Pennies Are Not From Heaven

Beyond all the tricks and strategies for saving money is a foundational approach to take a moment before you rush into the next purchase to reflect on wants versus needs. We all have needs but we easily confuse wants or desires with needs. Let’s have a couple examples.Example #1Want => Expensive wine and cheese. Satisfied with $20 bottle of wine and $12 block of cheese.Need => An appetizer and drink to share with friends. Satisfied with a good $9 bottle of Argentinian Malbec and $4 block of Pepper Jack.Example #2Want => $40k SUV with DVD, Navigation and full time 4WD.Need => A reliable and safe family car. Satisfied with a $24k wagon.A little self awareness and creativity can go along way to living within your means and enjoying the peace of mind of living within your means by satisfying your needs rather than stretching the budget to satisfy wants.

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Next time before you buy something online, take 5 minutes to perform this one little task. Do you remember the last time you ordered something online, right before you ordered you had an option to enter a coupon code? Most people gloss over this. Wrong move! Now, before you shop, do a Google search on the name of the store plus “coupon codes”. For example you are about to buy some boots from Zappos, type “Zappos coupon codes” in a Google search and see what you get.  Look through the search results until you find one or two codes that look legit then write down the codes. Now go along your merry way ordering online and when prompted for your coupon code go ahead and get your free discount!

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This one was ridiculously easy to do.  One afternoon I was trying to clean out a closet with a ton of old books. With the execption of a handful, I knew I would never read them again and they were just taking up space. The solution was to go to http://www.cash4books.net and sell my books directly to them with one easy transaction. Here is all I had to do -

1. Enter the ISBN number into the site for each book I had.
2. Submitted my list of numbers online and they immediately tell you which books they will buy and for how much.
3. From the site, I print out a packing slip and a shipping label. By the way the shipping cost is deducted from the amount you receive so you do not have to pay for shipping.
4. Put the books they wanted in a box. Sealed it up with the packing slip inside. Taped the shipping label I had printed onto the box and drop the box off at the post office.
5. Two weeks later a check arrived!

The books they wouldn’t take I dropped off at the Salvation Army and kept a reciept for next years taxes and I was done.  Yes, I could have sold each book individually on Amazon but compared to the steps I took that may take a lot of time and effort.

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Saving money is the Achilles heal of the typical American household. Why not take advantage of a couple new programs now available from two of the biggest consumer banks in the country?

The programs are Bank of America’s Keep the Change and Wachovia’s Way2Save. All you need for either is a checking account, a check card (aka debit card) and a savings account all of which the typical household has or is easy to acquire. Of course all three have to be with the same bank that runs the program.

After that you simply enroll in the program and for every transaction with your check card, money is automatically transferred to your interest bearing savings account. For the Keep the Change program is amount transferred is the remainder of change from rounding up to the next dollar and for Way2Save it is a single dollar. It’s automatic and all you need to do is set it up and make sure you use the correct amount when you balance your checkbook. On top of that both programs have bonus and matching incentives where the bank adds money to your savings account based on how long you’ve been in the program and with a maximum value of $250 to $300 per year depending on the program. See details at the company website. What’s the downside? I can’t see one. With no effort on your part you get automatic deposits in your interest bearing savings account and the company add some matching and bonus incentives. Saving regularly is difficult enough so why not take advantage of one of these programs to take the effort out of savings.

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The average American worker is living paycheck-to-paycheck. That’s a frightening thought, though not surprising; most of us simply have no savings whatsoever to fall back on if we lose our job, become too ill to work, or have an emergency. It only takes one lousy week for the average two-income family to become homeless, and it can take years to recover from that.

Most of us don’t save money simply because we’re “too broke to save”. Despite having two incomes, there just isn’t enough money to cover all the bills; rent prices for a decent place to live are generally outrageously high, groceries are just ridiculous, and the costs of health care, child care, gas, and utilities are through the roof. A lot of us are in debt up to our eyeballs, and have to be, in order to just survive.

So, how do you save money when you can’t even make it through to your next paycheck? It can be difficult, but it can be done.

First, keep a written account of every dime you spend for a month. That’s easier said than done-you absolutely have to stay on top of your spending, all the time. At the end of each day, tally up how much you’ve spent, but don’t cringe too badly. The cringing comes later.

