saving money

TMR Tip: Renew Your Magazines Carefully

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One of the best money-saving tips I live by, and suggest to others, is to subscribe only to the magazines that we actually read. I’m guilty of continuing to pay for magazines that do nothing but collect dust or act as a drink coaster until I finally get sick of the clutter and cancel it. Then, out of guilt for being so wasteful, I go through them all and pull out the few pages I really want to keep.

Then I ask myself why I have all of these magazines in the first place. I mean, why do I continue to get them when I don’t read them anymore? Well, it’s because I haven’t paid attention to the renewal notices.

Then again, I don’t remember getting any. I don’t remember being annoyed by all of the letters or emails reminding me that my subscription is due or that I’ll be charged on a certain date so that I can get ‘uninterrupted service’.

Then, one day, hubby comes in with the mail and shows me an over-sized postcard (that looks a LOT like junk mail) informing us that our magazine will be renewed automatically unless we call by a certain date. But what really caught my eye was the fact that it stated, “For your convenience, we will continue to ensure that you don’t receive extra unwanted mail – the multiple renewal notices and bills that normally come with a subscription.” It goes on to describe its “hassle-free subscription” guarantee . . . “no bills, publisher renewal notices and no telemarketer calls”. In other words, you get ONE notice per year and that’s it. And because it’s printed on a big, rather nondescript, postcard that does NOT have your name, nor that of the magazine, on the front, it’s easy to pass it off as junk mail and toss it into the recycling bin. And there goes your notice. And you probably won’t think about it until you see the charge on your credit card statement a couple of months later. (And some of you might be thinking, “Maybe I’d better actually look at my statement!”)

The other thing that I noticed was the renewal price. We originally ordered the magazine because there was a special offer: $12 per year for six issues. Ok. That’s $2 an issue. Not bad considering what we would pay at the checkout counter. Now, this postcard boasts “huge savings off the newsstand price” at $29 per year. Well now, let me get my calculator . . . that’s $4.83 per issue. The magazine itself shows a price of $4.99. That’s a difference of 16¢ an issue. I’m no math genius, but that’s not huge savings. And this postcard says they guarantee “substantial” savings.

I think not.

So, hubby and I decided not to renew. Besides, we weren’t really reading it anymore. It was time. When I called to cancel, and selected that option from the menu, I fully expected to speak to a person who would do everything they could to get us to stay.

Nope.

It was all automated. And oh! what a surprise . . . I was randomly selected to receive the magazine for just $12 per year. Would I like to continue my subscription? No. Would I like a complimentary issue to peruse before I make my final decision? No. Would I like one of the other wonderful magazines that are offered at an unbelievably low rate? No. Sigh. I didn’t know if it was better or worse than talking to an actual human, but in any case, my subscription was finally canceled and I was free to go about my day.

So, here are a few things to consider if you receive magazines:

  1. Check the front of the magazine for a date or code that will let you know when your subscription will end. Usually it’s somewhere near, or above, your name and address.
  2. Make sure you know how much you paid for the initial subscription and compare it to what is being offered in order to continue.
  3. If you decide you want to continue, but don’t want to pay the full price, contact the magazine and see if they’ll offer the same rate as before or at least something better than newsstand price. If they want your business, they’ll usually make some kind of deal with you.

Magazines are a great way to stay current with whatever interests you, and there are so many titles to choose from, which gives the consumer the upper hand when it comes to finding a good deal on a subscription. (In other words, if one won’t give you a good deal, you can go somewhere else . . .) But if you’re on the fence about continuing, just ask yourself how long you’ve had the subscription, how often you actually pick it up and read it, if it’s worth the price you’re paying, and if you’re getting the same enjoyment and information out of it as you did in the beginning. Just make sure that, if you decide to keep it, you watch the mail for that junk-mail-looking postcard and then do the math to make sure you get a good deal.

TMR Tip: Don’t Raze the Roof

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RoofWell, the stormy season has arrived and, in Illinois, that means it’s time to expect the unexpected. Heavy rain? Probably. Severe storms? Sometimes. Tornadoes? Occasionally. Hail? Sure, why not? Which also means it’s the season for solicitors. Specifically, roofing “specialists”.

