How Much Savings is $.03 Cents a Gallon?

As gas prices have started rising again in the last month, I have found myself more willing to drive around on “E” until I find the right price. It amazes me how much difference in price I find depending on where I happen to be driving in the Dallas/Forth Worth metroplex. Sometimes it’s an adrenaline rush to know I’m paying so much less for gas than I would in my hometown. Then, there are times like this morning when I really had to think about how much of a difference $.03 does NOT make.

I am accompanying my son on a field trip today, and had to have gas in the car. After dropping him at school, I headed straight to my neighborhood Tom Thumb. My Reward Card saves me $.03 cents per gallon. I got out of the car, swiped the Reward Card, started pumping and then turned around to see that the gas across the street was a penny cheaper per gallon, even after my discount. The bargainista in me was disappointed for a split second. Then, then reality came back.

My car has a 15-gallon tank. If I had gone across the street to get gas, I would have saved a whopping $.075 cents (I only filled the tank halfway). And, with my Reward Card, I only saved $.225 cents – not even a quarter. Was it worth it?

Let’s consider the long term. If I had filled the tank, I would have saved about $.45. If I was getting gas once a week, my $.03 Reward Card discount would save me about $20 a year. I’m certainly not going to turn down $20 when all I had to do was swipe my card, but I’m also not going to make an illegal U-turn or bypass two gas stations that are a penny higher, every time I need gas.

Give me a $.10 cent/per gallon discount, and I may change my habits. I may even fill my tank instead of going halfway. A $.10 cent savings is $1.50 a tank or about $80 a year. That’s dinner and a movie with my family, just for swiping my card.

I’m not saying don’t look for the best price on gas. We should always be looking for the best price on everything, I’m cautioning you to be sensible. If you are driving a half mile out of the way to save $.03 cents a gallon, you’re spending that savings on the gas you use to get there. When you know it’s about time to fill up, plan your trip accordingly. Use a site like gasbuddy.com and find out where the cheapest gas is on the route you’ll be taking. Look for those $.10 gas promotions on your grocery store cards and take advantage of them. Walk your child to school every so often and leave the car at home. Those are the things that truly save you the most on gas.

Late Fees Add Up

I learned a very hard lesson today in late fees. My husband received an invoice in December for a toll road he was on some time in the fall. I told him I’d pay it, I forgot (in the midst of the holiday hustle and bustle) and we received a late notice. I sat down at my computer today to pay it online, and that started an experience I will share here so it never, ever happens to you.

The first problem was the invoice number. The system said it no longer existed. I tried it several times unsuccessfully and then picked up the phone to call customer service. They told me my late fee somehow went from $2.50 to $210.00 for a $10 toll. Needless to say, I was shocked. As if they were doing me a favor, they said they would discount that fee to $76 if I paid before some date in February. I spoke with three different people, and they would accept nothing less. At one point, I told them credit card companies had less questionable practices.

Truth be known, I haven’t decided how to proceed. If I pay the late fee, they win. If I don’t pay the late fee, I take my chances on whether or not they will send me to a collection agency and take further action. Either way, it’s an expensive lesson for anyone to learn (and a very shady practice for a company managing a tollway operation).

This whole situation got me to thinking about the true cost of late fees. How much money do simple oversights end up costing us? If I am doing the math correctly, my $200 administrative fee on a $10 initial charge comes to 2,000 percent. Thankfully, those big name credit cards are more regulated, but many of them charge 30 percent of more just on interest. If your payment is even one hour late (applicable if you pay online), they tack a late fee on top of that. The average minimum late fee is $25. If you pay it late every month, that’s $300 extra per year, per credit card, plus interest. How many credit cards do you have with a current balance?

It’s not just credit cards, either. My cellular provider charges late fees, as does my Internet provider, and so on. Even if it’s just $5 here and $5 there, that can quickly turn into $50 or $100 a month in extra fees.

Obviously, the solution is to pay your bills on time. I usually do, but December is a busy month in my house, and I forgot. I am at fault. I should have had a better system in place to avoid this oversight. I use online banking and automatic payments for almost everything, but I don’t have a good system in place for these random invoices that come through the mail. It looks like I have something to work toward in 2011.

