saving money

Clearance Cash-in

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In light of the outdoor environment of my new job as an Education Guide, I decided I needed to get a coat that would withstand the elements. I had an unused gift card from Christmas, a 20% coupon, and a little extra time, so I went shopping. (Which is not my forte, by the way.) I, luckily, found exactly what I wanted right away – a 3-in-1 system jacket in an awesome, bold green color. I noticed that it was on clearance for $40, originally $200. Wow! Ok. I’m liking this . . .

But my gift card was for $50. Hmm . . .

So I went to another section of the store and took a peek at the clearance racks. (Also something I am not good at – ick!) But I figured I could use some sturdy pants or maybe a shirt or two that would be appropriate. I found two pair of cargo pants, but alas, they were too big. Then I couldn’t find any others in my size. Bummer. But as I quickly scanned the racks for colors I liked in fabrics that were suitable, I found four shirts. Also on clearance. One was $7.20, another was $4.80, and the other two were $3.20. Ok . . . I was done. I didn’t want to overdo it.

I got to the register. I placed my items on the counter and the very nice cashier began ringing everything up. I handed over my 20% coupon and my $50 gift card. I nearly fell over when she told me how much I owed . . .

69¢

As I stood there in stunned silence, she smiled at me, handed me the receipt, and cheerfully told me I had just saved $225.28. “Have a nice day,” she said with a smile. I picked up my chin, managed a “Thank you. You, too,” and moved forward, quickly checking to make sure I hadn’t drooled all over the counter. I checked the receipt just to make sure I wasn’t hallucinating, then smiled.

Yes, I think I will have a nice day . . .

Tuesday’s Tip: Invest in Your Kids

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In this week’s installment of ‘what to do with your tax refund’, I’d like to suggest that you invest in your children. Invest in their futures. “You mean, like, save for college?” Well, yes. And no. There’s more than one way to give your kids a helping hand. Even if you don’t have kids, but will, keep these thoughts in mind for future reference.

If you have visions of sending your kids off to college someday, you may want to consider a higher education savings program. And by ‘higher education’, I mean anything beyond high school. There are several options out there, and that can get pretty confusing, so it’s best to chat with a professional who can sort it all out for you and help you decide which way to go. Every investment firm has people to help you, or you can ask a friend or colleague to recommend one. I’ll be going into a little more depth about these options at a later date, but for all intents and purposes, today, I’m just trying to plant a few seeds for you. One word of advice though . . . start as soon as you can and then stick with it. Or start with your refund and do what you can when you can. Every little bit helps.

Another way to invest in your kids is to get them involved. Use the refund money to pay for music lessons or to learn a sport. Both activities teach kids how to be valuable members of a group, develop fine motor skills, and improve self-confidence. Sports help kids maintain healthy lifestyles and weight, and studies have shown that kids involved in music do better in school. So, not only will your kids be active and engaged, but the skills they’ll learn will teach them discipline, cooperation, and that hard work pays off. Who knows, their talents may even help them into college, if that’s their dream.

If your child is completely against music or sports, there are other options to pursue. There are classes they can enroll in through libraries, park districts, and even local community colleges. If your child has a talent for creating delicious meals, then try a junior chef class. If he or she has a knack for computers, there are many classes that focus on things from program or gaming design to architecture. And if your kid loves photography, try one of those. The possibilities are nearly endless. Talk with your children about what interests them and move forward from there. There are lots of inexpensive options if you spend a little time doing some research.

I could go on and on about the benefits of getting kids involved in all kinds of activities, but I’ll save that for another time, maybe. But for now, I’ll just make the humble suggestion of putting your tax refund to good use by using it to pave the way to self-discovery and to help build their futures . . . whatever they may be.

Tuesday’s Tip: Pay It Down

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So, you’ve got a little money coming back from the government? Good for you! I’m glad to hear it! The question now is what to do with it, right? Hmm . . .

Well, over the next few weeks, I’m going to be posting ideas about that very topic. But first, I need to ask: Did you do your ‘homework’ from last week? Did you make that list of priorities? Things you’d like to do in life? Goals you’d like to accomplish? It’s always a good first step when you’re talking about your money and what you want to do with it.

Today, let’s start with the first idea: Pay it down! Debt, that is.

