8 Ways to Save on the All-American Roadtrip

by Gina Blitstein · 0 comments

There’s no more American experience than a good-ol’ road trip. But with the high price of fuel these days, even this old-fashioned tradition of hitting the road is becoming pricey. Can you still afford to pile the family in the car and take off to explore the countryside? Here are some tips to help you make your dreams of hitting the open road come true on a shoestring:

Research and planning. Plan as many aspects of your roadtrip as you can ahead of time. You can locate affordable attractions to visit and economical places to stay and eat in advance so you’re not choosing and deciding on the fly. Set up coupon alerts on sites like Groupon to be notified of opportunities to save where you’ll be traveling.
Vehicle maintenance. Make certain your car is up to date on tuneup and oil change. Be sure your tires are inflated according to your owner’s manual recommendation. Good vehicle maintenance will ensure the best possible miles per gallon in addition to helping you avoid breakdowns. Auto repairs along the road can be pricey and dicey.
Drive at appropriate speed. This is just plain good sense to be safe and to avoid exorbitant speeding tickets. In addition, driving the speed limit conserves gas. Maintaining a steady speed, avoiding major fluctuations, is the best strategy for gas economy. If you tend to be ‘heavy-footed’ on the gas pedal, use your cruise control. According to AAA, you are well-advised to drive when the temperature is cooler because the cooler, denser air can increase power and mileage. Some good news for driving when it’s warmer, however, is that air conditioning in newer cars works more efficiently, so it’s not as much of a fuel-hog as it was in older cars.
Pack as light as possible. Extra weight in the car will cause it to burn more gas. Carefully consider each item you take along.
Take along your own food. Dining out on the road adds a huge expense to your travel costs. Pack easy-to-serve and eat foods and bring a cooler rather than stopping for every meal. There are usually picnic tables at Interstate rest stops and you can research the location of local parks where you’ll be traveling.
Grocery shop on road. You needn’t pack all the food for your trip at home. Pack what you need to get started, then replenish your supplies at local grocery stores along the way. Bear in mind that you can save a lot by traveling a few miles off the main road and away from ‘tourist traps’ where prices are likely to be higher.
Eat off the main road to save. If you do dine out, the same logic applies. A few miles away from the tourist pricing will really make a difference in the cost of your meal.
No-frills lodging. Keep your accommodations simple and economical so you can spend your travel dollars on activities and sightseeing, rather than on a place to lay your head. When booking your room, it’s worth getting one with a microwave and fridge (so you can prepare your own meals) but don’t pay more for a view or a suite. Consult AAA for discounts, research specials and off-season deals. Consider outside-the-box accommodations, like bed and breakfasts and vacation rentals that may offer lower cost or valuable amenities. Even camping may serve your lodging needs when on the road with an initial investment of some reusable equipment.

These tips will help you get farther along the road to a fun and affordable getaway.

How do you save on the road?

Spending Plan vs. Budget

by Miranda Marquit · 0 comments

When managing your money, it can be depressing to use the word “budget.” Indeed, I, personally, don’t enjoy budgeting. Rather than feeling limited by a budget, I prefer to use a “spending plan” that helps me feel more as though I’m directing more resources, rather than limiting my spending. Of course, it’s mostly a matter of preference. But you might be surprised at what a spending plan can do for you:

Spending Plan

To me, a spending plan is more about deciding what your want your financial resources to accomplish. I start by prioritizing my financial goals, and recognizing what obligations need to be paid first. My mortgage, car payment, and groceries are are all things that need to be taken care of fairly early on in the month.

However, I also have goals to meet in terms of retirement, charitable giving and building my emergency fund. These are things that I can put on automatic, with a certain amount of money going to these goals every month. Once all of my most important expenses are taken care of, and my goals are funded, I can pretty much do what I want with what’s left over. I don’t worry about spending a certain amount on “entertainment” each month; it fluctuates, depending on what we’re doing. As long as my wider spending goals are taken care of, the rest doesn’t matter to me as much.

Budget

To me, a budget is rather limiting. It feels like I only have a certain amount in each category, and I’m trying not to reach the max out point. A budget encourages spending to a certain point in each of your categories. If you have a spending plan, though, you are more like a director, making sure you can accomplish certain things, and then doing what you can with the rest.

