Grad Money Matters: Frugal Living

Paid $258 for a Pair of Eye Glasses Inspite of Having Insurance...

... And the lesson learnt: "Never let your guard down".

Here's what happened. I have been using my current pair of eye glasses for close to two years, and it was time for a change. So I went to my doctor, had an examination and as I always do, I told the lady I wanted to go over my insurance first to get an idea of the coverage before starting to look for the glasses. I did NOT want expensive glasses.

As we were going over the insurance, I indulged myself by inquiring about the frame-less "silhouette" glasses. I have always wanted to have those, but due to my weird astigmatism prescription, making the lenses of the quality that can be directly bored into was an expensive prospect. Every time I got new glasses, I would get an estimate for the frame-less lenses, find out that my insurance did not cover it sufficiently, and choose some old boring frames. And here she was telling me that my current insurance covered 100% of the expenses for whatever-the-process-is for making the frame-less lenses. I was exhilarated.

Now, generally, when I finish discussing the insurance details with the lady, my husband and I go off on our own to look through the frames and choose one that not only fits me, but fits our budget as well. But with frame-less lenses, how much could the thin temple bars cost after all, right? So, we let the lady show us some of the "frame-less frames" that they carry. And both my husband and I liked one, so we decided to go with it. Since all it is, is a pair of metal sticks that hinges on my ears to make sure that the lenses are held correctly over my nose and there is no "frame" as such, we did not even bother to ask her how much it costs. Or for that matter how much my insurance coverage was for frames.

Happy with our purchase, we went to the register to pay. Lo and behold, the bill was for $258! Surely there must be a mistake somewhere! As I carefully went over the bill, my heart sank to find out that the frame-less "frames" cost $330 while my insurance only covered $180. So my out-of-pocket expenses was $150 for two thin 4 inch metal sticks! Add to that the co-pay, my portion of the anti-reflective coating, blah, blah and more blah, there it was - a $258 bill :( I was too embarrassed to tell her I wanted to change my mind and go for the regular frames. Or to say that I just needed the prescription, so I could go online and order the same "frame-less" frames with the anti-reflection coating and the other bells and whistles for around $50. So I quietly signed on the dotted line.

Today, my glasses arrived. I love the way they look and feel. Nevertheless, every time I put them on or take them off, I can't help but feel a slight sense of shame for having been a sucker and so grossly overpaying for them...

Sigh!

*Image Credit: Photograph by Daniel Y. Go [via Flickr Creative Commons]

If you like this article, you can bookmark it or subscribe to the feed.

10 Ways for College Students to Cut Costs where it Counts

(This is a guest post by Heather Johnson*)

There are three essential liquids that every college student needs to survive and prosper. These vital beverages are (in no particular order):

Water — The original clear stuff quenches your thirst like nothing else and helps you sustain that fit young body.

Coffee — Nothing else stimulates and sharpens a mind dulled by too little sleep or too much of everything else like a hot, strong cup of mud.

Alcohol — Whether you prefer the stuff that comes in a stein, a snifter, or a shot glass, the only way to make the whole college experience worthwhile is to enjoy an adult beverage every now and again.

During the four or five or nine years that you spend as an undergrad, you could easily spend several thousand dollars on just these three indispensables. Follow these ten simple strategies and you will never go thirsty again (and you might even have enough money left over to pay your tuition).

Water: This topic will be addressed in just a couple of points because it is so damn easy to save a ton of money by making simple changes.

Drink Tap Water: That’s it—done and done. Get a Nalgene or steal your friend’s empty nine-dollar bottle of volcanic spring water and then just fill it from the faucet. Tap water really doesn’t taste all that bad and is usually better for you than pricey bottled water because of the various minerals that are added by your friendly local government. Best of all, it’s virtually free. Carry your new best friend everywhere you go and you won’t be tempted to spend your change on soft drinks that not only cost money but are bad for you as well.

Fake Filter: If you just can’t bring yourself to drink water that’s not filtered in some way, then buy a Brita and never bother to change the filter; you’ll never notice the difference. Keep this glorified pitcher in the fridge and every sip will be cold and delicious. Make this simple adjustment from bottled water and you won’t believe all of the extra cash suddenly stuffing your pockets.

Coffee: Drastically reducing the amount of money that you spend on your daily caffeine fix is a simple task as well. Follow these couple of rules a smaller portion of your cash will end up in the Pacific Northwest.

Caffeinate Like a Towny — Track down a native and follow him to a local java house rather than following the herd of your classmates to the big chain in the student union. Find the right place and you’ll still get a great cup of joe at a significant discount.

Brew Your Own — Better yet, cut out all of the middle men and their outrageous mark-ups. Invest in your own coffee machine, buy some cheap beans, and start your day with a cup of the good stuff before you even open your front door.

Alcohol: You’re likely to spend more on beer and its brethren than water and coffee combined and this list has been constructed with that reality in mind. Here are six methods to saving money without sacrificing any fun.

Be Cheap — Once you’ve sacrificed a few decades to the workaday world and have earned that corner office, you’re welcome to all the Johnny Blue you can drink. Until then, drink your can of Natty Light and smile; the cost fits your budget and in the long run it does the job just fine.

Pre-Game — Bars and restaurants make money on their huge mark-ups. Hit up Discount Liquors on the way home from your last class and spend an hour or two on the couch before heading out.

Let Them Woo You — Local establishments will do almost anything to draw a college crowd and that is good news for you. Become a walking calendar of drink specials and hit the right spots on the right nights.

