Building a Savings Plan for 2010
The economy hit us hard this last year. With one of us out of work and the other struggling to find work contracts, the money has trickled in just enough to keep us from going under completely. The work prospects have not changed, but my attitude has recovered. Sometimes the right attitude is all that is needed to build a successful savings plan.
Start Saving Now
-
1. Make a menu. Knowing what will be fixed for each meal and what needs to be done to prep that meal will make buying groceries easier and much less expensive. Easy, quick meals will also keep you from giving in to the need to get fast food or eat out.
2. Wash the rags. Today I was putting one of the last rolls of paper towels up when it dawned on me that we go through one roll every two days. Choosing to use towels that can be washed to do most of the work will save us quite a few dollars in the end.
3. Turn down the heat. The colder it gets the lower the thermostat needs to go as well. Heat pumps in particular will use up much more energy when they are set to a temperature that is over 40 degrees above the outside temperature. Use the fire place during these times if at all possible.
The little things can make a big difference. Cutting down or cutting back can give you the extra money you need to begin building up your savings. What are the little tricks and tips that you use to save?
Christmas for $100
The holidays get expensive. Even just sending out Christmas cards can end up costing hundreds of dollars. With so many people struggling financially it might be time to put the reason back into the season and stop focusing on the finances so much.
7 Tips for Saving on Christmas
-
1. Give the gift of time – Create coupons for hikes, trips to the museum, fishing or other activities that bring people together without breaking the bank.
2. DIY – make Christmas gifts for those in your family. Food is always a winner!
3. Make and take – no more mailing gifts and cards. Hand deliver all that you can and maybe even sing a carol while you are there.
4. Give what you got – re-gift items that you no longer need or love or something that you have extra of, like firewood!
5. A picture is worth a thousand words – put together photo albums or scrapbooks from all of those digital pictures you have stored on your camera and in your computer.
6. Go green – use items that you find in nature to do your decorating. Pinecones, nuts, and greenery can usually be found around your home free of charge. When searching on property other than your own be sure you get permission form the owners.
7. Avoid the stuff – you know all that stuff that the family NEVER uses but you feel obligated to buy anyway (like stocking stuffer type toys and gadgets).
Cutting back for the holidays does not mean cutting out the fun. Find new and creative traditions that will mean more to your family than just shiny new toys that get discarded the next day.
Saving Money that Is Not There
No regular paycheck for two years sounds tough. Living it is much tougher than it sounds.
My husband left his teaching position in October of 2007. The income I gain from writing (mostly online) has been enough to keep our heads above water, but only just enough so that we can breath. Things would be better if I had squeezed the finances tighter in the beginning but would’ve, should’ve or could’ve will not put money in the account.
Saving Money when There IS no Money
-
1. Eat from the pantry, freezer and other places where we tend to store food. I have managed to feed the family quite well using creative recipes that include items I already have. That tip only goes for so long and then you will have to start restocking, but we have made it two months without a major grocery trip.
2. Find free entertainment. Friday has become library day. After the older boys finish school and the youngest (and dad) get up from a nap then it is off to the library for movies and new books. We also try to make time to go to the recreation center to play in the gym or at the playground. Let the kids choose the activity and there is no telling where you might end up.
3. Use what you have even if it may not be what you wanted. My mother-in-law got Red Rooster plates for her wedding china. They have been in storage since my husband and I inherited them. I am NOT a rooster kind of gal. But the truth is that my kitchen is a rooster kind of kitchen and we do need new dishes and there is no reason to leave the thing that I need sitting in the shed even if the thing I need may not be exactly what I want.
4. Be honest – with yourself and with your family. Financial troubles may be able to be hidden for a time but eventually the truth will catch up and it is usually worse by that time. Talk to your family. They may have some ideas that can help you get out of trouble before you hole is too deep. Talk to the kids. Let them know that things will be tight for a bit but that you will work it out together. Honesty really is the best policy when the money is tight.
Saving money when there is no money does not always mean that you are building up a giant nest egg to use down the road. It may just mean that you are building up enough support to keep a little breathing room. It may mean that you are using every thing that you can find just to stay afloat.
No matter where you are in your financial walk, there is always something extra that you can do. Sit down and think hard about where you can cut, what you can do differently or maybe where you need to add to help keep your finances above water.
Finding Ways to Survive Tough Times
The economy seems to have a choke hold on many families. It is bad enough that vacations were switched to stay-cations if they weren’t cut altogether. But already many families are looking at how to get creative when the holidays come around because it is likely that budgets will not be any nicer by that time.
There are ways to get creative with a budget on a diet. Planning to take extra work or even having a giant sale of all your extras or unnecessary items is a great place to start. Turning to friends and family can also help to lighten the load on the family budget.
Tips for Stretching the Family Dollar
-
1. Have a “Blessing Box” that passes around between you and several other families. Place good, quality items that you don’t need anymore or can’t use in a sturdy plastic box and then pass it on to the next family. You could also include a notebook for sharing barter items (I can fix your fence if you’ll bake my casseroles).
2. Share babysitting duties. Instead of hiring the neighborhood teen for the job why not trade duties with the neighbor that has kids the same age. The kids get a fun day and you get a free night out.
