My Favorite Picks From the Festival of Frugality #166

Winter is coming to an end at Student Scrooge, the host of the Festival of Frugality #166. Thanks to the host for putting together a great mix of frugal articles.

Thanks for including my post in the lineup: (The Frugal Duchess shares some suggestions on how best to put your tax refund to work).

Here are a few of my favorite picks from the latest Festival of Frugality:

• From Pimp Your Finances: five everyday businesses that trick you


• From Frugal Homemaker Plus: five inexpensive kitchen tools that save her money.


• From Find Financial Freedom: the story of a man who squeezes every dollar out of his gym membership


• From Modern Gal: what it should mean to have frugal priorities

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Tales From the Vault: 11 Ways to Cut Grocery Bills

Do coupons really work? Some shoppers swear by coupons; others steer away from coupons. In this week's Tales from the Vault*, I present a list of great tips for cutting food bills. This vintage post is followed by a 2009 update.

"Avoid store fake-outs," is one of 11 money-saving tips for grocery shoppers in the Aug/Sept. issue of Shop Smart, a publication from Consumers Union/Consumers Report. Here's a summary:

1. Shop at cheap outlets: The stores with the lowest prices include: "Aldi, Costco, Market Basket, Slater Bros., Shoppers Food Warehouse, Trader Joe's and Walmart." The downside: fewer choices at stores like Trader Joe's and Aldi or shoppers must make bulk purchases at Costco.

2. Be wary of circulars: Featured products in circulars often see a spike of up to 500 percent in sales volume. So stores like to highlight lots of items in their weekly circulars. The catch, says Shop Smart: "Not all items in circulars are on sale [at a discount]."

3. Watch product placement: ("Avoid store fake-outs.") Look out for products placed in bins at the end of shopping lanes, in "island displays," or in the middle tier of a shelving unit. Those eye-catching locations typically contain higher-priced goods.

4. Ignore colors: Marketers play head games with color. The concept: certain colors are more apt to gain your attention. So play your own games with the marketing gurus and ignore their color codes.

5. Cut your own fruit/Slice your own cheese: Don't pay extra for pre-cut, pre-frozen, pre-sliced fruits and cheeses. Slices of Jarlsberg cheese, for example, were priced at $7.99 per pound at a deli counter, compared to $3.99 per pound for a block. Likewise,the shoppers at the magazine found a chilled 16-oz beverage for $1.19, but the same bottle was 50 cents cheaper when it was stored warm on a shelf.

6. Buy store brands: The quality of store-brands is often comparable to name brands and the price can be 50 percent cheaper.

7. Use price guarantees: Many chains or stores will match competitors' prices on promotions and sales.

8. Shop alone: You may spend more if you shop with your kids or your spouse.

9. Skip the impulse purchases: Make a list and stick with it.

10. Use store cards: Many stores offer frequent shopper cards, which entitle you to different perks, including unadvertised specials.

11. Check out the scanners: 70 percent of the participants in survey reported finding mistakes made in the checkout line.

*This piece orginally ran on August 30, 2007.

Here's my 2009 update: The strategies above still make lots of sense to me. But my biggest money-saving tips have become (# 1) organization and (#2) healthier eating. When I'm organized, I create a disciplined shopping plan that bypasses impulsive purchases, duplication and waste.

A commitment to healthier food choices means that I spend less on snacks, junk food, processed foods and soda. Processed foods and snacks are expensive and could contribute to long-term health problems that could be costly in the long run.

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5 Things to Do When You Get Bored With Being Frugal

Turn off the lights. Check the receipt. Clip the coupons. And so on....Being frugal can get old and boring after a bit.

It's like adding 1 + 1. The answer is simple. Frugal living boils down to one principal: Save more than you make, and the rest is just commentary.

But boredom is dangerous. When I get bored with being thrifty, it's easier to fall of the thrift wagon. Here's how I keep frugal living real and fresh.


1. Pay Attention. When I'm fully engaged --really connected to the here-and-now -- I'm constantly learning and acquiring new insights. When I look for frugal lessons and metaphors on bus rides or radio commercials, the creative spark prompts me to save more money.

2. Check Financial Statements: Reviewing bank statement provides a reality check. If the account looks good, I'm encouraged and energized. If the account is anemic, I've scared myself out of a few frivolous shopping trips.

3. Call Frugal Friends: There are certain friends -- online and in-person -- who really inspire me to save. A conversation with them is like a booster shot.

4. Review Goals: A periodic review of financial and personal goals, usually provides fuel for another savings drive. I am instantly reminded of my plans to build an emergency fund, college savings accounts, a retirement nest egg and even an account for vacations.

5. Invest in Small Treats: Well-timed luxuries provide safeguards against binge spending. For example, my almost daily servings of organic blueberries fills me with a sense of wealth and well-being, and those feelings make me less likely to binge spend. Consider this post: Why Organic Blueberries Make Me Feel Rich



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How I Use E-mail to Get Free Facials & Other Stuff & Services

My e-mail account scores freebies that I actually use. On a very selective basis, I have given my e-mail address to a few of my favorite stores and have scored free products and services that I actually use.

Over the last six months, one of my favorite stores, Origins.com has sent promotional materials offering free in-store facials, 25-percent-off discount specials, product samples and (my least favorite) buy-something-get-a-free-gift offers. I like Origins skincare products because many of the items are certified organic products, paraben-free and effective. Of course, I also like my homemade spa products, but I have also been very satisfied with the cosmetics and personal care products at Origins.

Likewise, friends have enjoyed the perks of preferred customer status at various clothing stores, including Loehmann's. Through standard mail or e-mail, friends have received advanced notice of sales and extra coupons, which have translated into real savings.

Here's my strategy:

1) Do Homework: Identify favorite stores and companies. Check the privacy policy. Avoid vendors who will sell your e-mail account.

