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Four Enjoyable Activities for 2019 That Help You Saving Money

The following is a guest post by Alexander from .

How much money do you use to spend on all the things that you like to do when you have some time off? On the average, all households in the United States .

In the very first moment, this doesn't seem to be much at all. But all the same, if you believe it or not, when you reduce the amount of money that you spend for all kinds of activities in your spare time, the long-term effect of this change can make little miracles happen.

For example, you will see this if you may decide to use this money for your retirement fund. Luckily, there will be no reason to worry if you will make this smart move as you won't have to miss anything and as you can still have a lot of fun when you have some time off.

Go Out to Take Pictures

If you take your camera with you to explore the peaceful scenery in nature or specific parts of a city, you will walk much more slowly. By searching for the right place for the perfect picture, all suddenly you may discover amazing details that you had never noticed before.

This activity requires your creativity while you are taking deep breaths of fresh air. When you use a digital camera, you won't have to pay anything for your pictures.

Afterward, the final editing of your pictures with the computer may be a perfect task for a rainy weekend. Use your very best pictures for a personal calendar or for a photo-book that may be an extraordinary gift for your loved ones.

Nowadays it is really not necessary to have a highly advanced and expensive camera. Even with an existing smartphone, you may take great and impressing pictures and you will have amazingly much fun with them.

Solve Puzzles

Also puzzles belong to the most popular weekend activities. All the same, if you prefer crossword puzzles, a Sudoku or something completely different – just have fun with your favorite kind of puzzles!

In the internet you will find a giant variety of free offers to use all alone, with your family or with your friends. In addition to all the fun that you will have, you will feel happy and proud when you will have solved the puzzle.

But above all, solving puzzles belongs to the very best and most effective kinds of exercises for your brain.

Cooking

You have to prepare food anyway, so why not make it a hobby? Gradually you will acquire a repertoire of recipes of favorite dishes, or you might just try something new, preferably of course something tasty, healthy and inexpensive.

As for a dish you know how to prepare really well, you might invite your friends to share it, with a few candles providing a lovely setting for the evening.

The whole affair costs you only a fraction of what a restaurant or pub visit would cost, and you can put on your favorite music as well.

And after eating, you can or together.

Visit Festivals and Markets in the City

Have you ever noticed how many festivals and markets of every different kind they use to organize in the cities, especially in summer?

For most of them you don't have to pay any entry fee. In any case, these festivals and markets will offer you much more than a simple walk through the city ever will.

Do you like live-music, art, crafts or international food? You will have an amazingly big choice of events to find the ones that will be most attracting for you.

Conclusion

The greatest and most exciting activities for your time off during the weekends don't have to be expensive at all. The well-known sentence that the best things in life are for free is still and always true.

You only have to face the challenge to find out how to gain the maximum of fun and joy without spending much money at all.

And things will even get better if in the end you will still have . Doesn't this sound like the perfect solution?

Save Money by Exercising

Check out this video:

The key point in it:

Exercising for 30 minutes a day, 5 days a week saves you $2,500 a year.

And this is only heart health savings! If you add in all the other health-related savings, it's much higher than this.

Couple this with the fact that and exercising is a no-brainer!

I am at the gym six times a week and am active in addition to that (I try for about 15k steps per day). I feel better by working out as well, so my quality of life is improved to boot!

How about you? Do you exercise? Why or why not?

Top Three Life Expenses

Just look at .

There are several things that stood out to me here, but most notably these:

• Look at how much housing takes up at every single level. No wonder I was able to accumulate such wealth by .
• Food is a category that most people spend way too much on IMO. Almost every single person we coached spent multiples of what we did on food (much of it on expensive, processed, branded products and eating out) even when we had more people in our family.
• Transportation is a huge money suck. This information makes a good argument for living close to work, driving a car until it can't go any more, and keeping these costs as low as possible.

In fact, if you look at these three costs, they make up half the spending at almost every income (much more than that at lower income levels).

Here are some quick thoughts on how to reduce the spending in each area:

• Buy a house below what you can afford. This will not only help you pay it off faster but save on associated expenses. It's well documented that .
• Reduce your restaurant costs and branded purchases. From there take the right steps to .
• If you can live close enough to work to bike/walk, do it. If not, get a gas-efficient car and drive it into the ground. Or even better, see if you can work from home. :)

Doing these will make a MASSIVE difference in your budget and free up resources you can use to save and ultimately retire early.

Where You Can Live on $50k Per Year

Business Insider lists .

Here are my comments related to this:

• . It's a fact of financial life that some places are simply more expensive than others -- some MUCH more expensive. It's hard to get ahead when you live in a place that's 50% more costly than a comparable city.
• I prefer the option of going low in cost and high in income by . And don't say it can't be done -- I've done it for almost 30 years now.
• Of their cities listed, I've lived in or near four of them. And I happen to live in one now -- and the most beautiful place we've ever lived in.
• This is just their list of the top 50 markets that are best to live in for low costs. There are tons of much smaller markets that are inexpensive and still great.

I know there are other reasons to live in a spot than money (like family). But if you have the choice and are mobile, moving to a low cost-of living city will help you grow your net worth and ultimately retire much faster than a high-cost city.

How to Save on Healthcare Costs

Money magazine ran a piece on "Four Ways to Cut Your Medical Bills" which inspired this response in a letter to the editor:

Here is my list of free measures that can be taken to save on health care costs that are usually underutilized:

1. Don't get overweight.
2. Do get some regular exercise.
3. Don't smoke.
4. Don't overuse alcohol or don't use it at all.
5. Don't use illicit drugs.
6. Do get enough sleep.
7. Do wear your seat belt.

Over my 31 years as a practicing internal medicine physician, most of my patients would have been better off just following these rules.

My thoughts on these:

1. I work out six times per week (three days of weights and three of cardio.) I also have a trainer that I meet with regularly. I have lost 20 pounds and am in the best shape of my life. I know that there are health reasons to be the right weight. I also know that . 

2. In addition to what I said above, I feel better when I exercise too. There are many . For one thing, it which is .

3. I've been writing a long time about not smoking. Check out this post from 2005. My summary then holds true today: You're paying a lot of money to kill yourself. ;)

4. I don't use alcohol as I have a policy against drinking my calories. Besides, I generally don't like the taste.

5. Uh, no drugs.

6. If you work out, you'll probably sleep better (I do). And .

7. Of course. Does anyone NOT wear their seat belt these days?

How about you? How do you rate on these seven tips?

The Best Meal-Kit Delivery Service is None

Here's a piece by Money magazine which :

A summary of what they found:

1. Plated
2. Blue Apron
3. Sun Basket
4. Green Chef
5. Martha & Marley Spoon
6. HelloFresh

Here's my take on them: VERY EXPENSIVE!!!!

Our friend at ESI Money did an analysis on Blue Apron and found :

• The cost of Blue Apron is $9.99 per meal. Let’s round it off to $10 to make the math easy.
• Let’s assume you had Blue Apron for every meal for a year for a family of four. That’s 4 people * $10 cost * 3 meals a day * 365 days = $43,800.
• Let’s assume you had Blue Apron for every supper (evening meal) for a year for a family of four. That’s 4 people * $10 cost * 1 meal a day * 365 days = $14,600.

Exactly. We spent $11k on ALL our meals (at home and eating out) last year. Just one Blue Apron meal a day would put us $3k over that. Yikes!!!

And yet these meals are growing in popularity. Anyone out there using them? If so, why do you do so?

5 Actionable Negotiation Hacks That Will Save You Money

The following is a guest post from Edwin C, the money hacking millennial behind . He lives a minimalist lifestyle and is always eager to learn and share his methods to save and make money on his blog.

Being a good negotiator can help you in almost any facet of your life. We negotiate our salaries, our rent, our purchases and even our household responsibilities. As you can see, it is essential to be a good negotiator. Today I'll be sharing with you 5 essential negotiation hacks to help save you money on... just about anything!

1. Put Your Offer Out There First

One of the greatest marketing and negotiating hacks out there is a little trick known as price anchoring. Price anchoring is when a retailer puts a product on the market for, let's say, $2,500 and then slashes the price drastically to only $1,500. This gives you the impression that you've saved big. But in reality that $2,500 figure was just a made up number pulled out of thin air. The real price was, and always has been, $1,500.

To get the benefit of price anchoring in a negotiation, you need to get the upper hand by throwing your reduced price out there first! Make the first offer, but don't make it too low so as to insult the person. The first number you throw out there sets the stage for the negotiation and both parties will begin to work around this figure.

2. Trade Your Skills For A Home

If you're looking to reduce the amount you , yes you can negotiate that too. It is possible to even live rent free by negotiating legal labor with the landlord or the property manager.

Let me explain. For example, let's say you can only afford to pay $1,500 a month on an apartment that's asking for $2,000 per month. Find out if there is something you can do to supplement the additional $500 per month. For all you know, your landlord might need some help around the property. All it takes is just asking. You've got nothing to lose.

For example:

• Can you be a security guard for the parking lot and/or the building?
• Does the apartment complex need a maintenance person?
• Does the property need the lawns mowed and landscaping to be maintained?
• Are there ongoing renovation projects you can help with?
• Offer your to the building, such as dog walking, babysitting or a free fitness class.

3. Establish Trust

If you ask something to describe a salesman in three words, they will usually say slimy, manipulative and untrustworthy.

Well if you are any of these, you won't be able to negotiate effectively. This is because we are more likely to buy or be influenced by someone who we consider trustworthy. Trust means honesty, and honesty is the only real way to sell.

If you're selling something, be upfront and say for example "this bookcase needs some TLC" or "the car needs new tires". By establishing yourself as honest, they are more likely to believe you when you're touting the positive aspects of the item.

If you're buying something, be honest about how much you have to spend and be realistic about what you can expect to receive for that price.

4. Scarcity Principle

I'm sure you've experienced this negotiation tactic before since it's so common. It's where the marketer or salesperson says the famous words, "This is a limited time offer. Act now. We only have two left!" or they say "I've got three other people interested in this item" so you better act fast.

Be aware of this negotiation tactic as soon as you smell it so you don't fall prey to it. Always stop and say to yourself "would I still want to buy this product if it wasn't so scarce?"

5. Comparison Effect

The comparison effect is a little tactic every good negotiator has in his bag o' tricks. This is often used by salesmen who want to sell that car, house or TV to an unsuspecting buyer. It is closely related to the social comparison theory, which states that we determine our own worth by how we stack up against others.

Say you're looking for a house to buy. The real estate agent may show you a dilapidated house first, then take you to the house he really needs to unload. Don't fall trap to this silent negotiation tactic.

There are always better options out there, whether it be a car, house or a TV. Don't be fooled into buying the “better” of the two if it's not truly what you want.

Conclusion

As with any negotiation hack, always maintain your integrity. Buying and selling should never be about tricking or manipulating the other person. If you feel someone is trying to take advantage of you, simply walk away.

On the other side of the coin, don't try to manipulate anyone. Be honest. Honesty is the anchor for every single tactic I've shared here. So now it's up to you to go out there and negotiate your way to !