In our neighborhood, we’ve had an influx of roofing contractors knocking on our doors offering free inspections for hail damage from a recent storm. I remember it well. I was in my classroom and several of my students jumped from their seats and flooded to the window to see the hail bounce off the lawn. A few weeks later, I answered the door to find a man with a clipboard and a smile. I offered up a cautious smile (complete with inward eye roll) as I held back my wildly barking dog. (She’s really just a big marshmallow, but I secretly enjoyed the unsure look on his face as he backed up a few steps.) He informed me that he and his crew were going around the area giving free estimates to homeowners and that it would only take him about ten or fifteen minutes to walk around my house and assess the damage.

Huh. Well.

First of all, I don’t like the fact that he blew by his, and the company, name and launched into his rapid-fire spiel. (I guess maybe he expected me to read the tiny lettering on his polo from fifteen feet away?)

Second, I don’t like being told that he is going to walk around my house, assuming that he has permission to do so.

So, I held up my hand to stop him as he began to turn, ready to start his little tour of my property. I informed him that I was not comfortable with him inspecting my house without me or my husband present, that I was not interested in getting an estimate at this time, and that I would not be moving forward with any kind of inspection or repair to my house without speaking with my husband and our insurance company.

He then said, “It’s ok. We’re good. We’ve talked to all of your neighbors on this side, over here,” he gave a vague swoop of his hand toward some houses. How nice. “And four of them have signed up with us already today, so . . .”

So . . . I told him again that I wasn’t interested, thanked him, and wished him a nice day. Then I closed the door.

Later that same day, the same man knocked on our door again, only this time I made my husband answer the door. Ten minutes later, hubby walked through the door with a doubtful shake of his head and a sarcastic smile. He informed me that the man had identified several spots on our roof and siding where there was hail damage. We went outside and I laughed. First, because my husband’s impression of the man’s intensity was spot on, second, I really couldn’t see what all the fuss was about and third, I personally knew that one of the “dings” on the downspout was not, in fact, caused by hail, but by a wayward Frisbee.

Long story short, we decided not to get our roof fixed, even with the generous $500 credit the man was willing to give us to help with our insurance deductible. It just didn’t feel right. Something was off. We felt like we were being hustled – especially when we found a note on our door that read, “I got seven of your neighbors! Don’t be left out!”

Turns out our instincts were right. We received a letter from our association stating that several homeowners have complained about contractors soliciting in the neighborhoods and that one was so bold as to say that the association had contracted them to do so. No way, says our association. Not true. They also provided us with two articles to help us make informed decisions about who we hire to make repairs on our homes. (I’ve included them at the end.) Here’s what I learned . . .

They’re called “Storm Chasers”. They usually watch storm reports and then send out teams of people to the affected areas. They’re pushy and eager to offer free estimates, they create scenarios to make homeowners nervous, and they know how to manipulate insurance companies. Here are some of the red flags to look out for:

  1. Out-of-town license plates Not only is this a sign that they’re ‘chasers’, but it also means that, once they’re done, they move on and won’t be around to fix any problems that may arise as a result of their poor workmanship.
  2. P.O. Box If they don’t have a legitimate street address, it could be incredibly difficult to track them down if you have any problems. Also, the phone number they provide could be temporary (which can be easily disconnected once they leave the area) or has calls forwarded to an out-of-state number.
  3. They have their own adjusters This person works for the contractor, not an insurance agency, and does the property damage assessment. They know how to write the claim to convince your insurance company to pay for a new roof.
  4. It has to be done now! They’re going to try every trick in the book to get you to agree on the spot. No time to waste! Or who knows what will happen the next time a storm rolls through . . . .

So, yeah. These people are pretty crafty, but you don’t have to fall victim to their schemes. There are some things you can do to ward of the predators so they don’t raze your roof and raise your blood pressure.

  1. Trust your instincts If they show up at your door unannounced, offering free estimates, a big discount, and their visit just happens to coincide with recent violent acts of nature – politely decline and close the door! If it sounds too good to be true . . .
  2. Do your research Make sure they’re legit. Contact the BBB and check their status as well as how long they’ve been a member. (If they’re brand new members, it could be a red flag for you.) See if they have a website or if anyone has heard of them.
  3. Ask them for proof You have every right, as a homeowner, to ask for proof of insurance, and that they are properly licensed. Then, check it out to make sure it’s true.
  4. Ask for a business card, brochure, or identification Make sure they have a legitimate street address and local phone number. Maybe even suggest a visit to their office . . . you’ll have to choose colors, right?
  5. Get a permit Many counties and associations require a permit before making repairs or additions to the existing structure of your house. Find out, then don’t do anything without one.
  6. Talk to your insurance company first Contact your insurance company before agreeing to, or signing, anything. Your agent is the expert and will explain all that needs to be done before moving forward. (Just be sure to ask how your premiums will be affected if you make a claim.)
  7. Ask around Talk to family, friends, and neighbors who have had repairs or replacements done and find out who they hired.

