Senior Member
i googled "batch water heater" but didn't find the plan that I used. I'll take a look for it tomorrow on my computer and post it if I can find it.
A couple of things tho. With 4 kids, we used to use A LOT of hot water. Also, I don't know how much of those savings are attributable to the new windows and how much is the solar hot water heater.
But the numbers are accurate, that much I do know.
Senior Member
There's nothing wrong with saving money, even you Scotsmen can do it.Originally Posted by jonthepain
Very creative response to the money drain of having 4 kids in the house. I never went that far, but I have changed all the bulbs to cf's. For areas where we read the paper or need to have a stronger light, I splurge and get the more expensive 100w cfs instead of the 60's.
Another tip - for quick cheap meals, Ramen noodles are hard to beat, lunchtime-wise. 1pack is around 17-20c. You can throw some shredded chicken or tuna in there and eat for less than $1.
Senior Member
Five simple ways to save money
Kelsey Hubbard - Money Watch
NEW YORK (MarketWatch) -- We are a country of spenders who must learn the hard way to practice what our grandparents have always known: A penny saved is a penny earned.
Consider that about 43% of Americans spend more than they earn, according to estimates from the federal government, and the average household carries some $8,000 to $10,000 in credit-card debt.
To make matters worse, the average American no longer saves money. That's tumbled from a 10.8% average savings rate in 1984 into negative territory today. It's no wonder that many of us have been living way above our means for some time.
But that is getting harder and harder to do. Available credit for people to finance their lifestyles has shrunk if not dried up altogether and many Americans are standing by in shock watching their mortgage payments surge while the value of their 401(k)s drop.
It's clear Americans need to start spending less and saving more. That may sound easier said than it's done. The key is to be aware of your where your money is going and take steps to stop the leaks. Here are five simple tips that could save you hundreds of dollars a month:
1. Cash back at the pump
In the past five months gasoline prices have dropped 56%, from an average price of $4.11 to $1.80 a gallon. Somehow, households found the money to pay the higher price and survive so now people should take that excess money they are saving and bank it.
Jean Chatzky, author and personal finance expert suggests using the money you were spending on gasoline to build up that rainy day fund or to pay some your holiday expenses instead of racking up more debt.
2. Supper savings
Another great way Americans can cut costs each month is to eat at home, says Jonathan and David Murray, twin brothers who are financial advisers.
According to a recent Zagat survey, Americans will spend an average of $34 this year every time they go out to eat dinner, that's for one dinner, drink and gratuity; $76.00 if they live in one of the 20 most expensive cities. If a couple does that four times in a month the expense is close to $300 in low-cost areas and $600 in higher-cost regions, and if you have more than one drink or are treating family or friends, costs can add up quickly.
Plan a dinner or party at home and ask guests to bring a dish. If you're big on getting together with friends, family and work associates, this could save you hundreds of dollars a month.
3. Renegotiate bills
You may not be able to negotiate with the gas company or the electric company, but you can with credit cards, cable and phone services, among others. Do the homework and find out what competing cable companies, for example, are offering and ask your provider to renegotiate your bill. You may have to get through to a manager but Chatzky said she recently did this and got her monthly bill reduced by $50.
4. Smart shopping
Retailers are poised to have one of the worst holiday shopping seasons in decades and are offering deep discounts to move merchandise. But smart shoppers can save even more money by hunting down coupons. Before ordering online or going to a store, go to sites like Couponcabin.com and Ultimatecoupons.com or Google the name of a store and often you'll get a coupon code to enter at checkout. You can save 10% to 20% or more on the total order or maybe get free shipping.
There are also coupons to print out and take to the store for deeper discounts. And don't be afraid to pit one retailer against another by asking for a price match on sale items.
5. Keep the receipt
It is important to hang on to all your store receipts and keep track of sales. Savvy shoppers can possibly save even more on purchases by checking back to see if the retailers lower prices even further. If that happens within two weeks of your purchase, most stores will credit you the difference.
Senior Member
Taking control of your electric bill
Taking Control of Your Electricity Bill: How to cut your electricity use in half or more
I had a revelation a few years back, when I asked a solar engineer to price a solar electric system for my home.
Why, he said, did I want to install solar power when my electricity consumption was so high?
What, I thought? My family's consumption was about half that of the typical family in my area. I'd already switched many incandescent lights to compact lights, bought ENERGY STAR replacements for my fridge, washer, dryer, and torn out the energy-wasting baseboard heaters in my poorly insulated kitchen extension after adding decent insulation.
