How to Have $3,000 by the End of the Year

I was watching television last night and heard a statistic that just floored me. I imagine it might surprise you, as well. People who eat out for lunch every day spend as much as $3,000 in one year, just on lunch. $3,000.

Think about what you could do if you had an extra $3,000 to spend at the end of the year: 

• Take a vacation
• Pay off debt
• Make a down payment on a vehicle
• Go on a shopping spree
• Make renovations to you home

The list goes on and on. Regardless of how you spend it, or even save it, the point is that you don’t have to do much or give up much to save a significant amount of money.

Most people who eat out do it because they say it’s easier. That’s not necessarily true. If you make dinner every night, why not make enough to pack for lunch the next day? That’s what I do for my husband. He takes leftovers every day and warms them in the microwave at work.

Don’t have a microwave at work? You can still have a warm lunch from home. Just buy hot and cold packs from the grocery store – something that keeps food cold when frozen or warm when heated. When cleaning up from dinner every night, fix your leftovers in a portable bowl or container and refrigerate them. In the morning, microwave them and the hot pack at the same time and stick them both in a thermal bag or lunch kit. Your food will stay warm all day if you need it to.

You can even pack warm lunches for your kids and save the nearly $3 a day charged by the cafeteria. My son loves soft tacos or burritos. I make them with whole grain tortillas, shredded cheese and vegetarian refried beans (which taste exactly like regular refried beans. They just don’t have lard.) Obviously, he can’t heat his lunch at school, so I purchased a thermos for $1 at Wal-Mart. I make the taco at night and refrigerate it. In the morning, when I am making his breakfast, I boil water, poor it in the thermos and let it sit for five minutes while I am fixing the rest of his lunch. When the timer goes off, I microwave his taco or burrito, wrap it in foil, spill out the water from the thermos and stick the food in the thermos. It stays warm, even with an ice pack in his lunch box to keep the other elements of his lunch cold.

To me, that’s a whole lot easier than leaving the office, getting in the car and driving to a restaurant where I either have to wait in line or wait for a seat. It’s even faster than standing in line in the cafeteria at work.

Even if it doesn’t seem easier, it’s a small sacrifice to make for $3,000 a year. Try it. You may like it.

 

Don’t Take Their Word for it – Read the Fine Print

A while back, I blogged about how excited I was to pick up a smart phone and data plan that didn’t cost any more than the monthly plan for my old cell phone. I have since found out that the person who sold us the phones wasn’t completely honest with us. The plan is still the same price, but she included a lot of extras we didn’t verbally agree to.

It’s been several months since we got our new smartphones, and as busy as the holiday season tends to be, I wasn’t very diligent about reading my monthly bill. I just went online and paid it. Last week, however, I spent some time organizing my online banking merchants, checking that their addresses were still correct, my account numbers were accurate, etc., I had gotten into the habit of paying bills on each company’s website, and I wanted to streamline that for the new year.

When it came time to pay my cell phone bill, I realized it was almost double what it used to be. Thinking that maybe I overlooked a payment, I went out to the cell phone provider’s website to look at my bill. I was shocked at what I found. They have been charging us $15 per phone for insurance and another $7 per phone for a warranty each month. With two phones, that’s an extra $44 a month. Why am I paying for a warranty on a phone? It should already be covered by the manufacturer. And why do I need insurance if the phone is covered under a warranty. These are questions I can’t answer yet, because I haven’t had a chance to call that company. That’s on my list to do this week.

There are two important lessons to learn here. First, don’t take a salesperson’s word as gold. I am positive that I would have turned down any extended warranties and insurance had she mentioned it. I’m sure it’s on the paperwork, but I trusted her and did not read the paperwork. That was a mistake. The second lesson is to pay attention to your bill each month. If I had been paying attention to the bill for the past few months, I would saved myself over $100. My choice to be lazy was an expensive one.

Sometimes saving money is about paying attention. When you shop at a store, you pay attention to prices, right? You know what you’re willing to spend and what you think is just too much money. It shouldn’t be any different with your monthly bills. Know what you are willing to pay and know what you are paying for. It could save you a lot of money in the long run.