2) Consider Alternative Accounts: If you're reluctant to give up your private e-mail account to a store or vendor, consider establishing a separate e-mail account for subscriptions, stores, e-flyers. Gmail, hot mail and yahoo are some of the free alternatives for additional accounts.

3) Open and Read: Deadlines will pass; offers will expire if you don't open your mail.

4) Be Smart: A deal is not a deal if a purchase involves items that you don't really need or like.
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The Cost of Delay: Don't Put Off The College Savings Plan

Late-grade penalty flashback: I recently registered my children in a state-run prepaid college savings plan. And I am feeling the sting of delay and regret. There's a financial penalty for procrastination.

The delayed savings penalty feels like a tardy-grade penalty. As a student, I was docked points when I turned in late term papers. For example, an essay that might have earned a 95 (a solid A) would have been knocked down to an 85 (a humble B) because of tardiness. Ouch.

That's how I feel about the recent enrollment in the college plan for my three kids. Here are the approximate numbers for a plan that involves pre-paid tuition for two years of community college, followed by two years of a state university or college:

• Child #1 (age 16): Monthly fee: about $600
• Child #2 (age 14): Monthly fee: about $240
• Child #3 (age 11): Monthly fee: about $120

As the numbers indicate, the monthly college savings bite is much smaller when you start earlier. A monthly college savings bill of $120 translates into only $30 a week and can slip under the financial radar with minimal pain. But $600 is harder to swallow and difficult to digest each month!

For the same plan , a parent registering a newborn would pay about $82 a month or roughly $20 a week. Of course, I am grateful that my children are now enrolled in a pre-paid tuition plan, and I am grateful for the financial assistance my parents will provide. But if you have school-age children, I urge you to start saving early.

Mimi Whitefield, a Miami Herald writer, recently wrote an excellent story about financing education: A mom offers practical tips on paying for college

Here's another article from College Board: 529 Prepaid College Tuition Plans Freeze Costs at Today's Rates

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Monday Roundup: Links I Liked

From planning weddings to budget priorities, here are a few links that caught my eye this week:

From Wise Bread: Cheap Decorating: Three Simple Hacks for Style on a Dime


From My Two Dollars: Do You Cut Coupons? And If So, Where Do You Find Them?

From Get Rich Slowly: Ask the Readers: How to Prioritize Savings Goals?

From Queer Cents: Wedding on a Budget: Should You Hire a Wedding Planner?

From Saving Money Ideas: Book Giveaway Links

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Painless Ways to Save $50 a Day From Kiplinger's

This guest post from Kiplinger's Personal Finance caught my attention: "How can you save $50 a day—and feel no pain?

From heating to haircuts, food to flights, the March issue of Kiplinger’s Personal Finance has found ways to trim costs, delivering big gains with little pain. Kiplinger’s 50+ smart money moves, totaling $18,250 per year in savings, include:

Boost Your Deductibles. Increasing the deductibles on your comprehensive and collision auto coverage from $500 to $1,000, or even $2,500, can reduce your premiums by 12% to 18%. ANNUAL SAVINGS: $648

Install a Smart Thermostat. Why heat or cool your home when you don’t need to? With a programmable thermostat, you can put your temperature preferences on autopilot.
ANNUAL SAVINGS: $180

Master Tickets. Online reseller StubHub.com often beats prices on TicketMaster.com and TicketsNow.com, especially for games that season-ticket holders want to unload. For instance, best priced tickets to a New York Knicks vs. New Jersey Nets game run $91 on StubHub—while comparable seats at Ticketmaster are $196.
ANNUAL SAVINGS: $315

Belly Up to the Bar. You can eat well at a fraction of the price if you stick to the bar menu—and we’re not just talking wings. For example, at Morton’s Steakhouse, a New York strip steak entrée runs $86 compared to the bar’s petite filet mignon sandwiches at $30.
ANNUAL SAVINGS: $410

Lose the Locks. Salons charge $90 or more to trim women’s tresses. Dropping in at a beauty school such as Paul Mitchell’s with a stylist-in-training chops that cost to $17.
ANNUAL SAVINGS: $292

Get Free Checking. Brick-and-mortar banks charge an average fee of $12 per month in checking accounts and require an average minimum balance of $3,500 to avoid it. With an online bank such as Salem Five Bank, pay no monthly fees and earn 2.75%.
ANNUAL SAVINGS: $144

Travel Last-Minute. Whet your wanderlust and save big by booking an impromptu, package-deal vacation on LastMinute.com. Reserved a week or two before departure, a trip for two from New York to Amsterdam costs $2,000—compared to booking the same trip several months in advance at $2,500.
ANNUAL SAVINGS: $500

Switch Supermarkets. Six-word strategy for saving on food: Get in car. Drive to Costco. Kiplinger’s compared prices on 37 staples at Costco, Safeway and Whole Foods—and found a substantial price discrepancy (even factoring in Costco’s $50 annual membership fee).
ANNUAL SAVINGS: $1,790

Swap Sitting Services. Round up another family or two with cabin fever and take turns baby-sitting the kids. If you go out for four hours every month, paying a sitter $10 per hour, you can save $40 per month.
ANNUAL SAVINGS: $480 "

Here's a link to the full article.
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I'm Pissed. Partisan Politics: Drilling a Hole in the Boat

Partisan politicians should work for tips in a restaurant. That's because if our government and politics worked like a corporation, a restaurant or even a health spa, somebody -- a lot of short-sighted players -- would be getting pink sheets, without unemployment benefits. And that scenario fires me up.

This is not a political rant. This is about my money, and I'm not getting my money's worth from some congressional leaders. With their eyes on 2012 or hard-line, party-line positions, they're trying to drill holes in the federal boat. The idea: if the stimulus boat sinks, they can run to the rescue four years later and play hero. But that Rush to create failure-and-rescue scenarios ignores two major realities:

1) Time Factor: There's no time for posturing or politicking. The global financial crisis demands solutions and intellectually honest debates. Old-school partisan politics deserve failing grades in the new economy.

