Money for the Rest of Us

There is a phenomenal article on BBC today about a 60-year-old beggar saving her coins for over 40 years.  She has saved over 200 pounds of coins totaling as much as $700.

“When 60-year-old Laxmi Das recently deposited her earnings in an Indian bank in Calcutta, it was a bit more than the usual mundane money transfer.

Ms Das handed over 91kg (200lb) of coins - the produce of 44 years of hard begging - enabling her to open an account and qualify for a credit card.

Laxmi began begging near Hatibagan, a busy road junction in northern Calcutta, at the age of 16.

…
She would spend frugally from her daily collection and save the coins. She was very possessive about them,” says her sister Asha.

…

Ms Das told bank officials that she had stored the coins for when she reached “old age” and needed a pension plan for when she was too old to beg.

That’s right, this was her retirement savings.  Talk about planning and frugality.

Read the full article it’s quite interesting.

This time of year we’re bombarded by: “Buy, Buy, Buy” along with “Give, Give, Give”. There is much talk about Black Friday, and many links to Amazon gifts we recommend. Even in the non profit world end of the year appeal letters are being sent by every nonprofit in the universe. And I wholeheartedly encourage you to donate money to these organizations. But, don’t stop there. This year, Take Action.

Here are five reasons why getting off your ass and doing something good this holiday season will help your pocketbook:

1. When You Feel Better You’ll Spend Less. By volunteering at an organization you’ll feel better about yourself. When you feel better about yourself you’ll spend less money.
2. Time Spent Helping Others = Time Not Shopping. When you’re volunteering somewhere it means that you can’t be shopping at that point in time.
3. Seeing Others’ Circumstances Will Help You Remember What’s Important. I’m not telling you that volunteering will make you renounce shopping, but it will help you to remember that the holidays aren’t all about gifting. This time of year is about spending time with friends and family and those you love.
4. It’s Tax Deductible (sort of). Ok, this one is a little bit of a stretch, but when you volunteer somewhere, various expenses are tax deductible (like transportation to and from the site.) This site details some valuable information about what is tax deductible when volunteering.
5. When You Volunteer You Don’t Have to Give Money. I like to give money to organizations that I care about, but frankly, there are just too many to go around. So, volunteering is a great way to ease the strain on my pocketbook, and give time instead of dollars.

Giving money is a great thing to do this time of year. But, it’s just as important to give time as it is to shell out those dollars. When you donate your time to an organization those you are helping will benefit, and it will help your wallet.

So, just get off your ass and do something this season. It’s easier than you might think. And far more rewarding.

If you had to pay 5 cents for a bag would you bring your own or carry your items bag-less instead?

If you shop at Ikea, you will now be paying for using a bag. I went this last weekend and was pleased to see their new policy of charging 5 cents per bag. (I chose to not buy any bags, bring things to the car in the cart, and find a stray bag in the car to bag them in).

The first time I went grocery shopping while studying abroad I was completely shocked to find out that I had to PAY FOR a plain plastic grocery bag. It is this way over most of eastern-Europe. Granted, their grocery bags were nicer than those we get in the U.S, but still, I couldn’t believe that they would charge you for this.

Then it dawned on me. It’s a good thing when businesses charge for bags. Why? Because fewer bags will be used resulting in less waste. Plastic bags are terrible for the environment. According to this article they take 1000 years to break down (and I can’t imagine all the chemicals that leach into the ground with them. Moreover, we end up paying for the cost of the bags in the products we buy.

While abroad I learned to carry an extra bag with me wherever I go. That way, I would never have to pay for bags. (Occasionally I would forget and cough up the pennies, but for the most part it became a habit to bring a bag with me.)

I hope other companies adopt this policy and start charging for bags. It would be slightly annoying at first, but in the long run we would all be better off.

Electricity is expensive, and little things, such as light bulbs, can make a huge difference in your bill. Well, how about your coffee maker?

It turns out that your coffee maker may be costing you a lot of money. I got an email from a friend of a friend of a friend of a friend (you know the deal) that detailed this out. (Their focus was actually on saving the environment, but saving the environment can save money!) It looks like the original email was written by EcoPrint:

“We had been keeping a drip coffee maker on nearly 4 hours per day, continuing to warm the coffee made first thing in the morning. A quick check of its consumer information label showed it using over 1000 watts of electricity per hour—the equivalent of ten 100-watt bulbs! It seemed reasonable to offer employees a hot cup of coffee when they wanted one, but what was the environmental cost? So, we calculated: 4 hours/day x 250 workdays/year x 1,000 watts/hour = 1,000 Kilowatt-hours per year. Whoa!