Debt is simply any money that you owe. Debt can be anything from mortgages to loans of any kind to credit cards. If you’re getting a refund, and you don’t need it just to live right now, then consider using it to pay down any excess debt. I don’t know many people who are without a mortgage payment, and that’s a ‘long haul’ kind of thing, so it’s probably not the best option. But what about a second mortgage? How about a car loan that is close to maturing? Do you have any student loans you’d like to pay off? Have a few medical bills you’d like to get rid of? How about those credit cards? The reason I list these kinds of debts is because these are the most common. And, generally, short-term items take less time to pay off and it’s a lot easier to put a dent in them with extra funds that come your way.

A couple of things, though, if you’re thinking of throwing some money at a loan . . . 1) make sure there’s no penalty for paying it off early and 2) make sure you put the money toward the principal. Don’t just ‘make an extra payment’. You’ll be paying principal and interest. The best way to get rid of the loan and save some money on interest is by paying down the principal. Once you’ve done that, check your next statement and look for the extra principal payment and how it reduces what you owe as well as how it lowers the interest.

If you want to pay off credit card debt, you can do a couple of things. First, take a look at your balances. Is there one that can be paid off immediately with your refund? If so, you may choose to get rid of it completely so you don’t have to worry about that one anymore. If that’s not an option for you at the moment, there’s another way. You can use the money to reduce the balances, and then systematically pay them off one by one. There is a great method to doing this that I’ve detailed in The Money Roadmap: You choose the destination and the way! Check it out!

Before you make any decisions, do a little number crunching and see where your money would be of greatest use. You may not be able to completely eliminate a loan or balance, but reducing what you owe will only help you in the long run. The faster you pay off your debt the more you’ll have to live on or put toward new goals.

Tuesday’s Tip: Don’t Blow It!

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A short time ago, my husband and I filed our income taxes and were delighted to learn that we’d be getting a sizeable chunk of change from our dear Uncle Sam. Our pupils dilated, the fresh scent of crisp bills filled our noses, the joyous chorus of jingling coins resounded in our ears. Suddenly we found ourselves rubbing our hands together, giggling devilishly, and drooling. Visions of our ‘wish lists’ danced gaily in our heads.

Our excitement was short-lived, however, when the adrenaline wore off and we came crashing back to reality.

Of course we got a little carried away . . . but who doesn’t when the heat of unexpected cash begins to burn a hole in our pockets. Which leads me to the tip of the day: If you have a tax refund coming to you, don’t blow it!

Hear me out, now. What I mean by that is don’t blow your tax refund on frivolous crap. Harsh? Maybe. But true. Would my husband and I like to spend our refund on things we want? Like a Hawaiian vacation? Sure! A really cool digital SLR camera! Absolutely! Another computer? Uh huh. A huge HDTV? Yup. But we know we won’t. Why? Because those things are not on our list of priorities that we’ve set for ourselves and our family.

So, if you have a refund on the way, wait! Don’t do anything yet! Hang out with me for the next few weeks or so. I’m going to post ideas on ways to put your tax refund to work for you. I’ll give you ideas on ways to save it, ways to spend it, or a little of both. But do yourself a favor first: take pencil to paper and make a list of priorities in your life. Begin with the things you need. List things you’d like to accomplish. The things that are most important. Then stick around . . . hopefully you’ll get a few good ideas to start brainstorming and make good use of that refund!

Tuesday’s Tip: D.Y.O.T.

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Tax season is in full swing again, which means it’s time to sort through all of your finances and hope Uncle Sam will be sending you some money for a change. So, today’s tip is to save some cash and Do Your Own Taxes.

If you’ve got tons of money, holdings, businesses, properties, etc., or some complex issues, then hiring an accountant is probably a good idea. But chances are that you’re a lot like me – just trying to get along in this world – which is why we have a Roadmap in place, right? Our finances are fairly simple, and we don’t have money to throw at a personal accountant or even a tax service. Doing your own taxes doesn’t have to be a nightmare though. Here are a few things to help you this year . . .

First, find a file folder and label it with the tax year. This folder is now designated solely for the purpose of holding all of your tax documents. Some typical forms are W-2 wage summaries, 1099 DIV/INT/MISC/G forms, 1098 mortgage interest statements, 1098 E student loan interest statements, 5498 IRA contribution forms, plus any and all paper statements you receive that reflect charitable donations and educational tuition and fees. Anything related to your taxes should go in this folder, including year-end summaries and bank statements, etc.