He told me I ought to be able to cut my electricity use in half again. Down to a quarter of what my neighbors use, I asked? Why not, he said? And he told me how to do it.
First, he talked me into buying a little device - the Kill A Watt meter - which is a home energy monitor. You plug the Kill A Watt meter into a wall outlet, then you plug a device (fridge, coffee maker,whatever) into the meter. The meter tells you how many watts of electricity the device consumes, and, over time, how many kilowatt hours an appliance like a refrigerator uses.
Then he told me to measure everything in my house. Since I'm a numbers guy, the idea of measuring appealed to me; I measured everything I could. Fridge, freezer, toaster, stereo, computer, cable modem, clock radio, plug-in carbon monoxide detector, you name it. I measured devices that couldn't be plugged into the meter (such as dishwasher, where the plug is buried, and stove, which runs on 220 volts) by watching the electricity meter outside my home. Then I estimated what was left, which mainly consisted of lights (the wattage is printed on the bulb; multiply by hours of use per day and divide by 1,000 to get kwh per day). I used an Excel spreadsheet to calculate how much electricity our house used each month, and, to my surprise, when I checked my utility bill, my estimate was bang on.
The revelation was how much electricity my stuff used that I really didn't benefit from. For example:
Most of these things sound insignificant on their own - especially when you just look at the watts consumed or the amount of power per day. But when you consider that they're all running continuously, it really does add up - in our case, cutting this kind of waste did almost exactly what the solar engineer said it would - it cut our energy bills nearly in half again!
- My coffee maker was plugged in all day with its little LED clock. 2 watts of continuous power doesn't sound like much, but that adds up to 17 kilowatt hours per year. That was more than one day's worth of my family's energy consumption just to avoid having to unplug and plug in the coffee maker.
- I always hibernate my computer when I'm not using it, but I was leaving the cable modem and wireless router on. Between them, they were using 30 watts continuously - 262 kilowatt hours a year.
- That carbon monoxide detector was drawing 5 watts. What incentive does the manufacturer have to make it as energy efficient as possible, when I'm the one paying the bill? Why not use a battery-powered CO detector instead?
- The television and DVD player combined were using another 30 watts even when turned off. Why? Because both were sitting there waiting for me to power them on via remote control (There are actually home energy saving devices known as standby savers, that you can use that save most of this power.)
- The fridge was using more than it was supposed to. So I checked that with a thermometer, and discovered one of my kids had accidentally bumped the temperature dial on the freezer compartment (ours is a bottom freezer) and set it way colder than it needed to be. Fixing that saved nearly 1 kwh a day right there!
That's right - we were only using about 16 kilowatt hours per day of electricity before I started toying with solar energy, and the local average in my area for a house of 4 people is about 33 kwh per day. By the time I was done with my Kill A Watt meter, we had our consumption down to 8 kwh per day.
Once you get your consumption down to that level, a solar electric system starts to make sense (especially with all the financial incentives for installing solar power). But in the end, what did I do?
Just kept track of electricity usage and made sure we kept it down. The net impact is that we now save more energy through these conservation measures, than we would have generated if we'd installed a solar power system and not made any changes in our behavior.
I'd recommend a Kill A Watt meter - or any similar home electricity monitoring tool - to anyone seriously interested in cutting their electricity use. I paid $60 for mine, and it paid for itself in only three months. Nowadays you can buy them for about $20, so the payback period could be down to a month. And if you didn't have the head-start I had - if your home is in the 30+ kwh per day range to start with - you'll save even more.
As far as electricity consumption goes, what you don't know can't help you!
Senior Member
Solar Water Heater - What an incredible idea. Thanks for posting about it. I'll have to do a search for the plans. Anything to save a buck.
Senior Member
You're welcome. I worked on mine a little last weekend. The caulking had shrunk. It's supposed to get cold here this week (in the teens is pretty cold for down here) so I wanted to make sure that it is airtight. I've had it for years and it hasn't frozen up on me yet.
There are lots of plans on the web but they are mostly a lot fancier than mine. Mine's just a 4x4x4 box with a 20 gal tank inside. Sometimes I wish I had used an old 40 gal tank, but hey, I used what I had on hand, and it works great.
Senior Member
It's tax time so I make sure I always contribute to my ROTH IRA. A good way to put away money for the future.
Senior Member
Tax savings
Tax Credits Worth Pursuing This Year
by AnnaMaria Andriotis
Thursday, January 29, 2009
The very factors that have many consumers worried about affording this year's tax bill could actually work in their favor this tax season.