3. Check out the local “Angelfood Ministry.” It is a great way to stretch the grocery budget and help out your local church at the same time. Each participating church gets some funds from the program and families have the ability to participate in a food co-op that would otherwise be impossible for most.
4. Have group meals or potluck gatherings. There are times (like after church or during sports seasons) when all families struggle to get meals together and often fall to buying fast food or eating out. Help save on those expenses by doing group meals instead.
Saving money is not the only reason to make changes or cut back. Some times the need is simple survival. During these tough economic times use some creative measures to help you and your family get through and even thrive financially.
Ranting on the Auto Industry
Three weeks ago our mini-van was involved in a wreck. I had the misfortune of being behind the wheel. My two sons where in the seat next to the door that received the most damage. The emotional trauma that I experienced then was rough. I’ve made a point of keeping my kids out of all the smaller vehicles that we own and I’ve started the process of selling them all.
The emotional trauma that I’m currently experiencing is SO MUCH MORE. I’m not dealing with my insurance company because the entire fault lies with the other party. I am dealing with a body shop and dealership that I have worked with in the past. And I made the ULTIMATE in consumer mistakes. I trusted those people and skipped protocol.
My journey began the day after the wreck. I started at a rental company (because I knew we would have to have a family sized vehicle to replace the wrecked mini-van). My goal was to stop at three body shops to get estimates. The first one is the one that I’m now dealing with because it was the only one that I got.
All of the mess that I’m going through now could have been avoided if I had done what I know to do.
Tips for Dealing with Insurance
-
1. Always get more than one estimate – not only for the purpose of proof but for your own comfort. Three companies have estimates that are similar and that include all the same components then you will feel more confident in the repairs no matter who made those repairs.
2. Never get partial estimates. In our case, the sliding door was too damaged to open. The estimate I first got was for the damage that could be seen before the door was open. That’s the one the insurance company used to base their estimate.
3. Write down EVERYTHING! Keep a record of everything that is said and every one that says it. Take pictures. Be present for every inspection or estimate. Keep it all in a file so that you can easily access the information.
4. Know your rights. Find out what your legal rights are and what the ordinary and customary rights are as well.
An accident is an accident and is not the time to get greedy, but that works both ways. The insurance company, the body shops and anyone else involved needs to be straight and honest. You can protect your rights and assets by knowing what you are due and how to go about collecting.
Top Tips for Buying and Saving on a Used Car
Car dealerships are in trouble – or at least the news media is portraying the idea that the auto industry as a whole is struggling. Anyone that has been to a car dealership in the last several months is likely to portray a different picture.
Our mini-van was t-boned a few weeks back by a car that was only going about 5 mph. The damage that was caused made me re-think our family driving choices. I am looking for a tank (or something resembling one) to replace our wrecked mini-van. I’ve been visiting used car lots up and down the county trying to find that gem that will be perfect for our family (and even better for our budget).
I have discovered a few things about used cars that might surprise you and several that might not.
Used Car Surprises
-
1. Most people are VERY proud of their used cars. There was one dealership that actually told me I would come out better buying brand new (with all the sales and credits they had going on at the time) than I would be buying the same car as a used 2007 or 2008. That seems a bit outrageous for an industry notorious for values dropping as soon as you drive off the lot.
2. Trading in will hit you HARD and it’s not even from dealership to dealership. The minivan that we have was not totaled (although it was significantly damaged). We were planning on trading it in but are still hoping to sell it. One dealership has offered $300 in trade in value and another has offered $1000. I intend to ask for around 10% more than the Kelly Blue Book value.
3. The internet has opened up a whole new world of research ability. I can see what the dealers see – the magic Kelly Blue Book value. I can also use the VIN number (in the front driver’s side corner) to see the history of the vehicle. Now there are no more secrets.
4. Cash is still king. The minute I say “we will be paying cash” the sales people change their tune. One dropped the price of the vehicle about $2000 over the phone – before we even visited the lot. Cash shows a serious buyer and serious buyers are money in the pocket for the sales people.
5. Not all sales personnel earn a percentage of the profit as commission. Some are even on salary. It can help your negotiations to know how the person you are working with gets paid. You may also want to forego working with a sales person and ask for a manager. The higher up you go the easier it is to negotiate.
Knowing something about the used car industry is a good step towards getting the right used car at the right price. Having the tools to negotiate will also come in handy.
Tools for Negotiating a Used Car Deal
-
1. Be willing to walk away. Excitement about the product will tell the salesperson that you may be afraid to lose the product. When you walk away then it shows that you can live without it and the negotiations can get easier for you.
2. Be prepared. Do your research before going to the car lot. You should do some preliminary calling to see what products are available at different locations. Use the internet to research general information about the products and then go in with your notes in hand. Knowledge is power when it comes to negotiations.
3. Be flexible. There may be times when the price you want and the price that they offer is close. Look at the starting point of the dealer’s price and see how willing they have been at coming down from that.
4. Be aware. Make more than one inquiry about a vehicle – by phone, by email AND in person. See what offers you get from the different places and proceed accordingly.