2) Same Boat People: There's a famous story about a boater who decides to drill a hole under his seat. The rest of the boaters become upset and the driller does not understand why. In his ill-planned Rush to drill a hole under his seat, he doesn't understand that he's sinking the entire boat. That's the classic version of the story.

In 2009, the storyline goes like this: Resentful drillers decide to create holes under their opponents seats. Their implied logic: Why should the opposing party get credit for successfully riding out the financial storm? Let's drill holes under their seats, pray for failure, so we can rush in and play savior? That selfish logic makes me want to hand out pink sheets.

But if Congress and politics worked like a corporation or a restaurant, here's how the agenda would work:

• Restaurant Tips: When I was a waitress, I discovered that it was not enough to do my job. If the restaurant was dirty, if the hostess was rude or if the cook burnt the food, my tips (my money!!! my earnings!!!) suffered. A financial payoff -- great earnings for all -- didn't depend on my performance alone. What's more, it took more than just the serving staff to deliver a strong financial performance for the entire organization. It was a group effort. The entire staff had to cooperate for bottom-line financial success. Therefore, our elected officials should work in a restaurant for six months. That's the sentence I would hand out to underscore the importance of bi-partianship. Serve this dish: Get over yourself; get beyond petty party politics and do your damn job!

• Corporate Agenda: Imagine this scenario: As part of a corporate planning committee, I've suggested a slogan, a blueprint, a to-do list and even a budget. My career would get a major boost if I am crowned the corporate hero. But someone else --my boss or a co-worker -- has a different plan. I don't agree, but it's the plan that passes through the strategic committee and gets rolled out to the general public. Now what would happen to my career, if I trash-talked the plan to customers and co-workers. What if I actively sabotaged a plan launched by my boss? Quite frankly, I would be fired and perhaps lose eligibility to collect unemployment benefits. But in the spirit of partisan politics --the loyal opposition -- can try to sabotage a federal recovery agenda, hope for failure and pretend to be patriots.

• Department Politics: We all have our silos. If I work on the business desk at a newspaper, I might not care about the sports coverage as long as I am doing my job. But I would be foolish to undercut the Sport Department because I realize that revenue from the Sports Department also helps to pay my salary. When my petty concerns or obsession with office politics prompts me to sabotage colleagues in other departments, I should realize that when I drill holes in their financial plans, I drill holes in my own fiscal well-being.

Basically, if I acted like a selfish player in the office, I would be threatening my job security and my fiscal well-being. But apparently, that's how partisan politics work, where people just drill holes and pretend their creating life-saving situations.

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My Favorite Frugal Fitness Workouts

Creating a home fitness center is the latest do-it-yourself project around my home. With a mix of creativity and technology, the goal is to stretch muscles without overextending the home budget. Here's my blueprint:

Radio aerobics: Attending an aerobics class at a gym can be a challenge when time and money are in short supply. But the humble radio is a solution. With fast-paced music stations, a full-length mirror, a clock and a pair of sneakers, I've recreated some of my favorite moments from fee-based, cardio-dance classes. Basically, I dance, jump and hop around to the beat of my favorite stations. During a 30-minute, dance-at-home session, the radio provides music for my inventive cardio routines, and the commercial interruptions serve as stretching breaks between songs. I use a mirror to monitor my posture and a clock to time my workout.

Mastering stairs: In addition to purchasing second-hand fitness equipment, there are a range of frugal options for working out at home. At Target, for example, I recently found a step work-out system for $60 and a mini step-counting, electrical stair machine for $70. Both products are compact and easily stored. My frugal children, however, suggested that I just run up and down the stairs (10 flights) in our apartment building for free. I could also use the stairs at malls, office buildings and public walkways.

Jump ropes: Dollar stores and sporting goods stores sell a variety of jump ropes at affordable prices. There's even a website -- www.jumprope.com -- with facts, videos and tips about jumping rope. Wikihow.com -- an online manual of how-to tips and articles -- offers a free guide for jumping rope, with a video.

TV, video and online programs: My friend Claudia Vigil-Perez of Miami gets in shape by tuning into a fitness channel offered by a cable provider. Likewise, using our home computer, my teenage son has worked out along with a video posted on YouTube.com by a personal trainer. Public libraries, video stores and secondhand book stores also have broad workout videos in different genres.
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Good Financial Cents Hosts #165 Festival of Frugality

Good Financial Cents hosts the #165 Festival of Frugality aka The Broken Hearts Edition. Thanks to the host for reading and sorting through all of the submissions. It's an excellent festival! Thanks for including my post: How I Averted an Emotional Spending Binge: My Six-Step Program in the mix.

Here are a few of the festival posts that caught my eye:

10 Places To Look When Scrounging For Change from No Credit Needed.

10 tips for surviving a layoff from Christian Personal Finance.

Fridge Is Full At Work - Another Sign Of The Economy posted at Free From Broke.

5 Ways to Avoid Bank Fees posted at Wealth Junkies.

Reduce Spending without Sacrificing Lifestyle #3 - Take Advantage of Free posted at My Wealth Builder.


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Tales From the Vault: Cures for My Bag Lady Fears

The Vault contains some of my favorite posts and articles that have been popular with readers. This week, My Bag Lady Fears and homeless-prevention strategies are in the spotlight, with a few 2009 updates.


How I'm Conquering My Bag Lady Fears: My 10-Step Program


What keeps me up late at night? In addition to worrying about past mistakes and my kids and my work, I worry about becoming a bag lady. And I have plenty of company; a lot of women (and I imagine some men also) have secret fears about living on the streets without money or sanity.