Taxpayers whose wages were slashed in 2008 -- or worse, who were laid off -- may be eligible for tax credits that weren't within their reach in previous years. In addition, first-time home buyers and parents of children under age 17 may also be able to save a little money on their tax bill thanks to some new credits and thresholds.
“These overlooked credits are relevant in the current economy and could mean the difference in hundreds or even thousands of dollars in your tax refund,” says John Evans, Northeast tax director at BDO Seidman.
Here are four credits that can help boost your refund.
Recovery Rebate Credit
Feel like you got shortchanged last year when the government doled out its Economic Stimulus Act rebate checks? Well, if you didn't qualify for the rebate before or didn't receive the full amount ($600 per taxpayer and $1,200 if married and filing jointly) because your income was too high (or too low), you may now be able to collect.
The rebate checks that were sent out last year were based on information on your 1040 for 2007. This second chance to collect will be based on your 2008 1040. So if your income took a hit last year, it may be worth a shot. You can also qualify for this credit if you had a child in 2008, among other reasons.
First-Time Homeowner Credit
For those who bought a home last year or want to in the months ahead, Uncle Sam has a little present for you. This tax credit, essentially a temporary, no-interest loan, is being offered to those who bought -- or will buy -- a home between April 9, 2008, and June 30, 2009, and who didn't own a home during the three years preceding the purchase.
The maximum amount of the credit equals either 10% of the home’s price or $7,500 ($3,750 if you are married, but filing separately), whichever is less. One hitch: Homeowners will have to repay the credit over 15 years by either owing more in taxes or receiving a smaller refund. So, if you claim the credit on your 2008 tax return, you’ll have to start repaying it when you file your taxes for 2009. (The 2009 tax return will include an extra line for this credit.)
Child Tax Credit
Many parents will be eligible to receive a tax credit of up to $1,000 per child this year as long as that child was under the age of 17 at the end of 2008. (This credit is in addition to the regular $3,500 exemption that you can claim for each dependent.)
The child tax credit begins phasing out for filers whose modified adjusted gross income is above $110,000 if they are married and filing jointly, above $75,000 for single filers, or more than $55,000 for married filing separately. In addition, the child (who can also be the filer’s sibling, stepchild, grandchild, niece or nephew) must have not provided more than half of his or her own support and, in most cases, must have lived with the filer for more than half of 2008.
The one catch: The amount you receive from the child tax credit is partly based on your income so you may not receive the full amount -- or possibly anything. If you don't qualify for any or all of the $1,000 child tax credit you're still in luck. Try applying for the additional child tax credit, which also offers up to $1,000 per qualifying child. (Taxpayers who qualify for parts of both credits can only receive a maximum of $1,000 per eligible child.) Typically, this credit is reserved for low-income taxpayers, but a recent change in the way the IRS computes eligibility for this credit, will allow more middle-income taxpayers to qualify this year, says Eric Smith, a spokesman for the IRS.
Earned Income Tax Credit
This credit is typically geared toward low-income taxpayers, but given the rise in the unemployment rate and wage cuts, more people are likely to qualify for it this year, says Evans. (According to the IRS, one in six taxpayers currently can claim this credit.)
To qualify, families with two or more children must have made less than $41,646 in 2008, and those with one child must have earned less than $36,995. Also, individuals without children who make less than $15,880 are eligible.
The maximum credit for each of these groups is $4,824, $2,917 and $438, respectively.
Taxpayers who qualify to claim this credit on their federal income tax return may also be eligible for a similar credit on their state or local income tax return. Twenty-two states, including New York, Maryland and Iowa, offer residents an earned income tax credit.
http://finance.yahoo.com/taxes/artic...uing-This-Year
Senior Member
Did it look something like this?
Senior Member
Get our movies from the library, they are free for viewing.
Senior Member
tips from regular people, advice for cutting back
http://articles.lancasteronline.com/local/4/233724
Get out the scissors and clip those coupons.
Pay cash instead of putting it on your credit card.
Consider paper towels and store-bought cookies a luxury.
In interviews at a local gasoline service station, a Wal-Mart and Central Market, county folks say they are employing a variety of common-sense strategies that include careful spending for food, gas and even utilities...
• Cut down on impulse and unnecessary spending.
"If you don't need it, don't buy it."
• Watch your food budget carefully.
Clip coupons and search for bargains online when you can. Shop at wholesale and discount grocery stores.
