shopping

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: 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.

Tuesday’s Tip: Redefine ‘Minimum Payment’

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A few days ago, my husband and I were sitting at the kitchen table taking care of a few household things like bills, etc., when he kind of chuckled. It was more like a derisive snort, actually, so I looked up from my work and asked him what was wrong.

“Nothing,” he replied. “I just find it interesting that this bill says that if we pay only the minimum payment each month, it’ll take us 19 years to pay it off.”

I did one of those cartoonish head shakes and said, “Umm . . . what?!” It’s true.

Last December we bought all new kitchen appliances: a fridge, dishwasher, stove/oven range, and range hood. It was time. We were, literally, waiting for the day when they would just up and quit on us. So we researched brands, stores, and prices, and settled on a whole set that cost us $3589.96, which included tax, delivery, and installation. It was a good deal on some great appliances, and to top it off, we took their offer of 2 years interest-free financing.

So here’s the thing. On the bill, it says that the minimum payment is $100, and that it’s required. Okay. It also says that if the balance isn’t paid within those 2 years, “interest will be imposed from the date of purchase”. That means that 2 years of interest will then be owed. Ugh. Now, here’s what my hubby found ‘amusing’ . . . it informs us that if we pay only the minimum payment, and make no other charges on the account, we’ll pay it off in about 19 years and it will cost approximately $12,649. WHAT?!?!?! Holy cow! Seriously? We both shook our heads in disbelief. We’d pay $12,600 for something that’s only $3600??? That’s 3 1/2 times the original purchase price! How does that happen? Well, they tack on the 2 years of interest and keep adding interest every day until it’s paid off. Sneaky, huh?

Were we surprised? Absolutely. Were we scared? Not in the least. Why? Because we don’t figure our ‘minimum payment’ the same way the store does. Let me explain . . .

When we talked about buying new appliances, we estimated what the total cost would be before we even went shopping, and figured out what we could comfortably afford. Then, when we found what we wanted and sat down with the sales associate, the total came to $3589.96. We knew the terms of the promotion: we had 2 years interest-free financing. That’s 24 months. We rounded it up to $3600, then divided by 24. That came to $150 per month. That’s our minimum payment. Not $100. We know that if we pay $150 per month, we’ll pay off the $3600 within 2 years and won’t have to pay the interest. Simple.

So if you’re looking to buy something and take advantage of some kind of financing, don’t rely on what they say is the minimum payment. Figure out your true minimum payment so that you can pay it off in plenty of time and avoid fees and interest that could end up costing you way more than it’s worth. Here’s the equation: Round the total price to the nearest hundred (or thousand, depending), then divide by the number of months defined in the financing terms. This will give you the amount you’ll need to pay each month. For example, let’s say you’re thinking of buying a living room set. The total cost is $1487.32 and you’re going to finance it for 18 months. Round it up to $1500 and divide by 18. That comes to $83.33 per month. If you make monthly payments of $85, you’ll pay it off in time – without penalties or fees. Just remember to ask yourself if it’s something you can afford. If not, then I suggest you reconsider. Either don’t buy it or find something in your price range.

It’s simple math, but it could end up saving you thousands.

Tuesday’s Tip: Take the Roadmap Challenge (Part 2)

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Well, it’s been a week since I introduced the first part of the challenge. Did you try it? How did it go? Did you notice anything about your spending habits? Were you surprised by anything? Many times we’re shocked by how much we spend. We don’t realize that those ‘little things’, the inexpensive items we buy on a whim, can actually add up to quite a bit when it happens on a regular basis. Think about what you saved in one week – and now imagine that on a slightly grander scale . . .

Which leads me to the next part of the challenge, in three steps.

Step 1: Take a good, hard look at your expense log from the past week. Is there anything you could stand to cut back on or do without? (Answer HONESTLY!!!) You may find that there are a couple of things on your list. That’s ok.

Step 2: Pick just ONE thing on your list and cut it out for the next 30 days. April 1 – 30. One month.

Step 3: Keep track of how much you save over the course of the next month.

I’m not asking you to give up every extra expense, just one. Pick one that’s the most frequent purchase. Or maybe one that’s the most unhealthy. Or the most expensive one. Whichever one you pick, do without it for the next month. On April 30, take the amount of money you saved and multiply it by 12 to see how much you can save in a year. Then ask yourself, What else could I do with that money? Pay down debt? Make an extra payment on something?? Pay something off???

Once you’ve done that, contact me and let me know what you cut out of your spending, how much you saved in a month, how much you’d save in a year, and what you learned from the experience. If you do, you’ll be entered into the contest and you could win a FREE consultation with me. You’ll get the Money Roadmap package which includes my book, a binder, and ledger paper, plus I will help you set up your own Roadmap and teach you how to use it.