Five Ways to Cut Retirement Costs

CNN Money lists as follows:

1. Downsize your living space
2. Give up a vehicle
3. Enroll in Medicare on time
4. Dine at home
5. Lower your tax bill

Here's where I stand on each of these:

• We haven't downsized yet since our kids are still at home, but we could one day. Being able to sell our home and move to a smaller place is one way we've built a . into our retirement.
• I think we will go down to one vehicle sometime in the future. We walk to so many places and hardly ever go in opposite directions, so why do we each need a car?
• I have some years left before I need to consider Medicare. ;)
• We eat at home as much as we ever did -- which is a lot. I've gotten fairly good on the grill and my wife makes great things that are healthy and cost-effective, so why do we need to go out several times a week? The answer: we don't.
• especially if you were a high earned-income generator. I've certainly been enjoying that!

Any of you who are retired taken action on any of these?

Saving Money When You Move Out of State for More Affordable Housing

The following post is from FMF contributor Eric Olesen.

With more people leaving the traditional 9 to 5 job and opting to perform services from their computer full-time online, it opens the door for families to live just about anywhere. With this growing trend, people can move their families to another state and enjoy the benefits of . If you are planning a move out of state to reduce the cost of your living expenses you can save money on the move too.

Professional Movers

If you are moving across the country hiring a professional moving company, such as North American Van Lines, to transport your items can take the stress off getting your belongings to your new destination safely. If you do your research and plan your move during the slow season, you can actually reduce the cost drastically versus driving a rental truck on your own. Just like any other business, moving companies have peak seasons where the rates can rise. Since you work from home you have the luxury of avoiding this period, generally between May and September, and can schedule your move either before or after these months. Since weekends even during the slow season are busy, it's also in your best interest to schedule the pickup date on a weekday.

Cleaning out your home

Before you can get a written estimate that's accurate, you need to decide what you want to pack up. If you're moving to the coast and your current residence is in a cooler climate, you may want to leave your furniture behind and purchase new pieces that work better with the environment. Decluttering your home benefits you in several ways, especially if you'd lived at your current residence for many years. First, it gives you a chance to finally get your things organized. Secondly, it allows you to reduce the volume, making the move more affordable. Remember, the less you bring, the more affordable the price tag for the move becomes.

Opting to pack up on your own

Unfortunately, the packing process is tedious and time-consuming. However, if you tackle one room at a time, it gives you a chance to put things in their proper place making the unpacking at the receiving end easier. This is also a time where you can eliminate anything that you don't want or no longer need. Just keep in mind while you are packing up your things as to the number and the sizes of the boxes you agreed to on your written estimate with the movers. If you go over you will have additional fees.

Acquiring boxes and packing supplies

When you plan a move there are several additional costs that come into play, like the boxes and packing supplies. If you get the supplies from a moving company, they can add a significant amount to your bill. Luckily, there are other ways to pack virtually for free. Since you have plenty of time to get things in order, you also have the time to local hardware stores, retailers, and supermarkets to inquire about picking up some of their boxes. Most stores get deliveries once or twice a week. If you them, they can put them aside for you. As far as the packing supplies go, you can use ordinary towels, linens and newspaper to wrap up dishes and breakables.

Earning money on your move

With the items you've decided to leave behind, you have several choices. You can give things away to your family, friends, or neighbors or donate them to charity. There's also a third option and that's to have a moving sale. If you work from home, you can really schedule it at your convenience. Pick a weekend where the weather is supposed to be good to attract a larger crowd, and then set up your things neatly and organized. If you have many items in good condition, you can stand to make hundreds of dollars in a single weekend. This money you can use to pay for your hotel, food, and gas or other travel expenses you may have on the way to your new home.

has many advantages. You can work on your schedule, make appointments for during the week, and have the freedom to move to another state or city where the cost of living is considerably less.

Top Ten Cities Where You Can Live Comfortably on Less than $60k

CNBC lists the as follows:

10. Louisville, Ky.
9. Kansas City, Mo.
8. Birmingham, Ala.
7. Cincinnati
6. St. Louis
5. Indianapolis
4. Cleveland
3. Pittsburgh
2. Memphis, Tenn.
1. Detroit

I've actually lived in three of these cities and two others which are close/similar.

Cities I lived in include:

• My work career started in Cincinnati and I lived there a couple years. Young and single (seems like eons ago) while there, I absolutely loved it.
• I worked in Indianapolis for a summer internship. It was a nice city and I wouldn't have minded if I ended up there.
• I spent five years in Pittsburgh which is where I met my wife. I still have relatives who live there. I'm not sure I'd move back (it's pretty cloudy) but I do love the city.

Here are a couple cities I lived in near ones on this list:

• Nashville. AWESOME city!!! It used to be inexpensive to live there but I think that has changed -- too many people want to live there.
• Grand Rapids. Way better than Detroit IMO (my dad lives in Detroit) and much cheaper. Lived there 14 years and my kids still call Michigan "home."

How about you? Have you ever lived in any of these cities?

How to Save on a Cruise

We took cruises towards the end of the time we lived in Michigan to help break up the winter.

So when I saw this post on I just had to check it out.

The ones we used include:

1. Book Far in Advance
5. Take Advantage of Wave Season (Jan-Mar)
8. Avoid Cruising on Holiday Weekends
13. Avoid Cruising on New Ships
14. Cruise on Refurbished Ships
18. Minimize Spending Onboard the Ship

Some comments on these:

• We booked far in advance because we wanted a certain cruise and a certain cabin on the ships. But it also helped save money. :)
• All of our cruises were in January since it broke up the winter right in the middle. We had been through two months of winter by mid-January and had two months (or so) left.
• I did check out Christmas/New Year's cruises once and they were significantly more expensive.
• We never went on a new ship, but the ships we were on were refurbished -- so they were "like new".
• We hardly spent any money on board. We didn't gamble, don't drink, and didn't get the soda package. We did buy some treats, but only when they were on sale.

A couple more things about our cruising experiences:

• We found that Costco had the best cruise prices. See Shopping for a Cruise and Cruise Update.
• Here's the day-by-day review of our first cruise. 

How about you? Any cruise lovers out there with tips?

A Great Deal at Costco

If you've been reading this blog for more than 15 seconds, you know I love Costco.

Here are a few posts that give reasons why:

• Money Saving Tip: Excellent Presents from Costco
• Saving $2,000 a Year by Eating Samples at Costco and Grocery Stores
• Shopping for a Cruise
• Can You Pay for a Costco Membership by Saving on Gas Alone?
• Health and Beauty Aids: Walmart versus Costco, Kirkland Brand versus Equate Brand -- Which is the Best Deal?

So when I recently ran into a post telling me , I had to share it.

In particular, here's a purchase I really love:

These days, dinner and a movie is no cheap date. But if you want to save 20 percent off the top, make sure you stop by Costco's gift card kiosk, said Perez.

"Buying gift cards in bulk is a no-brainer, and both Sam's Club and Costco offer gift cards to restaurants, movie theaters and other entertainment venues for 20 percent off face value," she said.

Here's what we do:

• Decide where we want to go out to eat from the selection of gift cards Costco has available. We recently picked Old Chicago Pizza since who doesn't like pizza?
• We bought $100 in gift cards for $75. Right off the bat we saved $25.
• We head off to Old Chicago along with our $5 coupon (which they always have in our local, free lifestyle magazine).
• We order, eat, and pay with the gift cards (and using the coupon too).
• We always have leftovers, so there's another meal within this stop.
• In the end, we can go about five times for $100 in gift cards. That gets the cost down to $20 a visit -- a very affordable trip for four people.

You can do this with all sorts of restaurants, entertainment places (theaters, ski resorts), and so forth.

And always remember to look for coupons and deals when you use your gift cards. always pays off big!

Save $3,500 by Dropping These Everyday Luxuries

Dave Ramsey says families can :

• Daily lunches out: Save $1,040 per year
• Premium cable packages: $792 per year
• Unused gym memberships: $468 per year
• Regular coffee trips: $1,200 per year

Here's my take on this:

• There's no doubt that , so there's good reason to talk about options like these.
• Almost any spending can be ok as long as it's done in moderation and savings comes from somewhere else. I believe is the way to go -- save on things you don't like and spend on things you do. Given this philosophy, any of the above could be money savers or ok to spend on.
• I took my lunches to work for YEARS. Yes, we saved a lot of money and I got to eat something I liked every day. It was a win-win.
• We have bought cable TV for several years now, but it's our main form of entertainment. It often replaces trips to the movies which can be far more expensive for a family of four.
• Unused ANYTHING is a waste of money, and gym memberships are no different. We do belong to a gym and pay $149 per month. But I go 25 times a month, my wife goes at least 20, and each kid goes 10 or so. That equates to $2.29 per visit which is a GREAT deal given that our gym is a high-end exercise facility (not just your normal run of the mill gym). In addition, this investment more than pays for itself as exercising helps to both .
• . I'm a big coffee fan but there are ways to enjoy it without spending $4 a cup. I spend about 30 cents a cup and I have lattes that taste just as good as what I get at a cafe -- even better sometimes. I buy my beans whole, grind them, and make single-serve cups of coffee in my Keurig. Way cheaper than Starbucks!

So, those are my thoughts on Dave's suggestions. What do you think about them?

Costs of a Dog Versus a Child

Here's an interesting comparison between the .

The bottom-line numbers are $1,024 to $7,604 for the dog and $10,360 to $49,209 for the child.

A few thoughts on this:

• They are both expensive. And this is only year one!!!
• If you look over a lifetime, the costs are very large. Here are the stats for dogs: over 15 years total costs for a small dog could run from $17,560 to upward of $93,520. Over a 12-year lifetime, the costs of a large dog range from $22,025 to upwards of $82,929 for folks using dog walkers.
• : "The average cost of raising a child born in 2013 up until age 18 for a middle-income family in the U.S. is approximately $245,340 (or $304,480, adjusted for projected inflation), according to the latest annual “Cost of Raising A Child” report from the U.S. Department of Agriculture." BTW, this does NOT include any costs after age 18, including college.
• Most people are in denial on the costs of both. I don't have a source for this but after writing this blog for almost 12 years, I can tell you that I haven't had a person yet say they spend this much on either their pet or their kid. All have said these costs are "way too high." Uh huh. Denial is not just a river in Egypt.

I'm not making any value judgments on whether someone wants to have a dog, a child, or both (and many!) Just pointing out the financial side of raising both, which is something many people give little thought to when deciding on either.

Save Money By Shaking Things Up

The following is a guest post from Mrs. Picky Pincher, the blogger and money-saving maven at . She writes about living the good life while paying off $225,000 of debt. You can check out her to start your own debt freedom journey.

Back in my pre-frugal days, I bought a new pair of shoes whenever it tickled my fancy. I showered myself with fancy chocolate bars, which I inhaled with gusto. Trips to the salon were a regular feature of my self-pampering. Ahhh, I thought my life was so grand. I had a net worth of -$70,000, credit card debt, and a bin full of stilettos I didn’t wear.