Setting Financial Goals for the New Year

It’s hard to believe the holidays are over and a new year has begun. Wasn’t it just yesterday that we were ringing in 2011? As we get back to work, back to school and back to reality, it’s a good time to start thinking of our financial goals for 2012.

This is sometimes a painful process for people. We know we may have over spent during the holidays, and we’re not ready to see exactly how much. Or, we already know we have too much debt, and we don’t think there is any way to get out of it. Maybe you haven’t been saving enough, and you’re dreading giving up something you love to put that money in savings.

Now is the time to start dealing with those feelings and taking action to make your situation better.

If debt is your major concern, you may be able to consolidate your high-interest credit cards into one low interest loan, which will help you pay down your debt faster. Sometimes just calling the credit card companies and asking for a lower interest rate helps, especially if you tell them you have an offer from another credit card to consolidate your debt at zero percent interest.

If savings is your major concern, figure out what you can give up that won’t feel like too much of a sacrifice. If you eat lunch out every day, maybe you can cut back two days a week. If you stop for coffee every day, perhaps you can buy yourself a coffee maker with a timer and get it ready the night before so you always have coffee when you wake up.

The important thing about setting goals is to be realistic. Much like dieting, if you set goals that make you feel like you are giving up too much, you’re not going to stick to them. If you have $10,000 in debt, figure out what you need to do to pay off maybe $2,000 this year. If you can, make more than the minimum payment, or consolidate your loans.

If your goal is to save more money and you’ve never done that before, don’t start by saving $100 a paycheck (unless you feel that’s comfortable for you). Start small with maybe $10 a pay check, and have it deducted automatically from your pay check and deposited to a savings account. If you find you can do more, increase that amount next month or later in the year.

Whatever your goals, take baby steps. You didn’t get into debt over night, and you won’t get out of debt every night. You didn’t spend your savings overnight, and you won’t build it back up over night. Be patient, and you’ll be amazed at how well you do.

Cheap Ways to Ring in the New Year

I am always amazed at how much money people are willing to spend on one night of fun to ring in the new year. It’s not just the cost of the event at restaurant hotel. It’s the cost of the dress or the tux, the new shoes, a possible hotel stay, a limo and more. If that’s what they want to do, more power to them. If you’re more like me and would like some more affordable options, you’ve come to the right place.

Have a party at your home. Provide finger foods and ask each family to bring an appetizer, as well. Buy enough champagne or sparkling cider for a midnight toast, and ask your guests to bring the beverage they want to drink. Just be sure to monitor your guests to be sure they are safe to drive home.

Have family game night. Let each family member choose a game to play and play them all. Set out snacks or your family’s favorite finger foods and have fun enjoying time with each.

Go Bowling and have pizza. There are two bowling alleys near my home and both are offering New Year’s Eve specials. They are considerably cheaper than typical New Year’s Eve events and are closer to home (for us anyway). One place offers two different times, so small children can still have fun but make it to bed at a decent time.

Attend a party or event at a friend’s house. For years, it has been our family’s New Year’s tradition to hang out with two other families at a home where it was legal to shoot fireworks. Once we have our fill of those, we head inside for a game of Scene It or other family-friendly party game. Sometimes we are there until 4 a.m. just having fun with friends.

Have a family movie night and pajama party. Much like game night, let each person choose one movie, and watch them all as a family. Take a break to maybe make your own pizzas or make ice cream sundaes. Set out a bunch of blankets, cushions and sleeping bags on the floor and let the whole family sleep in one spot.

Host makeover night. Invite a bunch of girlfriends to your house for manicures, pedicures, hair and make-up fun. As one of the “girls” if their husband will host a guy’s night at their house. That way everyone has something to do.

However you choose to spend New Year’s Eve, enjoy yourself and stay safe. Happy New Year from Neighborhood Credit Union!