That translates to 1,200 lbs of CO2 emitted [but they use fan power electricity] and about $140 per year added to our electric bill.

The alternative: A Thermal Carafe coffee maker. Coffee drips into a well-insulated carafe that stays hot for hours. Once finished brewing, the appliance simply turns itself off! This is resulting in a 97% energy savings from that one appliance each year, because an insulated carafe needs no constant heat source to stay warm. These coffee makers can be purchased for between $50 to $150 (easily recouped with the first year’s energy savings). “

Hopefully you don’t leave your coffee pot on for four hours at home, but maybe you do at work. Either way, it shows how something so seemingly insignificant can make an enormous impact. A quick check at Amazon.com showed that you can buy one for as little as $40.

We had a lot of great posts in this week’s Festival of Frugality. I was surprised at the number of submissions that were somehow related to food. So, grab a spoon and dig in!

Editor’s Picks

Golbguru presents Motivation For Frugality - It Is Not Always About The Money posted at Money, Matter, and More Musings. This is a great article about what motivates you to be frugal. I enjoyed this article as a friendly reminder of why I’m saving now.< p/>

FMF presents Save Money on a Wedding by Renting a Wedding Cake posted at Free Money Finance. I love this piece of advice just because it’s so creative! (I don’t think I would ever actually do it though…)

Trent Hamm presents The Bulk Buying Debate posted at The Simple Dollar. A good post detailing post the positives and negatives of buying in bulk.

Valerie S. Johnson presents 83 Things You Can Do With a Penny posted at SavingAdvice.com Blog. I really enjoyed this article. However, if you have enough pennies to do all 83 things, how ’bout you just wait until you get 17 more and then go to the bank and get a dollar?

K T Cat presents Why a Budget Matters posted at The Scratching Post. I like this post because in the end, KT Cat made the frugal decision and not the fun one.

Money for Military presents Extreme Saver - Socks Edition posted at Money for Military. Saving money on socks. Definitely not something I’ve thought about before– but I like the creativity.

Silicon Valley Blogger presents Cheap Ways To Learn And Feed Your Brain posted at The Digerati Life. A list of 10 ways to educate yourself on the cheap.

Sagar Satapathy presents How To: Stop Receiving Credit Card Offers posted at Credit Card Lowdown. I really enjoyed the final piece of advice. I may actually try just mailing empty envelopes back… If nothing else it supports the postal service!

Food-Related Posts

Dean presents Simple Way to Save a Ton of Money on Food - Create a Weekly Menu posted at Mr. Cheap Stuff Online Coupons. Great discussion of making a weekly menu as a way to save money on food.

mapgirl presents Stupid Wal-Mart Cake: or How to Have a Happy Cake! posted at Mapgirl’s Fiscal Challenge. I think half the fun of food is making it. I wholeheartedly agree with mapgirl here.

There are a a few good tips in here about making meals at home a little more glamourous. PiggyBank Raider presents Almost Restaurant Meals At Home posted at PiggyBank Raid.

Brett McKay presents Freeganism: Shopping For Free From Your Local Dumpster posted at The Frugal Law Student. Dumpster diving for food? Not something I’ll start doing.

Kelly Bejelly presents A Girl Worth Saving: Hi Ho, It’s the savings life for me posted at A Girl Worth Saving. This post made me wish I lived near a “Grocery Outlet”.

Stephanie presents Pick Your Own Strawberries posted at Stop the Ride!. I enjoy pick-your-own just for the experience.

Joe Caterisano presents how to shop for groceries posted at Penny Pinching. This is about how to save money on groceries by making a list.

Everything Else

An excellent discussion of looking at those around us and how they shape of view of money. The Happy Rock presents Friends Matter : Social Networks Shape Our Perception posted at The Happy Rock.
Boomie presents Start Small. Finish Big. posted at The Wastrel Show.

Nina presents Using Cash in a Cashless World posted at Queercents. The Envelope Method. It’s truly a classic.