Truthfully, I bought crap because I was bored. My life wasn’t very interesting, but a new gaming system definitely was! I bought things on impulse, looking for spendy thrills.

Thankfully I got my head out of the sand in May of 2015. Mr. Picky Pincher and I realized with shock that we had so much debt we couldn’t even buy a house. The horror! As it turns out, we were our own worst enemies. We blew money on restaurants, hobbies, drinks—you name it. Life was boring, so we spent money. It seemed like the logical thing to do, until we realized we had zero real money to our name.

In the years since, Mr. Picky Pincher and I have learned how to keep life exciting without dropping $50 every time we feel bored. Here are a few ways we keep life exciting without spending a lot of cheddar.

How I saved money by shaking things up

1.

I get one haircut a year. I've almost always rocked long hair, but last month I was sick of it. I had to style it every morning so I wouldn't look like a troll. It also didn't help that the extra hair on my head made me unbearably hot. I was feeling "meh" about my appearance in general and longed for a change.

Instead of overhauling my wardrobe, getting eyelash extensions, or paying for a pricey chemical peel, I chopped my hair off for $14. I could have cut my hair myself, but I wanted the luxury of a salon haircut. Fancy, I know.

I felt so much better after lobbing off the extra weight on my head. As an added bonus, my new layered bob was low-maintenance and didn't even require brushing in the morning. I felt renewed and more like myself again--on the cheap.

2. A change of scenery

Although Mr. Picky Pincher and I are diehard homebodies, we get cabin fever every now and then. And cabin fever is an expensive ailment to have! It can result in impromptu shopping trips, catching a movie, or eating at a restaurant. There's nothing wrong with these things, but they can add up in your budget if you don't plan for them. We fight cabin fever by shaking things up for free.

If the weather's nice, we'll eat dinner outside under the trees. To get away from the house, we'll go for a walk in our neighborhood, visit our badass local park, or . I also like to find free events around our city. We'll attend an Irish heritage festival (complete with free food!) or a city-sponsored gardening workshop.

A simple change of routine and scenery solves our cabin fever woes.

3. Be fancy!

While there's nothing wrong with treating yourself every now and then, I used to blow my money on manicures and highlights. Those are definitely not budget-friendly, so I found new ways to get fancy without dropping $50.

Take a fancy bath. All you need is hot water, a soothing playlist on Pandora, and maybe some nice aromatherapy candles.

At-home massages. Who doesn't love a nice shoulder massage? Take turns with your partner or good friend and give each other a nice 'n' relaxing massage.

Mani-pedis. I used to love getting my nails done. Unfortunately, at $80+ a pop, I had to nip that habit in the bud. with a gel manicure machine I bought on sale. I get salon-quality nails for a fraction of the cost.

Fancy dinner at home. Nobody wants to eat roast and potatoes three times a week. Keep dinner lively by opting for a high-end menu. Mr. Picky Pincher and I cooked lobster at home for Valentine's Day instead of eating out. We had a great seafood dinner and spent a quarter of what we would have spent at a restaurant.

The Bottom Line

It's easy to get bored when you fall into a routine. Instead of spending money to feel happy and free, try shaking up your life on the cheap. Try these tips to keep things simple while pampering yourself.

We want to know: How do you treat yourself without spending money?

You Can Live in a Great, Inexpensive City

US News lists .

I liked the list because it listed several places I've lived and I can attest that they are nice to live in.

And as you know, I've also lived in inexpensive cities all my life.

Put the two together and you discover that you can live in a great, inexpensive city. You don't have to give up quality of life to save money on the cost-of-living. In fact, most of the best cities to live in are very affordable.

So what's the big deal about this?

The big deal is that . If you live in a low cost-of-living city, you can save a TON of money over the course of your lifetime. And if you can , you can really amass a fortune.

Many will argue that more expensive cities are "better" cities. Those people will have to take that argument to US News as they definitely disagree with that sentiment.

Top 10 Things Americans Wasted Money on in 2016

Dave Ramsey lists the as follows:

1. Student loans.
2. Smartphone apps.
3. Gym memberships.
4. Daily coffee trips.
5. Car payments.
6. Car leases.
7. Car wash upgrades.
8. Lottery tickets.
9. Timeshares.
10. Shipping charges.

Here's where I net out on these:

1. I borrowed $5k from my grandmother which got me all the way through to my MBA. I paid it off a couple years after I graduated. My kids won't have debt at all given .

2. I buy maybe two or three apps a year. Aren't many of the good ones free?

3. I do spend a good amount on a gym membership, but I USE it. I hit the gym five or six times per week and .

4. Yes, I've battled the and have (finally) won. I now make my own lattes for around 30 cents each.

5. We buy cars new and drive them forever. And we get great deals on cars by using . Here's .

6. No. We do NOT lease cars.

7. Ha! I hardly ever wash my car. :)

8. Nope, we don't buy lottery tickets.

9. Yikes! I'm surprised timeshares aren't higher up on the list. They are HUGE money sucks!

10. I don't pay to have things over-nighted to me. If I need it that quickly I can run to a local store. I do have Amazon Prime ($100 a year), so I pay my shipping upfront, but the time savings is well worth it to me.

So that's my list. How do you stack up against these?

How Much $100 is Worth in Every State

shows the value of $100 in every state. As you might imagine, $100 goes a lot farther in some places than others.

$100 is worth the least amount in:

• DC - $84.67
• Hawaii - $85.62
• New York - $86.43
• New Jersey - $87.34
• California - $88.97

$100 goes the farthest in:

• Mississippi - $115.34
• Arkansas - $114.29
• Alabama - $113.90
• South Dakota - $113.64
• Kentucky - $112.74

States that pretty much break even (where $100 gets you $100):

• Florida - $100.91
• Illinois - $99.30

Other facts:

• $100 goes fastest in the Northeast
• $100 lasts longest in the Midwest

Of course, cost is only one side of the equation. How much you earn is the other.

Many people will argue that the higher cost-of-living states make up for costs because you earn more in those states. This is not true.

Here's a list of the . The conclusion is that higher earnings in high-cost states do not make up for the expenses.

The fact is that . If you live in a high cost-of-living area, . Your finances will thank you for it.

Best of all worlds is to . If you can do this, you can .

Spend Your Money with Purpose

Warning: This is NOT a political post, so do not turn it into one. I'm simply highlighting a statement from a very wealthy individual/family which demonstrates a solid financial principle.

One of the blogs I regularly read pointed to which features a story about Ivanka Trump.

She said she learned a valuable lesson about money when she was 14. Her mother booked a trip, reserving coach seats for Ivanka and her brothers. Her mom had a first class seat.

Ivanka's mother told her she could use her own money to pay for an upgrade if she wanted to sit in first class.

Now here's the gold nugget. Here's what Ivanka said she learned from the experience:

"Be judicious when deciding where and how to spend your money. Invest wisely and splurge selectively.”

Exactly!

As long as you make a relatively decent income, you can buy what you want as long as 1) it's in moderation comparable to your means and 2) select what to spend on and what to save on.

To me, this is EXACTLY the formula to apply so you both control over-indulgence but also spend on what you want to so you can enjoy life.

I think it's best described as and even the top 1% of the top 1% (like the Trumps) use it.

Perhaps this is one way they built their wealth...

Costco versus Sam's Club: Which is Better?

recently did a comparison post on Costco versus Sam's Club.

They compared the two on six attributes. Costco won three, two were tied, and Sam's won one. Overall it was a much better summary than one I posted from Consumer Reports several years ago.

Fortunately (or unfortunately, however you look at it) I've had some recent experience to be able to compare the two and thought I'd share my take with you.

When we lived in Michigan we belonged to Costco for seven years or so. We LOVED it! During this time I wrote several posts about my love affair with Costco including:

• Can You Get a Good Deal Buying a Car from Costco? (Turns out the answer is "yes, you can get a good deal." But there's ).
• Health and Beauty Aids: Walmart versus Costco, Kirkland Brand versus Equate Brand -- Which is the Best Deal?
• Why Costco Is All Pumped Up
• Shopping for a Cruise (which we eventually purchased from Costco)
• Great Deals at Costco

Then we moved to Oklahoma City. There was no Costco, only Sam's. We had heard that they were "very similar" so we joined Sam's.

Let me say it was the biggest retail letdown I've had in a long time. I don't know if the Sam's stores in Oklahoma are just nasty or if they are all like this, but ours was like a big, junkier version of Walmart (which is saying a lot). I went a handful of times and that's all I could take (and I can take a lot). It was dirty, disorganized, and didn't have any "special" products thrown in here and there.

Fortunately we moved to Colorado and back into Costco land. All was right in the universe. I was back to inexpensive gas, a clean store, and great products at stellar prices. :)

I'm sure FMF readers have many different opinions about these two (and which is better). Anyone willing to shares their thoughts?

Save a Ton by Having Your Wedding on a Thursday

Here's an interesting follow up to my recent post on how expensive weddings can be. 

Money magazine has a piece on how . 

Yep, going off of prime time is always a saver no matter what you do and it's no different with weddings.

Most people don't want to get married on Thursday, right? Of course not! This means Thursdays are bargain-days!!!

From the article:

Joe, a dentist outside the New York City area, said the couple saved at least 20% on photography and around 40% on flowers just by changing their wedding date.

"We had a lot more purchasing power," he said. "Everyone would come down [in price] when they heard the word Thursday."

Booking a venue for a Thursday is 17% cheaper on average than hosting a Saturday night affair, according to Tina Hoang-To, CEO and co-founder of Wedding Spot, a wedding venue marketplace.

Many wedding professionals are more likely to negotiate their rates because there is less competition for their services [on Thursdays].

For instance, catering and reception venue Anthony's Pier 9 in New York, where the Brownes got married, reduces its minimum head count and price per head by $20 for non-weekend weddings.

A few other thoughts:

• They said that some people couldn't attend because it was not on a weekend, so this could be a game-changer if it's a person important to the wedding (like a close relative).
• They noted that many people had to leave early because they had to work the next day. Not that bad IMO.
• Because you book on a Thursday, you also don't have to book a year out as Thursdays aren't that popular...yet.
• I liked the suggestion that a Thursday wedding also allows couples to take a long weekend if they are skipping the honeymoon (or postponing it) or will vacation close to home.

Overall, this sounds like a GREAT idea to save a bundle. Then again, I'm a guy so I could get married in a Taco Bell at breakfast.

What do the rest of you think? Worth the savings or not?

Weekend Money Traps

Here's a list of :

1. The Movie Theater
2. The Car Lot
3. The Mall
4. Restaurants
5. Open Houses
6. The Furniture Store
7. Big Ticket Events
8. The Weekend Road Trip

Here's how my family does on these:

1. Nope, don't do the theater on the weekends. We go on Tuesdays when the movies are $5.75 versus $10. That's if we go at all (we're pretty picky on which movies we "have" to see in theaters. We NEVER get popcorn or soda either.).

2. I don't shop for cars. I have dealers submit bids through email, each bidding lower until all fall out but one. Then I pick the car up whenever I want. I try to avoid weekends at the car lot because it gets too crowded.