"I don't buy paper towels," the city resident says. "I don't buy extra snacks. I bake cookies."
• Look for ways to cut your energy bill.
Turn down the thermostat. .
• Plan your driving trips.
• Set a budget and stick to it.
"Know what you can afford and how much you can spend," said Pat Evans, 50, a bank teller from Lancaster, adding, "Keep track of money and save as much as you can save."
• Look for the long-term benefits from a more frugal life.
"Maybe, if our kids see us living this way, we can continue this and not forget what this was like five years from now," says Warihay. "We can teach our kids how to live."
"We all got too big for our britches," she notes. "Big houses, nice cars — is that what's important?"
Senior Member
this is pretty darn close to what mine looks like:
http://www.solarcooking.org/bkerr/SWHeaterRev-1d.pdf
here are some others that show the general idea:
Senior Member
Make sure you eat the leftovers. Too many people throw them out. You can always be creative on how to make new meals out of the leftovers of yesterday.
Senior Member
7 Things You're Wasting Money On
by Kelli B. Grant
Friday, March 20, 2009 provided by money saver.
These days, keeping your budget in line isn’t measured by the amount you spend, but by how much you save.
Before you blame your daily jaunt to Starbucks or weekly trip to the movies for breaking your budget, take a good hard look at how much you’re paying for less obvious but much more expensive money wasters like overdraft fees and auto insurance.
Cut back on these seven items and you could save roughly $1,000 a year.
1) Bottled Water
Getting your recommended eight glasses of water a day by bottle instead of tap is a huge waste of cash, says Phil Lempert, founder of Supermarket Guru. That buck-a-bottle water you down on a regular basis can really add up. (Even more so now that cities like Chicago collect an additional tax of five cents per bottle.)
Potential Savings: Spend $37 to buy a 40-ounce Brita pitcher and filter ($13 at Bed, Bath and Beyond), plus a four-pack of replacement filters ($24), and you'll be able to filter 200 gallons of water. Buy that much water in 24-packs of 16.9-ounce Aquafina bottles at Shop Rite instead, and you’d spend $283.50. Your total savings: $246.50.
2) Extended Warranties
Think twice before you shell out $10 a month for a two-year protection plan on your pricey new BlackBerry. New products tend to malfunction within the manufacturer’s initial warranty period, or well after any extended warranty has expired, says Michael Gartenberg, vice president of strategy and analysis for Interpret LLC, a market researcher. (Most extended warranties exclude accidental damage, too, so you’d still be out of luck if you drop that Blackberry and crack the screen.) To protect yourself, pay with the right credit card. Many credit cards -- including most American Express and MasterCard cards -- double the manufacturer’s warranty on purchases, adding up to another year of free protection.
Potential Savings: Someone buying a 40-inch Samsung flat panel high-def television at Best Buy for $800 has the option to add a four-year protection plan for another $150. Skip it, and pocket the cash instead. (The set already has a one-year manufacturer’s warranty.)
3) Gym Memberships
The cost of a gym membership can really rack up over the course of a year (an average of $775, according to the International Health, Racquet & Sportsclub Association). So make sure you're tapping into all of the discounts available to you. Check with your employer, health insurer and other membership groups like your union or alma mater to see if they offer discounts on gym and fitness club memberships, says Bob Nelson, president of Nelson Motivation, a benefits consulting firm.
Potential Savings: On your own, you’d pay $54.99 per month, plus a $49 enrollment fee, for a national access plan at Bally’s Total Fitness. Through discounter GlobalFit.com, which offers special rates for members of partner companies, you’d pay $37.80 per month plus a $29 enrollment fee for the same Bally’s membership. Over a yearlong membership, that’s $226.28 saved.
4) Overdraft Fees
Overdraft fees can run as high as $35 apiece and banks have a host of sneaky tricks that can cause even the most diligent consumer to overdraw on an account. For example, they may approve debit purchases that would put you in the red, or re-order transactions so that the biggest purchases go through first -- and deposits get processed last. To protect yourself, sign up for overdraft protection, which can cost as little as $5 to $10 a year (and is often free with high-level checking accounts), and can save you hundreds of dollars.
Potential Savings: Pay $5 annually for a connected line of credit at Citibank. It kicks in only when you overspend, helping you to avoid the $30 fee per overdraft. Mess up just four times within a year and you've saved $115.