The Free Geek presents 22 Things You Didn’t Know You Could Get for Free posted at Free Geekery. There are a few ideas I hadn’t seen in this list: like the free CPR courses.

Jimmy Atkinson presents Are You Addicted to Borrowing Money? posted at Ask the Advisor. This is a good way to know if you are in trouble because you borrow too much money.

Linsey Knerl presents Living Without Air-Conditioning Can Save Big Bucks This Summer posted at WB Frugality. Living without the AC is a great way to save money, and if you can really save $150/month maybe it is worth it.

Melanie Rimmer presents How to Make a Lacewing Shelter. (Don’t know what one is? I didn’t until after I read the post.)

Frugal babe reminds us that it’s ok to Spend a Little Now and Then

R.Pettinger presents How to Pay Off Your Mortgage Early posted at Mortgage Blog. There are 7 tips here about how to pay off your mortgage early.

Steve faber presents - How to Save a Bundle on Your Home Owner’s Insurance posted at Debt Free. I think the #6 piece of advice is the best one there is!

Sunny presents Dandelions and Daydreams: Good Things Come to those who Procrastinate posted at Dandelions and Daydreams. I’ve gotten a number of pieces of furniture for free on the street curbs of DC. It’s really quite amazing all of the stuff that’s out there.

FFB presents Baby registry posted at Family Finance Blog. Back to the Basics. I like it. This is what frugality is all about.

Madeleine Begun Kane presents Married To Money posted at Mad Kane’s Humor . A cute little limerick

A reminder about the high costs of driving is always practical this time of year. Super Saver presents Consider The Cost Of Driving posted at My Wealth Builder.

Warren Wong presents Why Not To Drive posted at Personal Development for INTJs. Another reminder about why not to drive– by a fellow INTJ.

deputyheadmistress presents Plant Propagation posted at The Common Room. Growing flowers is kind of like growing money. Start with some and with care you can make more.

Aaron Wakling presents Virtual Prepaid Credit Cards posted at The Credit & Credit Card Blog.

TV Frugal Momma presents Watch TV shows on your computer for free posted at A Momma and the Boys Living on a Budget. During the school year if I missed Grey’s because of class I would always catch it later online. So I enjoyed this piece.

Thomas Humes presents Millionaire Mind - Think Like A Millionaire posted at Wealth Building World. This reads a little bit like “The Secret,” (well, I haven’t actually read the Secret, but it’s similar). Thinking like a millionaire is an interesting concept.

Edith Yeung presents 53 Ways to Make Money on the Internet posted at Edith Yeung.Com: Dream. Think. Act. A comprehensive way to make money on the internet.

Tushar presents Getting the best deal on Airfares posted at Life of a Resident Alien…. Here are some interesting tips about traveling; but none I’ve never heard before.

Allen Taylor presents Making Big Money By Looking At The Seasons Of Investment posted at Investing World Today. “Weather” or not you believe this piece of investment advice is up to you.

FitBuff presents FitBuff.com’s Total Mind and Body Fitness Blog » Blog Archive » How to Take Advantage of the Stock Market’s Summer Slump posted at FitBuff.com’s Total Mind and Body Fitness Blog. Another mention of “seasons” and the market. Strange, no?

KRG presents My State Failed High School Personal Finance Curriculum, How About Your State? posted at FILAM PERSONAL FINANCE. We were required to learn some personal finance in High School and Middle School. In fact, it was a millionaire who came in and spoke to our class about the power of investing at a young age who inspired me to buy mutual funds.

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Ask the Advisor put together a list of 17 Important Financial Tips for Women.  It’s a great comprehensive list.

The one tip I would add is “Take Care of Yourself.”  So many women get married or have a partner that they believe they can count on for the rest of their lives.  The sad truth is far too many marriages end in divorce.  It is crucial that every woman have her own savings and retirement funds, so if something should ever happen, you can take care of yourself.

This week we took the dog to the vet because we thought she was beginning to get arthritis (she’s 12) because of some trouble she’s had walking. To make a long story a little shorter—the vet found some swelling in a lymph node and wanted to run blood tests because leukemia can be the cause of the swelling and the weakness in her legs.

Well, they ran the blood work and it turns out that she doesn’t have leukemia, and the swelling was just a benign fatty tissue. But, they also did x-rays to find out why she’s been limping. They didn’t find anything there either.

