too many people think that frugality is for those without money. I grew up in a fairly poor family and the idea of frugal living never really appealed to me. I like to spend money. I like to have what I want when I want it. I never thought I'd be a frugal person.

But somewhere along the way I realized that to have everything I want, I have to stop buying and using things I really don't want. That almost makes sense, doesn't it? Basically, I set some goals. And to fulfill your goals, you have to take action.

And I became hooked on living frugally.

Frugal living becomes a game you play against yourself. You are looking for ways to save. I started out simply looking to see if I could really lower our electric bill. And I did with very little effort. Then I looked to our heating costs. Hey, I did it again. Then I looked to our driving expenses.

Okay, you just get hooked. Now I'm working on cutting our food costs. I've been trying several methods, so we'll see what works. In fact, I've become so good at cutting costs, my husband is taking a lower paying job that will bring him more time at home with us.

Frugal living isn't something that is easy on a family when you take the attitude on that you must do it. It is like cleaning house. It is something that has to be done. You can either make it a good experience or a bad one. With the wrong attitude you will probably fail.

Consider frugal living as a challenge. And the best thing is that you are improving more than just your financial situation. I've heard many, many financial counselors and advisors say that when people gain control of their money, they gain control of their lives. That is because self-control bleeds over into other things. You simply begin to look at things differently.

Whether you are looking to a frugal life out of necessity or out of a wise money management plan, start by simply tackling one area of your expenses. Then move on to another. Over time, you will find that your attitude changes and you look at things differently. And you start seeing that you can save money (to spend on things that really matter) without much effort at all. And that's the best thing about the frugal challenge — you save money.

Saving money is at the heart of all of your financial goals. Want to get out of debt? Want to save for retirement? Want to just make ends meet each month?

You are going to have to learn to save money. It can be hard to learn, but is actually quite easy once you get the hang of it. Here are a few tips for getting started.

First, you have to start organizing your finances. This will help you in seeing your true financial situation. How will you be able to get out of debt if you don't know how much debt you have? How can you save if you don't know what you are spending? Gather all of your financial documents and calculate what your monthly bills are. Take the time to create a budget. Be honest and include everything — otherwise your budget won't work.

In order to truly budget, you are going to have to know what you spend each month. This helps you see where all the money is slipping out. You can use a computer and personal financial software or a small notebook. The key is to write down every penny you spend. This sounds time consuming, but can be a lot easier if you simply get receipts for every purchase. Then write them down every couple of days. Anything you don't get a receipt for you will need to write down immediately.

Now the savings begin. You look at what you are spending and see where you can cut things. You may need to be extreme and cut out everything but the necessities. Satellite TV and cable can go. You can reduce your cell phone plan and use it for emergencies only. You can look for ways to reduce your utilities and grocery bills. If you are buying coffee each morning, stop buying it and make it at home instead.

If you have your paycheck direct deposited into your account, have your employer split it and deposit a portion into your savings. This can be $10 or $200. It doesn't matter. The idea is to start saving money. When it is automatically put in your savings and you never see it, it becomes quite easy to forget about it. If you get a raise, have the amount of the raise put in your savings each month. When you never see the money, you learn to live without it. It is the easiest way to save.

If you want to protect your budget from disruptions, you need to start a savings account that will handle your annual expenses. These are the things that don't come due on a monthly basis. You need to save for Christmas, holiday spending, birthdays, annual insurance premiums, property taxes and other annual events. By saving this amount, you won't stretch your budget beyond its limits later.

With the same idea in mind, you should start contributing something towards an emergency fund. You never know when something will break down. When it does, it usually puts you in a financial pickle. You can avoid the stress to yourself and your finances by having an emergency fund. Most financial advisors recommend that you have at least three months of expenses in the fund. Don't let this discourage you. Put anything you can in there. Even if it isn't a full month's worth, it will help out in an emergency.

This is ironic. One of the best ways to save money is to get out of debt. And that is why you start saving money in the first place. So I guess you could say that by getting out of debt you can save even more money. Think of how much you are paying in interest. That amount could be going into your savings and earning you interest. Instead of paying a lender, the bank could be paying you. It is important to get your debt paid off first, then work on your savings.

Don't focus on trying to save a certain percentage of your income unless that goal drives you to save. The key in the beginning is to save as much as possible. Have goals that you are working towards. Budget wisely and make saving a habit. It will pay off in the long run.