Be Flexible — Speaking of specials, don’t just seek out discounts on pitchers of Bud Light. Expand your horizons and hit up the tapas joint for half price sangria, the burrito dive for two-for-one margaritas, and the sushi bar for sake bomb Sunday. Never discriminate when it comes to cheap booze.

Brew Your Own — Just like #4 above, this will cut out all sorts of costs and inexpensive starter kits make it simple to start your own mini brewery under your bed. Plus, there are worse things than being known across campus as Mr. Beer.

Be a Hot Girl — Sorry if this last one is not a feasible option for you, but it is the one truly fail-safe way to ensure that you will never ever have to buy your own drinks. (Other than not drinking, of course, but that is not even worth mentioning).

*About the author: Heather Johnson is a freelance business, finance and credit writer, as well as a regular contributor for BusinessCreditCards.com site for comparing small business credit cards. She welcomes questions, comments, and freelancing job inquiries at her email address heatherjohnson2323@gmail.com

*Image Credit: Photograph by mre770 [via Flickr Creative Commons]

~~~oOo~~~

Best student credit cards to apply online!

~~~oOo~~~

If you like this article, you can bookmark it or subscribe to the feed.

Frugality and Hardship

I have written quite a bit on this blog about frugality. My general philosophy for these posts has been to find ways to live frugally without compromising the lifestyle significantly. In other words, try to adopt a frugal lifestyle without feeling deprived. But the problem seems to be that I have started to begin believing in this principle of “frugality without hardship” so much so that, I cannot convince myself to give up some things that I am used to, even if I want to! In other words, while I have been relatively successful in making sure I don’t give in to the desire to live a life of excess, I find I am extremely unsuccessful in giving up the little luxuries I am used to!

With the huge medical bills rolling in this month and possibly the next few months, I wanted to trim a little more fat out our fairly lean life style – at least temporarily. But as I look at the different expenses that we have, I find that we cannot bring ourselves to cut down on any of them. We have made sure not to fall for some of the indulgences most of our friends have given in to, but now that we have gotten used to our existing lifestyle, we have a lot of resistance against changing anything. We had a much more leaner lifestyle for a while when we got out of school and started attacking debt – but somehow we just can’t bring ourselves to go back to that.

Frugality without hardship is a luxury of those that want to live frugally out of choice and not out of need.
I remember reading a comment on some one’s blog (sorry I don’t remember whose) that all the talk about living frugally without hardship is a luxury of those that want to live frugally out of choice. For those have to live frugally out of need, whether to do it with or without hardship is not a choice. And that is so true. In some cases, it is just not possible to take the hardship out of the equation. But is the reverse also true – ie, if you are frugal out of choice, you cannot accept any hardships at all?

We have an inherent entitlement attitude that we deserve a decent life.
When you live a frugal life out of need, it is important to try and get out of that situation as soon as possible and a few sacrifices seem acceptable. The situation may be that you are in too much debt or have had a sudden job loss, etc. But somehow, when the frugality is no longer a need, we give in to the inherent entitlement attitude that we deserve a particular lifestyle and having to make sacrifices that compromise that lifestyle seem very difficult.

Short bursts of having to go through hardships can offer stretches of a life without hardships over a long time.
Now, in our particular case, it is not required to make those sacrifices just yet. We could go on having our cable television and eating out 1-2 times a week etc. But, if we don’t want our medical bills to turn into huge debt, we need to give up something some where. And without sacrifices in lifestyle, usually the savings goals fall victims. Instead of compromising our savings goals, it seems logical that short bursts of voluntary hardships now are better and could ensure that we stay hardship free for longer stretches.

If you are willing to go through hardships on choice, you are much better prepared to handle life’s ups and downs.
Moreover, if we can bring ourselves to give up some of our little indulgences voluntarily now, in the future if life throws bigger curve balls at us, we can survive them more easily. We can face whatever life has to offer without feeling like it is imposed on us and we don’t have a choice.

I understand that logically, we should be able to give up some of the little luxuries we are used to. It was not long back that we could not afford these little luxuries and got on by fine without them. Then why is it that I find it so hard to give them up now? Why do even small sacrifices feel like huge deprivations?

*Image credit: Photograph by davebluedevil [via Flickr]

If you like this article, you can bookmark it or subscribe to the feed.

How to Maximize the Bang for the Buck When You Buy Organic Food

At the grocery store, I have noticed that organic food in general costs about 25 – 50% more than regular items, and in some cases the mark up is more than 200%. According to the USDA certification guidelines - “Organic meat, poultry, eggs, and dairy products come from animals that are given no antibiotics or growth hormones. Organic food is produced without using most conventional pesticides; fertilizers made with synthetic ingredients or sewage sludge; bioengineering; or ionizing radiation.” For some, especially those with young children, it may seem like the benefits of using organic foods justifies the extra cost. But like everything else, it is important to look beyond the label to get the best bang for the buck. Here is some information that can help decide which organic purchases are worth the extra cost and which may not be.

Pesticide Retention
Let’s start out with the “Dirty Dozen”, a list put together by not-for-profit Environmental Working Group (EWG). This list is based on the results of nearly 43,000 tests for pesticides on produce collected by the USDA and the FDA between 2000 and 2004. This list identifies the foods and vegetables that retain the most pesticide content in them. By switching to the organic equivalents of these items you can cut down the pesticide content in your daily food intake dramatically, hence maximizing the bang for the buck of your “organics budget”.