Even Oprah and other successful women have 'fessed up to bag lady fears. My anti-bag lady strategy involves careful planning. Here's what my plans include:



1) Passive income: Basically, I'm trying to establish income sources that will work for me when I'm sleeping. This includes: publishing royalties, ad income from my blog and eventually investments. My goal: to make my money work for me.



2) Diverse client base: As a free-lance writer, I like having a diverse mix of clients. When I first started out, I was overly dependent on one large client (a trade business publication). That one client represented about 80 percent of my revenue and when that client opted to turn my post into an in-house position, I was left scrambling. Now I'm more savvy about mixing it up.


3) Get an advanced degree: I've started a masters program at a local university. It's a big crunch in terms of money and time. But I'm having a good time. Besides, I'd like to teach on a university level. I've taught teenagers, but I prefer college students. But in order to do that I need an advanced degree.


2009 Update: Due to a schedule crunch and a new full-time job, I have had to postpone participation in a graduate program. I plan to revisit this plan in the next few years.


4) Cutting back on clothes. I love clothes. I could live in Ann Taylor Loft and Anthropologie. But pretty clothes can't buy me financial security. I've been reading a great book, Why Women Earn Less by Mikelann Valterra. In the book, the author describes how she and her toddler son once encountered a fashionably dressed woman who was picking through the trash. The pretty woman was a bag lady, with great clothes but no home. Now that's one of my nightmares, namely to be very poor, very crazy and very well dressed.



5) Staying in excellent health: I'm obsessed about staying fit with yoga, exercise, meditation, fruit/veggies, vitamins and a positive attitude. I'm hoping that preventive care will save me money in the long run.


2009 Update: My new exercise routine includes working out with weights and a treadmill.
I've also cut back dramatically on junk food.



6) Give to charity: It sounds weird, but I believe that by giving away a portion of my money, I'm creating positive karma/energy that's good for me in the long run. Maybe giving just makes me feel better about myself and when I feel better about myself, I work harder & earn more. Bottom line: If I give money to bag ladies (charities, etc), maybe I won't become one.


7) Prayer: Master of the Universe, please don't let me be a bag lady!


2009 Update: That mantra remains on my lips. I also pray for the (mental, physical and emotional) health of others.


8) The friends & family network. Of course, I call them because I love them all so much. But I also know that they love me so much and they'll keep me from slipping off the curb of life. Each one, teach one. Each one, reach one.


9)Teaching my children: I figure that if I raise my kids to be responsible, loving adults then they will take care of me when I'm older. Oh yeah, and I have to teach them about financial planning.


2009 Update: My children have started to scold me when they think I am being extravagant.


10) A sense of humor. Listen, if I'm going to be a bag lady at least let me have a good time. Besides, in the here-and-now, good humor creates good karma which pays handsome dividends in the long run.


2009 Update: Humor also saves me from emotional spending binges: How I Averted an Emotional Spending Binge: My Six-Step Program Staying happy keeps me out of the stores.



**This piece originally ran on November 18, 2007










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Getting the Most From a Tax Refund: CCCS

Pay bills? Boost or start an emergency fund? Invest in a college fund? Avoid refund anticipation loans? Here are a few ideas from CCCS about putting a tax refund to work.

"Chances are you are going to get a refund when you file your 2008 income tax return. While the opportunity to borrow against your anticipated refund may be tempting, Consumer Credit Counseling Service (CCCS) of Palm Beach County and the Treasure Coast cautions against taking a loan against any refund or rebate you expect to receive.

A Refund Anticipation Loan (RAL) is a high-cost loan secured by your pending refund. They typically range from 7-14 days and interest rates can range from 50 to 500 percent or more.

"Refund Anticipation Loans are almost never good for consumers," said Jessica Cecere, president of CCCS. "They come with extremely high fees and can leave consumers with significant debt if their refund is lower than expected."

There are alternatives to Refund Anticipation Loans that can help consumers get their refund quickly without going into debt. Taxpayers can prepare and electronically file their 2008 tax returns for FREEvia www.irs.gov if their adjusted gross income is $56,000 or less. Free tax preparation help and filing is also available for low- to moderate-income consumers through the Volunteer Income Tax Assistance (VITA) program and AARP's TaxAide (www.aarp.org/taxaide).

To locate the nearest VITA site, call 1-800-829-1040. You can find a TaxAide site by typing your zip code into the website. Electronic filers who use direct deposit can expect their refund in approximately two weeks.

When you do receive your refund and your tax rebate, CCCS suggests putting the money to good use. "Tax refunds provide a great opportunity for consumers to take control of their finances," said Cecere. "If used wisely, they can help eliminate debt, serve as the foundation for a college education, or help fund the dream of homeownership."

• Contribute to or start an emergency fund. In these challenging economic times, it is more important than ever to have money set aside in the event of a job loss or other life-changing event. Most experts recommend saving three to six months of living expenses, and your tax refund is a great way to jump start this account. By placing the cash in a separate savings account or short-term CD, you're going to be less likely to use it, and it will be there to help pay your mortgage, rent, and other living expenses in the event of an emergency.
• Service the car and tackle other things on your to-do list. If you've been putting off getting an oil change, cleaning your gutters or fixing the leaky roof - now is the time to cross those things off your list. Using your tax refund to maintain your expensive possessions now could save you money in the future.

If you already have an emergency fund and your to-do list is up-to-date, here are some other wise ways to put your refund to work:
· Pay down credit cards or other high interest loans. Credit card debt is simply an unsecured loan. If you can't pay them off completely, make an extra payment or commit to paying more than the minimum each month. People struggling to make ends meet in these difficult times should make sure to utilize their tax refunds to pay for essential items, such as food and gas, before using a credit card to pay for these items.