What about you? How do you ensure your bills get paid on time, and what experiences have you had with late fees that can add to this conversation? Let’s use this opportunity to learn from each other.

I learned a very hard lesson today in late fees. My husband received an invoice in December for a toll road he was on some time in the fall. I told him I’d pay it, I forgot (in the midst of the holiday hustle and bustle) and we received a late notice. I sat down at my computer today to pay it online, and that started an experience I will share here so it never, ever happens to you.

The first problem was the invoice number. The system said it no longer existed. I tried it several times unsuccessfully and then picked up the phone to call customer service. They told me my late fee somehow went from $2.50 to $210.00 for a $10 toll. Needless to say, I was shocked. As if they were doing me a favor, they said they would discount that fee to $76 if I paid before some date in February. I spoke with three different people, and they would accept nothing less. At one point, I told them credit card companies had less questionable practices.

Truth be known, I haven’t decided how to proceed. If I pay the late fee, they win. If I don’t pay the late fee, I take my chances on whether or not they will send me to a collection agency and take further action. Either way, it’s an expensive lesson for anyone to learn (and a very shady practice for a company managing a tollway operation).

This whole situation got me to thinking about the true cost of late fees. How much money do simple oversights end up costing us? If I am doing the math correctly, my $200 administrative fee on a $10 initial charge comes to 2,000 percent. Thankfully, those big name credit cards are more regulated, but many of them charge 30 percent of more just on interest. If your payment is even one hour late (applicable if you pay online), they tack a late fee on top of that. The average minimum late fee is $25. If you pay it late every month, that’s $300 extra per year, per credit card, plus interest. How many credit cards do you have with a current balance?

It’s not just credit cards, either. My cellular provider charges late fees, as does my Internet provider, and so on. Even if it’s just $5 here and $5 there, that can quickly turn into $50 or $100 a month in extra fees.

Obviously, the solution is to pay your bills on time. I usually do, but December is a busy month in my house, and I forgot. I am at fault. I should have had a better system in place to avoid this oversight. I use online banking and automatic payments for almost everything, but I don’t have a good system in place for these random invoices that come through the mail. It looks like I have something to work toward in 2011.

What about you? How do you ensure your bills get paid on time, and what experiences have you had with late fees that can add to this conversation? Let’s use this opportunity to learn from each other.

The Starbucks Savings Plan

I am the room mom in my son’s classroom. At Christmastime, I organized a class gift for her, and one of the items was a gift card to Starbucks. In her thank you card to the class, she wrote how excited she was because she stops at Starbucks every morning on her way to work. I was very excited that we got her something she could really use. At the same time, I started doing the math in my head.

There are roughly 180 days in one school year. If she just gets regular coffee, she’s spending a minimum of $1 a day. If she gets a latte, mocha or any other concoction, she could easily spend more than $5 a day. In one school year, that’s $180 -$900 just for coffee.

The point of my story is not to judge. We all have the right to spend our money the way we see fit. However, if you are looking for a way to save money, and you’re a daily Starbucks visitor (or any other food establishment for that matter), this is the easiest place to cut back and put money away for something else.

Think about what you could do with an extra $900 every year. That could be a cruise or other vacation for your family, home improvements, part of your down payment on a new house or car. On many health insurance plans, $900 would cover your deductible for a hospital stay – something we don’t always plan for. It could be emergency money for unexpected car repairs, or unexpected travel expenses to see a sick relative. That money could also cover part of your mortgage in case of job loss.

Let’s do some more math. What would happen if we cut out just one $5 drink or lunch a week and put that money in a Prize Savings Account. At the end of a year, you’d have $260, plus interest. Give up two of those drinks or lunches, and you double that.

Now, nobody is saying don’t eat out or don’t go to Starbucks. We’re just encouraging you to really think about where you spend your money if you’re trying to save more. Skipping just a few trips a week can really add up and put more money in your pocket. Put yourself on the Starbucks savings plan and see how much you save.

What other ways do you have for saving money? Let’s continue the discussion here.