 

Last Minute Gifts that Won’t Kill Your Budget

Have you finished your holiday shopping? I thought I had. Then I went through about 10 boxes in my dining room that have been delivered over the past two weeks, and I realized I was severely short on gifts for my husband.  To add insult to injury, I went to the website for the top item on his list and it’s on back order. Yikes!

I hate to admit it, but this has happened to me before. In fact, it happens to me every year, which makes me the queen of last minute gifts. Here are some hints to help you get through these last few days with a gift for everyone on your list.

1. If something is not available online, and that retailer happens to have a store nearby, I go to the store and buy it. If the store doesn’t have it, I purchase it online, print a photo of the item and wrap it in a box with a note that says the gift is on its way. They may not have it on Christmas day, but they’ll know it’s paid for and coming soon.

2. Look for a suitable replacement. Find an item with similar specifications and include a gift receipt. When they open it, explain that the one they wanted wasn’t available, but this one is practically the same. If they don’t like it, they have the gift receipt to return it and get what they want.

3. Buy gift cards. Grocery stores, Wal-Mart, Target and others carry a wide assortment of gift cards to other stores. Many online retailers give you the option to print gift cards using your own computer. If you absolutely have to have a gift on Christmas Day, give a gift card.

4. Give something homemade. If you are handy with the computer, make a photo calendar using online templates. Google “photo calendar templates” to make it easier. Put together a photo CD or DVD. One year my father-in-law made me a quilt rack for my living room. It’s still one of the nicest things I’ve ever received from him. Use whatever skill you have to make something thoughtful.

5. Give the gift of time. Make a certificate or a coupon book promising dates with spouses, play time with children, etc. Think about what is important to the recipient and craft an event around it. Perhaps your spouse works a lot. Offer a day where you’ll do his chores, or let him sit and watch TV all day and serve him his meals on the couch.

If you give a gift with thought, they’ll like it, if it isn’t something they’ve asked for. From our family to yours, have a Merry Christmas!

 

Unconventional Ways to Find Steep Discounts this Holiday Season

This is the first holiday season where gift ideas have just fallen into my lap. I haven’t even shopped in a store. Most of my gift buying has been online, either through deals that other friends have posted on Facebook or through e-mails I have received from various daily deal sites. Apparently I have been in the right place at the right time this year, but part of that is knowing where to be in the first place. Here are some ways for you to find super steep savings on gifts for most people on your list.

Daily Deals Sites

If someone would have told me a year ago that I’d be holiday shopping on daily deal sites, I would have thought they were crazy. This year, I’ve purchased four gifts through various websites that send an e-mail every day with a special discount offer. On Urban Dealight, I purchased a ride for my son and my husband in a World War II Aircraft to view Christmas lights. The flight usually costs $250 a person. I paid $75. On Groupon, I purchased an electric corkscrew for nearly 50 percent off and a $30 gift certificate to a specialty store which only cost me $15.

There are two valuable things to know about these sites. First, you don’t have to wait for an e-mail to find a fabulous deal. Go to the sites and browse the deals available. This time of year, you may find hundreds of deals. Second, don’t limit your shopping on these sites to the city where you live. The corkscrew I bought was through the Amarillo, Texas Groupon site. If you’re buying it online, what does it matter what city the deal is for?

Other daily deal sites I know about include:

AP Daily Deals

Living Social

Amazon Local

If you Google “daily deal sites” you may found several dozen more.

Amazon Lightning Deals

Last week, I purchased a laptop for $250 off the retail price thanks to lightning deals on Amazon.com. These are deals available at specific times of the day. They publish that time in advance, and they time the length of the sale. When the time is up, the deal is dead.

Lightning deals are not just for electronics. They are on anything Amazon sells – toys, books, music downloads, cookware, etc. If you are looking for something specific, check the lightning deals first. You can view them sometimes days in advance. You just can’t buy until the specified date.

There is still plenty of time to shop online and get your gifts in time for holiday giving. And, don’t forget yourself. If you find a steep discount on something you’ve been pricing for a long time, and you have the money in your budget, buy it now. You may not find deals this good ever again.