At the end of the month, take out your expense log, and figure out how much you’ve spent for each category-rent, groceries, health care, clothing, entertainment, alcohol, cigarettes, etc, etc, ad nauseam. Where is your money going?

If you find yourself spending a large amount of money on “habits”, change them! If cigarettes are your pet sin, either switch to a cheaper brand, cut down, or quit. If you have a bad coffee habit (or soda), see what you can do to reduce the costs of your caffeine addiction.

Watch what you eat, and you’ll see cheaper, healthier alternatives popping up everywhere. If your kids regularly consume two boxes of cold cereal a week, switch to oatmeal, fruit and cheese, or even pancakes (made from scratch-the frozen, nukable pancakes and waffles are more expensive than cereal). You can save $208.00 a year just by getting rid of cold breakfasts. If you take your lunch from home instead of eating out every day, you can save $864.00 a year, at the least!

Look at your other expenses, as well. Do you pay too much for rent? Would a move to a smaller or cheaper apartment be possible? Look around before you decide; you might find something you like that’s a lot cheaper than where you are now.

Do you regularly take the kids out to the movies? Would they have as much fun with a trip to the park? ??Do you spend extra money on brand-name clothing? How much of your clothing do you actually wear? I’m a firm believer in the idea that no one needs to own more than fourteen outfits that can be mixed and matched; if you have fewer clothes, you can spend less on caring for them, and afford “better” things. Give it a try; if it works for you, you can sell your surplus clothing at a consignment shop.

Is your budget breaker child care? Could you afford to quit your job and work from home instead? Before you answer that, consider this; when my family had two full time incomes, we were still borrowing money just to make ends meet. Now that we have one full time income and one part-time, we’re able to loan out money to our two-income friends! Actually sit down and really crunch those numbers before you give the standard, knee-jerk response: “It takes two incomes just to survive!”

Last but not least, if your cash-killer is credit card debt, kill the cards. Keep one for emergencies if you have to, but cut up the rest. Start paying more than the minimum amount on your cards, even if it means eating macaroni and cheese three nights a week. You absolutely must pay off your cards, or the interest charges will keep you in debt forever!

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1) Walk. Walking is hugely underrated, yet its something everybody can do. The average person walks 4,000 to 5,000 steps per day. Aim for 10,000 steps. Make sure to walk briskly to raise your heart rate for maximum benefit. But even a stroll through a shopping mall is better than sitting on the couch, Rodgers says.

2) Buy a pedometer to help keep track of your steps. You can get one for about 10 bucks.

3) Take the stairs every chance you get, even if it’s only one flight.

4) Park farther away from work or from the front door of the shopping mall or grocery store.

5) Jog or run.

6) Don’t use your children as an excuse not to exercise. Take them along for a walk or run in a stroller, wagon, or on a bike.

7) Buy a dog from the SPCA or borrow the neighbour’s pooch. People who walk with dogs walk longer and more often than those who don’t.

Turn on your radio, CD player or MP3 and dance up a storm for 20 to 30 minutes in the privacy of your own home. Jog on the spot, bop around, throw in some karate/kung fu type kicks and just have fun, advises reader Lynda Musiowsky. “All you need are runners and a great attitude.”

9) Get a library card and borrowing privileges for all sorts of exercise videos or DVDs.

10) Use the lowest stair or stairs in your home or outside and create your own step workout.

11) Turn your canned goods into weights. A five-pound bag of sugar weighs as much as a five-pound weight. For a more challenging strength workout pour sand or water into empty milk or bleach bottles. Gradually increase the sand or water over time to keep your muscles growing stronger.

12) Grab a chair or the kitchen counter and do some push-ups and leg lifts.

13) Pair a favourite TV show with some sit-ups. Just hook your toes under the sofa.

14) Take the treadmill/rowing machine/exercise bike hidden away in the basement or under a pile of laundry and move it into a prominent place like the TV room. 

15) Thinking of buying a piece of equipment to workout on at home? Check out the classifieds for a good deal. Someone’s “clothes hanger” could be your ticket to fitness.

16) Pick up a ball or play tag with your kids. Activity is good for the whole family.

17) Pass on hired help and do your own housecleaning and yardwork. Done vigorously and continuously, housework burns 346 calories; yardwork, 250 to 400 calories. Washing the car uses up 245 calories; washing the dishes; 122 calories.

18) Call up some friends for a game of shinny street hockey or pickup b-ball at a neighbourhood playground.