5) Organic Produce
Sure, buying organic makes you feel like you’re doing the right thing, but it isn't always the best choice for your wallet. Fruits and vegetables like kiwis, sweet corn and broccoli require very little pesticide to grow. Others -- like avocados, onions and pineapples -- have thick or peelable skins that reduce your exposure to harmful chemicals. “Any pesticide that remains is not getting through,” says Lempert. For a handy reminder as you shop, download the Environmental Working Group’s wallet-sized organic produce guide.
Potential Savings: Organic broccoli costs $2.99 per pound at online grocer FreshDirect, which also offers conventional broccoli for $1.49. A pound of navel oranges is $4 for the organic and $2 for conventional. Someone buying a pound of each item weekly could save $182 over the course of a year.
6) Auto Insurance
“[Auto insurers] often give discounts for consumers who don’t drive long distances,” says Sam Belden, a spokesman for Insurance.com. If your driving habits have changed in recent months -- say, you’ve switched jobs or cut out pricey trips to the mall – call your insurer to ask if you now qualify for a better rate.
Potential Savings: A driver who cuts back to fewer than 7,500 miles a year could shave 5% to 15% off his premiums, depending on his insurer. Considering that the average driver shells out $817 a year on auto insurance, according to the Insurance Information Institute, that saves $40.85 to $122.55.
7) Music Downloads
For the longest time, Apple iPod and iPhone owners were stuck downloading their music from iTunes, while consumers with other MP3 players couldn’t put the service’s content on their devices. But now, most online music purveyors (including Apple as of March) offer content in a DRM-free format -- meaning you can listen to it on any MP3 player. That frees iTunes users to pursue cheaper music from sites like Wal-Mart and Amazon.com. Music fans with other MP3 players may benefit from Apple going DRM-free, too. The company plans to revamp its fees in April, charging 69 cents to $1.29 per song instead of the current flat fee of 99 cents. Bottom line: Check prices on several sites before you download.
Potential Savings: “Hot N Cold” by Katy Perry costs 99 cents at iTunes, but just 74 cents at Wal-Mart and 79 cents at Amazon.com. Someone buying a song a week could save $10.40 to $13 annually by shopping around.
http://finance.yahoo.com/family-home...sting-Money-On
Senior Member
I try to use the gear and tackle I have, though sometimes temptations gets the best of me.
Administrator
this is pretty darn close to what mine looks like:
http://www.solarcooking.org/bkerr/SWHeaterRev-1d.pdf
here are some others that show the general idea:
Thanks for sharing the concept, guys. Jon I remember you saying you did one at your house. You must be one of the only families in the neighborhood to have something like that.
Administrator
Some more ways to save.
Top 6 Mindless Money Wasters
by Sham Gad
Thursday, January 14, 2010
provided by
Most people will say they are interested in saving money. Money saved from one area can be spent in another area. Or even better, the money can actually grow as an investment for the future. But despite the benefits of putting some money away, most people take a passing interest in actually doing it. As young adults, they don't think much about retirement; then, as adults, credit card debt becomes a way of life.
But the tough economic times that hit the U.S. in 2007 through 2009 were a wake-up call for many people, causing the public's view of saving to shift. If you'd like to make regular saving a part of your life, read on to find out how to conquer the first step: finding that extra money.
You can begin by paying attention to these top money wasting activities.
1. Convenience Stores
Many people don't think about the mark-up they pay for convenience store items. Here's a hint: it's huge. This is because these stores don't purchase food in the large quantities that a grocery store does and also because they make you pay more for the convenience they provide. So, unless it's an emergency situation, avoid shopping at convenience stores. The premium you pay for convenience is not worth the assumed convenience you get. For example, a Coke at a convenience store might cost you a dollar, while you can go to the grocery store and buy a 12 pack for $4. If you tend to pull over for a drink, buy a 12-pack and keep it in your car. If you visit convenience stores often, the annual savings of cutting out these visits can be tremendous.
2. Cell Phone Plans
Take the time to check your monthly cell phone bill - you may be paying more than you need to. If you are using fewer minutes than your monthly plan allows, switch to a lower-rate plan. If you are using more minutes than your monthly allotment, then upgrade to a higher minute plan. Before making any changes to your plan, sit down with a list of your cell phone company's offerings and compare and determine which plan provides the most value based on your needs. Most cell phone companies charge 40 to 50 cents per additional minute, so going over your allowed minutes by 100 minutes one month will cost you $40 to $50 in that month alone. With many minute plan upgrades costing $10 to $20 a month, they'll easily pay for themselves.