· Continue making regular mortgage payments. Many people are juggling a variety of debt, but it's a priority to make your mortgage payment before paying other bills. Falling behind on your mortgage payment will put your house at risk, especially in states where lenders don't need to utilize the court system to foreclose on a home. A tax refund can help you continue making these payments.

· Invest in retirement. Retirement is expensive, and most consumers believe they are behind in saving adequately to ensure a comfortable retirement. Whether it's in your 401(k), IRA or Roth IRA, investing your tax refund now will help provide financial security after you retire. The sooner you start saving, the more time your money has to grow. Make retirement savings a high priority by setting goals, devising a plan and sticking to it.

· Open a 529 College Savings Plan. A college education isn't getting any cheaper. With 529 College Savings Plans, deposits made now can be withdrawn tax-free when used for higher education. Plus, some plans come with tax benefits.

Review your exemptions for next year. While getting a tax refund is nice, do you really want to lend your money to the government all year instead of putting it to work for you? Consider reviewing your exemptions so less is deducted from your paycheck. Then make arrangements for the extra money to be deposited into a savings account to help pay bills or build up your savings cushion."

source: www.cccsinc.org.

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Why Organic Blueberries Make Me Feel Rich

It's a daily routine that gives my thrifty lifestyle a boost. I have a rich breakfast of organic blueberries with vanilla yogurt spiced with walnuts, almonds and flaxseeds.

That breakfast delivers a shot of vitamins and wealth.Here's why eating organic blueberries makes me feel rich:

• The Luxury Factor: Even on sale, the purchase of organic blueberries feels like a treat. It's a luxurious investment in my health. (Blueberries are a vitamin-packed snack.) This splurge boosts my health and my wallet. Pampering myself with blueberries makes it less likely for me to splurge on larger expenses. Fueled by inner wealth (and a good breakfast), I'm less likely to spend money in a poverty-driven binge of emotional spending.

• The Health Kick: Due to the health benefits of organic blueberries, my fruit-and-nut filled breakfast feels like an investment in my long-term health. My logic: Money spent on preventive health today should (G-d willing) translate into reduced medical costs in the future.

• The Dental Bite: Blueberries are as sweet and tart as my favorite candies, but are less harmful to my teeth. Healthy living and better oral hygiene will save money in the long run.

• Sweet Dreams: Something about a pint of blueberries makes me smile. I open the plastic, wash off the fruit and instantly feel better. Of course, blueberries are not a cure-all, but the berries remind me that I don't need a lot to be happy because small things -- tiny berries -- really count.

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Divorcing Money From Emotions: A Guest Post

Money is a hot button in many relationships, including the relationship between our inner self and our public image. But how can we divorce money from emotions? That question is answered in this guest post from Women & Co

"Learn How to Develop A Better Relationship With Your Finances

Many of us may consider our relationship with our money a “love-hate” one – but it doesn’t have to be that way. Just like any other relationship in your life, in order for it to be a success, your relationship with money requires a good attitude, consistent communication and an ongoing commitment. Lisa Caputo, Founder and Chief Executive Officer, and Linda Descano, CFA, President and Chief Operating Officer of Women & Co., offer these tips to help you separate your money and emotions, and forge a healthier way to relate to your finances.

First: Assess how you feel about money. Begin by asking yourself these questions that may determine the psychological factors driving your financial behavior:

· Is money a sign of power or control in your relationships?
· Do you regularly put off budgeting? Saving? Investing?
· Do you use money to boost your self-esteem?
· Does the “rush” of making a purchase drive your spending?
· When growing up, did the subject of money or budgeting start arguments?

If you answered “yes” to any of these questions, it may be time to re-evaluate your attitude toward money and budgeting. A healthy attitude is one that enables you to indulge now and then, but also helps you prepare for unanticipated expenses that inevitably arise. Here are some key ways to get on a healthier track with your personal finances and stay in control of the relationship:

· Commit to Your Budget: Commitment is a key element when it comes to successful budgeting. Be realistic about your spending habits, and set a realistic spending limit for yourself. Monitor your budget and spending habits closely and regularly, and be prepared to change your budget to adjust to any lifestyle changes that may occur, whether these changes are for the better or worse.

· COMMUNICATE: It is critical that you discuss your financial situation with your spouse/partner, financial advisor, and most importantly, yourself. Share any feelings or experiences that may shape your attitude towards financial activity. Communicating your financial flaws and past mistakes will help you determine what will be the most effective way for you to save, spend and budget from this moment on.

· Be INVOLVED: It is important that you are involved in your finances, and if you have a spouse/partner, you both should be on the same page with creating and maintaining a financial game plan. Being involved not only means you have a plan, but that you’re also checking in with yourself and each other to monitor how it’s going, and making any adjustments along the way, as needed. Remember, knowledge is power, and by knowing all the financial facts of your life, you will have a much better sense of control.

· HONESTY is the Best Policy: Be honest and realistic about your goals, as well as the sacrifices you’ll need to make in order to meet them. Maintaining a budget and financial plan will be extremely difficult if there’s any denial or disagreement with your loved one about money. It is possible that what you consider a “want,” your other half considers a “need.” Be honest about what you want, need and expect from your budget, and understand what meeting those wants, needs and expectations will require from you."
--source: womenandco.com
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Home Economics: How to Set Priorities for Home Projects

My list of home projects resembles I-95 during rush hour. It's a mental traffic jam of ideas, thought-provoking detours and missed signals. Coping with that standstill traffic is a challenge as

I try to improve my home without overspending.
Professional space organizer Lori Abou of Vision & Espacios has a formula for setting priorities and tackling projects around the home.

• Take inventory of the kitchen. Many home projects are launched from there because that room often serves as the heart of family activities. Consider how your kitchen is used and then prioritize renovation, improvement or reorganization based on daily family patterns. For instance, if baking is important, allocate space to accommodate that activity.