19) Pick up cheap, used sports equipment at second hand sport stores and discount department stores.

20) Check with your community league or local rec centre for any exercise classes or team sports you can join for a pretty affordable price.

21) Got rope? Jump it for a total body workout.

22) Exercise with a friend. It will increase the chance of you sticking with your new activity.

23) Dust off the bicycle you forgot about in the garage or pick one up cheap at a garage sale.

24) Swim.

25) Laugh. Great big belly laughs. Every day. It’s good for the soul as well as your abs.

26) Carry around a computer bag or backpack weighted with five or 10 pounds of stuff for exercises like one-armed rows or squats you can do throughout the day.

27) Buy a stability ball.  Balancing on a ball works your core muscles. Working your core muscles at work is almost like getting paid to work out.

28) Stand up and go for a walk or just stand by your desk and stretch for five to 10 minutes every hour. Sitting hour after hour is the major reason most people have back pain. Hourly activity breaks at work make for a more fit, healthy, engaged employee and help to add up to the 60 minutes of daily activity.

29) Check out the company gym if you have one. Studies show only 20 to 40 per cent of employees take advantage of company-sponsored gym. There’s a treadmill just waiting for you.

30) Ask your employer for some free space, send out an e-mail to see if others are interested, and bring in someone to teach a yoga or Pilates class on site once or twice a week and split the cost.

31) Organize a hockey, basketball or baseball game with the people you work with. Challenge other departments or other companies.

32) Check with your boss or human resources department to see if there’s a program that will help pay for all or part of a gym membership.

33) Find out if your local gym offers discounts to recent college grads.

34) Go to open houses. That way you can try out classes at various fitness facilities before you buy a membership or a class.

35) Sign up for a gym during peak sale periods, which usually occur after the holidays or just before summer.

36) Paying $40 or $50 for a monthly gym membership may seem like a lot, but if you thrive in such a high energy setting and actually do work out regularly, it works out to about $2 to $4 a visit if you go three to six days a week.

37) Check if your health insurance company offers lower premiums to people who workout regularly or have a club membership.

38) Call up a trainer, tell him or her you’re on a budget and see what they can provide you for $50 or whatever you have to spend. Many provide a free consultation to discuss your goals. And one workout session can provide you with a program and tips on technique you can then do on your own. Arrange a session every one to two months to upgrade your routine so your fitness level keeps improving.

39) Call up a trainer and arrange a session for you and a couple of friends to split the cost.

40) There are lots of sport drinks on the market, but water is cheaper and will quench your thirst better while you exercise.

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5) Cable. Your Excuse: “But, but, but I need cable! I get a good deal! It’s only $100 a month! I use it a lot! It’s bundled with my phone and my internet. I’ll only save $30 a month if I cancel it.”Know what? We don’t care. If you have credit card debt you can’t afford cable. You don’t actually need it. In fact, after you get rid of it, you may well find that you don’t even miss it. Lots of people get along just fine without it. Cancel your cable. Get cheaper internet. Cancel your home phone if you don’t need it. Put the money you save toward your credit card debt. Once you stop spending more than you earn and have paid your debts, you can think about getting cable again.4) Eating Out: Your Excuse: “But, but, but I love food! I don’t have time to cook! I can’t cook! I’ll poison my entire family! I’m too busy working! It doesn’t cost that much!”If it didn’t cost that much you wouldn’t have credit card debt. If you are spending more than you earn you have to stop eating out. Learn to cook. When? Well, since you canceled cable, you’ll have a lot more time on your hands. Make yourself a firm grocery budget. You can use the USDA’s food costs estimates to help you. Put all your grocery money in an envelope and go to the store. Don’t spend any more than is in that envelope.3) Recreational Shopping: Your Excuse: “But, but, but shopping makes me feel better! I’m depressed! My kids need stuff! I need stuff! I have to look good for work! I have to buy expensive gifts for people so they’ll like me!”If you have credit card debt, you are probably buying more crap than you need. This means that you probably have enough crap to sustain you for awhile. Stop shopping. Have a yard sale. Cut up your credit cards if you can’t make yourself stop. Don’t cancel them, though. You still need to pay them off.2) Gym Membership: Your Excuse: “But, but, but this is my health we’re talking about! I’m fat! I’ll get fatter! I need the gym! I have a contract!”Sell your membership or cancel it if its month to month. You don’t really need it. You can do jumping jacks. Also, since you’re going to be eating out less, and sitting on your ass watching cable less, it’ll be easier to lose weight. Once you pay off your debts, you can see if a gym membership fits in your budget. In the meantime, go outside and play.1) Expensive Cars: Your Excuse: “I am what I drive! I love this car! This car is who I am!”No it’s not. Sell it. Get a cheaper car. Use the money to pay off your debts. No one cares what you drive except you and really shallow people who suck. Do you really want to be in debt just to impress a bunch of shallow people?In order to get out of debt you need to curb your monthly expenses:Let’s say you have $10,000 in credit card debt and your current minimum payment is $250. At 18% with a minimum payment of 2.5% it will take you 382 months to be rid of your debt. In that time, you will pay $14,615.49 in interest. Fun.If you pay a fixed payment of $250 dollars (your current minimum payment), it will take you 62 months to be rid of your debt. In that time, you will pay $5,386.23 in interest. Still pretty crappy.If you managed to cut your expenses by $200 a month and applied that amount to your current minimum payment, then paid that amount ($450) it would only take you 28 months to be rid of your debt. In that time, you would pay $2,255.56 in interest.Still not convinced? You can use this calculator from Bankrate to determine how much money you’re wasting by not paying off your credit card debt as quickly as you can. Getting out of debt will make you feel better than watching TV in a new pair of shoes ever could.From The Consumerist