Peaches
Apples
Sweet Bell Peppers
Celery
Nectarines
Strawberries
Cherries
Lettuce
Grapes (Imported)
Pears
Spinach
Potatoes

On the other hand, if you are buying organic Onions, Avocado, Sweet Corn (Frozen), Pineapples, Mango, Sweet Peas (Frozen), Asparagus, Kiwi, Bananas, Cabbage, Broccoli or Eggplant, you may not be getting much benefit from spending the extra dollars for going organic. The same study as above indicates that these fruits and veggies retain very few pesticides. For full information about the items that you most often buy and to determine if the additional cost for going organic is really worth it, check out this detailed article or their complete data set.

Growth Hormones
Recombinant Bovine Growth Hormone (rBGH or rBST) is a genetically engineered hormone that is injected into cows to increase milk production. Even though FDA approved the use of rBGH as safe for consumption in 1993, further studies have linked rBGH in humans to susceptibility to breast and colon cancer (Note: the results are not conclusive, though). In addition the cows treated with rBGH are more susceptible to diseases and hence likely to be treated with antibiotics, the remnants of which could be found in milk and other dairy products. Hence, spending your organic food budget on organic dairy products may be a wise decision. Here is a listing of artificial hormone-free brands listed by states.

Genetically Engineered Food
It is not quite clear if genetic/bio engineering will make the agricultural produce better or create frankenfoods. The debate rages on. If you would like to avoid the genetically engineered foods however, you might want to watch out for products containing corn, soy, canola and cotton. According to the True Food website, these four crops account for nearly 99% of the genetically engineered crop acreage in North America. As mentioned above, the USDA description of “organic” precludes the use of bioengineered ingredients, and so going organic for items that use corn, soy, canola and cotton seed can get you the best bang for the buck if you want to avoid genetically engineered food. Here is a list of brands that use/avoid genetically engineered ingredients for items ranging from baby foods to cookies to frozen dinners.

Shelf life
An informal study conducted by the authors of this MSNBC article found many organic items had much lower shelf life compared to conventional products. They used lettuce, broccoli, chicken and milk in their tests. They found that there was a significant difference, and in case of lettuce, broccoli and chicken, the organic produce went bad much sooner than the conventional produce. However, in the case of milk, they found that the organic milk had similar shelf life as regular milk. In general, when you plan your menus, make sure you use up the organic food items before you reach for the conventional groceries, to prevent wastage of those items that you have already a paid a premium for!

Understanding the labels
Finally, it is very important to understand what the labels mean when you purchase something organic. According to the USDA National Organic Program the labels can be interpreted as follows

“100% Organic”
Products labeled as “100% organic” must contain 100 percent organically produced ingredients, not counting added water and salt. Label may show the USDA organic seal and/or certifying agent seal(s).

“Organic”
Products labeled as “Organic” must contain at least 95% organic ingredients, not counting added water and salt. Also, they must not contain added sulfites. They may contain up to 5% of non-organically produced agricultural ingredients which are not commercially available in organic form. Label may show the USDA organic seal and/or certifying agent seal(s). The label may also show “X% Organic”.

“Made with organic ingredients”
For products labeled as “made with organic ingredients” the percentage of organic-only ingredients drops down to 70%. Up to 30% of the ingredients may be non-organic. The label may show the certifying agent seal(s), but NOT the USDA organic seal.

Any product with less than 70% organic ingredients may not claim to be organic and may not show the USDA or any other certifying agent seal. They can however, list individual organic ingredients used.

So to sum it up, if you have a limited budget to spend on organic items make sure you understand which items offer the best benefits by going organic. Also, to me it looks like the best bang for the buck will be to buy something with the USDA seal since it guarantees that at least 95% of the ingredients are organic and the product does not contain sulfites, which cause allergies and asthma in some people. And finally, consume organic produce soon since they are likely to have smaller shelf life.

Do you buy organic food? What are the most common items that you prefer to buy organic? What do you do to save money in your organic groceries list?

If you like this article, you can bookmark it or subscribe to the feed.

Repairs And Maintenance That Save You Money In The Long Run

(This article is part of a weekly guest column by Claire Moylan*)

When you own something, in a lot of ways it owns you: your time, your money, and your commitment to keeping it up. This is true whether what you own is a home, a car, or a computer. Whenever you decide to make a purchase, you have to realize that there are maintenance costs that come with almost every purchase. Maintenance can help lengthen the life of your purchase and thus end up saving you money. Repairs can help you avoid costly accidents and liability issues from leaving something broken. Finally, there comes a time when you have to realize that your purchase has exceeded it’s lifespan and then you must know when to let it go and buy a replacement to save money on repairs. Here are some quick tips to repair or maintain a variety of purchases.

Wardrobe

• Learn To Sew - Don’t throw a piece of clothing out if it is missing a button. Instead, learn some quick sew tips to lengthen the wear of your expensive goods.
• Buy Wash and Wear – The less you have use dry cleaning services, the more you save on maintaining your clothing.
• Invest In Classics – Of course, you do want some classics to dress up a wash and wear wardrobe. Leather jackets may cost a bit extra, but they also wear forever with good care.
• Locate A Shoe Repair Shop – Get your soles redone or a total shoe restoration. It’s usually far cheaper than buying new shoes.