You should also scan through your cell phone plan for added features like text messaging and mobile internet. If you aren't really using these features, get rid of them - they're costing you money each month!
3. Soft Drinks
This one is a sneaky money waster. Not only does ordering beverages along with a restaurant meal boost your total expenses, but soft drinks also have one of the highest markups of any restaurant item, and thus provide lower value for your money. Consider a typical family of four that eats out twice a week at fast casual restaurants (typical for a middle class family even today). Assuming an average price of $1.50 for a fountain soft drink, that totals $12 a week, $48 a month, $624 a year. Just cutting out this one item from your meal could mean significant savings that could go into something much more productive, such as a retirement savings plan. If you invest $624 at the market average of 9% a year every year, you would have almost $32,000 at the end of 20 years. So dine out, but opt for water!
4. Unnecessary Bank Fees
Many people unknowingly pay a lot to their banks in the form of fees. If you don't know what fees your accounts are subject to, spend a few minutes finding out. Some banks charge ATM fees for using another bank's ATM, for example. These can be as high as $5! This amounts to a 25% one-time fee for a $20 withdrawal. The key with this type of fee is simply knowing about it. You would be better off using a credit card to make the purchase.
Go back and examine the rules governing your checking and savings accounts. Many people have accounts with a fixed number of withdrawals and deposits per month. You would be better off with an account maintenance fee of $10 a month than getting hit with two or three different fees a month.
Also consider consolidating bank accounts, as often one account with a larger minimum can eliminate numerous fees that might otherwise exist.
5. Magazines
If you're the type of person who likes to occasionally pick up your favorite magazine from the local grocery store or newsstand, consider getting an annual subscription. Even if you don't want the magazine every month, a couple of issues at the newsstand are enough to cover the entire annual subscription. For example, a 26-issue subscription to Forbes Magazine will cost you less than $25, while one issue at the newsstand costs $5.
6. Annual Credit Card Fees
Unless you have a poor credit history, there is no reason to pay annual credit card fees. A host of Visa, MasterCard and Discover cards have no annual fee, yet many people pay up to $100 a year for the privilege of holding a credit card. Unless you're an ultra-wealthy, exclusive holders of an elite-level credit card with exclusive perks, most people should not be paying annual credit card fees.
And speaking of credit cards, make sure you make a payment on time every month, even if it's the minimum. Many credit cards charge $39 monthly late fee charges, charges which accrue interest along with your existing balance.
Be Proactive
Spend a couple hours and go over the above categories along with any other regular habits you may have accumulated over the years. The time will be well spent as it could mean hundreds of dollars of recurring annual savings.
http://finance.yahoo.com/banking-bud...d=bb-budgeting
Senior Member
This is because their tips are included in the price of the check. I found this out the expensive way in Paris.
1000 post club!
How to Be a Savvy Cheapskate
Katy Marquardt, On Wednesday April 14, 2010, 11:40 am EDT
Don't judge this penny pincher by his cover. Jeff Yeager may be the author of The Ultimate Cheapskate's Roadmap to True Riches--which one might assume to be filled with coupon-clipping strategies and saving tricks--but his philosophy isn't as much about how to get more for less as it is learning to live with less, period. Sure, he blogs about "12 Surprising Ways to Reuse Aluminum Foil," making cider bisque out of your jack-o-lantern, and using just enough toilet paper, but the bigger goal here is to live green, not just cheap. Ultimately, Yeager says, consumers should direct their frugal efforts toward downsizing their lifestyle--in major areas like housing and transportation--rather than saving a buck here and there. U.S. News recently spoke to Yeager about the most effective ways to economize. Excerpts:
Explain your 'cheapskate' philosophy.
I don't really write about penny-pinching tips. I focus more on quality-of-life and happiness issues ... especially the idea of deciding what "enough" is for you. Most people don't ask themselves that. What would be enough money and enough stuff for you? My wife and I answered that question early in marriage, in our 30s. We were living a comfortable lifestyle--why would we want to spend every last dollar we earned as our salaries increased over the years? We established what I call a "permanent standard of living," a level we still live comfortably at today, even though we could afford to spend more ... we managed, for example, to pay off our house in 15 years and essentially retire in our 40s. It's all about the decisions you make.
[See 21 Things We're Learning to Live Without.]
What sorts of decisions?