3. My days of cruising the mall are way over. I think I left that behind in the 90's. Unless you count the outlet mall. Then that can be an issue as I love me some Nike at outlet prices.

4. Restaurants can be an issue for us as we often like to go out and eat after church. But we try and keep a reasonable handle on this.

5. I do love looking at real estate, but I do not like to go to open houses simply for the sake of seeing a place for fun. And I'm not in the market to buy, so this is not a temptation for me. We do go to the Parade of Homes each year with tickets a real estate agent friend gets us for free.

6. I'd rather have my eyes poked out with hot irons than go furniture shopping.

7. I'm past the days where big events got me excited. Now all I see is the huge expense accompanied by an even larger hassle (getting in and getting out).

8. We do take road trips but generally plan them in advance and work to balance savings and fun.

So, their list wasn't really an issue for me.

Are there any on here that trip you up?

Cost of Weddings

Anyone remember the days I used to rail against the cost of weddings? No? Well how about these as a reminder:

• Cost of Average Wedding Almost $30,000
• Weddings Cost Much More than You Imagine
• Wedding Markups are Out of Control

Well, my wrath was stirred up recently as Money magazine shared a page full of stats about wedding costs. Some highlights:

• 29% plan to spend between $10k and $25k on their wedding while 12% are planning for more than $25k
• 30% is the typical venue markup when the event is a wedding
• The average spent on a wedding gift for a close family member is $180 while a close friend gets $120 and a friend gets $80
• Saturday is the prime wedding day -- Sunday weddings cost 10% less
• 43% of weddings are paid for by the bride's parents while 43% are paid for by the bride and groom. Only 12% are paid by the groom's parents.
• The average cost to be a bridesmaid (outfit, party, shower, travel, lodging, gift) is $1,179

Ok, here's my take on these:

• I'm thinking $10k would be the MAX I'd personally spend on a wedding.
• Don't tell the venue it's a wedding and save yourself 30%. I'd ask for the rental rates up front and if they ask what it's for ask back "Does it matter?"
• I haven't been to a wedding for a long time, but when I do go I usually give cash. I figure all couples can use that. But I'd probably top out at $100 for all but my kids.
• Sunday looks like a good day for a wedding! I bet Wednesday is even cheaper! :)
• As the father of one daughter and one son, looks like I'm going to pay for one wedding and get one free. Ha! For my daughter, I'm going to make her a "take the cash or have a wedding for this much" offer and I'm almost 100% sure she'll take the cash.
• Thank goodness I never have been and never will be a bridesmaid!!!

So, any thoughts from FMF readers on weddings and their costs?

10 Things Americans Waste Money On

Dave Ramsey lists as follows:

1. Credit card interest
2. Deal websites
3. Appetizers
4. ATM fees
5. Overdraft fees
6. Speedy shipping
7. Designer baby clothes
8. Unused gym memberships
9. Premium cable packages
10. Daily coffee trips

Personally, I think some of these are wastes (like #1) and others are just personal preferences (like #3). I'm much more "spend your money however you like as long as you still save a bundle" today than I was a few years ago. Everybody has things they like and things they don't. So as long as they practice moderate and selective frugality, it all works out for the best IMO.

That said, here's how I rank on these:

• Credit card interest -- Never pay it. In fact, I pay no interest at all these days and haven't for well over a decade.
• Deal websites -- I don't use deal websites, but I do search for coupons before making online purchases.
• Appetizers -- I skip these unless it's a special occasion or I have them alone as a meal.
• ATM fees -- Nope, don't have any.
• Overdraft fees -- Nope, don't have any.
• Speedy shipping -- My job pays for Amazon Prime and that's fast enough for me.
• Designer baby clothes -- Nope.
• Unused gym memberships -- I belong to a gym/pool and go 3 to 5 times a week.
• Premium cable packages -- We do have cable and lots of channels we don't watch. But it was more expensive (believe it or not) to have fewer channels.
• Daily coffee trips -- I drink some coffee, but not much. We do have a Keurig machine but I use it usually only now and then in the winter.

How about you? What do you think of this list? Do you use/incur any of the ten above?

An Example of How to Save a Bundle on a New Car

I've previously detailed my process for saving a fortune on a new car (and for those of you wondering, here's why I buy new cars). I've used this system to purchase three cars (four now) in the past 10 years, but had never shared the specifics on FMF. Well, a recent new car purchase opportunity came up and I thought I'd detail the process for you.

Background

When we moved to Oklahoma last fall, our intention was to give my wife's car (2005 Toyota Corolla with 68,000 miles) to our son and buy my wife a new car. But we got down here and a few things happened:

1. We found out that car-damaging hail is not that uncommon here, making us think the last thing we wanted was a new car.

2. My son had to start the licensing process all over again here. And he went for several months while we moved without driving, so it's almost like starting over.

3. We got busy with moving in, getting the kids settled, church activities, school activities, work activities, etc. We're busy!

Hence we decided we'd just stick with her car and mine (2011 Toyota Highlander with 70,000 miles) and see how things went.

Accident

In the middle of April my wife was sitting at a red light waiting to turn left (my daughter was in the car too.) They were rear-ended by a teenage girl. I'm not sure how fast she was going, but it wasn't too fast (like 55 mph) or too slow (like 15 mph.) It was fast enough to give them a good "pop" but not so fast as to be devastating. It looked like a simple fender bender to me.

My wife called me at work to ask what to do. I told her to call the police and our insurance agent as well as get photos of the accident.

No one was hurt and the accident didn't look that bad. My wife drove the car home and put it in the garage. The back fender obviously needed replaced and part of the back quarter panels on each side were bent so they had to change as well. The girl's insurance company advised my wife not to drive the car because even though the airbags did not deploy, they were somehow impacted and the insurance company was concerned that they wouldn't work if my wife was in another accident.

By the way, when my wife called the girl's insurance company, whoever she talked to said there had been a claim on the insurance just a few days earlier, making us think this was her second accident in a short period of time.

The next week the insurance company came out to look at the car and pronounced it totaled. They said there was so much damage underneath the car that it was completely unusable (or, more likely, not worth the cost to repair).

I was at a conference in Colorado Springs when I got the news. I got on my phone to search what Kelly Blue Book (KBB) listed as the value of the car, sure we were going to be in a fight with the insurance company over it (after all, why wouldn't they go low?). KBB gave two numbers for our car once I plugged in specs, mileage, etc. It said the car was worth $6,800 if we used it as a dealer trade in or $8,000 if we sold it on our own. I sent this info to my wife. She said she was on the phone with the insurance company and they were going to give us $8,200. We were pleased/relieved, but now we had to find a new car. (BTW, they gave us a rental car for two weeks while we found a new car.)

Car Shopping

We decided that my wife would pick out the car and I'd negotiate the price. So she set to work looking at options.

We had previously considered the Nissan Altima, Honda Accord, and Toyota Camry, but my wife felt these cars were too big for her. She's 5' 4" and 105 pounds -- very small -- and even our Subaru Forester from past years felt big to her. So she looked at the Toyota Corolla, Honda Civic, and one of the Hyundai cars (Elantra or Accent.)

It didn't take long for her to decide on the Toyota Corolla. She had liked the car she had and we have had very good performance/reliability with our Toyotas. So she wanted to stick with the Corolla. After looking at the various options, here's exactly what she wanted:

• Trim: 2014 Corolla LE Plus
• Options: Driver Convenience Package (including moon roof)
• Colors: Exterior – Red; Interior: Ash fabric
• Accessories: Mudguards, carpet floor mats, and carpet trunk mat

Price Negotiation

While my wife was deciding on which car she wanted, I went online and found forms to nine dealers -- five in Oklahoma City, two in Tulsa, and two in north of Dallas. Once she knew the car she wanted for sure, I sent all the dealerships except the one my wife was dealing with (which claimed they would beat any price -- I love that!) the following email:

I'm in the market for a new car, know exactly what I want, and would like someone to email me so I can give details. Thanks!

When they responded, here's how I replied:

I would like to get a quote on the following vehicle:

• Trim: 2014 Corolla LE Plus
• Options: Driver Convenience Package (including moon roof)
• Colors: Exterior – Red; Interior: Ash fabric
• Accessories: Mudguards, carpet floor mats, and carpet trunk mat

Please also include any extras your dealership offers like free oil changes, tire rotation, etc.

I am aware of MSRP and invoice prices and would appreciate a competitive bid as I will be comparing quotes from other dealerships. The bid should include any and all costs associated with buying the car.

I do not have a trade-in and I will be paying in cash.

Thank you.

The feedback came back pretty quick (within a few hours) that there wasn't an LE Plus to be found with the combination we wanted, but there were LE Premiums (the next step up). This came from three dealers almost simultaneously, so I believe it was true, not just an attempt at an upsell. Since we were willing to go up a notch, I told them that bidding on the Premium was ok.

I then went to to get their True Market Value® Pricing. Here's :

Need a little confidence to go eyeball-to-eyeball with the salesman? Edmunds' True Market Value pricing will get you there. It's what other shoppers are paying in your area, including options, the car's color and any available incentives. Our TMV figures are based on the actual sales of other cars of its kind in your region and then adjusted for further accuracy using calculations designed by the mathematicians at Edmunds.com. There's no more need to guess at figures between the invoice price and sticker price; TMV narrows it down to a specific, realistic amount you can use when negotiating for a car.

Here are their results for the car we wanted:

Invoice Prices

• Base Price $17,963
• Driver Convenience Package $1,343
• Power Tilt/Slide Moonroof $757
• Carpet Floor/Trunk Mat Set $140
• Mudguards $80
• Destination Fee $810
• Total $21,093

MSRP

• Base Price $19,400
• Driver Convenience Package $1,510
• Power Tilt/Slide Moonroof $850
• Carpet Floor/Trunk Mat Set $225
• Mudguards $129
• Destination Fee $810
• Total $22,924

True Market Value®

• Base Price $18,252
• Driver Convenience Package $1,421
• Power Tilt/Slide Moonroof $800
• Carpet Floor/Trunk Mat Set $212
• Mudguards $121
• Destination Fee $810
• Total $21,689

The dealership responses came in quickly. Some were high (near MSRP around $23,000) while others were aggressive from the start (one offered $20,252 out of the gate).

An interesting one was from the dealership my wife had dealt with in person. Once we knew what we wanted, she told him to email me to work on the price.

Since he had told her they would beat any price offered, I expected him to be aggressive. Here is the initial email back and forth:

Him: Hey FMF! This is Jeff from ********* Toyota! Mrs. FMF gave me your email address and asked me to get into with you! How are you doing today??

Me: I'm doing well, how about you?

I had a question about the quote you sent Mrs. FMF. You gave the following prices:

Base price: $22,275
Options: $2,634
Total: $24,909

Plus Doc and transfer fees.

The biggest issue is your base price. Others are quoting $2,634 for the options, but I have $20,275 (FMF note: this covers (closely) what's listed as "base price" and "destination fee" above) as the base price from more than one other dealer (yes, for an LE Premium). Are you sure you didn't mis-type the base price amount?

FYI, from there, they discounted the total cost further, but we can deal with that later.