There it is. The Roadmap Challenge. Try it. What do you have to lose? More importantly, what could you gain with good money management??

Good luck! I know you can do it! I can’t wait to hear from you!

Today is April 1st. Ready . . . set . . . GO!

Tuesday’s Tip: Break the Bad

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Everywhere I go, I hear new year’s resolutions being flung around as freely as candy from a parade float. People are vowing to make changes to better themselves, their lives, their communities, and even the world. However, the most common goal, by far, was to lead a healthier lifestyle, which encompasses a multitude of different options ranging from losing weight to exercising more to breaking bad habits. And that got me thinking . . .

Breaking a bad habit is tough to do. I know, first hand, how hard it is, but I also know how wonderful it feels to be successful – in more ways than one. I confess that I used to smoke. (There it is, folks.) I tried to quit several times, but always seemed to give in eventually. I was smoke-free for quite a long time before having kids and during my pregnancy, then started again when they were about 6 or 7 months old. It was easy to blame it on stress, of course. Then, when they were almost 2, I finally managed to quit altogether and have been rid of the habit for over ten years. Don’t get me wrong, there are days I seriously wonder why the heck I ever quit! Then I think about all the progress I’ve made as a runner, how much I love it, and how smoking would completely ruin it, and I decide it’s not worth it. So, you could say that I’m enjoying the health benefits of being a non-smoker.

Just recently, I noticed a sign at the corner gas station advertising a sale on cigarettes: $6.85 per pack. Wow! I couldn’t believe it. That’s a lot more than I used to spend over a decade ago. And that got me thinking about the cost of being a smoker now. What would I be paying if I were still smoking? When I got home, I grabbed a calculator and did a little experiment to find out the financial benefit of not smoking. I know the cost per pack varies depending on location, but I live in the Chicago suburbs, so I’m going to use the average for this area, which is about $7.50. Ok. Let’s see. I used to smoke about 10 cigarettes per day. That means it would cost me $3.75 per day . . . times 365 days . . . that comes to $1,368.75 per year. If I smoked a pack a day, then the cost rises to $2,737.50 per year. Really? I was amazed at the numbers starting at me from the calculator. I instantly thought of a few things I could do with an extra $2,700 per year. Then, just for kicks, I multiplied that number by 5 . . . $13,687.50 saved in 5 years. Holy cow! Then I took one step closer to ridiculous and calculated the savings for 10 years. I nearly fell off my chair! $27,375. Amazing! Do you know how much house you could pay off with that money? Or you could buy a nice little car! You could save it for a rainy day . . . or college . . . grad school . . . vacations . . . retirement . . . The list goes on and on.

And what about other costly habits? I could think of a couple. How much could people be saving by kicking those bad boys to the curb? They don’t even necessarily need to be bad for you, like smoking was, for me. What about that iced coffee on the way to work everyday? Or eating out for lunch everyday? Or even twice a week? How about takeout dinners? Shopping every weekend? Blah, ba-blah, ba-blah . . . Please understand that I’m not suggesting we all become hermits, eat ramen and rice for the rest of our lives, deprive ourselves of things we need, and never do anything fun – we gotta live, right?! The trick is to be sensible about it.

Moral of the story: breaking a bad habit, or any habit that drains your pocketbook, could potentially save you more money than you think. Don’t believe me? Pick a habit . . . do the math. See what happens. The truth lies in the numbers. Cutting out a habit, or at least scaling way back, could mean some serious extra cash in our pockets. I don’t know about you, but I like that!

Tuesday’s Tip: It’s in the Cards

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I recently went out for breakfast with my friend, Jill, and as I settled into the booth, she slid an envelope my way. I smiled, picked it up, and asked her what this was for. She smiled back and wished me a happy birthday. I was touched by her thoughtfulness and I’m sure I blushed a little. For as often as I insist that my birthday is ‘just another day’, that I still have to get up, take care of my kids, do laundry, cook, clean, go to work, or do whatever it is I need to do – it always warms my heart when someone recognizes it. Even if just to say the words.

I thanked her and took the card in my hands. The envelope looked fancy. It had a birthday cake on the front and some retro curvy stripes on the flap. ‘Happy Birthday’ was even embossed on blue foil. I opened it up. The card itself was made of heavy blue paper, the kind used for scrapbooking, adorned with appliqués of those retro stripes and matching ribbon, ‘Happy Birthday’, and a cake with sparkly candles. It was so pretty! Inside, the message read, “Wishing you a happy birthday”. She added a personal note that made me laugh out loud. (No, I’m not going to share it with you here – it’s personal!)

Birthday Card

It really was a beautiful card and it looked handmade, so I asked her if she’d created it. That’s when she gave me that sheepish grin of hers and confessed her little secret: it was one of many greeting cards included in a large box set that she bought at a wholesale club store.