Well, for me, it's all about the bigger financial decisions in life. I rail against the latte factor ... for 20 years, pundits have been saying that if you give up your daily Starbucks cup and bank the money, you can attain financial security. That may work on paper, but I don't think it works that way in reality, for most people. One [of the bigger decisions] is housing. I'm a big believer in finishing in your starter home: Buy a modest home when you're first starting out and ignore people who tell you not to pay it off right away. Pay off your mortgage as quickly as you can, settle in and get to know your neighbors, and make your house your home. The conventional wisdom before the housing bubble burst was that if you could afford to pay down your mortgage early, instead take that extra money and invest it because mortgage money is relatively inexpensive to borrow. The financial pundits at the time said that any idiot could make a return on their investment above 5 percent or 4 percent of their mortgage interest. ... Well, it didn't work out that way.
These days with the tight economy, you hear so much in the media about economizing. But that's almost always about "how to get more for less" ... how to clip a coupon or find a bargain. But I think we're missing what could be the golden epiphany of these hard times: We shouldn't be asking ourselves "How can we afford it?" We should instead be asking, "Do we really need it?" There's lots of social science that shows that once you're above poverty level, more money and more stuff doesn't contribute to happiness. I believe that most Americans would be happier, and the quality of their lives would increase, if they would only spend and consume less. If you believe as I do, I think there will be a lot of upsides to the current recession in the long run.
[See 12 Hidden Costs of Homeownership.]
What are those upsides?
For example, when gas was $4, we all complained about it, but two-thirds of people reported that they changed their driving habits as a result. And unless I'm missing all the horror stories, nothing awful happened because of it. Certainly driving less is better for the environment and better for our pocketbooks, so where's the downside? Another example: Since the start of the recession, the size of new homes being built in the U.S. has dropped by about 11 percent ... 300 fewer square feet. Again, that's a change, but I don't think that's a bad thing. Think about the tremendous financial impact that the decision to live in a smaller home will have on your life. Not only it cost more to buy [a larger home] in the first place, but once you have those extra 300 square feet, you have to insure it, decorate it, heat and cool it, maintain it, repair it, and pay taxes on it. That's the kind of fundamental decision that has enslaved so many Americans to the yoke of too much debt. So apparently now were going to be living in slightly smaller houses, but why is that a bad thing?
[How to Gauge Your Middle-Class Status.]
If you read the book The Not So Big House, it says that as humans, we're uncomfortable in big spaces. If we have a chance to move into the mansion on the hill, we're not really comfortable with it. We're learning some lessons in the recession. Personal savings rates are up. Even though things are tighter now, we're somehow magically able to put money in the bank. Go figure.
Aside from driving less and being happy with a smaller house, what other significant things we should cut back on?
Eating lower on the food chain, for one. I try to spend only a dollar a pound on food. It's a myth that it costs more to eat healthy. You can spend a lot, but when you think about the kinds of things we should eat the most of--whole grains, legumes, and produce--they tend to cost less per pound than things that are bad for us like red meat and many processed foods that are high in trans saturated fats. I encourage people to eat more meals at home. Forty-five percent of the average U.S. family food budget is spent on food prepared outside of home. And they cost an average of 80 percent more than preparing the same food at home. There's a lot of waste, too. According to the USDA, about 25 percent of food is thrown away, so arguably you could reduce your spending here by 25 percent simply by being smarter about food storage and portion control.
You write a lot about the relationship between being frugal and environmentally conscious on thedailygreen.com. Any takeaways?
For most Americans, the greenest thing you can do is consume less, which probably means spending less. I think there's some hypocrisy in the current green movement, even though I've been an ardent environmentalist my whole adult life. I fear that the so-called green movement is catching on now because there's a bunch of cool, expensive green stuff we can by. It's become what I call a "cause de stuff." Much of the current environmental movement in the U.S. seems to be built around the very thing it should be seeking to combat ... rampant consumerism. Take green cleaning products. They tend to be more expensive than the toxic products. But you can clean almost everything with baking soda and vinegar, which are safer for the environment than green products and cost less than any other cleaning products, green or toxic. Hybrid vehicles are another example. It's cool now to own a $35,000 Prius, although driving a gas guzzler to work instead is better for the environment IF you carpool with four friends. Sure, the greenest choice would be to carpool in a hybrid, but I don't see Americans being that committed to environmentalism. We're really mostly committed to buying cool, expensive, green stuff. That's the hypocrisy I'm talking about.
You must make big purchases every now and then. What's your strategy?
I'm a big believer in the Consumer Reports approach to shopping. Buyer's remorse is at epidemic proportions. How is spending money on something we'll regret later a good thing? It makes us poorer, and clearly hasn't made us happy. My advice is to have a mandatory waiting period. Wait at least a week after you see something in the store that you want. I guarantee that half the time, you won't go buy it.