Free Santa Fun

One of my favorite Christmas songs is a tune my mom used to play when I was a kid. I can still hear Glen Campbell’s voice singing, “Christmas is for children, just for children, grown ups say.” I don’t necessarily agree with that sentiment, but now that I have my own child, I am constantly looking for ways to keep Santa’s magic alive. My son is eight years old, and I’m not sure how many years I have left before his Christmas beliefs change. Here are some resources to help you extend the magic with a child or children in your life.

Free Santa Photos and More at Bass Pro Shop

There are two Bass Pro Shops in the DFW area – in Garland and Flower Mound. Both have transformed a section of their stores into Santa’s Village. There are free games, crafts and other activities, including a free visit and 4x6 souvenir photo with Santa. You do have the option to upgrade your photo package, but there is no purchase necessary for your child to join in on the fun. Check the store websites for hours of operation.

Free, Personalized Videos From Santa

The Portable North Pole (PNP) is by far my favorite online Santa site. It lets you create a free, personalized video from Santa to a child. The video is customizable. You can upload the child’s photo, input information about what the child wants for Christmas, have Santa compliment the child on a major accomplishment this year and have Santa mention something the child still needs to work on, like listening to mom and dad, eating vegetables, etc. At the end of the holiday season, you have the option to download the video. I believe it was less than $5.

Disney also offers a free Santa video. It’s customizable with the child’s name and photo, but it’s not nearly as personalized as the Portable North Pole.

Free Printable Letters from Santa

Would your child like to receive a personalized letter from Santa? Send them one for free on this website. Choose from five different letters and five different page designs. Customize certain fields in the letter and print it in your own home.

NORAD Tracks Santa

This site does more than let you and your family track Santa’s progress on Christmas Eve. There’s also an online village where you can countdown to Christmas with different activities every day. There are holiday video messages, facts about Santa and more – all for free.

25 Days of Christmas Crafts and Recipes

This site is not necessarily Santa fun, but it gives you all kinds of fun things to do with your family this holiday season. When school lets out next week, you may be happy you have all these activities.

Have fun making free holiday memories with your family this year.

 

Surviving Black Friday and Cyber Monday

I don’t do Black Friday. I would rather have every hair pulled out of my head individually than fight hundreds of people for the last Nintendo DS on the shelf. But there are people who live for the deals offered by stores on the day after Thanksgiving – and there are some good deals if you’re willing to brave some serious crowds.

Cyber Monday, in my opinion, is retailers’ solution to people like me. They wait until the Monday after the Thanksgiving weekend when people go back to work and offer hundreds of deals exclusively online. No crowds. No lines. No waiting.

Whether you shop one or both of these popular days, take advantage of these tips for finding the deals you really want before they are gone. 

Shop before you can shop

The Internet has revolutionized the way shopper tackle Black Friday. Back in the “old days” as my son calls them, you would stop at a newspaper stand and pick up the Thanksgiving Day special edition, which was full of Black Friday ads. You can still do that, or you can view the ads and a whole lot more on these sites:

BlackFriday.info

BlackFriday.com

Cybermonday.com

Cybermonday.net

In-store, online or both?

Pay close attention to where the sale prices apply. A lot of stores have “in-store only” sales that start in the middle of the night and end before a lot of people normally wake up. Or, they offer online specials that are different than the ones in stores. Know where and when you can take advantage of special pricing.

Keep your expectations realistic

Just because you show up at the store doesn’t mean you will leave with the item(s) you want. At stores like Wal-Mart, people start lining up at 10 p.m. for sales that don’t start until 2 a.m. or later. There are limited quantities of those items that are price too low to be true.

Use Facebook and Twitter to find deals

Liking your favorite stores on Facebook and following them on Twitter could help you find special deals not published anywhere else. It also may save you a trip by indicating when sales are over or merchandise is sold out.

Use store websites and your mobile phone to your advantage

Many store websites will let you shop by location. If the store you are at is out of the item you wanted to buy, use your mobile phone to access to the store’s website and change and search for the item at a different location. If it’s there, see if you can buy the item online and pick it up at the store.