Car

• Change The Oil – Changing the oil can keep your car running smoothly and prevent costly repairs.
• Change Your Air Filter – This can even improve your gas mileage.
• Inflate Your Tires – This is another great tip for getting good mileage out of your car and reducing wear and tear.
• Follow Your Manufacturer’s Maintenance Schedule – Each car comes with it’s own set of repairs that should be done at 20,000 to 60,000 miles. If you keep up to schedule, you can significantly extend the life of your car and avoid major repairs down the road.

House

• Cut Shrubs and Trees Away From House – If you keep the landscaping trimmed away from the house, there is less change it will damage the roof, the gutters, or attract squirrels and other pests.
• Clean The Gutters – You want to keep the gutters free of debris so when it rains or snows, moisture is taken away from your house and not allowed to cause damage around the foundation or on the roof.
• Caulking Doors And Windows – This is something that should be checked with the change of seasons to see if it needs to be re-caulked. It saves money on your utilities.
• Maintain Major Systems – You want to make sure your air conditioner is in proper shape as well as your furnace before the season starts. Maintaining these systems keeps them working and avoids costly repairs down the road.
• Install Working Smoke Detectors – This type of maintenance deals with preventing major liabilities in the future. Of course, most homes are required to have working smoke detectors.
• Remove Dead Limbs And Wood From Lawn – This is to keep termites from finding them and setting up shop.
• Repair Any Moisture Leaks Immediately – Whether the roof leaks or your toilet is dripping, moisture can cause excessive home damage and can be a huge expense if not repaired immediately.

Electronics/Appliances/Computers

This is one category where it sometimes pays to trash something you own, rather than repair it. Check out the prices of new equipment before you make significant expenditures to fix a problem with your electronic equipment. Other than that, here are some things that can lengthen the life of your electronics and computers:

• Get Virus Protection – No one should own a pc without buying virus protection anymore. It’s simply too risky.
• Do Regular Spyware Checks – You can download spyware detectors for free and run them regularly to keep this type of hack off your pc.
• Use A Surge Suppressor – This very inexpensive device has multiple outlets for all kinds of sensitive electronic equipment, including pcs. Use them to avoid a surge in electricity damaging your fine electronics.
• Replace Small Parts – Did your food processor container warp? Order a replacement for less than the cost of a new food processor. Just keep the information on all your appliances in one place.
• Check and Replace Batteries – It may seem a small thing, but people sometimes forget that a device uses batteries.
• Check The Cords – Sometimes cords can go bad but the equipment itself still works. Don’t forget to check any power cords or other types of cord that may have failed. Always throw out bad cords as they can pose a fire hazard.

About the author: Claire Moylan is a freelance writer specializing in ebooks and custom-tailored articles for niche websites. You can view her portfolio online or check out her constant content page for more information about her writing assignments.

Image Credit: http://www.u-look.com.au

~~~oOo~~~

Apply for credit cards with fair credit and get approved!

~~~oOo~~~

If you like this article, you can bookmark it or subscribe to the feed.

Get Rid of Unwanted Mail. It's Bad for your Wallet and Bad for the Environment

(This article is a part of the Blog Action Day that brings together 14,000+ bloggers from different walks of life in a global effort to increase awareness about environmental issues.)

In an earlier life, I would open every piece of mail I received in my mail box to look for coupons. And if I found a coupon that I liked I would be off shopping. I mean, what’s not to like about 20% discount at Bed, Bath & Beyond, right? Well, here’s what – I did not really need anything from Bed, Bath and Beyond! I was essentially being conned into spending for the purchase of an item that I didn't particularly care for. That is just one of the evil ways that junk mail can harm your wallet. And the evil it wreaks on the environment is so much worse!

How Unwanted Mail Costs you Money!

They are a source of temptation to spend money.

They add clutter and clutter can cost money.

Your tax dollars are spent to get rid of the junk mail you throw away.

Stopjunk

our

You spend precious time to sort through them and time is money.

New American Dream

How Unwanted Mail Hurts the Environment

Unwanted mail = wasted paper = cutting trees unnecessarily.

New American Dream

this newsletter article

The Energy cost of producing and disposing junk mail is exorbitant.

New American Dream

Not all junk mail can be recycled!

Not everyone recycles their junk mail.

Unwanted junk mail fill up landfills.

this website

What you can do about it.
It’s simple. If every household makes an effort to minimize the junk mail they receive, together we can stop this monster that wreaks havoc on our money and the environment.

Opt Out of Prescreened Credit Card Offers

www.optoutprescreen.com

Register for the Direct Marketing Association’s “Do not mail” list.

this form

Turn down local coupons and fliers.

ADVO, Inc.: Call up (888) 241-6760 or use this online form.

Val-Pak Coupons : Call up (888) 797-1896 or use this online form.

Abacus, Inc. : By e-mail: optout@abacus-us.com with “remove” in the subject line and name and address in the mail.

Cancel catalogs from individual stores.

Opt for E-bills and electronic statements.

Unsubscribe from unwanted magazines.

Mention explicitly that you do not want information sold.

And finally, if some unwanted mail sneaks into your mail box recycle it.

More resources for learning about junk mail
If you have more questions and are looking for more information, check out these resources for more information.

New American Dream website.

Frugal Green News Letter.

Smart Money Article.

Ecocycle article.

Privacy Rights Fact Sheet.