Thanks,

FMF

Him: I am doing great, thank you for asking but I'm very sorry, FMF. Yes I did mis-type that price and the following math with the wrong number. My apology. You are exactly correct on the price. What price are you wanting if you don't mind me asking?

Me: Currently the best price is just a couple hundred dollars above $20,000 (for everything.) This is only a "first round" price -- I am yet to ask people if they can do better. I have another that's near $20,500 as well.

If you can send me your offer, I'll add you to the list of ones to keep in touch with.

Thanks!

Him: Being the person and the dealership that Mrs. FMF and yourself have been hands on dealing with we want to earn your business. That being said what can we earn your business at right now tonight??

Me: Right now, you need to make an offer that gets you into the competition. Give me your best price and I'll let you know how you compare.

We will not be buying anything until everyone has the chance to offer their best price at which time we'll be ready to move quickly. We have cash and can make a purchase once we get the price set.

Him: Can we earn your business at $20,058 out the door?

While I was emailing him, most of the other bidders dropped out (when I told them they needed to be below $20,000 to be competitive.) So I emailed Jeff again, told him we were ready to proceed, and asked what the next steps were. This was a Friday evening.

I then went to watch a movie and when I checked email, I had an offer for $19,553 from the one other guy technically in the race (I hadn't heard from him in a day, so I assumed he was out.) I emailed Jeff again, said I hadn't heard from him, and noted that in the meantime we received a better offer. I asked him if he could beat $19,553.

Jeff responded quickly and said he'd talk to his manager. He then came back with an offer of $19,500. I emailed the other guy and asked if he could do better. He said he'd have to hold firm at $19,553. I told him thanks for the effort but we had a lower offer.

We accepted the $19,500 offer from Jeff (the dealer my wife had been working with and that said they'd beat any price) and made arrangements to drop off the deposit. The next day we stopped by, put down a $500 deposit (with our American Express Fidelity card) and were told we'd have the car in 3-4 days.

Purchasing

Here's how the financials shook out (from the dealer's financial sheet):

• Base price (MSRP): $20,275
• Options: $2,634
• Total MSRP: $22,909
• Discount: $3,218
• Rebate: $500
• Adjusted price: $19,191
• Doc fee: $299
• Balance $19,490

We saved $10 because we didn't need financing. :)

Our rental car expired that Tuesday (we made the deposit on Saturday) but the insurance company extended it to Wednesday because the car was supposed to be available then. But it wasn't, so we spent a day with one car (harder than it sounds), then went to pick up the new one on Thursday, May 15.

You would think that it would be easy from there. We have the money, they have the car. There's no paperwork. All the negotiation is over. Shouldn't I be able to hand them a check and get out of there in 10 minutes?

Nope. We sat around for half an hour waiting for "the paperwork" to be completed (not sure why it wasn't done prior to us getting there -- they knew exactly when we were showing up). At least some of the time was spent by the salesman showing my wife how to use her car, so it wasn't all wasted time.

The "funny" part was when we got into the office of the finance manager. After his salesperson had spent the last two weeks telling us how great/reliable Toyotas were, the office manager now spent five minutes telling us how they break down, how the repairs are often not covered, and so forth. He painted a nightmare picture that had even me doubting if we'd bought the right car. What was his purpose in doing this? He wanted to sell us an extended warranty.

We declined and told him we wanted to move on. He did, but I could tell he wasn't happy with us.

An hour after we arrived, my wife had her new car.

And that's our latest adventure. I was happy to get the car for so much below both the fair market value and the invoice numbers. It just goes to show that there are a lot of hidden rebates, incentives, and the like that are unseen by consumers. One tried and true way you can ferret them out is by getting competing dealerships to bid against each other. It's worked for me and if you apply the same process, it can work for you as well.

Stack Multiple Discounts for Big Savings

One way to save some really big money is to stack multiple discount and reward offers on top of each other when making a purchase.

For example, you can save a bundle if you get a sales price item, negotiate the price down further, add a coupon and rebate on that and then pay with a cash back credit card. Add all these up and you have a pretty good deal. :)

Of course such a purchase doesn't come along that often, but when it does, it's like manna from heaven.

Here are a couple examples of how I've been able to save big this past year by stacking discounts.

Appliances

We need new appliances for every rental unit we refurbish (which, if you've been reading along, you know is every one we buy.) We've done five units so far and have nine left to remodel.

We started by looking for a decent brand at a good price. After doing so and looking at the offerings from various retailers, we went with Frigidaire (and "upscaled" it a bit by taking stainless steel) and Lowe's.

The appliances started with the retail price (of course), but they were on sale. From there, I was buying eight pieces (refrigerator, range, dishwasher, and over-the-range microwave) for two units. We were also buying a new washer, dryer, and range for our home on the first purchase, so all these items added together allowed me to negotiate a price that was below the sales price (it also helped that I had a competitor's ad - and they match prices).

From there, I applied a 10% coupon that my realtor sent me. Lowe's has some sort of program with realtors to make coupons available when a new place is sold. Smart move IMO since it's likely that new homeowners will need the sort of things Lowe's sells.

On top of that, Lowe's had a rebate going that gave me a gift card on purchases over a certain amount.

Finally, I paid with gift cards I had purchased using a 6% cash back card (Amex Blue Cash Preferred -- which I have since cancelled since they are setting limits on how much you can earn 6% on).

So the final tally looked like this:

• Retail prices for all the items: $7,489
• Sales/negotiated/matched price: $5,448
• Price after 10% coupon: $4,903
• Price after 6% cash back factored in: $4,609
• Price after rebate ($300): $4,309

Total saved: $3,180
Percentage saved off retail: 42.5%

Not bad, huh?

Better yet, I struck up a friendship with the department manager and assistant manager and locked in those negotiated prices for every unit I do with them from here on out.

Obviously this technique works best on big ticket purchases because you can really rack up the savings. That said, the principles apply on smaller purchases as well.

Clothing

I like Nike brand clothing, but hate paying Nike prices (way over-priced IMO.) So I use the same principles detailed above to pay a fraction of the retail price.

I start by shopping at a Nike outlet store (where the prices are already automatically discounted -- believe me, they are, as I know what places like Dick's are asking for these items).

Next I shop the clearance rack. The Nike store always has two or three of these for men. This rack is where they take the really big discounts.

Then they regularly have extra discounts on top of the clearance stuff. Yes, a double discount. There's a lot of junk in this price range, but I can sort through to find the diamonds fairly quickly.

I pay with a gift card purchased using the 6% cash back credit card noted above.

I get a $5 off coupon for every purchase I make where I fill out an online survey (and I always fill those out).

Here are the financials for a recent purchase of a golf polo shirt and a pair of cargo shorts:

• Full retail price for both items: $117.00
• Original outlet sticker prices: $84.98
• Prices after markdown on clearance rack: $52.46
• Prices after clearance rack "extra" sale: $41.97
• Cost after 6% back on cash back credit card: $39.45
• Cost after $5 coupon discount: $34.45

Total saved: $82.55
Percentage saved off retail: 70.6%

It's not often that my wife or I find situations where we can stack so many discounts on top of each other, but she does frequently make purchases with a triple discount (sale price + coupon + cash back rewards), most commonly in the grocery store. And when we make purchases that have even more discounts, it's a bargain hunter's delight! :)

Do you have an example of stacking multiple discounts to get a great price? If so, please share it in the comments below.

Another Example of Asking for a Discount

Through the years I've posted several times on the value of asking for a discount. I've given many examples of people reaping savings on all sorts of things simply by asking for a discount.

That said, asking for savings doesn't come naturally for me. I'm not sure why, because I'm pretty "frugal" (some might say cheap) in most cases. But asking for a discount just seems a bit tacky to me in many circumstances.

My wife, on the other hand, doesn't have such inhibitions. Thankfully, she's willing to jump right in there and ask for a discount at the drop of a hat.

This recently saved us a good amount of money when we went to a new drycleaner.

I had several shirts and a couple pants that needed cleaned. As the lady took them we chatted with her a bit. We told her we were new in the area and were trying to find a drycleaner.

As she collected the clothes, my wife asked if they had any discounts available. That's it. All she said was, "Do you have any discounts available?" (I know, pretty simple right?)

I immediately thought, "Of course they don't -- why even ask?"

The lady paused for a moment, then said, "I could give you a $40 credit as a new customer. Would that be ok?"

Uh, yeah!

Simply by asking if there were any discounts available, my wife saved us $40. It took less than a minute for it all to happen. That's like earning $2,400 an hour!!!

I got my clothes cleaned and had $15 credit left over for next time!

So consider this a reminder to do one simple thing whenever you buy something: ask if they have a discount, can give you a better price, etc. You might just be pleasantly surprised at the answer...

Save Money by Moving to Ecuador

The following is a guest post from

Seemingly out of nowhere, Ecuador has shot to the top of many lists touting the best countries to retire to. The country popped out on top in , and ABC News recently did a segment that profiled Americans finding paradise there. So what are the reasons an estimated 5,000 to 10,000 Americans have flocked to this tiny country tucked in the northwest of South America? One reason is certain: an incredible value for their everyday dollars.

Let's dive deeper into Ecuador and figure out if it's really better than other similar countries by taking a look at its true cost of living and going over a few questions we should ask ourselves before buying a one-way plane ticket, packing up our homes, and heading south of the border.

(1) Why Ecuador?

Thailand. Mexico. Italy. Panama. There's a lot of options available for people who are looking for a safe, somewhat developed, and cheap country to live in. So, what makes Ecuador top dog?

• Ecuador is just a 5-hour flight from Atlanta, which makes getting to and from to the U.S. relatively fast and inexpensive.
• Ecuador boasts people that are known for being friendly and family focused. Many Americans report being welcomed with open arms into their communities, which makes living there easier and happier.
• Ecuador has culturally vibrant cities like Cuenca and Quito which offer a bustling food scene with world-class chefs, great museums, and fine symphony orchestras.
• Ecuador enjoys pleasant weather year-round, which is why most residents have no heating or air conditioning.
• Ecuador boasts rainforests, beaches and the Andes mountains to explore; all of which are tucked into a country the size of Wyoming. Plus, there's the amazingly biodiverse Galapagos Islands.
• Ecuador is known for its top notch medical facilities and doctors.
• Ecuador has adopted the U.S. dollar as its currency, meaning there's no complicated math to perform in your head to figure out how much anything will cost in dollars.

(2) Monthly Living Costs

Just like some people in the U.S. live on $5,000/month while others are able to live on a fraction of that, the same can be said of living in Ecuador. It will cost as much or as little as you want, depending on your lifestyle and the level of comfort you want.

With that in mind, let's cover the monthly costs for two people living what I consider to be a comfortable lifestyle. With its old world feel, low crime, and many public parks, we'll base ourselves in the city of Cuenca along with its other 500,000 residents and fast growing expat community.