In my mind, a budget is reactionary. You have to react to how much money you have set aside in certain categories. However, with a spending plan, you are more proactive. You create specific goals for your money, and then make sure they are funded. Then, you don’t have limits on what’s left over. You can spend it on whatever you want, without rigidly sticking to certain categories.

What if You Don’t Have Enough Money?

If course, some of us don’t have the money we want to spend, whether we use a budget or a spending plan. In such cases, it means that you need to look for ways to earn more money. You can increase your income through a number of opportunities. It is important to be proactive when it comes to your money.

This is why I like the spending plan mindset. With this mindset, you identify what you would like to have happen, and then go out and look for the income to reach your goals, whether that means getting a second job, starting a side hustle, or donating blood plasma twice a week.

In a budget mindset, you see that you don’t have enough money, and then you have to cut back somewhere to make your finances fit your budget. Instead of spending less, look for ways to earn more, and use a spending plan mindset to get you there.

Win the Grocery Battle!

by Gina Blitstein · 0 comments

I am a frugal shopper. It’s in my blood. I think of shopping — especially for groceries — as a battle between myself and the store. The store’s ‘weapons’ are their prices and marketing tactics; mine are my sound judgement and experience. The outcome of the battle is determined when I step up to the checkout. The more money that stays in my pocket, the better my performance on the battlefield. When I walk out of the store feeling like I got what I needed at the best possible pricing, I feel have won the grocery battle.

Since you can’t fight a battle without knowing what you’re up against, let’s explore the obstacles we as shoppers face and how a store seeks to raise as many of them as possible to lower our ability to wage an effective saving strategy.

Specifically, what tactics does a store employ to get more of your money — and how can you counter them?

Temptation: Grocery stores appeal to as many of your senses as possible. You are hit with the aroma of roast turkey, cookies or fresh-baked bread the moment you enter. Many times there are tastings around the store that further whet your appetite, making it more likely that you’ll buy something tasty (but not on your list) on impulse. In addition, attractive and appealing displays tempt us to buy more and different items than we intend to.

Battle it: Make a comprehensive list of the items you need and the sale items you want to stock up on. Eat something satisfying and be sure you’re well hydrated before grocery shopping. You’ll be better able to resist temptation when you have a battle plan in place.

Distraction: Grocery stores are adept at distracting you from your mission with shear overwhelming choice and a generally non-intuitive layout.

Battle it: Develop a focused shopping mindset. Stick to your saving plan. Learn your store’s layout to avoid needless wandering.

Convoluted pricing: Often a sale price isn’t the cheapest price on that item. The price ‘seems’ low so the store bets that we’ll fall for the trick and buy it.

Battle it: Check the per-unit price against other sizes of the same product to make sure you get the best deal. Most importantly, know your prices inside and out — just because they say it’s ‘on sale’ doesn’t mean it wasn’t cheaper a couple weeks ago or won’t be cheaper in a couple weeks. Remain aware of what constitutes a bargain so when you see one, you can take advantage of it.

Sense of urgency: Stores are set up so that you’ll feel the need to zip in, grab some merchandise and go, rather than take your time and systematically make wise shopping decisions.

Battle it: Most of your shopping should be done at home where you’re relaxed and grounded as you compile your list, check the store ad for bargains and match up coupons with the items you intend to buy. Once in the store, shop at a determined yet sane pace. When you rush your decision-making, you’re bound to make less-sound choices.

Winning at the shopping battle comes down to preparation. The time you invest in shopping prep will prove well spent when you arrive at the checkout. The better prepared you are as a shopper when you set foot in that store, the more weapons and tactics you’ll have at your disposal for maximizing your savings. Don’t be a victim in the marketplace. It’s your money — don’t let the store take it from you without a fight!

How do you fight — and win — the grocery battle?

The Benefits of Automating Your Finances

by Miranda Marquit · 1 comment

When it comes to managing your money, technology has made it much easier to keep track of your finances. Most financial institutions feature online banking, which allows you check your account balance and monitor transactions from the comfort of your home. Additionally, it is a simple matter to transfer money from one account to another. And, thanks to direct deposit, you rarely have to see money in any sort of paper form — check or cash.

Technology has also made it easier to automate your finances, from paying bills to padding your emergency fund, you can take care of a lot of your expenses digitally.

