Savings Plan Pays Off

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When I was at the supermarket today I was watching the other people busily pushing their carts filling them up with all kinds of boxes and bags. My cart was not so full. Only the usually items we use to cook. I thought how things have changed for me since deciding to make a commitment to lead a more financially organized life.

One of the things we don't buy anymore is bottled water. I used to have the fridge filled with the stuff. It was so convenient to just grab a bottle and go. But when deciding to save money, we didn't buy it anymore. Now we just have personal bottles and fill them from the cold tap on the fridge. I know we have saved hundreds of dollars and not really lost anything. We don't have a recycle bin full of plastic anymore and our glad we don't contribute waste to the landfill.

A great idea for saving money on food is to buy the store brands. Switching to the store brand has saved us a lot of money. There is as much as a dollar difference in the store brand, the quality is the same and so is the taste. At my supermarket, during a weekly sale, if you buy the national brand the supermarket will give you the store brand no charge. A good way to jump into store brands.

The biggest money waster for me was coffee. For all my adult life, coffee started my day. Like many of us coffee is not only an enjoyable habit to start our day, but a nice pickmeup in the morning. I don't know what I would do without it. I used to make big pots of coffee in my "Mr. Coffee" machine drinking only a cup or two and throwing the rest out. What a waste. Then to feed my habit every morning, rather than make a pot of coffee, I would frequent my local Dunkin Donuts. I'd have my cup of Joe and a nice couple of donuts. Spending at least $3.00 six times a week.

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The light went on one day and realized all the money I was spending and bought a single serve coffee machine that feeds my coffee habit for only $.50 a cup. The donuts had to stop cold turkey. Another way I'm proud to say, I am saving money.

Our cars can be so expense to to repair and replace. So keeping it maintained is so important. One of the things we do for our cars is changing the oil on a regular schedule. With keeping our cars even longer than ever, its so important. I was taught by my father to change the oil every 3,000 miles. By checking the owners manual, you will see that factory recommendations state to change it every 8,000-9,000 miles. With this in mind, I now maintain an interval of 5,000 miles between oil changes.  On two cars that adds up to quite a savings over the years.

While we are on the subject of cars, what's the idea with putting super grade gas in your car. I always thought it was better for your car. But again if you follow your owners manual you will find no need for it. I have switch to regular and never will use super again. I am saving money an my car doesn't know the difference.

Till this day I still cringe when I see a kids birthday party with a bounce house. I remember the one kid birthday party when I had a kids bounce house costing me $200 and a pony I rented for $100. What was I thinking? Do kids really need these things or will they be forever traumatized with out them. I kid you not a close friend of mine rented a baby elephant for their sons party. He paid $500 dollars for the pleasure. After wising up, we are back to pizza and cake in the back yard. Saving even more money.

These changes in our lives are only minor, but the amount of money saving potential is great. I am happy with the results and I am continually looking for other ways to save money. It doesn't have to be hard work to save money. It's really just an adjustment to your behavior.

5 Topics To Discuss Before Marriage

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The older I get the more I notice the many differences between people. The list is long concerning the points of contention between married couples. Where do I start? When picking a mate it's important to have pre-marriage counselling to get the dirty laundry out and discuss financial wants, needs and goals. With different goals come different choices concerning money.

These topics are in the air now because my oldest is getting serious about her boyfriend and things are progressing to marriage. I have brought up many of the things we are discussing today, to her.

1. Children. The first thing I told her to consider discussing was children. The conversation should be about whether to have kids and if so how many. Whether you prefer public or private school and how to pay for it. It's the most important thing to discuss because each junior you have will probably cost in the first 18 years at least $200,000. So discussing how many is of vital importance. With summer camps, day care and eventually college the costs could be enormous.

2. Family. The second thing that can wreck havoc on your relationship is family. There are many things to think about with family. Are there step children, are you ready to take on the emotional and financial responsibility's. The in-laws may be your responsibility when they are retired because they may not have prepared for their retirement. The in-laws can work their way into your marriage, can your spouse be capable of keeping boundaries up.

3. Retirement. Is your spouse a saver or a spender? Do they have what it takes to prepare for future events like college and retirement. If they are a spender how will this effect the family when you want to make a budget and be financially responsible.

4.The Car. This is a big sign of the financial responsibility. Does your future spouse like to show off with an expensive car. If your frugal and your mate is a free-spending person, you may find it exciting at first. It may be exciting at first but after the honeymoon is over you realize your stuck with an irresponsible person and it may crash the marriage.

5. The House. Are you looking to have a modest home or are you looking for a McMansion. You and your spouse should decide on what your goals are for the future. Will you put most of your income into housing or more into savings. Will you reveal to your future mate that you are a spender or a saver. Are you organized or a mess.

The point of this discussion is not to point fingers to who is right or wrong but reveal the dirty laundry for the other party to see. The idea is to not have any surprises after the wedding. I remember when I went through premarital counselling long ago. We had no discussion of money what so ever. We didn't know if we were financially compatible or not.

The goal here is to not breakup a relationship because we find any incompatibility. It's to have the couple be aware of it and work toward solutions of agreement before, rather than later.

Bad Habits: Kick That Car Lease Out.

When your on your way to straighten out your finances one of the hardest things to do is get of the car lease habit. Getting that new car every 3 years is quite tempting. You fool yourself by saying you deserve it. You remember when you had that old jalopy and how often it broke down. You need a reliable car and your going to pay for it. 

You know the right thing to do would be to purchase a good used car and pay for it in cash. You must prepare for this purchase by saving money. If you have $5000 dollars you can get a good used car. That lease car is costing you a payment of $500 a month, so save that much for 10 months and get yourself a car. Remember after the 10 months you'll have that $500 monthly payment to keep in your pocket. You can use it to save for a more expensive car or put it toward your emergency fund. 