These are just some of the things to watch for and do if a contractor comes a knockin’. Remember, unless your roof has been severely damaged or ripped off by a storm and it’s raining in your bathroom, there’s no big rush to get repairs done tomorrow. Don’t panic, take your time, do your research, talk to your insurance company, and find a reputable company to do the work.

For more information and tips on how to save yourself from the frustration of fraud, read these articles:

https://www.angieslist.com/articles/roofing-scam-storm-chaser.htm

http://www.wikihow.com/Spot-a-Storm-Chasing-Roofing-Contractor-After-a-Disaster

 

Thanks to the director of my homeowners association, who keeps us in the loop about what’s going on in our neighborhood and for sharing these articles with us. Thanks, also, to wikiHow and Angie’s List for creating these helpful articles.

On a personal note, kudos to the REAL Storm Chasers out there who risk their lives in order to study severe weather so that we can be informed and stay safe. I find it all very fascinating.

Questions, Questions . . .

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Got some for me? Questions about The Money Roadmap program? About me? How about a previous post on the site? Or maybe questions about money management in general? Advice?

Just ask!

I’ll be adding another feature called “Q & Amy”. If you have a question for me, simply go to the ‘Contact’ page, fill out the quick online form and send it. Or, you can now email me at amy@themoneyroadmap.com! I’ll do my very best to answer your questions as soon, and as thoroughly, as I can. I will post the questions and answers on the website. Who knows, your question may help someone else! And don’t worry – I won’t use your name. I promise. And if you’d rather keep the question between us, just let me know. Not everyone wants their questions posted and I completely understand.

I hope to hear from you soon!

 

Please keep in mind that I will only answer questions related to the subject matter on this website. I will not entertain solicitations, spam, profanity, or otherwise inappropriate material.

TMR Tip: Get Back to School for Less

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Ah yes . . . just when summer really gets rolling, it comes to an abrupt halt. Time for school!

And back-to-school shopping.

That task alone is enough to send some of us into hiding. Or a panic. I, personally, don’t like shopping of any kind. My motto: Get in, get it, and get out! Which is why I’m always looking for shortcuts. You too? These tips might help . . .

  1. Figure out what you actually need. My kids sort all their unused supplies and check them against their new supply lists. They highlight only the things that they need. That instantly reduces how much I’m going to spend at the store. Why buy things we already have?
  2. Check out all the ads. Every retailer has deals on school supplies. Glance through the ads to find the best prices. (By the way, Gregory Karp of the Chicago Tribune says that if a store puts a limit on how many you can buy, then it’s a really good deal.)
  3. Spread it out. I usually favor the once-and-done tactic, but if I find a great deal at another time, I buy it. Not everything goes on sale the same week and some weeks I can find better deals than others. You just need to keep an eye out for them.
  4. Use coupons and/or discounts. Whether you clip coupons or subscribe to a retailer’s email program, use them to your advantage. Find the best deal, then break out the discounts.
  5. Look where you least expect to find a deal. Karp suggests looking at places that aren’t on the typical back-to-school radar. He says places like Menards can have awesome deals on supplies that end up being free after the rebate.
  6. Take advantage of your smartphone. There’s at least one app (and I’m sure a few more) that lets you scan the bar code on an item and instantly compare prices as you’re standing in the store. My hubby thinks this is really cool and has a little too much fun with it.
  7. Get it tax-free. Many retailers are offering “tax-free” days. You can load up on school supplies and save money simply by not paying sales tax. Check the papers and online ads to find out which stores participate.

Hopefully these tips will help alleviate some of the anxiety that comes with shopping for school supplies – and clothes, for that matter. Apply these same strategies when trying to dress your children for the next big step. Happy shopping!

TMR Tip: Light My Fire!

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We love camping, but my husband and I always seem to have . . . difficulties . . . starting a fire. To be perfectly honest, we suck at it. And the store-bought fire starters don’t seem to work very well. They light easily enough, but they appear to be the only things that burn, leaving the kindling a smoldering mess. So, short of dousing the wood with lighter fluid, and possibly losing a couple of eyebrows in the process, I thought maybe I’d try to make some of my own.