Items that can be Automated

There are a number of different financial transactions that you can automate to make matters more convenient for you:

Direct deposit: Your paycheck is automatically deposited in the account of your choice. Many companies also allow you to have some of your check directly deposited into a retirement account and/or a savings account.
Automatic transfer: You can also schedule transfers so that money is automatically moved from one account to another. For instance, you set up a transfer for the same amount of money on the same day at each month.
Automatic bill pay: It is possible for you to arrange to have bills automatically paid from your account. You can set up to have a car payment, mortgage payment or other regular payment automatically deducted from your account. Even many utilities will automatically deduct what you owe.

Advantages of Automating Your Finances

There are some advantages to automating your finances. When you have your finances automated, it can help make things go more smoothly with your money. With bills automatically set to be paid, you don’t have to worry about remembering to send a check — and you don’t have to worry about it being lost in the mail.

Automating your finances can also help you when it comes to your savings plan. When the money is automatically put into savings, either from a paycheck or through automatic transfer, you don’t have to remember to move the money. It happens on schedule, and your savings builds up regularly.

When you have your finances automated, you don’t have to worry about whether or not your bills will be paid while you are on vacation, and you don’t have to worry about how early you mail the payment. It can take a lot of the stress out of your finances, and ensure that everything happens as it should.

You do need to be careful with automating your finances, though. You have to make sure that there is enough money in your account when the bill payment day arrives. In many cases, your payment will still go through, but you might end up with overdraft charges. Worse, though, is if your payment doesn’t go through and you end up with any number fees. So it is important to make sure your automatic payments work well with your income schedule.

In the end, automating your finances can be one way to improve your cash flow system. It doesn’t work for everyone, though, so you want to make sure that it is a set up that is likely to work for you.

Learning How to Cook without Spending a Fortune

by Tracy · 1 comment

Learning how to cook is not only a fantastic way to save money, it is also a good way to control the nutritional content of your food. As you gain experience, you will find that it’s easier to take advantage of grocery store specials and to throw together tasty meals from your pantry. You will have less temptation to eat out and might even find that cooking becomes a relaxing hobby for you.

Food and cooking equipment can be expensive, but you can build your way up to working with pricey ingredients and amassing kitchen tools. For now, you’ll be amazed at how much you can do with just the basics.

Kitchen Equipment on the Cheap

Do stay away from ultra cheap pots and pans sets sold at drugstores, dollar stores and discount department stores. They conduct heat poorly and unevenly and any non-stick coatings will flake off in no time. You’ll spend more in the long run replacing the equipment and become frustrated trying to overcome hot and cold spots as you cook.
Do a web search for restaurant supply houses in your area. You will get professional quality equipment at a fraction of the price of top of the line consumer lines. Knives, saute pans and stock pots are particularly good buys.
Check out discount retailers like Marshalls and TJ Maxx to find name brand kitchen supplies at a discount. Stock varies widely so be patient and check often.

Use Frugal Ingredients

Try new recipes based on what’s in season in your area and what you can find on special.
Build up your supply of spices, vinegars, oils and other extras slowly. There is no need to rush out and buy everything you might need right away.
Check out the bulk bins at your local health food store to buy small quantities of herbs and spices for cheap. You can buy just as much as you need so nothing is wasted. Herbs and spices are better fresh, so there is no need to buy a huge quantity of an ingredient that you’ll only use a few times a year.
Get familiar with your local ethnic grocers. Many offer great prices on fresh produce and meats and also sell spices and other seasonings quite cheaply.
Do go grocery shopping with a list and a plan. Be cautious about buying too much on impulse, especially foods that spoil quickly.

Learn Technique without Spending a Fortune

Check out YouTube for tutorials on how to perform various cooking techniques. You can learn everything from how to chop an onion to de-boning a chicken.
Many print cooking magazines and television show websites also offer step by step photo tutorials and videos for free.
Your library is a great place to check out cookbooks before you buy. You can also flip through current cooking magazines for free.
There are a wealth of food related blogs out there offering everything from ethnic cuisines to family favorites to extravagant gourmet spreads. Foodbuzz is a great place to start exploring new blogs.
Join a forum for foodies. Chowhound and Serious Eats both have reader forums where you can ask questions and learn about new recipes and techniques.
Ask friends and family members that can cook for help. Nothing beats hands on experience! Plus it’s a great way to spend time with each other and bond.