If each one of us does our part, we can make sure that our environmental footprint is kept small and our future generations can continue to enjoy this planet as much as we do. And saving some money in the process is a nice bonus :)

*Image Credit: Photograph by sparkyourart [via Flickr]

If you like this article, you can bookmark it or subscribe to the feed.

DIY Projects for Frugal Home Owners: Carpet Cleaning Basics

This article is a part of the series “DIY Projects for Frugal Home Owners”, an attempt to get me (and hopefully a few readers) more interested in handling simple DIY projects around the house and saving some money along the way.

No matter who you are, there is a good chance that your home will get dirty from time to time. This holds true even if you clean your home each and every day. The most common area for dirt and grime are the carpets since it gets the most wear and tear. Carpets are what people walk on every day and are always coming in contact with dirty shoes, grease, dust, pets etc. The good thing is that you do not have to live with this type of dirt in your home. You can clean your own carpets very easily in order to present a better home.

Some homeowners think that they need to hire a professional to clean their carpets, but nothing could be further from the truth. Do it yourself projects, such as cleaning carpets is quite easy to complete. Sure, you are going to have to put a bit of time and sweat into these projects, but in the end you will be glad that you did this on your own. A job well done is a reward in itself – if that isn’t good enough there is all the money you can save by doing things yourself :)

Cleaning the carpets is all about getting the deep down dirt. The first step however is to start with vacuum cleaning to get rid of the surface dirt. I would highly recommend investing in a good vacuum cleaner. I have been drooling over a Dyson for a while, but we decided to settle for a Bissell (that was available on sale). The problem with such run of the mill vacuum cleaners is that after a few uses, they seem to lose the suction or worse, start to kick up dust. By the time we have kids, it will probably be time to retire this vacuum cleaner anyway, and maybe then we will buy a Dyson.

A neat trick I learnt from the time that we called maid service is to use a carpet cleaning and deodorizing powder. I think she used the “Resolve” brand and I really liked how fresh it made the room feel. It is supposed to contain absorbent granules that attract the tiny dirt particles in the carpet to attach to it. And since the granules are heavy and not “stuck in” they can be vacuumed right off. Leave it in for a few minutes and then vacuum, to get a clean fresh smelling carpet.

If you have set-in stains, you may need to spray a stain remover and scrub the area first before using a vacuum cleaner. Personally, we have a bit of an obsessive compulsive streak and we keep a can of carpet stain remover handy. Anytime there is a spill we immediately spray the foam and scrub it with the brush attached to the canister and then mop it up with a towel or paper napkin. Since we do not usually allow a stain to set in, I do not have much experience with removing set-in stains, but here is an index for removing pretty much any stain that you can think of from your carpet.

When regularly used, good vacuum cleaners can be quite effective in removing surface dirt and preventing it from settling in. However, if you prefer a more deeper cleaning, then it is time to get a heavy duty rug scrubber. You have two options here. You can either buy a rug scrubber so that you can use it whenever you want in the future, or you can rent one. If you anticipate deep-cleaning your carpets on a regular basis (got toddlers?), you might want to consider buying one. But in most cases, I suspect renting is going to work out just fine.

Rug scrubbers are available for rent in most big chain grocery stores as well as home improvement stores like Home Depot, Sears, Lowes etc. For a 24-hour period rental, they cost anywhere from $19.99 to $29.99 depending on the type of equipment you choose. You can choose to buy a deep cleaning solution or use warm water and soap (or a mild shampoo). The rug scrubber (“Rug Doctor”, “White track” etc) often comes with instructions about how to use it. If the instructions require you to stay off of the area for 12 to 24 hours make sure you plan your cleaning schedule accordingly.

Cleaning carpets is part of being a homeowner. Dirt will get into the house no matter how careful you are. But if you do what it takes to rid of it, you can reap some great benefits while trying to sell your stain-free house some day. Even though prevention is the preferred choice, the cure is not all that hard. The only thing that it needs is a bit of elbow grease :)

~~~oOo~~~

If you consider yourself a frugal homeowner, you know that a used mobile home is about as cheap of a house that you can get. You may not even need a mobile home loan to get one! Though if you're looking for something a little bigger, there are some beautiful modular log cabins and houses that would make great homes.

~~~oOo~~~

If you like this article, you can bookmark it or subscribe to the feed.

Auto Insurance Discounts

15 Minutes Can Save You 15% Or More On Car Insurance… (even if you are not a Geico customer)

The Geico ads may be annoying, but they do have a point – if you can convince yourself to take out a little bit of time to shop for car insurance you can save a heck of a lot of money. After our recent car purchase our insurance rates went up and it just didn’t seem right to pay the high premium that was quoted to us for the minimal coverage we had! So we shopped around and made the switch. Our premium is now about 60% of premium quoted by our previous insurance provider, and our coverage is much better. So much so that I think we have too much coverage. But with the new company (Progressive), the difference between the minimal coverage and the one with bells and whistles was very less and so we opted for the coverage with the bells and whistles.

While shopping for auto insurance, I found that most companies give out a base rate and then apply a bunch of “discounts” to reduce your bottom line premium. Technically, the sales person is supposed to check with you if you qualify for the discounts. But just in case the person you get hooked up with isn’t thorough, here is a list of discounts that you can ask your sales person for. (Note that not all of these may be available from all the insurance companies or in all the states)

Multi-Vehicle Discount
If you have more than one car in your household (or even a car and a boat or a motorcycle), buying insurance for all the vehicles from the same company will qualify you for a discounted rate.