Food

Food in Ecuador is very cheap compared to the U.S. You can eat dinner out for $2.50 and wash it down with a beer for $1.00. A good rule of thumb is to expect to pay 50% less on groceries and restaurants living here. Monthly cost: $200

Healthcare

Out-of-pocket expenses for doctor visits, procedures, and drugs are a fraction of what you would pay in the U.S. The International Living poll concluded that health care in Ecuador costs 10 to 25% less than what it does in the States. This means a visit to the doctor will cost, on average, between $25-$45 if and when you need to go. Monthly cost: $0

Housing & Utilities

A newer house containing 2,000 square feet, four bedrooms and two and a half bathrooms in a safe area about five minutes from the city center will cost around $350 a month. An apartment with 1,800 square feet, three bedrooms and three bathrooms in a hip neighborhood close to the river will run around $400. Don't forget to figure in an additional $35 a month for internet service, $20 a month for electricity, $10 a month for water, and $10 a month for the propane hot water unit. Monthly cost: $475

Transportation

A one-way ride on the bus is a quarter (yes, as in 25 cents) while a month-long bus pass will cost $15. The bus pass only makes sense if you ride it more than 60 times per month. We'll opt for two of those. Monthly cost: $30

Miscellaneous

A cell phone with a prepaid SIM card will cost around $12 a month, and we'll take two. We'll throw in an extra $200 for entertainment, clothes, and other expenses that will inevitably pop up. Monthly cost: $224

Total Monthly Cost (for two): $929

(3) The Questions You Need to Ask Yourself

First, understand that little to no English is spoken in some areas. If you don't know Spanish, are you willing to learn the language? Granted you certainly can get by with English and knowing a few common Spanish words or phrases, but knowing the primary language will help immensely with quality of life: forming new friendships, making daily interactions with Ecuadorians more pleasant, and gaining a deeper understanding of the culture. Basically, it will help make you feel like you're not an outsider.

Second, things do not happen as quickly or efficiently in Ecuador as they do in the U.S. Are you willing to be patient and spend countless hours on the phone getting internet service installed? Or swallow the cost of an item you purchased that broke, because there's no return policy? These are things to think about.

Third, and perhaps most importantly, things you take for granted now will be a distant memory if you decide to pick up and move to Ecuador: your favorite type of peanut butter won't be available, you won't get to wash your clothes in hot water because they don't hook washing machines up like that, and the sidewalks and streets have a few too many unfixed potholes in them. Of course, and perhaps the most important, your family and close friends will be far away.

Moving to Ecuador can certainly be a dream come true for many of us wanting to stretch our everyday dollars. However, be sure to both do your own homework and visit the country before moving there. You may decide it's not a good fit for you and that's good to know upfront as opposed to later when you've already made that cross-continental move. But as many already have, you may very well fall in love with the country and the people and decide to move there. To many, you'd be hard pressed to find a better place. 

Our Communication and Entertainment Changes

A couple months ago we finally tackled our on-going TV/internet/home phone set-up that we knew had been costing us too much money. Here was out set-up:

• Home phone (landline), AT&T: $45/mo
• Internet (DSL), AT&T: $45/mo
• TV, Comcast: $95/mo
• Total: $185/mo

A few comments on this:

• Yes, I know it's too high. But something else just seemed to always be above it on our to-do list.
• The AT&T phone/Internet was a package deal (that's why I split the costs evenly). When we got them a few years ago, they were lower, and had inched their way up over time.
• The Comcast TV package is Digital Starter or something similar. We get about 300 channels (10 of which we use, but you need the others to get the ones you want), HD programming, and a DVR (which I could not watch TV without -- it cuts out all the commercials and I figure the time savings alone pays for our cable bill.)
• Also remember that my deal with my wife is that my soccer referee earnings go to cover the cable bill. Last year I earned roughly $1,700 for the two seasons. I don't have access to all the soccer games I want to see, but between ESPN, some shows on Fox, and web videos, I can view at least a summary of almost every game that's important to me.
• We spent some time debating the "should we cut the landline finally" issue, which is tied to "when does my wife get a regular cell phone" issue (she currently uses and is happy with a Tracphone). Also factoring in: when do the kids get/need cell phones?

My wife checked with several providers of service similar to the above as well as other, more non-standard ways of getting the services -- too many to go over here. But a couple are worthy of note:

• We ed AT&T early on in the process and told them we were thinking of moving. We asked them if they had a better price than $90 a month for the two services. They said they did not. We asked if they had a better price if we just went with one service (FYI, U-verse is not available in our area and we did not want any satellite TV options they might bundle with). No, they didn't. In fact, the price would go UP if we had just one service from them. Ultimately we moved from their service. Less than a month after we did, we got a mailer from them saying they were sorry we had left and offering us Internet for something like $14.95 a month. Now why couldn't they have made this offer when we initially asked? They may have kept our business! Seems like a crazy way to market a company -- wait until a customer leaves to give them a better price. Memo to the execs at AT&T: If I've already asked for a deal, been told "no", and leave as a result, it's TOO LATE to get me back!!! I have, after all, just switched everything around to a new service and don't want to re-do it. Sheesh!
• Comcast, my mortal enemy (see My Discussion with Comcast and My On-Going Battle with Comcast for details), offered us the best deal, and we took it. We ended up with faster Internet (cable), the same TV, and the same phone services for a cost of $125 for the first year. Even after the first year, the cost was only $140 -- still a $45 savings per month. Seemed like a no-brainer to us.

There were a few hiccups in the set-up (we did it ourselves), but it all resolved itself and is good now. We'll see how it goes.

After we went with the bundled service from Comcast, I saw talking about the value of triple play bundles. We certainly saw this in action. There was no combination of doing each service from a different company that was anywhere near the price we got from the one.

We will revisit our plan in the next year or so (when we will probably make the move to a non-landline, more cell phones plan) and adjust as needed. I'll keep you up-to-date on our progress.

So, what's your combination of phone/Internet/TV service?

How Much Do You Spend on Lunch?

In my recent post about over-spending, a reader made the following comment:

Re spending, I am curious how much people spend for lunches at work each month (for people who work full time outside their homes). I hate brown bag sandwiches and microwaved leftovers with a passion, I need a break from the office. But I feel guilty eating out every day.

It's true that lunches can add up to a small fortune. $7 per day for 250 working days a year is $1,750. $10 a day is $2,500!

Here's what I do:

• I bring my lunch to work and eat at my desk. I don't mind a sandwich and fruit and can eat leftovers like it's nobody's business.
• I spend my lunch break swimming. We have an indoor pool at a high school that costs me $130 per year to belong to (yes, it's subsidized for the community). So I do get out/get a break.
• On days I don't swim, I either attend a volunteer meeting or have a networking lunch. So I get out in these ways and accomplish something else at the same time.

I very rarely go out and grab lunch just for myself. I either bring it or have a planned lunch as noted above.

What about you? What do you do? How do you balance the need for a break with the cost of eating out?

Making Museum Memberships Worth the Cost

Money Wise Pastor lists as follows:

1.Is it tax-deductible?
2.What’s the difference in price between the one-day cost and the annual membership?
3.What if you buy the annual membership but don’t go enough times to save money – isn’t that a waste?
4.What kind of special offers or discounts would you receive as a member?
5.Are there reciprocal benefits?
6.What is the entertainment or educational value?

It's a pretty good list IMO.

We have been members at a few museums over the past few years, and here's how we evaluate the costs:

• If an annual membership is less than or close to the cost of a one-time visit, we become members. Example: when we became members at the Henry Ford museum in Detroit several years ago. We only went once, but the annual membership was still less than a one-time visit. Now that my dad lives in Detroit, we may join again since we'd probably go there a few times per year.
• We did a similar thing with the local museum. We had a guest with us and we knew we were going to have more guest visit over the next year. In this case the annual membership was a bit more than a one-time visit, but it only took two times to be equal and we knew we'd visit at least four times in the next year, so we got the annual package.
• We belong to a local botanical gardens and have been members there for about 10 years. There are several reasons we keep renewing: 1) It's a great value -- both for our family (we go there alone 3-4 times a year) and as a place to take out-of-town guests (another 3-4 trips per year). It helps that they have repeating annual events that are "must sees". 2) It's tax deductible. Of the $125 we pay, only $25 isn't deductible. 3) It supports a great venue in our city which is mostly funded by one family. If they can be so generous to set the place up, we can at least contribute a bit to it each year.

Are you a member of any museums? Why or why not?

Money Leaks in the Tech Age

I recently had a reader send me the following email:

I have three sons who are 10, 8 and 5. Like many families we have several iPads/iPhones. My boys ask me daily if they can get (XYZ) app. All our devices have a password so my wife and I can control what they are getting. Many times we say yes, especially if it is free. If it's a 99-cent app or a $1.99 we often say yes as well. When we get into the $5 and up range, we typically say no and give them the option to pay for it themselves from their allowance money. As you might guess, it is easy to say "yes" many times in a week or a month, and that can start to add up.

That got me thinking about our society's transition from cash-based to e-commerce/e-spending/virtual spending has removed some of the older safeguards against free-wheeling spending. In my grandparent's day, and probably a lot of my parent's day, if you wanted to buy something, you paid cash or perhaps wrote a check. The physical act of getting out your wallet or checkbook and actually handling the cash or writing the check gave you a chance to mentally evaluate and accept the fact that these funds were going out and perhaps made you think through the decision a little more carefully.

For several years I resisted setting up online bill payment because I liked the fact that by getting a bill in the mail, it (A) forced me to review the charges and verify their accuracy and think about why we are spending that much and how we might reduce it in the future, and (B) the physical act of writing the check made it a bit more real than we were really spending that money and that it was flowing out and we (in most cases) would not be seeing it again.

Now, with credit cards and online commerce, that level of careful consideration is gone. (Don't get me wrong - I love the convenience and rewards of credit cards, and virtual payment systems have many benefits). But, it's easy to spend more than you realize in any given time period because it's all done with a click of the mouse (or a finger to the touch-screen). Online banking, online bill pay, automatic bill pay via credit card - it's easier than ever to spend money without really thinking it through in a thorough and considered way.

He then went on to suggest this topic as a potential post for FMF and asked:

[How do we] remain vigilant with our spending in a world that makes it easier and easier to spend?

This is a very good question.

I've noted the same in our family since my daughter got her iPad. The difference for us is that we make her pay for any of her apps.

However, I find even for myself that it's easy to get a $2.99 app here and a $3.99 (or more) e-book there. Yes, the library has some e-books and most apps are free, but the ones that aren't can add up. And we all know that it's oh-so-easy to buy electronically. Just a tap here and there and you're all set.

I've written about "small spending" like this several times. For instance:

• Little Expenses Can Add Up
• Keeping Small Spending Under Control
• Even a Small Leak Can Empty Your Money Bucket Quickly

But the reader above is right -- nowadays there are even more ways for small spending to add up -- and sink your budget.

What are your thoughts on this subject? Is anyone else out there grappling with the same sort of issues?

 

Can You Save Money with a Pellet Stove?

As you might imagine, it's cold a lot here in Michigan. And people look at all sorts of ways to keep warm and heat their homes: oil, electricity, natural gas, wood, and on and on.

This Old House Magazine recently did a complete series on pellet stoves, a high-tech wood (pressed into pellets) burning option that many here use to heat their homes (either completely or in part.) We have several friends that use and swear by them.