Remember

The best way to learn how to cook is to just jump in there and do it.
Everyone makes mistakes and has flops. If this happens to you, just see if you can learn anything from your mistake and try again.
Do keep safety at the front of your mind. Learn proper food handling procedures and keep a fire extinguisher and first aid kit on hand at all times.

How did you learn how to cook on a budget?

Insurance Wisdom for Your Home and Vehicles

by Gina Blitstein · 0 comments

Our home and vehicles are among our most valuable possessions. We must insure them, yet most people have no idea how much insurance they should have on their home and vehicles and what it should cover.

Let’s break insurance down into components: Agent, company and coverage to discover ways to get the best deal on insuring our home and vehicles.

Agent

An insurance agent can advise us as to the appropriate coverage on these valuable assets, so that when and if we suffer a loss, there are adequate funds available with which they can be repaired or replaced. Look for these qualities to tell if an insurance agent is really looking out for our best interests:

Reputation: In the insurance business, word of mouth advertising is powerful — ask your network for recommendations.
Good listener: Be sure she or he hears precisely what you want and isn’t trying to sell you more insurance than you need or stuff you into a one-size-fits-all package.
Experienced: Several years of dealing with different policies and clients gives your agent some valuable wisdom to impart.
Hands-on: If you have a claim, you want your agent’s personal attention to guide you through the unfamiliar process.
Follow up: Your agent should check in with you from time to time to make certain that you have the appropriate insurance for your current situation, whether that means selling you more, or cutting back on, coverage.

Company

Some agents represent a particular brand of insurance, offering policies exclusively from that one company. Other agents are independent brokers who offer policies from several companies.

While you want to make certain that whatever company you insure with is legitimate and financially stable, there’s no right or wrong choice so long as you base your decision on sound reasons and go with a reputable agent.

Whoever you insure with, be aware that when the same agent doesn’t cover everything for you, there’s the potential for gaps in coverage or inconsistent coverage limits. It will be up to you, then, to manage your insurance coverage to prevent that from happening.

Coverage

Bear these factors in mind to keep your homeowners and auto insurance rates as low as possible:

Shop around: Collect three quotes from different companies. It’s not always best to go with the cheapest so compare the coverage and choose what suits you best.
Raise your deductibles: The lower the deductible, the higher the premium. Plan on making claims against your insurance only for major losses while paying for small repairs or losses out of pocket.
Bundle: This is when you purchase multiple policies from the same company and become eligible for a quantity discount.
Discounts for loss prevention: Taking steps to burglar-proof and enhance the safety of your home and vehicle may qualify you for discounts.
Loyalty discount: Being a long-time customer of the same company may earn you a discount on your premiums.

These will help you save specifically on auto insurance:

Safe driving habits: Staying accident- and ticket-free can lower your rates.
Decrease coverage on older vehicles: Older vehicles are worth less so may not be worth insuring for their full value.
Consider insurance rate when buying a new car: Some cars cost more to insure than others.
Low mileage discounts: Your premium could go down if you don’t drive far.

Getting affordable rates on home and vehicle insurance doesn’t have to be difficult or intimidating. Use these tips to guide you toward the the best insurance choices for you.

How do you save on insuring your home and vehicles?

And if you feel like saving money, here are some of the insurance brokers that offers free quotes.

Frugal Living Requires Planning

by Miranda Marquit · 1 comment

If you are interested in frugal living, it is important to realize that a financial plan, as well as other planning, is necessary. Frugality doesn’t just happen. In most cases, you have to actively work toward outcomes that result in getting more for your money, and living a frugal lifestyle. Indeed, your planning usually has to extend beyond the financial in order for you to be successful in your frugal living efforts.

Financial Planning

If you want to use less money, you will need to make the most of all the financial planning tricks in the book. This means that you have to understand the way money is moving through your personal economy, as well as make a budget to help you direct the money in a way that maximizes your purchases.

It also helps to make plans for the future. Part of frugal living is understanding that you need to prepare for the future with emergency savings, and with retirement plans. Being ready for what’s coming financially requires a concerted effort, and plans to live within your means.

