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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: Build a Rainy Day Fund

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When people ask me how my money management system works, I tell them that it’s a way to take the money they earn and put it where it needs to go so that their bills are paid in full and on time. They can also use the system to put money aside for other necessities, savings, or things they want. I strongly urge people to have a ‘rainy day fund’ for those unexpected things that pop up from time to time. If you think rainy day savings are unnecessary, think again.

Case in point: my family and I went on vacation recently to Virginia. We set up our camper in Williamsburg for a week and hit all the great tourist attractions like Colonial Williamsburg, Jamestown, Yorktown, and Water Country USA. Then, we headed to Staunton and set up camp for another week. We relaxed by the lake, fished, and hiked a few trails in the Shenandoah National Forest. We even took a trip  to Monticello (Thomas Jefferson’s home) – and that’s when trouble hit.

We’d been caught in a storm on the mountain, the roads were a little slick, and the grade of the road was a bit steep. Suddenly, the van’s gears wouldn’t engage. We heard a strange noise. We managed to pull over, turn the car off, then restart it. My husband put it in drive. It moved forward. We got on the highway and made it to our exit – barely. We ended up limping into the parking lot of an auto parts store. And that’s where she died. Old Blue wasn’t going anywhere. Reverse? Nope. Drive? No way. Fourth? Uh uh. Park was all that worked.

In the next 30 minutes, we scrambled to arrange for a rental car and a tow truck to haul Old Blue to the dealership nearby. We visited her the next day and the diagnosis sent us reeling: the transmission was shot. Gone. There was no saving it. She needed a whole new one.

Ugh.

To add insult to injury, we found out the axle was locked and had to be torched off. The parts wouldn’t be in for another several days. We were scheduled to leave for home the next day. After a lot of discussion, we decided we had to leave her there for a while so she could be fixed. We simply could not stay for an unknown length of time. (My husband likes his job and wants to keep it!) So, we secured storage for our camper, stuffed ourselves into a little sedan, and spent the next 2 days in virtual silence, trying to absorb all that had happened and figuring out what we were going to do now.

As it turns out, 2 weeks later, my husband and I had to fly out to Virginia, pick up Old Blue, get our camper out of storage, and drive home. I’m not going to divulge how much we’ve had to spend on a rental car, tow, repairs, plane tickets, a hotel room, and food, but suffice it to say that we were incredibly glad we had our ‘rainy day fund’. It literally saved the day. Now we don’t have to take money that’s supposed to go for paying the mortgage, our regular bills, or kids’ college savings. We’ll have to, basically, start all over again to build it back up, but I’m grateful we had it.

Now we can move forward . . . and so can our van.

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: Take the Roadmap Challenge (Part 1)

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Ah, Spring! Aren’t you excited? More sunshine. Longer days. Warmer weather . . . ok, I choked on that one, too. (For those of us living in the Chicago area, we’re still waiting for that last one!) But still, when I think of Spring, I think of trees budding, flowers blooming, grass greening, and I’m filled with a sense of renewal. That’s what Spring is all about, isn’t it? Things beginning anew. Fresh starts. And . . .

SPRING CLEANING!!!

When I say that, most people think of the mile-long “Honey, Do” list taunting them from the fridge door: cleaning out the closets, going through the stuff in the garage, and washing windows, to name a few. But I’m talking about cleaning in a more financial way. The concept is the same though . . . go through your stuff, keep what’s necessary, and get rid of the rest. Think of it as clearing up and reorganizing your finances.

Over the years, I’ve had many people ask me what they could do to accomplish that particular goal and my answer is always the same: Grab a pencil and paper and keep track of all the money you spend in a month, then sit down, take a very close look at it to figure out where your money is going, and determine what you need and what you can do without. (Coincidentally, it’s one of the first steps outlined in my book!!) Most of the time, the reaction is the same – jaws drop to the floor.

“A whole month?” they ask.