Shop NOW For the Rest of the Year

After-holiday clearance sales are still going strong, and there are many good deals to be had on items you can use throughout the year. Clothes, toys, kitchen appliances, TVs, jewelry, storage items and even DVDs are some of the hot items right now. If you know you’ll need some of this stuff later this year, try to find room in your budget to buy it NOW, while it’s as much as 50 percent off the regular price (and sometimes more). And don’t forget – Valentine’s Day is less than a month away. Why spend more than you have to on a gift?

Here are some retailers to check out:

Target

Target is has temporarily lowered its price on storage items for the home, including food storage, on its website. The biggest bargains with Target, however are toys at their retail locations. This is the time of year to stock up on birthday presents throughout the year. If you have kids who get invited to parties periodically, keep a gift closet in your house and stock it with clearance toys from Target. You can get toys and games discounted sometimes as high as 75 percent or more.

Boscovs.com

This online department store has everything – clothes, shoes, toys, home appliances, etc. Right now, there’s a mystery sale. Shop for thousands of items already on sale. Once they are in your cart, you’ll receive an additional mystery discount.

Wal-Mart.com

Get into the Super Bowl spirit at Wal-Mart.com. TVs, entertainment furniture, sports jerseys and grills are all on sale, just in time for the big game.

Kohls.com

Kohls had some outstanding jewelry sales in December, and it continues into the New Year. Make this your Valentine jewelry headquarters.

Container Store

If your New Year’s resolution is to keep your home or office more organized this year, the Container store is where you want to be. It can be costly, but every January, the store offers 30 percent off its entire Elfa line, plus discounts on so many other items.

Shopping smart means shopping when there’s sale. Stock up on the items you know you’ll use this year and don’t buy anything you won’t use. That’s how you save money all year long.

Supermarket Savings Can Affect Your Whole Budget

There’s a lot to be said for saving money at the grocery store. If you think about it, having a fully stocked kitchen affects other parts of your budget, as well.

How many days have you looked up at the clock, gasped when you realized the day was almost over and wondered what you would do for dinner? If you have a stocked pantry, freezer and refrigerator, you can easily find a way to make something for dinner. Even if you have to opt for the occasional frozen pizza or boxed mac-n-cheese, you most likely can find something of nutritional value in your fully stocked kitchen to pair with it. Frozen vegetables, canned beans or even a salad take just minutes to prepare, cost very little and save your budget from the impromptu restaurant visits that can add up quickly when you’re not keeping track.

Here are some tips for saving at the supermarket:

Stock Up When It’s on Sale

Like a shelf life, just about everything in a supermarket has a sale cycle. Most items go on sale every four to six weeks. That’s when you buy those items – especially expensive items like meat or fish. If you’re paying $2 a pound or more for boneless/skinless chicken breast, you’re paying too much. Go to Alberston’s when family packs are on sale for $1.69 to $1.88 per pound, and buy enough to freeze and last through the sale cycle – about four to six weeks. Tom Thumb occasionally has its family packs of boneless/skinless chicken breast on sale for buy one, get one free. That takes the price down to $1.50 a pound, which is an absolute steal.

Beware of BOGO

Just because something is buy one, get one free, doesn’t mean it’s a good deal. Albertsons frequently advertises pre-seasoned, boneless/skinless chicken breast at buy one, get one free. Check the price per pound. Pre-seasoned meat is often priced higher, because it’s extra labor done by the butcher in the store before it’s sold. Also, know your prices. BOGO at one store doesn’t always make that particular item cheaper than it would be at another grocery store.

Last week, Tom Thumb had 12-packs of soft drinks on sale for buy two, get one free. Using simple math, it was easy to see this was not a good deal. At $5.99 per 12 pack, it was still costing $4 per 12-pack on sale. Eventually, those same 12-packs will be on sale for $2.50 each. That’s when you stock up.

Stack Coupons on Sale Items

Don’t just buy on sale. Save your coupons for sales as well. That makes items even cheaper, and sometimes free. And here’s a secret stores don’t often share. If something is on sale for buy one, get one free, and your coupon requires you to buy two, the free one counts toward those two. You get the free product and the coupon discount.

Saving at the supermarket can save your entire budget!