Planning Your Time

In addition to making a plan for your finances, frugal living requires that you plan your time a little more carefully. In many cases, the way you save money is by doing things on your own. If you want to save money on food, you need to make time to grow a garden. It can also help to know how to preserve your produce for use in the winter.

There are a number of other projects, from painting, to building a deck, to knitting scarves, that require your time. If you want to save money on these items by doing them yourself, you will have to make a trade off by spending time. As you make progress toward your frugal living goals, you will need to remember to make time for various projects.

Learning New Skills

In some cases, you will also have to learn new skills. Before you can build a deck, you will need to learn how. If you want to save your food, you will need to find out what is needed to become involved in home canning. For many DIY projects, certain skills are needed. At the very least, you need an affinity for the work. While it is certainly worthwhile to learn new skills to enhance your frugal lifestyle, the acquisition of these skills takes time and practice. You will have to plan for that.

Teaching Your Children

Finally, as you live frugally, you will need to teach your children to value the frugal lifestyle, and to live it themselves. You will need to invest time into making frugal living fun for your children, and teaching them contentment. If you want a harmonious home, as well as a frugal one, you will need to help your children understand why frugality is so important. Plan fun and frugal activities that will help your children develop fond memories, and that will help them better embrace frugal living.

How to Earn Cash by Participating in Paid Focus Groups

by Tracy · 1 comment

Participating in a paid focus group is a great way to earn extra money for not a lot of work. It’s not uncommon to be paid $30-75 for an hour or two of your time. Companies contract with market research companies to learn what real consumers think about their products and services or more about how they make their decisions and their opinions on various matters. Depending on the study, focus group participants might try a new product, fill out a questionnaire or be interviewed individually or as part of a small group.

Doing an Internet search of “find focus groups” gives a lot of results, however you should approach any site with a wary eye as many have out of date information and are paid to recruit you to join mailing lists that turn out to be a waste of time.

Greenbook is a market research directory that will help you find firms that are in your area. From there, you can visit their website and find out how to join their database. You will fill out a questionnaire that will allow them to easily filter their list to find participants that meet the demographic qualifications set by the clients as well as provide contact information.

You will also sometimes find paid focus group opportunities advertised in the classified section of your local paper or Craigslist, however be aware that sometimes these are cleverly disguised attempts to get you to sign up for a mailing list or less lucrative survey site.

For the best chance of being selected for a group, do sign up with all agencies in your area. This should be looked at as an opportunity to earn extra cash and not as a reliable source of income. It can take several weeks or months to be contacted about participating in a group.

If your profile meets the general qualifications of the company, you will be called and asked questions to make sure that you are eligible for the survey. Answer honestly and don’t try to guess what the company is looking for. If you are determined to be eligible, you’ll make an appointment for the survey and given other details.

Do pay careful attention to what time they require that you arrive as most companies will not let you participate if you are late. In fact, most require that you be there at least twenty minutes before the focus group begins, to allow them a chance to adjust for any participants that do not show up. After the group ends, you will be paid, often in cash.

You can also look into participating in mock juries and paid medical and psychological research studies to earn extra cash in your spare time. These can be found by doing a web search of your area plus “paid medical study” or “mock jury”. You can also contact the psychology department of your local university to find out how to be considered for studies.

Again, do use caution about who you give your contact information to and whenever possible sign up directly with the companies or universities conducting the studies rather than sites that promise you lists of opportunities.

Financial Pointers for the Decades of Your Life: Your 20s Through 60s

by Gina Blitstein · 0 comments

Life doesn’t come with instructions for money management. While every life is different, it’s wise to have an idea of what to do when to make sure you’re being as responsible with your finances as possible. Here are some things to bear in mind throughout life, from your twenties through your sixties.

20s

You should be making your own money and paying your own bills. Sever any remaining parental money strings and begin taking responsibility for your own finances.

Work at learning what it means to live within your means and do that.
Establish good credit for the future by obtaining a credit card and paying all bills on time.
Develop a financial plan which includes short, medium and long-term goals.
Begin saving and investing toward your financial goals, even home ownership.
Begin saving up an emergency fund to cover six months of living expenses.

30s

Now that you’ve had some experience handling your money, begin taking care to protect your assets and save for the things you want in your life.