I searched various websites for instructions and several of them suggested melting wax blocks or candles in a double boiler, then pouring it over a cardboard egg carton filled with dryer lint. Once cut, you have 12 individual fire starters. That sounded easy enough. I had an egg carton. I had dryer lint. I had scented wax tarts that would substitute for candles (and perhaps keep the bugs away with the aroma?), but I didn’t have a double boiler. I could fashion one using a pot of water and a bowl, but I didn’t want to deal with trying to clean the bowl out. But I did have electric warmers . . .

So I set everything up, melted the tarts, poured the liquid wax over the lint-filled egg carton, and then cut them apart. Now all that remained was to test them on vacation.

The result? Fire!

We were elated to say the least. We used 2 just to make sure the kindling caught, but still – we made fire! It was a glorious success. It burned bright and beautiful. We nearly danced and sang around it, like Tom Hanks in CastAway. We were so proud of ourselves, we had to celebrate.

S’mores, anyone?

I’d Like to Add My 2¢ . . .

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I want to introduce a new feature to my posting lineup: My 2¢.

In my articles and tips, I try to stay as neutral as I can when it comes to naming brands, i.e. food brands, store names, etc. However, I do have opinions about things, based on my own experiences, that I’d like to share with you. So, in essence, it’s a sort of ‘editorial’ – I’ll be offering My 2¢ about something. Agree. Disagree. The choice is yours. You can even comment if you’d like. But please keep in mind that I’m not the type to “bash” anyone, so don’t expect a soapbox tirade all the time, nor will I post derogatory responses from readers. I try to be positive and my goal is to pass along the GOOD things I find with you so that, hopefully, you can take advantage of a money saving opportunity or avoid a stinger. 🙂

I hope you enjoy it and, most importantly, find something useful.

TMR Tip: From Faded to Fabulous

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My husband and I are what you might call DIYers. We enjoy doing things ourselves. We take on projects usually for two reasons: 1) for the challenge of it – and that awesome feeling we get when we succeed and 2) to save some money. In this “disposable world” we tend to toss things in the trash when we don’t want them or, sometimes, because it’s cheaper to get a new one rather than get the old one repaired or upgraded. But sometimes I feel that it would just be a shame to throw something away, especially if it seems to have a lot of usefulness left in it.

So, when we decided to have the families over to celebrate our children’s promotion from 8th grade, we took one look at our patio set and knew we needed to make a decision: toss it (and buy a new one) or DIY it (and save some serious cash). My husband looked at me and said, “What do you think? Can we save it? What could we do with it? Or should we just buy a new set? Can we afford it?” I thought about it. And I thought about it. What I really wanted to do was buy a new one. This one was about 12 years old and the metal frames were incredibly faded from the sun. Plus, I had a lot to do anyway to get ready for the party and knew it would just be soooooo much easier if we just went out and bought a new one. But this one was still in good condition. We hadn’t abused it. It hadn’t rusted at all. I cringed inwardly and had to admit that it probably could be saved. I sighed, put my selfishness aside for a moment, and told him I could try spray painting it. He thought that was a great idea. We headed to the hardware store and picked out a color that would match the fabric.

And so it began. I tried the paint on one of the chairs. It looked great. I kept going – a little at a time until I’d finished the table, the umbrella stand, and 6 chairs. There they were in all their Spruce Green glory. I’d spent more than I wanted to on paint, but saved hundreds by not buying a new set. And the results were terrific. In fact, someone at the party asked if we’d gotten a new patio set. Go figure.

It’s something anyone can do, really. The sense of accomplishment you feel when you’re done and it looks great? Aaahhhhh. And it might just save you a bunch . . .

Here’s a picture of the before and after . . . Happy DIYing!

DSC06137(1)

TMR Tip: Does it Pay to Sign Up for Retail Rewards?

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How many times have we heard, “Do you have our rewards card?” I don’t know about you, but I’ve lost count. It seems that virtually every retailer has its own rewards program nowadays. They offer everything from percentage and dollars off to money back and store credits. There are so many – too many – and it can leave us confused and frustrated. So how do we decide which ones are worth signing up for? Here are several things to keep in mind when standing at the checkout, trying to make a split-second decision about that rewards program . . .

1) Make sure it’s FREE. If it’s not, forget it. Walk away now.

2) Find out what the rewards are. Dollars off? Percentage discount? Points? Rebate or reward checks?