Once or twice a year, I look at the things I've spent more money on, and ask myself one simple question: "If I had it to do over again, would I have spent that money?" I call it a 'what heck was I thinking? audit." Maybe you'll see that you spend a lot on restaurant meals that you regret. I noticed that when I had a regular 9-to-5 job, when I was stressed at work, I'd often buy things I regretted later. It's a way of helping you learn from your mistakes and change your spending behavior.
www.usnewsandworldreport.com
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15 Things You Shouldn't Be Paying For
by Phil Taylor
Thursday, August 19, 2010
provided by
So much money and energy is wasted on things we could get for free. If you're into new, shiny things and collecting stuff, this is not for you. But if you want less clutter in your life and want to keep more of your money, then check out these 15 things you shouldn't be paying for.
Basic Computer Software -- Thinking of purchasing a new computer? Think twice before you fork over the funds for a bunch of extra software. There are some great alternatives to the name brand software programs. The most notable is OpenOffice, the open-source alternative to those other guys. It's completely free and files can be exported in compatible formats.
Your Credit Report -- You don't have to pay for your credit report. You could sign up for one of the free credit monitoring services online to get a quick look at your credit report. You just have to remember to cancel the service before the end of the free trial. Or you could do one better and visit www.annualcreditreport.com, the only truly free place to see all three of your credit reports for free once a year.
Cell Phone -- The service plan may be expensive, but the phone itself doesn't have to cost a thing. Most major carriers will give you a free phone, even a free smart phone, with a two-year contract.
Books -- There's a cool place in your town that's renting out books for free: the library. Remember that place? Stop by and put your favorite book on reserve. And if you don't feel like getting out, visit www.paperbackswap.com and find your books there (small shipping fees apply).
Water -- Besides the monthly utility bill, there's no reason to shell out $1 for every bottle of water you drink. Bottled water is so last decade anyway. We're over it, and into tap, filters, and reusable water bottles. It's cheaper for you and better for the environment.
Credit Card -- With as many credit cards as there are available on the market today, it's easy to avoid a credit card with an annual fee. Unless you're dead set on a particular perk that a fee card brings, skip the annual fee card and pocket that money yourself.
[Why Spending Less Can Make You Happier]
Debt Reduction Help -- Speaking of credit cards, if you're in over your head with credit card help, there are many free sources you can turn to for help with your debt. No one is going to be able to magically wipe away your debts, but there is help out there that will set you up on a debt reduction plan you can handle. Start with a visit to the National Foundation for Credit Counseling.
Basic Tax Preparation -- If your tax situation isn't that complicated, then you should probably be preparing your own tax return using one of the many free online services. It's now common for e-filing to be free as well with many services. You won't even need a stamp.
The News -- Leave it to a blogger to try and kill off traditional print. I'm not anti-newspaper. I just don't find them practical anymore. Skip the daily .50 cents and get your news online. And for you dedicated coupon clippers, you can get most of your Sunday coupons online now too.
Budgeting Tools -- There are many budgeting tools (both online and desktop) that offer up the service for free. Don't ask me how they do this, but who cares. If you're looking to reign in some of your spending, the good news is you can do it for free.
Pets -- This is a controversial one, I know. But there are likely many pets down at your local animal shelter that could use just as much love as the pure-bred types. There may be a small fee due to the shelter for shots and basic care, but you'll have your pet home without paying a mini-fortune.
Shipping -- If you like to buy online, you probably use coupons to get a percentage off of your purchase. Take your skills to the next level and look for coupons or promotion codes that offer free shipping. If in doubt, visit a site like www.freeshipping.org.
[Get Out of Debt the Right Way]
Checking Account -- Isn't it nice when a bank takes your money, lends it out to earn money, and then has the audacity to charge you for the service? What a joke. Checking should be free. If yours isn't free then move to one of the many banks that offers a checking account for free. And the same can be said for ATM fees, teller fees, and checks.
DVD Rentals -- Did you know that you can rent DVDs from RedBox locations for $1 a night? And better yet, if you use one of the coupon codes from www.insideredbox.com you can avoid the $1 charge. Free DVD rentals! Most libraries now have free DVD rental as well.
Exercise -- Skip the expensive gym memberships. Visit your local park for a walk or run. Do basic push-up and sit-up programs in your living room. Rent a workout DVD from the library. There are many free workout programs you can download online as well.
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