Next, buy a computer software tax program that you can complete in the comfort of your own home. We use one that walks us through the entire process, tells us which boxes to look at, which numbers to enter, what counts, what doesn’t, and then runs a check at the end to make sure there are no discrepancies. If it detects problems, the program takes us directly to them, highlights them, and helps us correct them. It continues to check for issues and works until they’re all solved. With these programs, you can also file electronically, arrange for a direct deposit of any refunds, and pay securely if you owe money. Plus, when you load the software the following year, it transfers all of your basic, and past tax-year, information so you don’t have to enter everything again and again.

Finally, keep your tax folders for several years. 7 is supposedly the magic number, but you can keep them up to 10 if you wish. If there are ever any questions, your information, forms, and returns are at your fingertips – all together, in one place.

So, if you haven’t picked up a copy yet, I suggest you do – just shop around. Lots of stores offer deals or coupons for tax programs. Once you have it, upload it to your computer and have at it . . . the deadline is just a couple short months away. Good luck!

Tuesday’s Tip: Set Up Camp

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I don’t know about you, but Cabin Fever has crept into our house and settled in. It’s cold and dreary outside, with no snow to play in, and it’s making us nuts. Ugh! We were discussing that very thing at dinner and how much we wished for warmer weather when it dawned on me . . . and I said to my family, “You know, camping season is less than two months away.”

The kids gasped, exchanged wild glances (mouths gaping), and began to cheer. This is exciting stuff for us. Truly. Some may understand and agree, while others may crinkle their noses and think ‘ewww’. The images that are conjured up in the mind include mosquitoes, big bugs, campfire smell, getting dirty, and public bathrooms. But for us, it means summer. It means travel and freedom. It means campfires and s’mores. It means swimming, fishing, and being outside. It means grilling, picnics, and hayrack rides. It means hiking, exploring, and a host of other fantastic adventures. And we can’t wait for it to start . . .

So, how is this related to saving money? Easy. Camping is less expensive than typical vacations. In most cases, there is an initial investment to consider, however the long-term benefits are phenomenal, especially when you consider the cost of lodging. Depending on where you camp, fees can be as low as $10 per night. The more amenities there are, the higher the price, but we’ve never paid more than $30 per night – anywhere. Good luck finding a hotel room for those prices! If you’d like to give camping a try, here are a few tips to keep expenses to a minimum.

First of all, keep in mind that you’ll be taking your stuff with you and hauling it back home afterward, so you’ll need to pack lightly. Take only what you absolutely need. Pack minimal personal items, like clothing and a few toiletries. Pack a couple of travel-sized games or cards and a book. These are all things you probably have at home, so no need to buy anything. If you’re going for just a night or two, bring your food with you, but make sure you plan easy meals. Nothing elaborate. You’re camping, not ‘dining’.

Second, if you don’t have any gear whatsoever, you have a couple of options. You can purchase the basics, like a few pots and pans, at discount stores or simply bring what you need from your own kitchen, especially if you’re testing the camping waters. Also, use paper plates and plastic utensils and cups to make clean-up quick and easy. Plus, they’re cheap, lightweight, and easy to store. And chances are that you already have a sleeping bag hidden in a closet somewhere, so you’re halfway there.

Third, if you are new to camping and don’t have a tent, borrow one if you can. Most of us know someone who camps, so it’s not that difficult to track one down. If, however, you absolutely can’t stand (or can’t physically handle) sleeping on or near the ground, you can go the camper route. Many campgrounds and dealerships rent various types of campers from pop-ups to 5th wheels to luxury busses. If you know someone with a camper, try offering to rent theirs, or ask if you can go camping with them to see if it suits you. (Camping is always fun with more than one family!)

Finally, make sure you research different campgrounds. Compare campsites, prices, and amenities. There’s a difference in price for primitive vs. water & electric vs. full hook-up. Also, some campgrounds have all kinds of things like pools, tennis and basketball courts, mini-golf, horseshoe pits, hayrack rides, outdoor movies and games for the whole family – but beware! Some places include many of these items in the price, and others charge extra for just about everything.

Really, though, the trick to camping of any kind is to keep it simple. Take what you need. If it doesn’t fit in the backpack, leave it behind. You’re not going to need your phone, fax, and copier. Or your surround sound system. Disconnect! It’s easy to get caught up in the complexities of life and we think we can’t live without all of our gadgets, toys, and gizmos, but the reality is that camping is an inexpensive way to bring us together and enjoy all the simple things in life that we’ve forgotten. The warmth of a blazing campfire, the sweetness of a gooey marshmallow, the glow of the morning sun on a still lake, the giggles of kids playing tag, or the songs we sing on a sunset hayrack ride . . .