“Yes. A whole month,” I reply.

“That’s a really long time,” they complain.

“Yes, it is,” I say, “But it’ll give you a solid picture of where all your money is going.”

“And we have to write down ALL of it?” they ask.

“Yes. ALL of it. Every dime. Bills, credit cards, EVERYTHING you buy in CASH. ALL of it.”

Again, jaws drop to the floor. What I’ve found, however, is that everyone who was truly serious about taking control of their finances followed my advice and were astonished by what they learned at the end of that month. They also learned that, by doing away with some of the extraneous items they didn’t realize were emptying their wallets and bank accounts, they were able to save quite a bit of money. In some cases, hundreds of dollars a month. Some people even told me that after just one or two weeks of tracking their expenses, they could easily see which unnecessary items they could cut back on, or cut out completely.

Don’t believe me? Ok. Let’s consider my friend, “Lucy”, who once told me that she’s addicted to a mocha coffee concoction and has to have it every morning on her way to work. She says she wants to get a good jolt to start her day, so she orders a large. Ok. With tax, she pays $3.58. Multiply that by 5 work days. That comes to $17.90 per week. Multiply that by, say, 49 actual work weeks in a year. The total now becomes $877.10 per year. Hmm . . . I can think of a few things that I’d rather do with $877 than drink coffee . . .

Still don’t think that makes a difference? Ok. Try this one on for size. Let’s say you go out to eat two times per week. For the sake of making it easier to calculate, let’s estimate that you spend about $50 per week. $50 multiplied by 52 weeks comes to $2600 per year. I suppose if you really want to get goofy, imagine you get a mocha coffee every day AND go out to eat twice a week . . . that’s almost $3500 per year that could go toward something else. And that’s just for two people. What about a family of 3? 4? 5? It boggles the mind.

So, here’s my challenge to you: Track your extra expenses for the next week and calculate how much money you could save per month and per year by cutting back or cutting them out. I’m not even talking about bills. I’m talking about those extra things you put on your credit card or things you pay for in cash. Those dinners out. Those lattes in the morning on the way to work. Movies. Drinks with friends every weekend. Try to focus on the extra little things that you pay for fairly often. Is there a habit forming?

Now think: What would happen if you went 30 days without them? Would it make a difference in your finances? Are you willing to find out?

Stay tuned for Part 2 of the Roadmap Challenge . . .

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: 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.

Tuesday’s Tip: Find the Freebies

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The other day, someone mentioned my post about buying memberships, but hinted that it’s not exactly feasible for her and her family at the moment and asked me if there was something else I could recommend. There is one thing . . .

FREEBIES!

During certain times of the year, including summer, holidays, and slow months, there can be a multitude of specials the whole family can enjoy. Here are a few tips:

1) Check out coupon sites online. There are lots of sites that have things like buy 1 Get 1 sales or free products and services – just be sure to do a little research first and pick the sites that offer things you like to do.

2) Check websites of your favorite museums. Many times they’ll offer free admission on certain days of the week. Usually it’s midweek, or a day that’s typically slow for them. If you can manage a day off, it’s worth it. There’s less traffic and smaller crowds to deal with!

3) Many communities are now offering events like ‘Movies in the Park’ or summer festivals that offer free admission. Sometimes you can even bring your own food and picnic there.

4) Research places that offer free things for students. You’d be surprised how many places will give kids a price break if they bring their student ID!

5) Last, but not least, check out websites for free things to do in your area or a closer, major city. Type something like free things to do in fill in the city name here and see what happens.

The point is, you can have a good time without completely emptying your wallet. If a membership isn’t in the cards for you right now, that’s ok. But you don’t have to stay at home everyday wondering what to do to keep your kids from murdering each other. Yes, it takes a little bit of effort, but here’s another tip: if you’re part of a social network, see what you’re friends are up to, what they’re doing, and where they’re going. You might find some good ideas and great deals.

Happy summer!

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!