Finding a used car may not be difficult but BUYING a used car can be tough. Be sure that you have plenty of time to find a used car and then negotiate the deal that works best for you.
Save Money with Day Camps
There was a time when kids looked forward to summer because they could play all day and not have to worry about homework, shoes or schedules. Now many kids want and need those schedules even during the summer.
Parents are looking for ways to entertain kids during the summer months without breaking the bank. Day camps offer the scheduled atmosphere and also provide a number of unexpected benefits for the parents and the kids. With a few simple guidelines you can use day camps to save you money.
Tips for Saving Money with Day Camps
-
1. Use tax credits and deductions. The IRS provides for parents that need to work with child deductions. Many times the fees that you pay for day camps could be eligible for these deductions.
2. Become a volunteer. Parents with a little extra time or some particular skills can often volunteer for positions in day camps and get discounted or free attendance for children (some may even be able to wrangle a pay check out of the deal as well).
3. Partner with other parents. Share responsibilities for taking the kids and picking up the kids. You will save money on gas and you will have extra time to complete the tasks that you need to do during the day.
4. Find free camps. Almost every church in your area will offer a vacation bible school. Kids learn songs, do crafts and play games. It’s a great (and inexpensive way) to schedule fun for your kids during the summer.
5. Look for other free programs. Some movie theaters offer discounted movies (or free movies), libraries offer reading programs and some other public and private entities may have specials that your kids can enjoy.
There is no reason for summer time blues these days. There is always something that the kids can do and many of them can save you money in the long run.
DIRECTV Falling Down in Customer Service
DIRECTV came out to upgrade my system to a HD system. After everything was in place and I walked out with the installer I noticed a cable sitting on the ground from the dish to the house. It was at that moment that the DIRECTV installer mentioned that for him to bury the cable from their DIRECTV dish to my house would cost extra.
I called and spoke to customer service at DIRECTV. The young lady that I spoke with (after waiting on hold for several minutes) just kept repeating that they do tell you there can be extra charges when its more than a standard installation.
Questions DIRECTV Did NOT Answer:
-
1. Why can’t DIRECTV tell a customer of 12 years how much a free upgrade is really going to cost?
2. Why put down DIRECTV cable for someone to dig a trench around instead of telling them ahead of time (or at least before the cable is connected an run) that there is a need for a trench.
Maybe DIRECTV does not realize that cable runs to my house. Cable would not go out in the event of rain. Cable would not cost additional money for the other televisions in the house.
The only reason that we did not switch from DIRECTV to cable when we had cable installed is that I have always appreciated the programming on DIRECTV. The way customer service has been going downhill with DIRECTV makes me rethink my television service completely.
Does anyone else have any gripes or complaints about DIRECTV?
Mortgage Foreclosure Safety Tips
Many people are facing tough decisions in their finances these days. Economic experts are predicting that things will likely get worse before they get better. It is a scary thought when the bills start coming in with “late” stamped on them. The best thing to do to save your home and to save your credit rating is to start dealing with trouble before it becomes an issue.
Tips for Keeping Your Mortgage out of Foreclosure
-
1. Get your head out of the sand – the financial problems will not go away if you just ignore them. The sooner that you contact your lender with a potential problem then the more time you give both of you to come up with a solution that will help.
2. Get assistance – the government is trying to come up with ways to help homeowners that are struggling. Lenders are also developing programs for homeowners in good standing that are coming into tough times.
3. Call for a time out – many lenders will understand that temporary trouble happens. If you know that your financial trouble is only short term then you may be able to get a payment waiver from you lender for a couple of months.
4. Make the big cuts – it is better to cut all extra expenses, no matter how painful at the time, rather than to risk losing your home. Look at classes, trips, extra vehicles and other toys as the first place to cut.
Troubles happen and even lenders can understand that. You only compound any troubles if you try to ignore them. Deal with financial difficulties as soon as possible and you can find several ways to help keep your mortgage out of foreclosure.
Oprah and KFC
Free is free and some people will take full advantage when given the chance. Recently the KFC franchised began promoting their new grilled chicken. One of the campaigns involved a downloadable coupon for a free meal. The restrictions were simple: only one coupon per person and only four downloads per computer.
Oprah Winfrey got on the band wagon and promoted the giveaway to her viewers. This meant a LOT more traffic for KFC but it also meant more headaches than the company was expecting.
Customers overwhelmed the stores – some carrying as many as 12 coupons. In some locations the police were called to handle the traffic. The franchise decided to offer rain checks to some customers to help reduce the traffic jams.
It was a great idea to offer a free taste of a new meal to their customers, but KFC is learning that no good deed goes unpunished. There have been complaints that the “free meal” did not include drinks and that stores were giving out dark meat instead of white meat.
KFC does get a nod from me for handling the chaos with such grace. Many stores have honored any coupons that have come in (including those that have been photo copied despite restrictions against it). The company is also offering free drinks with the rain checks that are being offered to consumers.
This is a lesson for corporate America – the technology of today has changed the game. When you give something away, the word will spread and you will have a bigger response than you could ever imagine. Be prepared.