How to Keep Your New Year’s Resolutions

We’re just shy of two weeks into the New Year. Are you ready to throw your resolutions out the window yet? Some people never even get them started, because they’re not realistic. Here are some tips for setting goals that will help you achieve what you want to this year.

Set Realistic Goals

If your New Year’s Resolution is to lose weight, you should remember that the average, healthy weight loss is two pounds a week. If your goal is to lose 20 pounds, give yourself at least three months to do it, and allow for possible set-backs, like injuries from exercising, plateaus or even an unexpected illness that may have you down for a week.

Start Small and set Sub-Goals

If your goal is to exercise more, don’t start by training for a marathon – especially if you haven’t worked out in years. Start with something easy that may push you just a little bit – like walking around the block. When that gets easier, add a block. If you hurt all over the first day you exercise, there’s a possibility you won’t last through the first week. Perhaps your sub-goal can be to walk five blocks comfortably in three months. If you reach that milestone before three months, set a new sub-goal.

Don’t Do What You’ve Always Done and Expect a Different Result

As humans we tend to be set in our ways, and we sometimes forget there is more than one way to do something. If your goal is to give up smoking, and you’ve failed several times in the past by giving it up “cold turkey,” don’t go that route this time. Start slow, or see how a doctor can help you this time. It’s the same with any goal. If you’ve failed in the past, try a new strategy.

Write Down Your Goals and Carry Them With You

When NFL all-time leading rusher Emmitt Smith was inducted to the football Hall of Fame, one of the things he attributed to his success was writing down his goals. In his speech he said, “I wrote down my goals and how I was going to achieve them because Dwight Thomas used to tell us it's only a dream until you write it down, and then it becomes a goal. By the time I was 20, I wrote, ‘I want to play in the Super Bowl, be the MVP, become the all-time leading rusher, and finish college, because I promised my mother I would’. Over the course of my career, all of those things came to pass, and I know that writing down my goals was an essential strategy.”

Write down your goals, whatever they are. Post them in places where you will see them frequently, like your bathroom, your office, your kitchen. Carry them in your wallet or purse. Keep them in your car. Look at them daily and make them happen.

We wish you luck this year as you set new goals and reach for the sky. Just remember, you may need a ladder to get there.

Give Your Finances a New Year’s Check-Up

Lots of people make New Year’s resolutions, but what about financial check-ups? These often get overlooked, because people don’t think they have enough money or assets to warrant a check-up. The truth is everyone should take the time to see where they are with their money and figure out how they can improve their current situation.

If you have any kind of debt whatsoever, this is the perfect time to sit down with someone at no charge and figure out how you can pay off that debt faster. If you could pay off your five-year car loan in four years, you’d be saving money in interest, and you’d be ridding yourself of an entire year’s worth of monthly payments. The same goes for credit cards and lines of credit.

If you have no savings account, this is the perfect time to sit down with someone at no charge and see how you can start building one. You’d be amazed at how fast your savings can grow when you start with as little as $10 or $20 per paycheck, and there are so many ways to find that money. If you consolidate your debt into smaller monthly payments, you could put the difference in a savings account.

If you hope to retire some day, this is the perfect time to sit down with someone at no charge and figure out what you need to do to make that happen. Even if social security still exists when you’re ready to retire, it won’t be enough to live on. The earlier you start saving, the better off you’ll be. Sit down and talk to a professional now.

Earlier this year, Kara and John felt like they were drowning in debt. Desperate to get their heads above water, they contacted a financial planner referred to them by a friend. Eleven months later, they are getting ready to make their last credit card payment, and the only debt they will have is their mortgage.

“If you would have told me a year ago we’d be here today, I wouldn’t believe it. I still don’t,” said Kara. “Our credit card debt was almost $10,000, and our financial advisor found ways to help us pay it off. As my budget cleared up, I started putting more money toward my remaining debt. It’s been liberating, and it cost us nothing to seek professional advice.”

Add a financial check-up to your list of New Year’s resolutions this year. Ask a friend or ask someone at the credit union for a reputable financial advisor, and don’t be afraid to be completely honest about your finances. The only way to change a situation is to acknowledge there’s a problem and develop an action plan to make it better.  A financial advisor can help you do that.