I've always been enamored with pellet stoves (who wouldn't be? they are high-tech AND involve fire!). But I've also wondered if they are worth the cost or not -- if installing one would save us money. Well, TOH has the answer. :

As the sole heater for a 2,000-square-foot home in a cold climate, expect to spend $3,000 to buy and install the new stove, $980 for four tons of pellets. The time it takes for the stove to pay itself off depends on your current heating fuel.
 
Oil -- Runs $1,857 per winter, or $877 more than pellets. You can break even in about four years.
 
Electricity -- Costs about $2,306 a year, or $1,326 more than pellets. Expect a return on your investment in year three.
 
Natural gas -- This fuel is cheaper, at $623 annually, but if you're currently using a fireplace or an older woodstove for supplementary heat, you will save in the long run by switching to pellets.

So there you have it. We have natural gas and thus pellet stoves wouldn't be worth it for us. The fuel we have is simply cheaper than pellet heating.

But it looks like a viable option for those who have oil or electric heating. Any of you have pellet stoves? Do you like them? Are the saving you money?

Price Matching at Best Buy

Remember our discussion of "showrooming", the practice of looking at/checking out a product at a store, then leaving and buying it cheaper online? It was quite a lively conversation! Well I recently had an experience with it and wanted to let you know how Best Buy handles it.

I got a new phone in early December and needed a case for it. Verizon had an "Otter" branded one for $49.99 that was too bulky and looked like it could withstand a direct hit from a nuclear warhead. I needed a case for sure (I got a Samsung Galaxy 3S and they seem pretty fragile without a case). Verizon said I would get 25% off because of my company's agreement with them, but I wanted to look around a bit first to see what the options were.

I found several I liked at Amazon, but buying there meant I'd have to wait for them to ship it to me. This meant several days being VERY CAREFUL with my phone while using it without a case. So I decided to drop by Best Buy and see what they had to offer.

I shopped a bit there and noticed that they too had Otter branded items. They had the same one as Verizon and it was also priced at a full $49.99. I looked up the item on my phone at Amazon and it was available for $27.99 -- over $20 cheaper!!!

On a whim I asked the Best Buy associate if they price matched with Amazon. I assumed he was going to tell me to go and pound sand, but instead he said they would! He noted that they had two criteria for the match:

• The item on Amazon had to be the exact UPC as the one in the store.


• The item had to be shown as "in stock" at Amazon.

He said that as long as these were true, they would match the Amazon price. All I needed to do was to show the page to a Best Buy associate on my phone.

I eventually didn't buy anything there since they didn't have exactly what I was looking for. I went back to Verizon, got a different case, and took my 25% discount. I thought later that I should have asked them if they price matched as well since I could have saved a few more bucks, but it was the last stop of the day after visiting several stores for gifts, they were packed, and my daughter was ready to go home NOW. So I was ok with getting it and getting out of there quickly.

The key finding for me in all this is that Best Buy DOES price match Amazon -- which makes me more willing to go to Best Buy for items. This is probably not new news for some of you, but it was for me!

BTW, I LOVE the phone! :)

Is $250k a Fortune? Depends Where You Live

As the President and Congress debate about taxes on the "wealthy" -- defined as those making $250k more per year -- NBC News brings up an issue we've talked about several times, the fact that how much you make goes farther in some cities than in others.

And the differences can be massive. Consider these few quotes from the piece:

You can buy a four-bedroom, two-bathroom house in Redford, Mich., (just outside of declining Detroit) for $60,000, or pay $1.7 million for a similar home in Los Altos, Calif., in the heart of Silicon Valley.

You need to earn $250,000 in Los Altos, Calif., to live the life that $60,000 provides in Fort Smith, according to the addicting cost-of-living-comparison calculator at Sperling's Best Places website.

Now some will counter with, "Yeah, but you can make more money in higher-cost-of-living cities." While this is true, the higher pay is not enough to make up for the higher expenses (on average.) Of course there are non-financial issues of living in one place or another (like nearness to family) that could make the financial hit worth it. That's up to each individual/couple to decide for themselves.

The piece then offers a way to really super-charge your finances -- combine a high income with a low cost-of-living city. Their thoughts:

You can really cash in on cost of living discrepancies if you line up a telecommuting programming gig at Silicon Valley rates and then make your home in the outskirts of Detroit or on the Arkansas-Oklahoma border.

I'm guessing that this sort of arrangement is both more and more popular (as companies want to keep/get the best employees) as well as realistic (with technology today, almost anyone can work remotely at least part of the time).

A similar approach would be to live in a low cost-of-living city but have a high income job in that city. That's been my career strategy. You all know that I have only lived in low-cost cities during my working years. You also know that I earn a decent salary. Put the two together, and it's financial magic.

I'm guessing some of you are in the same boat. Anyone else out there using the high-income, low-expense city strategy?

P.S. The reason I put "wealthy" in quotes at the top of this post is because the term "wealth" refers to net worth IMO -- how much someone owns once all their debts are paid. And yet the debate in Washington associates "wealth" with income. We know from common sense that those who make more money have a greater opportunity to accumulate more and have higher net worths. But we also know that this opportunity is often squandered, that those who earn more tend to spend more, and thus their wealth is not close to what it could be. I talked about these differences when I wrote about income statement affluent versus balance sheet affluent people.

Gym Memberships are Good Deals -- If You Use Them!

The Simple Dollar recently recommended looking at . Their point was this: if you don't use something, you can save money by canceling it.

Obviously if you're not using something, you should cancel it. Why pay for something you don't use?

But I see a lot of "cancel your gym membership" recommendations listed as ways to save money. Most of the articles suggesting this say that it's cheaper to pay on a per use basis rather than have a membership if you use something sparingly.

This, of course, is true. But what often gets lost in the recommendation is this: if you use it, having a gym membership is a good deal -- and can save you a boatload of money!

I belong to a pool and swim several times a week. The per use cost (since I am a resident) is $2.50. The annual membership is $125 (I know, it's a steal -- but we paid for it in higher taxes since it's at the local high school). Because I am totally anally retentive, I tracked the number of visits I had to the pool the past 12 months. The number: 206.

If I had paid on a per use basis, these trips would have cost me $515. But instead I paid an annual fee and ended up saving myself $390. Pretty good deal, huh?

The Simple Dollar also suggests that your cost per hour for a membership should be $1 or less. (BTW, this number seems to be a bit arbitrary and I am not endorsing it, just highlighting what they say.) I am at the pool about an hour each time I visit, making my cost per hour $0.61. Again, not bad.

My point is that memberships are not all bad. If you actually use a membership, it can save you a great deal over a per use payment structure.

Do you have a membership that saves you money? What is it?

Our Trip to DC (And a Few Ways to Save)

From October 12 to October 17 our family took a trip to Washington, DC. I thought I'd share with you what we did, the financial impact of the trip, and a few savings tips we picked up along the way.

Background

Both my wife and I lived in the DC area (before we knew each other -- she worked in Virginia just out of college and I lived in the heart of DC one summer in college when I interned for the federal government. FYI, I am old. Reagan was president then.) So we were both somewhat familiar with the city, surrounding area, and the various sites to see. We both have fond memories of our time there so DC has always been a place we wanted to show our kids.

This past summer our kids (who are homeschooled) had classes on American history and government, and a trip to DC seemed like the perfect wrap up. So we picked a time, I took vacation days, and we got to planning.

Spending Philosophy

I've noted that I'm a believer in moderate and selective frugality. These principles especially apply while on vacation. Specifically, I'm willing to make some sacrifices to save money as long as they aren't too big from both time and "hassle factor" standpoint. My point of view is that we're on vacation and I don't want to kill the mood because we wanted to save $3.

Case in point: did we want to drive or fly?

Google Maps says that it's 652 miles (11 hours and 18 minutes) from our house to DC. So roundtrip costs at 55.5 cents per mile (the rate my employer reimburses me -- which is supposed to cover all expenses associated with driving my vehicle  -- FYI, parking and tolls would NOT be covered in this amount) would cost us $724. But much of this cost is hidden. Really, the only visible costs would be gas, parking, and tolls. So maybe it would cost us $250 or so at most.

On the other hand the best flights (from Lansing, MI, an hour away from our house) would cost $850 for the four of us (direct flight.) Obviously this would require more out-of-pocket costs than driving. But it would also save us over 22 hours of driving -- a HUGE hassle/energy suck. Plus if we drove we would likely need at least one additional hotel room night either in DC or on the road.

So we went with flying.

Case in point #2: what hotel should we stay in?

I do not want to spend my vacation in a bed bug-infested rat trap that's 50 miles away from the action just because it's $50 a night. But I don't need to stay in the $400 a night place next to the White House either. So we picked a Hampton Inn close to a metro stop for an average of $170 a night. More on this later.

Planning the Trip

Now that you know our general approach to spending on vacation, here's what we planned to do:

• Our flight left at 9 am on October 12 which meant we needed to be up and out of the house by 7am and at the airport at 8 am.


• We booked the hotel with no problem. It had a pool for the kids, was close to the metro, and had the standard free breakfast Hampton offers. For those interested, .


• My wife did some research on the metro and we decided to purchase , a plastic version of the paper fare cards. More on these later.


• We took some food with us, but we knew our hotel had a CVS nearby for snacks, we knew we could get apples, etc. from breakfast and store them in the room if we needed food.


• We planned to see the "key" attractions, some that were set at fixed times (like the White House tour), and had a rough estimate of what we would see on what day.

The Trip

Our flight left without a hitch and we were at our hotel (took shuttle from airport) shortly after 11 am. Our room was ready so we settled in, then hit the city to see the sights. Over the next five days we saw the following (FYI, we never took a cab -- all of this was walking and the metro):

• Arlington Cemetery
• Botanic Gardens
• Bureau of Engraving and Printing
• Capitol (got a personal tour from a member of our Congressman's staff including getting on the House floor)
• Ford's Theatre
• Holocaust Museum
• Jefferson Memorial
• Library of Congress
• Lincoln Memorial
• National Air and Space Museum
• National Archives (Declaration of Independence, Constitution, Bill of Rights)
• National Gallery of Art West (older art)
• National Gallery of Art East (modern art)
• National Mall
• National Museum of American History
• National Museum of the American Indian
• National Museum of Natural History
• National Zoo
• Old Post Office
• Peterson House (where they took Lincoln after he was shot)
• Smithsonian Castle
• Supreme Court
• Vietnam War Memorial
• Washington Monument
• White House (got on the grounds into the gardens on Saturday)
• WW II Memorial

As you might imagine, we walked for many miles each day. We were usually out of the hotel by 9 am or so and back around 4 pm, totally exhausted but having had a great day (BTW, the weather was in the 60 to 75 degree range during all the days we were there and it only rained part of one day).

The Final Budget

Here's what we spent:

• Flights: $850
• Ho $850
• Metro: $104
• Food and misc: $281
• Parking at Airport: $42

• Total cost: $2,127

A Few Tips and Thoughts

What would an FMF post be without some tips and thoughts from me? :)

Anyway, here are some random takeaways:

• We went at a great time. Weather was good, there were no crowds, and costs were reasonable. We saved money because we were flexible.