Insure your property and your life.
Make a will and a living will.
Increase your investment contributions.
Contribute the maximum to your 401(k).
Keep your education and job skills honed.
If you change jobs, (and you’re likely to in your 30s) don’t cash out your employer-sponsored retirement plan. Consolidate it into a traditional IRA or roll it into the 401(k) plan at your new job.
Begin saving in earnest for your children’s college education.
Develop a realistic budget and stick to it.
Whittle down debt, including student loans and credit cards.

40s

By now you’re comfortable handling your money and allocating your resources where they best benefit you.

Diversify your investments to maximize returns.
Review and update your will.
Reassess insurance to fit your current situation.
Come up with the concrete amount you need to save in order to retire.
Appoint a power of attorney to act on your financial behalf and a health care proxy to act on your behalf medically.

50s

You’re now seriously considering your retirement finances.

Consider a long term health care policy. A major illness can easily wipe out your savings.
When you’re over 50, you can make catch-up contributions to your workplace savings plan to fill in any gaps if necessary.
Try a ‘dry run’ of your retirement income plan to determine what it’s really like to live on the amount you’ve set aside for your future. If that proves unacceptable, you’ve still a decade to adjust your investments and savings to increase the finances that will be available to you in retirement.

60s

You’ll most likely retire in this decade of your life so it’s time to make some important decisions about accessing the money you’ve worked so long and hard to amass.

Determine how you’ll access your retirement finances, whether it be to receive it in regularly scheduled withdrawals or in lump sums.
Decide when you’ll begin collecting Social Security benefits. By holding off taking your Social Security, you will receive more money when you do begin collecting benefits.
Keep as much of your original nest egg invested wisely and earning interest for you as long as you can to help as a hedge against inflation. Keep your money continuously growing to ensure you remain comfortable in your retirement.

Money management is a lifelong process. While few people have the luxury of being able to meet every financial milestone without a hitch, the better the job we do of managing our finances according to this timeline, the more money we’ll have at our disposal when we retire.

The Importance of Protecting Your Personal Information

by Miranda Marquit · 1 comment

One of the scariest things that can happen to you, financially, is identity theft. Another scary possibility is becoming the victim of a scam. Both of these issues can become real problems for you if you do not take care to protect your personal information. Your personal information can be used by fraudsters to pose as you, or it can be used as a way to make scammers seem legitimate.

Identity Fraud

One of the fastest growing crimes is identity fraud. Using personal information, fraudsters can pretend to be you, opening accounts in your name, or using your credit card. Personal information certain includes bank account numbers, passwords, your name, address and other information. However, personal information about when you were born, when you graduated from high school, your pet’s name and other information can lead to fraudsters being able to guess your username and passwords at financial institutions, and get access to your accounts.

There is no way to completely prevent identity fraud. You never know when the local DMV database will be hacked, or if your credit card payment will be intercepted in the mail. You need to check your credit report and bank accounts for unusual activity, and remain vigilant so that you can correct problems if they arise.

Be choosy about who you give your information to. When some calls you on the phone, don’t give out account numbers, or other personal financial information. Be aware that jury duty correspondence comes through the mail, as do IRS communications. Phone calls and emails requesting your personal information should be discarded. The FTC has a web site that allows you to report potential scams and instances of ID theft.

Scammers

Your personal information can also be useful to scammers. Recently, hackers were selling names and addresses (and other information) obtained from the PlayStation Network breach. With this information, it is possible to send you a realistic-looking letter about becoming a mystery shopper, or some other wire transfer scam. If you believe the letter and wire the money, you could find yourself poorer.

Other scams involve information obtained from social media networks. Scammers can find information about friends, and how you know them, and then use that information to contact you and pretend to be that friend, in an emergency situation. You can guard some of your personal information by being careful about privacy settings. Be sure to limit who has the ability to see information about you, and what they can see.

Also, be on the look out for scams. If it seems too good to be true, it probably is. And be wary of any correspondence that asks you to wire money. While wiring money can be a good way for you to send money to people you know, never send money as the result of something you receive in the mail or email from someone you don’t know.

Bottom Line

You can’t always protect your information. However, you can do your best to keep information as private as possible. You should also keep tabs on your account and treat random “opportunities” with suspicion. While you won’t be completely protected, you can reduce the chances of a true problem.

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