My jaw dropped. She laughed. Then she proceeded to explain that she’d discovered one of these sets a few years ago and that it was different every year. It contained cards for just about every occasion you could think of: anniversaries, weddings, babies, birthdays, sympathy, and even thank you cards. She couldn’t remember exactly how many were in the box or how much it cost, but according to her estimate, the cards averaged out to less than $1 per card. Again, my jaw dropped. Considering we readily pay $2 . . . $3 . . . $4 per card at the grocery store or a gift store, this was a great find! I couldn’t believe it! (I also made a mental note to look for it the next time I was there . . .)

Long story short . . . I was incredibly touched by the simple, yet heartfelt gesture of my dear friend. She didn’t have to give me a card for my birthday, but she did – and I felt loved. It reminded me that something as simple as a birthday wish could bring so much joy to a person’s life. We’re all busy. It’s hard to find time to give the kind of attention our friends and family deserve. But the small gesture of a card to say, “I’m thinking of you” could just make someone’s day . . . or week . . . or month . . . you get the picture.

And it doesn’t have to cost a fortune! ;D

Tuesday’s Tip: Mix and Match

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I recently accepted a new job . . . one in which I need to dress very professionally. Granted, it’s part-time, however I still need to wear appropriate clothing. And that gave me a bit of anxiety. Being a mom, camper/hiker, runner, and outdoor education guide, my dress code has been, to say the least, incredibly casual. So, I ventured into my closet to find out what suitable clothes I had that still fit me. (Ugh.)

As anal retentive as I am, I began organizing everything by item, i.e. pants, skirts, blouses, etc., and evaluating each, asking myself a few key questions: Was it old? Did it look old? When was the last time I wore it? Did I like it anymore? If the item survived that round, I tried it on. If it didn’t fit, I got rid of it. If it did, I put it back on the hanger and put it with the rest. What resulted was this: a few dress pants in black, brown, navy, and one gray . . . a couple of blouses, both long and short-sleeved . . . some nice sweaters . . . a couple of blazers . . . and a few dresses and skirts. The good news was that I had enough shoes to match whatever I wore, so that was a plus. But my dressy wardrobe was, admittedly, a little on the thin side. I sighed.

That’s when my hubby walked in. He saw me, hands on my hips, examining my clothes and asked what the heck I was doing. “Trying to find out how much I have for my new job,” I replied.

He nodded his understanding, stood next to me for a few seconds, also evaluating my wardrobe, and then said, “Doesn’t look like a whole lot. Do we need to go shopping?”

I rolled my eyes and stuck out my tongue. “Oh, ick!” I know, real mature, but there are two reasons for that: 1) I really, really don’t like shopping, and 2) I didn’t want to spend a bunch of money on a part-time job until I had a better idea of where it might lead.

Hubby just shrugged his shoulders and said, “I know, but if you need some new clothes, then let’s go buy some for you. Besides, I need a few pairs of pants. Some of mine are getting ratty,” he explained as he touched the cuffs on his side of the closet.

“Well, let me see what I can do,” I said, not ready to hit the stores just yet. I had an idea . . .

I began looking at colors. Then I looked at style and season. I discovered that a few of my outfits had two parts, i.e. a dress with a matching jacket, and realized that if I split up the parts and paired them with something else, I created a whole different outfit. Suddenly, I saw that this blazer could be paired with those pants and that blouse, or that skirt goes with this top and that sweater. The little jacket that goes with that dress would look really cute with this shell and these pants. Wow! Then I hit a snag. These two skirts don’t have any tops that match. Hmmm . . . I may have to go shopping – but only for a few basic things. And if I get them in colors that go with everything else, then I’ll have even more options!

The point is, when you’re short on money or don’t want to spend a lot on clothes, there is a way: mix and match. If you’re not sure how to do that, here’s a tip. Look at the colors in your closet. What do you see? Chances are you see a lot of items in similar colors or in colors that you like and that look nice on you. Now, do you see any full outfits or ones with two or more “parts”? Separate them. Take that bolero jacket and see if it goes with anything else. Does that blouse look good with a few different pairs of pants? How about that sweater? Will it go with those pants or this skirt?

And you men out there, don’t think this only applies to women. You can do it, too. You probably have pants in different colors that can be paired with different shirts. Try switching it up once in a while. Instead of wearing the green shirt with the tan pants all the time, try the pants with that cool rust colored shirt, or the blue one. How about the bold plaid shirt with those black pants? Or the red striped shirt with the navy pants? Go nuts. Try it.

And the next time you go shopping for clothes, take into consideration the different combinations you can make with what you’re tossing into your cart. Buy things in similar colors or patterns so that you can mix them up later. There’s no need to buy outfits that should always be worn together. They say that variety is the spice of life. I say that’s true. But I also say it doesn’t have to cost you a fortune.

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 . . .