My adorable dog got a clean bill of health after much worrying; but all of this cost us over $550. Thank goodness for that emergency fund!

If you don’t have an emergency fund, this post about thinking about emergency funds as insurance might help convince you (and there are some good links at the bottom.)

I’ve got a dilemma- we are moving in just under a month and in preparing for the move across town I am updating our renter’s insurance. I am down to a choice between two companies—USAA and State Farm.

For the last two years we have used State Farm Insurance and paid about $160/year for a $26,000 policy with a $500 deductible. Before signing up with State Farm and renewing last year I also got quotes from USAA, my auto insurance provider. The quote from USAA for almost the exact same policy (except USAA covers flooding and State Farm doesn’t—not a concern for us) was about $30 more expensive—which is roughly 20%. Thus, we’ve used State Farm the past two years.

I got new quotes today and this time USAA is about $30 cheaper. My first thought was, well, we’ll go with USAA. BUT, here’s the catch. This tax season I got free tax software ($112 worth) through State Farm!

So, I’m torn. I like USAA more because:

1. They have the most outstanding customer service that I’ve ever experienced and because
2. They return their profits to the customers at the end of the year. (Like last year, we got a $35 check back from our auto insurance premiums. You can read more about it on the Wikipedia entry.)
3. And they’re simply a good company.
4. And the renter’s insurance is now cheaper.

However, if State Farm were to give me free tax software again next year then it would make their renter’s insurance policy a better deal.

So, do I go with what is outright less expensive and the company I feel more loyalty towards? Or do I pay $30 more in hopes that I’ll get the $100+ worth of free tax software next winter?

What would you do?

Lately I’ve been experimenting with ways to make some of my favorite foods more cheaply. One snack I particularly enjoy is chips and guacamole. However, I don’t eat chips frequently enough to justify buying an entire bag. (Plus, they’re just not very good for you.)

Thus, I’ve started making my own homemade tortilla chips. It’s very simple, and they are actually far tastier than packaged chips. And to top it all off– it’s more economical than buying chips.

Here’s the recipe:

1-3 tortillas (1.5 per person is a good amount)

.5 Tablespoons Olive Oil

dash salt (optional)

Preheat oven to 375 degrees Fahrenheit. Cut the tortillas up into chip size pieces using a knife or pizza cutter. Pour Olive Oil onto cookie sheet and spread around using a brush or paper towel. (Needs to only be very lightly coated). Spread tortilla pieces evenly (one level) over cookie sheet. Lightly salt (if desired- I usually don’t.) Bake at 375 until lightly brown 5-8 mins. Then, flip each piece over and bake for another 3-5 mins. Serve warm or at room temperature.

You can substitute wheat tortillas or the flavored tortillas for regular ones. Also, note that tortillas keep for a very long time in the freezer.

Enjoy!

I’ve been thinking lately that Personal Finance Bloggers must be control freaks. Who else would spend so much time thinking about money? Who else would bother to create elaborate budgets? Who else would meticulously count every cent they earn, spend, and save? Who else would not only do these things, but then write about them?

Yes, I think Personal Finance bloggers must be control freaks. I know that I’m a control freak. Once, I was talking to a pilot about how I don’t like flying and he said, “Well, you must like to be in control of things. Because I find that most people who don’t like flying don’t like it because they can’t control (or even see) what is going on.” I just laughed because it was so true. Better yet, it’s actually helped me be less afraid of flying because I know why I’m scared and I’m able to relinquish control of the situation.

Being a control freak when it comes to money can be both a good and bad thing. It’s good because it helps us to “keep control of our finances” and avoid spending too much. As control freaks we know where are money is going and how to keep it going to the “right” places. Generally, we control freaks have our finances figured out.

But, we also worry and think more about money than the average non-control freak. In doing this we spend less time doing and thinking about the things we care about.

Recently, someone very dear to me called me out on my control freak-ness when it comes to money. Something to the effect of “Who cares if we go $40 over our budget for dining out this month? We can afford it and it’s a special occasion. So why be cheap?” This really got me thinking. Is it worth it to be so concerned about money?

I’m in the fortunate enough position where if something tragic happened I would be able to manage for a few months. (And I’m sure, if it were that tragic, with the help of friends and family I could make do much longer than that.) So, why should I be so concerned about money? Isn’t it better to enjoy my todays, so long as it doesn’t dramatically impact my tomorrows?