• Identify your renovation personality. When it comes to home projects, some people function better by organizing their personal space before moving to common areas. If you fit that profile, begin with your home office or bedroom before tackling larger projects in other areas of the home, Abou recommends.

• Ignore price tags. When my children were younger, a sturdy plastic table with a built-in bench was the cheapest, but most valuable piece of furniture in my home. But too often, we allocate living space based on the financial value of an item, rather than the practical value. Under that flawed system, an expensive, but rarely used cheese fondue set is allocated prime cabinet space, but our everyday coffee mugs are stored haphazardly. Adjust priorities and valuations, Abou said.

• Start small; keep it steady. Go for an easy victory by reorganizing or renovating a space such as the household junk drawer. ''We can accomplish a lot by starting small,'' Abou said, adding that a daily commitment to home projects and basic maintenance cuts through roadblocks.


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I Know the Banker who Gave Away $60 million. He's a Mensch!

Leonard Abess, the Miami banker who gave away $60 million to employees, has been a boldface name in my stories over the the years. As a Miami-based beat reporter in the banking and finance sector, I have had several opportunities to interview Abess.

Last year, Abess sold a large stake in his family's bank (a well-run institution), for a ton of money. Abess recently shared some of the profits from that sale with employees and even former employees. As a result, some long-time employees received a surprise six-figure bonus from Abess.

It's traditional for reporters to remain objective about the subjects on which we write. And I've kept an objective distance from Abess as I've covered his bank. But I will say that I've often been impressed with his business ethics and his commitment to social causes. He's a mensch, and he's an organic gardener. Kudos to the employees at City National Bank of Florida. Kudos to the Abess Family!

I wrote this story last year for Florida Trend magazine about Leonard Abess:

A Surprise Sale for City National Bank

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Weekly Roundup & Frugal Blog Network

Here are a few items that have caught my eye:

From Dog Ate My Finances: After the Lay-Off

From Consumerist: Four Unexpected Situations Where Bad Credit Hurts [Credit Scores]

From My Two Dollars: Do It Yourself Debt Reduction.

From Monroe on a Budget: Detroit News: Detroit brides on a budget

From Financial Frugality: Are you an emotional shopper?

From the Frugal Blog Network:

From Frugal Babe: Frugal Babe: How Many Financial Blows Could You Withstand?

From Not Made of Money: Not Made of Money: Ways to Save on Your Water Bill

From Tight Fisted Miser: I’m On Twitter

From Almost Frugal: Frugalize Your Routine

From Frugal Zeitgeist: Good intentions and all that
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Recycled Love & Reused Cards: A Pack Rat's Frugal Love Story

A love story for pack rats: With a mountain of cards and a sluggish economy, one older couple has found a thrifty way to celebrate their romance.

As an exercise in love, they each sorted through the cards that they had exchanged and saved over the years: Imagine stacks of cherished Valentine's Day cards collected during the course of a relationship or marriage that has lasted decades. Their assignment: Find the cards that have meant the most over the years and present those cards to each other.

Why buy new cards when older editions speak volumes about commitment and enduring love? That story came from my friend Christine B. and was based on the Valentine's exchange that Christine's mom and stepfather have launched this year. The gesture was frugal and very romantic. In fact, the recycled love notes prompted Christine to ask her own husband about launching their own romantic traditions.

After reading my post about frugal Valentine's gifts, Christine called to share that story with me.

Thanks Christine.

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How I Averted an Emotional Spending Binge: My Six-Step Program

It was a blue Monday and I was headed for a blue-light special driven by emotional spending. Fortunately, I detoured from the frivolous spending path with this six-point strategy.

• Face check: As I was toting a pair of brown Nine West shoes -- reduced to $10 -- I caught a glimpse of myself in the mirror. I was not a happy shopper. My eyes were glazed with dollar signs and my energy was as sluggish as the economy. The sight of my tired face was a wake-up call. That reality check had me bouncing out of the shoe aisle.

• Thrift-store counter-attack: As I pushed through rows and rows of marked-down items, I realized that none of the shirts or skirts impressed me. In fact, if those same items were on sale at a thrift store, I would have turned up my nose. My new anti-shopping query: Would I buy this same item at a thrift store?

• Need-based questions: Of course, I evaluated each item with the classic question: Do I need this item or do I just want it? But I also started to think of what I really needed in my life, and that wish list does not include new clothes.

• Billable hours: Utility, medical, food and education bills flashed through my eyes as I eyed the flashy merchandise. How many hours would I have to work to pay for a shopping spree? The numbers did not work for me.

• The Children's Network: After all my talk about tough economic times and sacrifice, how would I have justified bringing a shopping bag of impulse purchases into my home? What would my children have learned from that example?

• Re-directed energy: From the emotional-spending department, I pushed the cart into the emotional debt aisle. I owed baby gifts to two friends and I found cute outfits for $4.88 each. And I located a discounted copy of a Twilight book (number #3 in the series) to replace the copy that my kids had borrowed from a friend, but lost. I'll collect the replacement tab from the kids, and I'll wrap the baby gifts.

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How Much Diversification is Enough? My Retirement Fund Question

Given the spate of investment fraud, mismanagement and tanking market values, the issue of asset diversification has caught my attention. Basically, how much diversification is enough? I don't think that there is an easy answer to that question.

Currently, 100 percent of my retirement funds are in a well-known hybrid fund with built-in diversity. But I think I should call the investment adviser and re-allocate my small pool of assets. So far I've been lucky: My fund of choice outperformed the Dow Jones Industrial Average in 2008. The fund was down about 31 percent, versus a decline of about 42 percent in the Blue Chip index.

But in addition to the hybrid fund, I think that I should also consider a fixed-income fund and a cash-equivalent account. Here are my questions:

• How much diversity is enough?
• Should all funds be housed with a single investment firm?
• If one investment firm offers funds from a broad mix of third-party mutual funds, is it best to select different providers for each asset class?
• What about global diversification?