Multi-Policy Discount
If your home owners (or renters) insurance are from the same company as your auto insurance, you can get a discount on your combined insurance premium. Even if your auto insurance does not provide home-owners insurance, check if they have a preferred company list and if you have the insurance from a company on that list, you might qualify for a small discount

Home Owner Discount
Even if your homeowners insurance is from a different company, just the fact that you are a home owner might qualify you for a discount. I was quite surprised when the salesperson offered this discount to me!

Garaged Car Discount
If your car will be parked in a closed garage that is locked (and hence is at a lower risk of being stolen) then you might qualify for the garaged car discount.

Defensive Driving Class Discount
In TX, if you have taking a Defensive Driving class (ahem, to dismiss a ticket), you can send a copy of your completion certificate to the insurance company and request for a discount.

Good Student Discount
Under-age drivers who are full-time students with good grades may qualify for a good student discount. Sure will be helpful to offset the steep cost of “under 25” insurance rates!

Safe Car Discount
Different companies have different definitions for what qualifies as a safe car – some of the things they consider are anti-lock brakes (ABS), anti-theft alarm, lojack, airbags, automatic seatbelts, etc.

Safe Driver Discount
If you have a clean driving record for several years, then of course you are the kind of customer every insurance company wants, and so they will offer you a pretty hefty discount.

Loyal Customer Discount
If you are with the same insurance company for several years, make sure you call your existing insurance company first to see if they will offer you a loyal customer discount. Also, make sure you tell the new companies that you are calling up that you were with your previous company for several years – they might offer you a good rate to tempt you to switch.

Low Mileage Driver Discount
I think the national average for the miles a person puts on his car per year is ~12,000. If the number of miles you drive is less than the national average statistic that the insurance company uses, you might qualify for a low mileage driver discount.

Green Car Discount
Some insurance companies want to make a point that they are green, and consequently offer a small percentage of discount if you drive a hybrid car.

Military Discount
If you are in active military duty, retired from military or coast guard, you will qualify for a military personnel discount.

Online Discount
Even though I spoke to a sales person on the phone to make sure that I was getting all the discounts we qualified for, the sales lady was really nice to suggest that I actually buy the policy online which qualified me for a one-time $50 online discount. She entered all the data I had provided her into the system and gave me a quote number. All I did was plug in that quote number on the website, and voila, all the discounts appeared along with the additional (one-time) $50 discount.

Pay Ahead Discount
In addition, since I chose to pre-pay for the next six-months and provided them with a credit card number to bill me at six-month interval, the premium was a little lower than what we would pay if we chose to go month-to-month.

Well, that’s about what I have for now. If you have availed any other discounts, I hope you will share with me (and the other readers) so we can check if we qualify as well. TIA.

If you like this article, you can bookmark it or subscribe to the feed.

Campaign Against Financial Myths:
Part 8 - Frugal Living

(This article is a part of the series aimed at dispelling some of the popular financial myths. Please refer to the full index for myths related to other financial topics. Oh, and a quick disclaimer: I am not a financial advisor. I have made every effort to research the facts before presenting them here. But, if you have a reason to believe any of the statements are incorrect, please feel free to correct me.)

Myth: “Frugal living = Being cheap”

Being frugal is a lifestyle choice, and you can choose the degree of frugality you are comfortable with and adopt it.

here

Myth: “Frugal living = buying things second hand.”

a thoughtful article

Myth: “Frugal living = giving up on all your indulgences.”

frugal things to do, and still have a blast

save for the trip of a lifetime

indulgence and simple pleasures

Myth: “Living frugally will make me rich.”

Myth: “Instead of worrying about being frugal, I should just focus on making more money.”

Why Frugal Living Makes Sense

That is the list of myths I have on the topic of frugal living. You can check out the myths related to other topics using this index. Watch out this space for more myths on more topics.

If you like this article, you can bookmark it or subscribe to the feed.

What I Do to Live Frugally

A long time back, Mapgirl tagged me to write about what I do to live frugally. That was right around the time when my cyclical behavior was in the most unfrugal part of the cycle. What's worse, it was followed in the next few days by our old car dying and us deciding to buy an un-frugal car (which was still pre-owned but cost us more than what we thought we would ever pay for a car). With all this going on, I couldn't bring myself to write a post about what I do to live frugally! But now, the dark days are behind us (hopefully) and we are striving hard to get back to our old selves. Frankly I am not much of a person for memes and tagging, and I don't really know what the rules for participation are, and it is probably too late for me be part of this meme anyway. But writing about what I used to do to live frugally seems like a good exercise to make me think about what I need to do in the future to stay on track, so I decided to write about it anyway.

Cook at home as often as possible: I love cooking exotic dishes once in a while. And I *hate* regular everyday cooking. I am a foodie and at the end of a busy day spending an hour in the kitchen to fix a plain (aka “healthy and nutritious”) meal just doesn’t feel like it is worth the effort. But I have been trying hard to get into the habit and before this last break down, I used to cook 4-6 times a week! I need to get back in that mode. Since the last couple of week I have started getting back on track and have cooked about 5 times each week – just need to make sure that the habit sticks and I do not give in to the temptation to just pick up some food on my way home.

Take lunch with me to work at least 3 times a week: This is one thing I am really proud of. Even during my bleakest unfrugal days, I have stuck with this schedule. It has been a little over a year since I started working, and in the entire period I think I have gone out for lunch more than twice a week only 4-5 times, and even during those weeks, the max I ate out was 3 times a week. My next goal is to see if I can go for another year with less than 4-5 slip-ups.