Yesterday I was at my golf course and one of the beer girls was telling a group of us how she got into an accident and how poorly her insurance company treated her. Now of course there are always a few sides to every story so who knows what really happened to her but if the story has any truth, you shouldn't be treated badly by the insurance company that is getting fat off of your monthly premiums. It is so easy these days to get insurance quotes that you don't have to stay with a bad company. Shop around and see if you can do better.

Frugal is thrifty in summary. Frugal is summarized as values with traditional backings over belief and lifestyle. Often those who practice frugal restrain themselves and use resources for buying economical services and goods sparingly. The purpose is to make their purchases good last. It seems to fulfill their goals.

Using the cash economical system frugality places emphasis on economy since the money is employed to meet personal long-term goals, communal needs and familial.

In short, frugal is penny-pinchers that use thrifty tactics to save energy, money and the economy. Few of the chief tactics of frugal involve waste reduction. This process changes the common cost expenses or habits. A frugal will suppress spending for the purpose of achieving gratification instantly through means of self-restraining fiscal while striving toward efficiency.

A frugal avoids traps. These people defy expensive items that the common norm society focuses on. A frugal embraces free items, or gratis choices rather than focusing on materials.

Frugal does not have a problem bartering. The barter system is a process that involves many challenges, such as negotiation, bargaining, swapping, trading, exchanging and so on.

In summary, frugal that barters will swap one good in exchange for another item in which the party needs. Therefore, this person only focuses on necessities rather than material, which is a healthy quality.

A frugal will stay informed. These people seek information of current affairs, local situations, including product, service and market changes.

A frugal is a self-sufficient person that prefers to live the simple life. Often these people associate concepts of their frugality as philosophic. This often backs a deeply worried emotion or lack of trust. These people often gain professional knowledge that guides them to understand the commercial realm or the cultures in the corporate world. These people claims to understand economic changes, spiritual interests and materials best.

Various spiritual societies contemplate over the frugality of its virtue or else religious discipline. You can note examples of these people by understanding the Puritans or the RSF -”Religion Society of Friends.”

Common theories back these ideas, which include saving money to make cash more ready for other individuals. Environmentalists often follow the frugal structure in that these people places their virtues on bringing humanity closer. The purpose is to guide humanity back to its roots. This includes the forming into a group to bring things and people together.

It also includes needing and carrying of little and discovering the purpose of nature intentions rather than manmade religions. In short, frugal forms a pattern that attracts followers, supporters, or an audience by accumulating traditions and beliefs that fit the frugality profile.

With the economy changing as much as it is, one has to wonder if a new car is really worth it. Is it worth spending that extra money when you could get a used car that is in good shape? When people buy a used car, the sticker price is not the only thing they save on. There are many ways you can save when you buy a used car.

First, you can save on gas. Many people think the new cars offer all the gas savings, but that is actually not true. You could get a new hybrid and save on gas, but studies have shown it can take you between five and ten years of owning a hybrid to actually get ahead in the cost department. That is because of the sticker price of a hybrid.

There are many cars that were made in 1990s to the early 2000s that get excellent gas mileage. Consider a Corolla, or a Mazda Tribute. They are both affordable and will save you a great deal of money on gas. When you are able to get an affordable vehicle that also offers a great savings on gas, you will save quite a bit of money in the long run.

Also, you will save money on insurance. When you buy a new car, your insurance company is going to give you an expensive policy. The cheaper the car, the less you pay for the insurance. That means people who are driving around in used cars are going to get some great deals.

Many used cars are also cheaper to maintain. The parts in cars are getting more and more expensive. If you buy a used car, you have a greater chance of getting a car that has replacement parts for a much better price.

In addition, many people pay off a used car faster than they pay off a new car. Because of that, they are able to get rid of their car payment and then really feel the difference in their bank accounts. Most people take out a five year loan with a new car, but when it comes to a used car, many people only finance for three years. That means less interest and less time paying on the loan. You can save quite a bit of money this way, and you are likely to really benefit from this savings.

Used cars offer a great deal of saving. Of course, you are going to save money on the cost of the vehicle, but then the savings will continue. If you are looking for a long term savings, consider a used car.

Add up how much your savings can be with a used car and you will probably be shocked. Think about gas, insurance, parts, and repayment. When you look at all of those factors, it only makes sense to buy a used car. With the way that the economy is, it is in your best interest to purchase something that will cost you less money instead of more money.