Happy Thanksgiving and Happy shopping!

 

Leasing a Vehicle Can Steal Your Financial Freedom

There is a lady at my church who always seems to be driving a new car. One day I asked her if her husband worked at a car dealership. The answer was no. She was actually leasing these vehicles. She said she loved her lease because she was able to drive a new car more frequently than she would by buying them.

This is exactly what car dealerships and vehicle manufacturers want you to think. The truth is that leasing a vehicle can be a dangerous cycle for anyone trying to get out of debt or achieve some level of financial freedom.

Leasing a vehicle is essentially renting it. You make monthly payments, but you never really own the car. At the end of the lease – usually two or three years – you either buy the car for what you still owe on it, or you turn it in. If you’re like the lady at my church, you start the process all over again with a new vehicle.

Think about this. When you purchase a vehicle – new or used – you pay on the car for the length of your loan and then it’s yours. Once the loan is paid off, you readjust your budget, because you now have several hundred dollars you’re not spending on a car loan.

When you lease a vehicle and continue to lease new vehicles, you never lose that car payment. Most people are attracted to leasing because the monthly payments can be so low, but then they get sucked in to the rush of driving a new car every few years. Before they know it, they have spent thousands of dollars over time and don’t even own a vehicle.

If they buy the car for what is still owed on it at the end of the lease, they often end up going upside down on their loan. That means they are paying more on their loan than the vehicle is worth. Should they total the vehicle before that loan is paid off, they won’t get enough money from the insurance company to pay off the loan. That means they’ll be paying on a loan for a car they can’t even drive.

Here’s a more ideal scenario. Buy a used vehicle, maybe a year or two old, with very few miles on it. If you have to finance the loan, get a low interest loan for as few years as possible. Once the loan is paid in full, continue making those payments to a savings account that you never touch, with the exception of an emergency. When you are ready to purchase another new vehicle, you’ll be able to do it with cash. That’s what financial freedom is all about.

Leasing a vehicle seems attractive because of the low monthly payments, but it can be really dangerous to your long-term financial picture.

Five Reasons to Shop Halloween Clearance Racks

In my house, November 1 is like Black Friday. I drop my son at school and immediately head to Wal-Mart to see what Halloween costumes I can buy for 50 percent off. My son loves to dress up in costume, and it’s always fun to see him get excited when he opens new ones on Christmas morning. That’s not the only reason I shop Halloween clearance, though. Here are five good reasons we all can do it.

1. Affordable Gifts

Kids love costumes any time of the year – not just on Halloween. They make great gifts for birthdays and Christmas, as well as for toy drives at Christmas time. At 50 percent off, you can afford to giver more to needy children and still tuck away a few in your gift closet for when you need a last-minute birthday gift.

2. School Activities and Costume Parties

The mascot at my son’s school is a cowboy. Every year, the PTA hosts Western Day. The kids and teachers are encouraged to dress up as cowboys/cowgirls. My Wal-Mart had a lot of cowboy/girl costumes for both kids and adults, and the one I bought should get him through at least another year or two. They may have your mascot, too.

3.  Party Supplies and Fundraising

Candy doesn’t go bad very quickly, and a lot of the Halloween candy you buy will be in neutral packaging. Buy now for Valentines Day and Easter. Think about organizations you belong to that may solicit candy donations during the year or may need the candy for fundraising purposes. Now is the time to stock up.

4.  Shop for Next year

Why spend $30 next year on the same thing you can get for $15 this year? Save yourself money every year by purchasing your Halloween costumes and décor a year ahead of schedule.

5.  Halloween is More Than Costumes and Candy

There are lots of things on Halloween Clearance that are not costumes and candy. Think about artificial pumpkins, floral arrangements, lights, yard art, socks and hair bows in Fall colors and more. You can even find Halloween cake mixes and Kraft Macaroni and Cheese in jack-o-lantern shapes on clearance. Again, why pay full price for anything you can get on sale?

Take advantage of these deals this week. If you wait much longer, you will be out of luck. Stores are anxious to replace Halloween with Christmas.