3) Find out what you have to do to earn the rewards. Do you accrue the rewards with every purchase, over the course of a year, or only if you spend a certain amount? (Or all of the above?)

4) Find out how you can redeem the rewards. Are there restrictions on what you can buy? Can you combine it with sale prices or other discounts? Is there a time limit? Is it in-store? Online?

5) Find out if there are other perks associated with the program. Do you get extra opportunities to earn rewards? Do they offer cardholders/members a higher percentage off? Do you get to shop the sales earlier than the general public?

6) Consider how often you shop at that particular store. Do you rarely make an appearance or do they know you by name?

It only takes about 30 to 60 seconds to find out this information. You alone can determine whether or not to sign up for a retailer’s rewards program. I don’t recommend jumping on board for every one that you’re offered. Too many cards and you won’t be able to close your wallet or fit your key chain in your pocket. But if you can find a few that save you money and give you a little something to show their gratitude for being a loyal customer, (and a reason to go back!) then go for it. It’s your time and money. You do have control.

Things Are A-Changin’

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That’s right. I’m making a few changes around here. Several, actually, that I hope to unveil over the next few months. So please, bear with me while I work to make things better. I’ll start slowly . . .

First, I’ve changed the look of my website a bit. Nothing drastic, but an improvement, I think. Brighter. More inviting. I’ll be changing some of the items as I go. Check it out. I hope you like it.

Second, we can say ‘goodbye’ to Tuesday’s Tip. Why? I feel that publishing only on Tuesdays is no longer productive or practical for me. I want to write and post articles whenever I feel inspired or when I have noteworthy tidbits to share with you. Therefore, that’s what I’ll do. The new title? Simple. TMR Tip. After all, that’s what this is really about, isn’t it? Navigating our own routes with The Money Roadmap. And who couldn’t use some tips along the way? I know I do. In fact, I’ve been doing quite a bit of reading and I’ll be sharing my findings very soon.

Thanks for your continued patience and support as I work on making my passions a reality. I hope you come back to visit soon!

P.S. Be sure to sign up for email alerts by clicking “Follow The Money Roadmap”, then enter your email address. It’s the easy way to keep up with what’s new on TMR!

Tuesday’s Tip: Take a Retirement Quiz – Part 2

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In Part 1, I posed the question “Are you ready for retirement?” If you’re like me, you answered “YES!” right away. But it’s really kind of a trick question. More of a 2-part math problem to solve. First, ‘do you have enough money’? Hopefully you’ve had a chance to visit the website I mentioned to find out the answer. Second, ‘do you know how to make it last’? A much tougher question, which I’ll address today.

Let’s begin by talking about how long retirement will last. No, we can’t predict it, but we have to start somewhere, so let’s say it’ll last 30 years. Based on that, many financial planners suggest following the “4 percent rule”. According to Gail MarksJarvis, it “refers to how much you can afford to remove from your savings each year . . . and avoid the risk of running out of money”. Here’s the basic idea: you take out (use) 4% of your savings the first year, then adjust the next year based on expenses, inflation, and general cost of living. For example, if you have $500,000 saved up, you’d use $20,000 that first year, then take a look at your finances and decide how to proceed. Do you need a bit more? Could you do with less?

Be careful about taking more, though, says Gail. Taking 5-6% per year could spell disaster later on, and yet 16% of the retired people who took that original quiz said they thought they’d be safe taking 6-8%. Chances are they’d run out of money. Not good.

There are steps you can take to help ease the uncertainty of making your money last. First, don’t put all your eggs in one basket. Bill Bengen, creator of the “4 percent rule”, says a more diverse portfolio is best. Invest in stocks and bonds, for example, instead of just one or the other. (And don’t just let it sit in the bank – the return is terrible!) Second, Gail MarksJarvis says that you need to consider how much things will cost. We don’t know exact numbers now, of course, but we can make an educated guess based on current prices. Third, keep in mind the effects of a spouse’s death because that could mean getting reduced Social Security and even the loss of their pension. That will most definitely affect what you can spend. Finally, MarksJarvis suggests waiting until you’re 70 years old before starting to collect Social Security. If you’re healthy and family genes point to a long life, you’ll be better off if you wait.

Of course, in my opinion, good money management is key to making sure you set aside enough throughout your working life to live on during retirement, but also to help you make it last. And I feel it’s never too late to start. Luckily, there’s a book for that.