We have coffee and breakfast at home, rest of the time we drink free coffee available at office. We don’t entirely ban coffee houses or starbucks, but usually reserve it for occasions when we meet old friends. Over time, we have come to associate coffee houses, with lazy leisurely evenings spent catching up and swapping old stories. And being loathe to spoil that association keeps us away from running in and out for an overpriced cup of coffee that is drank in a hurry at the desk or while driving.

We don’t have a telephone land line: We have gone for over 4 years now without a phone land line and have not missed it a bit. We both make sure that our cell phones stay charged all the time, so we are never at a loss of an instrument to make calls from. On the cell phone we have the least expensive plans with fairly low minutes, but since many of our friends have the same service provider, we get to talk to them for free. Only once in the past 4 years have we paid for extra minutes.

Shop for pretty much everything during “sale” and after researching the prices thoroughly. Avoid impulse buy. One of the first lessons someone told me when I landed in the US is that if you pay full price to buy anything, you are a sucker. At first I thought it was a joke. But now, I firmly believe it. As long as you can avoid impulse buying, you can get pretty much anything on sale.

Drive our cars to death: People who are regular visitors to this blog may be surprised that I have listed this here since I recently confessed that we bought a fairly unfrugal car. Over the long run though, our car ownership turns out to be quite frugal. We take good care of our cars (regular oil changes, get necessary repairs done as soon as we possibly can etc.,) and drive the car until the wheels fall off – literally. The car we just replaced was 14 years old and had 165K miles on it and we drove it until the engine finally quit on us. Both our current cars now are pre-owned and we plan to use them (hopefully) past the 150K mile mark too!

Hang out with like minded friends: It’s not just how frugal you are, but who you hang out with. If all the friends around you are spenders, then some time or the other you will crack up and give up being frugal. In our case, we have been fortunate enough to have friends who are fairly like-minded. Even though frugality is not the core of our conversation or anything, we still end up making choices that do not require too much expenditure, and still end up having a blast.

Watch movies at discount theatre, or watch it before 6:00pm if it is a regular cinema hall. Both the better half and I like watching movies in the theatre. Since it is something that we really enjoy and it helps us unwind, we don’t bother to curb this indulgence. Instead, we try to wait for the movies to screen on the discount cinema ($2 per ticket). And, if we really don’t want to wait for 3 months for a particular movie, we catch it before 6:00pm when the tickets are less expensive.

Go to the movies on a full stomach: We very rarely get popcorn or soda at the movies. I mean, what’s the point in watching a movie in a discount cinema for $2 per person, if you blow $6 per person on pop corn and soda?

I go grocery shopping when I am too hungry or too tired: Basically any time that I really don’t want to be doing grocery shopping. And I go only once a week, no matter what I remember/forget to bring. Believe it or not, this is the most efficient and money-saving way to shop. At least in my case, since I am ever curious and if I have the time, I will walk through all the aisles looking for new and strange items and buy them so I can “try them out”.

Make a list before going shopping: This is particularly important when I go to Costco! Like I said earlier, I get easily tempted to buy something that looks new and interesting. And at places like Costco, that can be quite damaging since the portion sizes are large and so, even though the unit price may be less than the regular store, the large portion sizes make buying unnecessary junk a big costly mistake.

Stock up non-perishable items on sale: When I find the things we use often go on sale, I generally stock them up. That particular grocery run my bill will be pretty huge, but I make it a point that during the subsequent trips, my bill is small so the average is around what I have budgeted for.

Keep an eye on expiry dates: I hate throwing out stuff because they have expired – so while buying stuff, I check to make sure I buy something with the farthest expiry date. This is true particularly with meats and milk – the grocery store always puts the stock with the closest expiry date at the front. And every once in a while I have a “clearance week” when I do minimal grocery shopping and clear out the fridge, freezer and some of the canned goods.

We don’t buy anything at the vending machines. Neither of us have the habit of snacking, but in Texas if you spend some time outdoors, it is usually very tempting to grab a coke at the vending machine. To avoid this temptation, if we plan on staying out for long, then during the previous day, we fill a bottle of water and shove it in the freezer. Next day we take the frozen bottle of ice in the car and generally we get to drink cold water (or at least “not hot” water) for the better part of the day.

Buy second hand when possible: I do not like buying some things second hand (eg. clothes, mattress etc.) but I have no hassles buying some other things second hand (eg. books, car etc.). So whenever, I have no stigma against something, I try to buy it second hand. Maybe not as frugal as a lot of people out there, but still every bit helps.

We throw away the advertising mailers left in our mailbox without even looking. We only make an exception when we need something and know that it is possible to get a discount using the coupon in the mailer (e.g., haircut coupons – (gasp!) Yep, I use a coupon to get a haircut).

We have a habit of switching off electric items when they are not in use. For instance, when we walk out of a room, we make sure the lights and fan are switched off. When I am not watching TV (which is most of the time), I keep the TV off. When we go out for work we switch off the A/C (the jury is still out on whether this is good or it is better to keep it on at a constant temp, but we just do this out of habit).