Campin’ season’s a comin’!

Tuesday’s Tip: Cook

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As you may have noticed, there’s a slight trend with my last couple of posts. They all have to do with food! So, I figured I’d continue the food theme and give you one more money-saving tip: COOK! I know it’s tough to work all day and then have to come home and cook, but it can be done and here are a few reasons why you should consider home cooking more often . . .

First, and foremost, it’s much less expensive than take-out or going to a restaurant for dinner. For example, at a popular restaurant (that shall not be named) I priced a fairly simple dinner. Chicken Caesar Salad for an entrée ($9.90), a non-alcoholic beverage ($2.30), and treated myself to a chocolate shake for dessert ($4). (I know the shake completely contradicts the salad, but go with me on this one. It’s hypothetical.) That’s $16.20. With tax and tip, this meal costs around $20. Just for one person! I just happened to make Chicken Caesar-ish Salad for dinner tonight, at home – with my family. I used Romaine lettuce, grape tomatoes, big croutons, baby carrots, chicken breast strips (sautéed in olive oil, with basil, marjoram, and a squeeze of lime!), a few sprinkles of Parmesan, and drizzled Ranch dressing on it. For dessert, we had pudding parfait. Even with overestimating the cost of the ingredients, the total came to about $10 . . . for the entire family. Divide by 5. That’s $2 per person. So . . . $20 . . . or $2? Hmmm . . .

Second, cooking at home gives you much more control over what goes into the meal. If you’re aiming for healthier eating, the experts say you should eat lots of fruits and vegetables. Thankfully, those are fairly inexpensive to buy. (It’s the meat, pork, or poultry that jacks up the cost of any meal – especially when you’re dining out.) Not everything is in season all year, obviously, but you can change up your menu throughout the year by getting the items that are in season and on sale. You can also add or omit flavorings, spices, etc. based on your own tastes or needs instead of hoping the cook behind the counter doesn’t dump half a cup of salt on your fries. As chef, you have total control.

Finally, making meals that can be eaten as leftovers, or frozen, can help lower your food costs by spreading it out over more than one night. For example, I’ll make something like lasagna (from scratch!) and freeze half of it for another time. It makes for a quick, home-cooked fix when you’re short on time. Other great multiple night meals include homemade soups, spaghetti, pizza, Mexican, and even roasts or turkey. I knew a gal who used to cook meals for a whole week on the weekend, then freeze them. She didn’t have to worry about cooking during the week – she just grabbed something and heated it up. A real time-saver!

I know it’s much easier to hop in the car and have someone else cook for you, but if you think about the time it takes to get there, be seated, order, wait, then eat, pay, and drive back home, you could’ve cooked, eaten, cleaned up, and be on to the next activity – even if that’s lounging in your favorite chair. Who knows, by cooking at home you may discover your inner chef . . . or have fun with your family. And if you have kids, it teaches them some valuable lessons they can take with them when they’re on their own.

Tuesday’s Tip: Master Your Menu

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Last week I wrote about including all your family members in the menu-making process. It not only helps you plan for the week, but also aids in eliminating the moaning and groaning that may drive you completely insane. This week, I’d like to expand on that topic a bit and show you how planning a menu in advance can save you money in a couple of different ways . . .

First, creating a menu for the week will give you the building blocks for an efficient shopping list. When you come up with a menu, you can then make a shopping list that includes everything you need to make the meals. To begin, you’ll need to see what you already have in your cupboard, fridge, or freezer. For example, I keep things like pasta, tomato paste, canned tomatoes, rice, beans, cooking soups (you know, cream of chicken, etc.), bread crumbs, oils, broth, frozen and/or fresh veggies, spices, and the like on hand all the time. I buy these kinds of staples when they’re on sale, or when I have coupons, and they’re there whenever I need them. But these items are also common in lots of recipes, so it’s easy to base your menus on them as well. I even buy things like beef, pork, or chicken when they’re on sale, then freeze them for later use. Next, you’ll write down whatever you need to buy at the store. By doing this, you’ll cut down on extra trips to the store because you forgot something while you were there the first time. This saves more money than you think, because you may go to the store “for just a couple things”, but you almost always leave with more than what you went for in the first place. (You know it’s true . . .)