Those are a few of the questions, I plan to ask market professionals over the next few weeks. I don't plan to retire for years. In fact, I'll be happier if I keep working, but it's good to keep planning.

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Sort, Purge & Cash Out: A Frugal Guide to Organization

When household possessions push against the borders of our homes, the results lead to a crunch of space, time and money. But space-saving solutions can generate cash and restore sanity. That's the verdict from Gia Lipa, author of TheDigeratiLife.com.

''I was born a pack rat,'' she told me. "I come from a long line of pack rats.''
She developed a system for sorting, selling and storing household items. A clutter-free environment maximizes improves the quality of life, Lipa says.

Here's how she does it:

• Start a value system. Measure the value of your space against the value (emotional, financial or practical) of your possessions.

• Accelerate the sort-and-purge process by creating four buckets: save, sell, donate and toss. Periodically, place your possessions in one of those categories and take action.

• Sell castoffs annually through online flea markets, yard sales, consignment shops or classified advertisements. The venue is less important than the timing.

• Save space by using unconventional storage areas, according to Millie Kay Grand, a contributor at TheSmarterWallet.com. For example, in her home, a footlocker serves as a coffee table and storage for comic books.

• Recycle and reuse. Find new uses for traditional household items. A shoe bag, for instance, can be used to store accessories, Grand says.
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Pulling Financial Weeds From a Neighbor's Gardens

A stunning butterfly garden has been destroyed, and I am annoyed. But my anger is misplaced and inappropriate. The ruptured garden is not my business, and I have my own weeds to pull out. Those are some of the personal and finance lessons, I learned today while walking through my neighborhood.

Here's the story: During a late afternoon walk, I strolled through the area as the sun turned into a pink streak in the sky. My meditation was interrupted by a denuded garden that a friend used to own.

We -- the neighbor, the garden and I -- have a shared history. For the last 15 years, I've walked by her home with admiration for her sprawling, English-style butterfly garden. Pushing baby carriages, holding toddlers and chasing teens, I have watched my friend -- and her daughter --work hours and hours on their garden.

Recently, they sold their home, and the new owner has ripped up a garden in which I had an emotional stake. I was appalled and angered before common sense took over.

Here's what I learned about money and life:

• Find your value system: After ripping up the exotic, well-tended garden, the new owners are going for a sterile manicured look. They're not wrong; their value system is just different than mine. Growing up in the suburbs, I knew families who spent large sums on pools, cars and clothes. My parents placed greater value on family vacations, cultural trips and education. Other people heavily invest in antiques or arts. Some spend fortunes on rare books. I need to be clear about my value system and respect the values of others. Financially and personally, it's important to identify the values and concepts that really matter; then we should invest our time and money accordingly.

• Don't covet: Yeah, yeah -- One of the 10 commandments makes a stand against coveting a neighbor's property, spouse or other connections. But even if you take a non-religious stance, that commandment makes an interesting point. Life is too short to waste time worrying about OPP (other people's property). It's so counter-productive to sit on a fence analyzing someone else's choices or lifestyle. It's not just a matter of coveting, but it's a time management issue. My time would be better spent working on my own garden or crunching numbers for the home budget or watching a movie with one of my kids.

• Smell the gardenias. The butterfly garden used to have amazing flowers (Passionfruit and White Gardenias) with fragrances that scented the air for a half-block away. In hindsight, I wish I had spent more time appreciating the garden, the sights and the scents while it was still there. Financially and personally, I've planted seeds of discontent in my own life by failing to be fully engaged in the here and now. When I'm more mindful about spending, saving and living, I receive higher dividends from my personal and financial investments.

• Weed out ingratitude: My friend, the gardener, used to provide great tips about gardening and child rearing. She expressed thoughtful admiration about some of my newspaper columns. Over the years, we've had conversations that meant a lot. When I'm fully honest with myself, I understand that my annoyance with the new owners is driven by a sense of loss. I miss the gardener --with her canvass gloves and wide-brimmed hat -- (Picture Katherine Hepburn). I am sad that she and her daughter are no longer a part of my day-to-day routines. Actually, I have a list of people, opportunities or moments that are no longer part of my life. Regret tastes like a cold metallic spoon in my mouth. At times, a sense of loss can be paralyzing. But it's like the stock market, it does little good to whine about yesterday's losses in the Dow Jones Industrial Average. I can't change the poorly planned or ill-fated investment decisions or personal choices that I made years ago. But I can appreciate the excellent value of my current portfolio. And I can be a better gardener by pulling out overgrown weeds and planting new seeds.

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Should Sasha & Malia Get a Raise? Kiplinger's Lobbies for Higher White House Allowances

As the parent of three children, I am very interested in this piece from Kiplinger's about allowance rates for the Obama girls:

"Sasha and Malia, can we talk about your allowance of $1 each a week? It seems a little low.

In an article just posted on Kiplinger.com, Janet Bodnar, Editor of Kiplinger’s Personal Finance magazine, asserts that — with all due respect — the Obama kids could use a fiscal stimulus.

What are appropriate allowance guidelines for the girls—and for other kids? Janet Bodnar offers these tips:

Allowance Amount. Sasha and Malia should receive weekly allowances equal to half their age—that's $3.50 for Sasha and $5 for Malia.

Extra Responsibilities. For this additional cash in their pocket, the kids would be expected to take on extra responsibilities with the money. For example, Sasha and Malia, your parents might ask you to pay for your own tickets or popcorn when you go to the movies with your new friends from school. Or you could buy treats and toys for the new puppy your parents promised you. Or bring your own money for souvenirs when you go on trips with Mom and Dad.