We DIY things when possible: The lawn is taken care of by the better half, and home cleaning by me. In the 2.5 years of owning the home, I have had the maid service come in once to help me with the cleaning. The temptation is very strong to let them come in and help again. Until now, I have not given in and have stuck to keeping the house clean myself. Currently, my plan is to have them come over once every 3-6 months to do a thorough cleaning (particularly bathrooms, over side of fans, window blinds etc. that I don’t do often) and do incremental cleaning by myself during the rest of the time. Additionally, small repairs around the house are handled by the better half with me acting as the able assistant :)

When we travel, we usually search for discount airfares and in the nights, don’t hesitate to crash in Motel 6 or Super 8. Or any place with or without a numeral in the name for that matter as long as they let us stay for cheap and don’t look like they could be a candidate for the set of a scary slasher movie. And if they throw in the breakfast, all the more better :)

Every now and then we love going to a good ol’ buffet place. All-you-can-eat buffets are great ways to have a frugal feast. No they do not serve gourmet food in buffets (unless you are in Vegas), but when you are hungry, there is no better way to get the best value for the buck than to go for the most extensive buffet place around. We have tried out a few in our area and now know the ones we like best and on days that we feel like packing in a lot of food, we skip the restaurant and go get in line for the buffet. (As a side note, if you are a fellow buffet-lover, you should read this post by Nick @ Punny Money – funny and informative – can it get any better?)

That’s all I can think of now. As you can see, I don’t particularly deprive myself of anything, but when possible, I try to incorporate little bits of frugality in every day things. Every small bit helps.

I will not tag anyone in this post, but I do encourage those of you on the unfrugal part of your cyclical behavior to go ahead and do this exercise. Just thinking about it and writing it down, has filled me with renewed determination to stay frugal during the coming days. As I have mentioned before, for some people living a simple and frugal life comes naturally. But for the rest of us, it takes conscious effort, determination and a fair amount of discipline to incorporate frugality in our lives. And an exercise like this goes a long way in helping us stay on track.

PS: If you don’t have a blog, feel free to use the comments section below as a scratch pad, or send me an email with your list and I will publish it here.

And if you are looking for inspiration about what others in the blogosphere are doing to stay frugal, here are some good reads –

What I Do to Live Frugally @ Mapgirl's Fiscal Challenge.

25 Things We Do To Save Money @ Money, Matter and More Musings

Strategy - being frugal @ Savvy Saver.

Four ways I live frugally @ Stop Buying Crap.

3 Ways I Live Frugally Without Feeling Deprived @ My Money Blog.

Green Living is Good for the Pocketbook @ Suddenly Frugal.

Things I Do to Save Money @ Cal Girl Finance.

What can one person really do to make a difference? @ The Good Human.

If you like this article, you can bookmark it or subscribe to the feed.

You are Probably Paying Too Much for Your Cable

Today I have an guest post by Mark Daoust from Debt Management – Talk!. I find the concept behind this site quite intriguing. It is a discussion forum where people get paid to share debt management tips, provide each other support and exchange success stories! By sharing the revenue generated by the forum with the people who participate, Mark hopes to get more and more people involved. (More info about the revenue sharing system here.) Neat, right? Anyway, today in his article Mark talks about his experience of trying to ditch cable. I really enjoyed the article - I hope you do too.

I am thoroughly convinced that most of us are actually addicted to cable. How can I say this?

Because I’m currently going through withdrawal myself.

My wife and I recently made the painful decision to cancel our cable television. Now this may not sound too difficult, but when you realize that since we do not have an antenna for our television we also do not get even the most basic network TV, and then the sacrifice becomes a little bigger (when “Heroes” starts up again we’ll definitely have to find some solution). Without television we are left with our Netflix subscription, which we just happened to drop down to the lowest level.

As painful as the sacrifice has been, it has taught me two things:

Most people are paying way too much for cable (and could reduce their monthly expenses with one phone call), and
Life without television has its definite rewards.

The decision to remove cable from our lives was done purely out of the desire to start applying more money every month to some old medical debt that we have, but I have learned a few lessons which I will certainly be applying in the future.

Cable Companies Will Negotiate with You

I actually tried to cancel cable more than once, but failed in my first attempt. It may sound odd, but between my personal desire to hold on to our cable television and the fact that the cable company was going to offer a monthly rate that was 25% cheaper than what I was currently paying was a very convincing sales pitch to keep cable flowing into my household.

What I had never realized, in fact, is that there was an option other than canceling my cable outright. I had no idea that the cable company would be willing to negotiate down what I was currently paying. I was frankly surprised that one phone call was able to save me 25% on my monthly bill – without an expiring date on the discount. This was a permanent discount on my cable bill.

But the price discounting surprise continued. Three months after I got my discount, my wife and I decided to axe the cable for the summer. I called the cable company determined to sever my ties with television – at least for the next few months. The agent that I talked to saw that I had already been receiving a discount, then proceeded to find out why I was cancelling. When I

Grad Money Matters

Site Feed

Categories

More Blogs on Personal Finance

More on Money Matters

Paid $258 for a Pair of Eye Glasses Inspite of Having Insurance...

10 Ways for College Students to Cut Costs where it Counts

Frugality and Hardship

How to Maximize the Bang for the Buck When You Buy Organic Food

Repairs And Maintenance That Save You Money In The Long Run

Get Rid of Unwanted Mail. It's Bad for your Wallet and Bad for the Environment

DIY Projects for Frugal Home Owners: Carpet Cleaning Basics

Auto Insurance Discounts

Campaign Against Financial Myths:
Part 8 - Frugal Living

What I Do to Live Frugally

You are Probably Paying Too Much for Your Cable