Second, having a complete shopping list cuts down on extra spending by cutting down on impulse buying. Grocery stores play the soothing music and count on you to take your time perusing the shelves, meandering up and down every aisle, and picking up more than you really need. The key is to have a list that is complete so that you can get what you need and get out without spending an arm and a leg. I’m not saying that you’ll never make that extra trip, but you’ll make them a lot less often. By only buying what you need, plus reducing the number of times you make extra trips to the store, you save a lot of money. Make sure you know which aisles to navigate, then skip the ones you don’t need to visit, and voila! – you’ll smile when you see the total savings on your receipt!

So there you have it. One of my little secrets to saving money on groceries. I recently told my sister about it, and she laughed, telling me that I was “so completely organized it’s unbelievable”. Well, I can’t afford NOT to be organized and shopper savvy. LOL 😉

Oh! And if you want to save even more money . . . have a snack or a meal before you go to the grocery store so that you’re not hungry when you’re looking at all that luscious food! Confession: I once looked at register receipts from two trips to the store – one when I was hungry and one when I wasn’t – and was completely flabbergasted to find that I’d spent almost $60 more than I needed to just because I was hungry! Oh, ugh!

Tuesday’s Tip: Make it a Happy Year

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Happy New Year 2013!

This is the time of our lives when we typically look back on the year that’s just passed and turn our eyes to the year ahead. Hopefully, we’ve learned from our mistakes of the past, but sometimes focusing on the future is scarier than what’s behind us. We can think about what we’d like to do, what we need, what we want, how much it’s going to cost, and we can speculate until we’re hyperventilating (or blue!) . . . but the fact of the matter is that no one knows what the future has in store for us. That in itself can be pretty frightening, not having total control of our destiny. But there is a way to have at least a little bit of control over our financial situation – it’s called effective money management. And there is a simple way to learn how to do it.

The Money Roadmap can be set up any time of year, but it’s especially effective when you begin in January. You can use your year-end checkbook balance as a base to set up your Roadmap for the coming year. It’s a “fresh start”, so to speak. If you need, or want, to set money aside each month for something coming up, or even later on in the year, now is the time to design your Roadmap so that you can achieve those goals. For example, my husband and I put a certain amount of money in our “Christmas Fund” every month so that when the shopping bills arrive, we’re not scrambling to find enough money to pay them. The money is already there, waiting. It’s been building up, little by little, for a year. We pay our car insurance premiums every six months, so we use our Roadmap to put a small portion from each paycheck in the “fund” so that when the invoice shows up in the mail, we’re ready to pay it. No questions about “if” we can pay it. It’s just a matter of when to mail the check so it arrives on time.

It’s much easier to handle money when you tuck away little bits over time than to try to come up with a huge lump sum, wouldn’t you agree? Kind of like eating a watermelon. You wouldn’t dare try to swallow it whole. You’d break it up into bite-sized chunks. Much easier to chew and no fear of choking on it! The Money Roadmap is your opportunity to gain control of your finances one buck at a time. You create your Roadmap based on your unique situation, your needs, and your priorities. You then “break up” the big amounts into smaller, more manageable chunks that you will stash away every month. And when the bill arrives, you’ll have peace of mind knowing the money is ready for you to pay it out.

So, if you’re pondering your New Year’s Resolutions, why not make one that you can actually stick with for the long haul? Why not choose to do something for yourself that will help you succeed? Pave your own way to a less stressful 2013 with The Money Roadmap. And, hey! You can even use that Amazon gift card you got for Christmas and get free Super Saver shipping . . . just a suggestion.

Take Control . . .

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The new year is close at hand and if you, or someone you know, needs some help gaining control over everyday finances, now is the time to order “The Money Roadmap: You choose the destination and the way!”

For many people, January 1 means a new start, a fresh start, and it’s possible with your finances, too. By beginnning in January, you have the entire year ahead of you to take control of your money and make the most of it. You’ll learn how to prioritize your necessities, weed out what you can live without for a while, set up your very own Roadmap according to your situation, and use it throughout the year.

To order, please visit “The Book” page of the website. There, you can quickly order the book and have it shipped directly to you. Or you can order it through amazon.com, where it’s eligible for free Super Saver shipping.

Happy holidays to you and yours. I wish you financial success in 2013 and beyond . . .