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Making money on Amazon is easy, you just have to approach it in an organized way. I first saw a post a few months ago where someone listed some items on Amazon rather than have a yardsale and was surprised they made $60. Around the same time I had decided I needed to simplify my home and get rid of some ‘clutter’. With those two things in mind, here are the steps I took to get started:1. I have a lot of books and cd’s (from before my ipod days). I really like having these things lined up neatly on my bookshelf. But since I was determined to let go of some things I sat in front of my bookshelves, one by one, and took down all of the books I was willing to let go of. Once I finished, I did it again. The second round was much less painful, and more productive than the first one. Then I rounded up all of my cd’s. There really is no reason to have them since I have my ipod backed up frequently.2. I signed on to Amazon and created a ‘sellers account’. Its a very simple and quick process.3. Listing the items on Amazon is easy and you can quickly see the other prices for your item. You list each item individually by doing a search or entering the ISBN number. Amazon will bring up a listing of relevant search items and you pick the appropriate one. The next page asked you to list the condition of your item as well as any specific description. Then you are moved to a page which shows you the current Amazon price of your item, as well as a link that will show you all prices from other sellers. This allows you to price your item in a competitive manner.4. OK, Now your item is listed. Say its a paperback book and the competitive price you’ve chosen is 4.00. Amazon also provides you a credit for shipping charges. Generally 2.98. So when someone purchases this book you get a credit of 6.98.5. You will get an email that tells you someone has purchased your item. You then go to your Amazon sellers page and print off the receipt and the shipping label. I put all but the heaviest books in simple clasp closure envelopes.6. I make 2 trips a week to the post office to ship my items. Using the example above you have a credit of 6.98 to ship your book. Using Media Mail OR First Class the shipping is usually 1.81 or so for a paperback. Which means you made 5.17 profit. The key at the post office is to make sure the clerk understands you want the cheapest possible shipping price on each package. Sometimes first class is cheaper than media mail depending on the location of the buyer.7. Once I saw how easy it was selling books, I started looking for ways to do it more frequently. Now, I go once a week to my neighborhood library and look through their books for sale for popular titles and/or authors. The library sells the books for 25 cents for a paperback and 50 cents for hardcovers. During this trip I also swing by the Goodwill and do the same thing. Goodwill sells paperbacks for 50 cents and hardcovers for 1.00. There are times when the book only sells on Amazon for 25 cents or so, but I still make some minor profit because of the postage credit provided. I wouldnt see this as worthwhile if that was the only profit, but combined with the higher profit items I is definately worth the small effort.At this point I’m averaging 400 - 600 a month using only this method of selling books on Amazon. The other added benefit for me is that you can select to have Amazon pay you by depositing the money every two weeks into your checking account, or you can have them pay you using gift certificates. I use the gift certificate option because that makes it income I dont have to track. Then I turn around and buy common items that I would normally pick up at Target or Walmart, and even grocery items are sometimes better priced than the store.

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