· Helping Out Around the House. Sasha and Malia are expected to make their beds, but Mom is satisfied if they "just throw a sheet over them." Getting paid for doing such chores isn’t a good idea. Kids should pitch in because their parents need help around the house—even when it's the White House.
· Simple Reminders. One problem for Sasha and Malia is that Dad sometimes forgets to give them their allowance. No surprise. All parents are forgetful at one time or another. What you need is a simple system for reminding him. Maybe he can program it into his BlackBerry. Or maybe you can set aside a certain time and place—say, every Sunday night in the Lincoln bedroom. Another family has worked out a simple system by making a booklet of construction-paper coupons that the kids could tear off and exchange for their allowance each week.
· Non-Financial Benefits. With an allowance, kids learn how to be patient and save money for something they really want. They use their own money—not someone else’s—to buy their things. In short, they take on more personal responsibility."

Check out the article in its entirety .
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Treadmill Vs. The Sweater: How I Spent a Day Without Spending

Monday was a well-spent day. Except for two household bills, I spent the day without spending money. Here's how I halted the money trail.

Limited Breakfast Menu: I had a full breakfast, but the menu was limited to the food that was already in the fridge and in the cupboard. I prepared what I owned, and the menu included: organic vanilla yogurt, blueberries, nuts and a granola bar that was a freebie from some promotion. The coffee was a frugal DIY blend, spiked with half-and-half cream and sweetened with sugar.

• Free Lunch: My willpower was still strong at noon, and I resisted the urge to buy prepared lunch goodies or even additional DIY fixings. The plate was full from a previous shopping trip.

• Treadmill vs. The Sweater: Several laps on a treadmill and nearly two miles on a stationary bike fortified my thrifty lunch hour resolve. The half-hour workout depleted the shopping drive, which meant that the cute black sweater from Ann Taylor Loft stayed in the store and out of my shopping bag.

• Public Transportation: I get around town by taking buses, trains and long walks. My metro pass -- purchased at a discount -- eliminates the daily fumble for bus and train fare.

• Automatic Door Avoidance: While waiting at the bus stop, I avoided two bakeries, one coffee shop and the automatic doors at CVS and Walgreens. I've learned my lessons from past shopping mistakes.

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Couch Potato Report: How to Create a Free Movie Night

Home alone is a great title for a movie but the concept can be a challenge when you're doing it on a Saturday night. Due to fatigue and illness, my 13-year-old son and I were housebound during a recent weekend. But we created a frugal movie night with several stay-at-home options. Here's a rundown:

Oscar preview: I spent quality time with Brad Pitt, Robert Downey Jr., Mickey Rourke, Anne Hathaway and other high-profile stars thanks to a free video package offered by Newsweek.com. The online version of the magazine offers the 2009 Oscar Roundtable video series. This multipart series features engaging conversation with various actors, who provide insights about their craft and the cinema business.

AOL video: From A to Z, AOL offers a free catalog of classic and recent television hits. My son and I checked out an episode from the original Addams Family sitcom, featuring Carolyn Jones and John Astin. We also found a few documentaries from MTV, with programs from other broadcasters.

Major networks: From news to reality television hits, most networks and cable stations post free episodes online. The schedule includes daytime dramas, evening news shows and popular sitcoms.

Podcasts: Armed with his iPod gadget, my son gave me an online tour of the video programs that are available from Apple's iTunes. New releases can be rented and downloaded for $3.99 and older titles are $2.99

Home movies: With a cellphone, digital camera or standard video camera, you can direct a movie. It's a creative option that enables you to write, direct and star on small screen productions.

Personal collections: An inventory of our home video collection uncovered titles we had overlooked. From our own stock, we created a movie marathon that featured Guess Who, The Pink Panther and Whale Rider.
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A Frugal Valentine List: 10 Ideas for Under $10

With a conflicted history of anti-Valentine's Day rants, I offer this list of frugal romance:

No-Cost or Low-Cost Gifts

1. Love Letter: E-mails are cold; store cards are artificial and text message are temporary. But letters engrave the heart and engage the emotions. Handwritten letters are rare. But a personal note --romantic or friendship -- makes the heart sing.

2. Poem: Rhymes, meters and metaphors are nice but not necessary. Forget the couplets or the sonnets. Just sketch a few words and frame them in short verses. Create a title; date the poem and sign your name.

3. Vintage announcement. Find out what happened on the exact date on which your loved one or friend was born. Conduct online research. Print out the material on nice paper or frame the information in a pretty frame.

4. Antique Jewelry: Yard sales, craft shows, thrift shops and flea markets are great sources of (frugal) one-of-a-kind vintage jewelery for men and women.

5. Potted Plants: Grow past the cut flower/bouquet stage with a few containers of potted, flowering plants. Your gift and the memory of the gift will last longer than a week. What's more, potted plants can be purchased for as low as $2 per container.

6. Create a calendar: Use the calendar function from your home PC to create a customized calendar. Flag significant dates, relationship anniversaries and birthdays. Create special holidays that reflect past occasions and future dates. Add personal photographs or clip art.

7. Launch a blog: Use one of several free online templates to create a Valentine's Blog for a loved one or friend. Upload photographs and create meaningful links: either a song or a poem.

8. Write a song: One of my favorite scenes from the Twilight series occurs when Edward writes and records beautiful song for Bella.

9. Create a food basket of favorite foods: Does your sweetheart have sweet tooth or cravings for salt-and-vinegar potato chips? Find a customized menu of treats and create a personalized basket.

10. Labor of love: Clean the house or room; wash the dishes; vacuum the car; paint a room, give the dog a bath or commit to some other chore for Valentine's Day.

related posts:

12 Non-Valentine's Day Activities


My Playlist: Frugal Love Songs for Valentine's Day


Cheap Cupid: 11 Frugal Ideas for Valentine's Day:

Why I Hate Valentine's Day: Let Me Count The Money-Draining Ways





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