You have to stop thinking the car purchase as a $500 payment. You believe, no problem, you can swing that. Think of it as what that will be in five years if you save it. We're talking $30,000 after 5 years. After another 5 years you will have $77,600 at 5% interest. I think I'd rather have the money. Most of us made our first car payment as teenagers. We got on that car loan merry-go-round and never got off. The best ways to lower your transportation costs is get that used car and drive it for many, many years. It's not easy to leave that new car smell. But if you want to have some money when your old, you have too.

Halloween Weekend Blog Roundup

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Welcome to my first Halloween Weekend Blog Roundup. Here's a list of some of the best articles on the web this week.

•  Avoiding Financial Disaster - New Work, No Debt from Canadian Finance Blog.
•  Eight Win-Win Tips For Boomerang Kids and Their Parents from Personal Finance By The Book.
• Are Your Values Money-Makers Or Money-Losers from Barbara Friedberg Personal Finance. Don' t forget to check out her new book "20 Minute Guide To Investing".
•  How To Read Your Investment Statement from Do Not Wait
•  Does It Matter Who Is The Main Provider Between Husband and Wife? from Squirrelers
•  Book Review: Economics In One Lesson from Invest It Wisely
• My Experience With Unemployment from The Biz Of Life
•  DINKS Choice: Dividend Mutual Funds From Dinks Finance

Here are some ways to save a little money.

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•  Last-Minute DIY Halloween Costumes from WiseBread
•  Energy Savings With LED Light Bulbs ( and a Giveaway!) from Bargaineering
•  How To Reduce The Expense Of Gasoline from Moneyning
•  How To Find A Low-Priced Plumber That Won't Rip You Off from Len Penzo

Enjoy and Happy Halloween.

Why Read Books?

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We read in school. Fiction and nonfiction. When I was in school we read all the time. We need to always be learning. Wealthy people read one non-fiction book every month. According to the book "The Millionaire Next Door" by Thomas Stanley. But, why read books now that your an adult. 
 
I had to seek out someone more knowledgeable than myself to see the academic or philosophical reason. I found a man named Harold Bloom. Harold Bloom is an 80 year old American writer and literary critic, currently Sterling Professor of the Humanities at Yale University. He's had a lifelong study and love for books. He's written and taught about literature his whole life. And just so happened to write a book called "How To Read And Why". So he was the perfect source to answer my question. 
 
I found in Bloom's book an in depth discussion, I am noting what I think our the most important items. 
 

Reading helps people form their own judgements and opinions

You read for your own self interest.

Reading is to prepare ourselves for change

We must read as the as Bible student searches for the truth.

We read not to refute, believe, or take for granted but to weigh and consider.

We read to let the book find us.

We read to strengthen self and learn your authentic interests.

We read not to improve our neighbor but ourselves.

We read for a mind greater than our own. 

 
There are many good reasons to read. His favorite author, Shakespeare, holds an abundance of examples of reasons to read. His reason to read books can be summarized with Shakespeare's works, "Shakespeare is waiting to speak to you." 
 
Bloom's book has given me something new to think about. But isn't that what he's trying to tell us. That reading opens new doors in our mind that we didn't know we had. Reading takes your point of view and let's you see things through a different lens. It's like when your traveling in a plane or pictures of the Earth from space. What a completely different point of view you have. What completely new thoughts enter your head. That's what reading can do for you. Now go read something. 

Do You Have Financial Etiquette?

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Many years ago when I was a young lad my parents would take me and my siblings out to dinner. When the check came I would ask how much the bill was. Dad proceeded to hand me the check and told me to pay. He explained to me how talking about money was not done when it wasn't your business. It was a lesson we were all taught that there was a privacy issue when talking about others finances. It's a facet of American culture that you don't ask what someone earns, their religious views or how they vote. 
 
What happens when someone crosses these cultural boundaries it throws you off and I don't know how to respond - usually I say the wrong thing. What I did was go to the source for expert advice on etiquette. I went to Mary Mitchell. She is an author of many books and president of The Mitchell Organization, she's made a career out of coaching people in relational situations. 
 
You probably can't get out of talking about money with a spouse or a parent who's participating in your finances, you can with a friend or acquaintance who crosses the line and asks you something better left private. Mitchell suggests saying " it's raining outside". This is the same tone of voice you should use when responding to someone who asks an inappropriate financial question. No emotion, no judgement. If someone gets aggressive, you can smile and say,"Why would you ask a question like that?" or "If you will forgive me for not answering that question, I will forgive you for asking it. " 

 
Here's a list of the top ten uncomfortable money situations: 
 
1. Your friends make more money than you, and they treat you like a charity case. 
 
2. Someone asks how much your spouse makes. 
 
3. A friend borrowed money from you and they haven't paid it back or even mentioned it. 
 
4. You go out with a group of people and order a salad and water, everyone else orders wine and lots of appetizers. At the end someone says let's split the check. 
 
5. Someone asks how much an item of clothing costs, like shoes or a purse. 
 
6. A good friend is having hard financial times. How do you approach them and offer to pay for them. 
 
7. You're with an old friend and their credit card gets declined. 
 
8. An acquaintance criticizes your spending habits. 

 
9. A friend or family member always thinks your going to pay for them. 
 
10. Someone asks how much debt you have. 
 
In all these situations it's always best to approach your answer with a calm tone and politeness. When your responding to the comment or situation is the the time when you, or both of you will feel awkward. Remember these people are not trying to be unkind. They are just overstepping in a social situation. Try to respond calmly and then change the subject. Saving embarrassment for both you and your friend.