• We saved because of the days we picked. Our hotel was $123 on weekend days (Friday, Saturday, and Sunday) but was $228 on weekdays. We had three days at the first price and only two at the second.


• The points I got from the stay (and by using my Hilton credit card) put me over the 80,000-point mark. I now have two free nights set for the pre-cruise trip we're planning in early 2013.


• The SmarTrip cards saved each of us $1 per trip ($4 per trip for the group.) So at 3 or so trips a day, it was a no brainer to get them. Our cost was $10 each for the cards at CVS. This came with $5 of ride credit as well as $3 each that got rebated back, so the true cost was only $2 each.


• CVS was a lifesaver. We used our frequent buyer card there to save on a case of water (something like $3), ice cream (on sale, a treat), and a few supplies. If we hadn't had our card, prices would have been much higher (and actually we didn't need the card at all -- just our phone number that's tied to the card).


• Our meals went as follows: LARGE breakfast in the morning (which was free at the hotel -- the value of this perk alone was $30 or so a day), took a few snacks with us to munch on (we did stop a couple times at McDonald's or Subway when we were really hungry, but just for a snack), then ate an early (and usually very good) dinner around 3-4 pm. This eliminated the costs of lunches. We also had snacks in the room as needed.


• Admission was free everywhere we went. Absolutely no admission costs.


• We got "free" luggage as follows: the airline wanted to charge us $20 per bag each way to check luggage. Carry-ons were free. But we only had two carry-on bags that were the right size. So we bought two more at $40 each and carried them on for free. We avoided the $40 round-trip costs per bag and still have the bags to use as we want!


• Food was a bit higher because we usually ate at a nice place for dinner. After all, we were on vacation! Oh, and we had several treats as well. :)

Overall, it was a very good trip. The kids would have rather gone on a cruise or to Disney, but even they found things to enjoy about seeing history and the government.

Pictures

As you might imagine, I'm leaving out a lot of details. If I didn't, this post would be 25 pages long. So since a picture is worth a thousand words, here are a few pics that fill in some of the holes. Click any of them if you want to see a larger version.

Various bills at the Bureau of Engraving and Printing.

Turtle "biting" my son's finger at the National Zoo.

Taken from the gardens at the White House.

Beautiful day at the Washington Monument.

Part of the Berlin Wall (can't remember the museum where we saw this).

Picture from top of the Old Post Office (great views up here.)

6 Things You Don't Need to Spend Money On

This is a guest post by David Bakke, a frequent contributor for where he writes about topics including managing money, saving on everyday items, setting up a small business, and preparing for retirement.

When it comes to ways to save money, ideas abound. You can try old standbys like limiting your cable TV and cell phone plans, or clipping grocery coupons. But for an even greater dent, look for items you can get for free - that's right, no cost. There are actually many valuable, necessary goods and services available gratis, but you have to know where and when to pounce. Here are several you might not have been aware of:

1. Batteries. Batteries can take a significant bite out of your checking account year-round, but especially during the holiday gift-giving season. However, just by signing up for email updates from your preferred office supply company, you'll often get notifications as to when these are available for free. Generally, you pay the upfront cost, then get 100% of it back in rewards certificates good for future purchases. Considering the high cost of most batteries, it's well worth it to stock up when you see these deals. Using this strategy, you'll never run out of them and you'll never have to pay.

2. Antivirus Software. There are two no-cost ways to protect your computer from online threats. First, you can often get all the protection you need by choosing one of the free antivirus software programs, such as AVG. I've used this free software for years and never had a problem - and I do a lot of online shopping for a reselling business that I run. If you feel better with the protection of a "paid" program, sign up for email alerts from a deal-of-the-day website like FatWallet.com. You're sure to find plenty of antivirus programs available for free after a mail-in rebate.

3. Tax Preparation. Click over to the IRS website for an extended list of tax preparation companies that will calculate your return for free. Some have limits on adjusted gross income eligibility, but others do not. Online, there are also several and professional services, such as H&R Block. In short, if you look into it, you can often satisfy Uncle Sam at no cost to you - whatever you owe notwithstanding, of course.

4. Credit Report. In this day of identity theft and financial misappropriation, it's critical to know exactly where your credit stands. And the Internet is rife with paid services offering to pull your report for you. But did you know that you are entitled to see your report once per year from each of the three major credit reporting agencies free of charge? Just visit . If you plan it out, you can pull an up-to-date report every four months from either Experian, TransUnion, or Equifax. With this in hand, read carefully for errors or red flags, and report them promptly. You can also find free ways to improve your credit score. Along with safeguarding your personal information, this is about all the protection you need against identity theft. And it's 100% free.

5. Extended Warranties. This caveat isn't exactly about getting them for free - it's more akin to "don't buy them at all." Many extended warranties are a complete waste of money. First, they overlap with the manufacturer's warranty, which means you pay for a term of coverage that you would've had at no cost without the extended warranty. Plus, studies have shown that the probability of a product breaking down during the insured time frame is minimal at best. And this is why the profit margin on the warranty itself is actually greater than on the product.

6. Activation Fees. In this day and age, companies will attempt to get money from you in any way they can - hence, activation fees. These are trumped-up charges put forth by the company in an attempt to get more for their services. If you play your cards right, however, they can be eliminated. Be it Internet, cable TV, or cell phone, if you tell the provider that paying an activation fee is a dealbreaker and you're ready to walk, you can get this fee waived 9 times out of 10.

Final Thoughts

While some of these perks involve a little research and effort, others involve simply knowing where to go and what to look for. In the end, it really just comes down to how much you care where you're spending your hard-earned dollar. But I can tell you this: Those who take a more active role in the managing of their money are the ones who'll have much more of it left over. What else can get for free - and what are the best techniques?

How to Save Money by Keeping Good Records

Almost two years ago I purchased a new Toyota Highlander. Since that time I have put a ton of miles on it (we just passed 40k miles). Why so many miles in such a short period? because it's the main car we use on family trips due to the fact that it has so much room. Even my tall son has plenty of room to sit in the back. :)

About a year ago (around 20k miles) I started hearing a humming from the back of the car. When we had the car in for service we asked the dealership mechanic (I took it to the dealership because I had free service for two years) what the issue might be. He said it was probably the tires and once those were changed, the humming would leave.

So we endured the humming for another 20k miles until I recently got new tires. Of course I expected the humming to be gone once they were changed but it was not to be. The humming was still there.

We had the car scheduled for another service anyway, so while there I had my wife (she took the car in while I was at work) ask them about the humming. I told her to be sure and mention that we had asked about this problem previously because I thought it was an issue that should have been covered under the warranty (my web research said it was a wheel bearing problem). The potential hiccup was that while this repair may have been covered when we initially took it in, it might not be at this point. I wanted the dealership to understand that they should have caught this issue and that if it was something that would have been covered at that point then it should be covered now.

My wife talked to the service manager and apparently he wasn't buying her explanation. So she called me and put him on the phone.

He said that my wife told him that we had asked about this issue previously and they had said it was the tires. He said he could find no record of that. It was clear that he wasn't keen on my thought of the problem potentially being under warranty.

Now when we buy cars, I keep track of every bit of maintenance. I do this both for my own records (to make sure I am servicing the cars as they need to be serviced) as well as for potential re-sale (buyers like to know that a vehicle has been taken care of.) I record dates, miles, and what work was or wasn't done. I keep this information as a in Outlook so it's always on my computer and phone.

So while on the phone with the service manager I was able to locate the data with a few clicks. I gave him the date and the miles that were on the car at that time. I could hear him typing on his computer and a few seconds later he said, "Ok, I've got that record." He read the report out-loud (mostly to himself) and quickly got to the part where we asked about the humming and they said it was the tires. He then said, "Alright, I see it right here. We have what we need."

We got off the phone and a few minutes later I got a call from one of the service technicians. He said they needed some "diagnostic money" to see what was wrong with the car. He also said that if it was a problem that was covered by the warranty (either now or back when it was initially diagnosed), the dealership would cover everything (including the diagnostic money.) Because I was fairly confident that 1) it was a wheel bearing issue and 2) it would have been covered at 20k miles, I approved him to spend $50 to find out what was wrong.

Turns out the issue was a wheel bearing. The dealership did the work, didn't charge me for a penny for it (including the diagnostic work), and when I received the bill it noted that the "rear wheel assembly" would have cost me $554 if I had to pay for it. I don't know what a wheel bearing assembly costs, but I probably could have gotten it cheaper elsewhere. But still, I had saved a ton of money simply because I had kept good records and knew where to find the information when it was needed.

Would the dealership have found the record anyway on their own? Maybe, maybe not. The service manager sure didn't sound like he was willing to try when I first talked to him on the phone. But once he heard that I had a record of the issue and knew what I was talking about, he found what he needed quickly.

Again, maybe this would have happened eventually without my assistance. But I think keeping maintenance records on big ticket items should be standard practice anyway. And in this case doing so contributed at least in part in helping me save hundreds of dollars. Not bad for very little work.

How Much the Average Couple Spends on a Wedding

from my local paper contains a chart listing what an average couple spends on a wedding. I've seen the total numbers previously, but don't recall ever seeing how it breaks down by category. Here is the breakdown for the entire country:

• Overall wedding (excluding honeymoon): $27,021
• Wedding venue (reception hall): $12,116
• Engagement ring: $5,130
• Reception band: $3,122
• Wedding photographer: $2,229
• Florist/decor: $1,894
• Wedding/event planner: $1,753
• Ceremony site: $1,599
• Videographer: $1,486
• Wedding dress: $1,121
• Rehearsal dinner: $1,078
• Reception DJ: $929
• Limousine: $669
• Ceremony musicians: $536
• Wedding cake: $535

As you might imagine, I'm licking my chops at cutting this budget. :)

Anyway, some thoughts from me:

• The main cost of the venue has to be the food associated with it. At $30 per person, the budget above implies 400 people at the reception. I guess if there's alcohol costs and other expenses, then the number of people would be lower. Ways to lower this number: 1) invite fewer people, 2) have the reception at a lower cost place, 3) have the reception on an "off" day (not a Saturday), and 4) have the reception meal be something besides dinner (we had a mid-morning wedding and lunch at our reception.)


• $5k for an engagement ring seems "normal" (compared to what society expects) and "expensive" (based on the fact that it's "just" a ring (please don't scream at me engaged couples). That said, I spent about this amount 20 years ago, but I got a "deal." I knew a jeweler who got me a diamond at wholesale cost. The ring cost me about $5k (from what I remember) and was appraised at $20k (by a different jeweler) a month later. Oh, and $5k was roughly a month's salary for me at that time.


• Ok, so why do you need to have a reception band and a DJ? Isn't one enough? My cousin has his own side business where he shows up with a computer and speakers and can play almost any song anyone requests. I think he charges a few hundred dollars for a night. Hiring someone like him would save a few thousand dollars off the budget above.


• I'm wondering if the photographer and videographer could be combined for savings as well. There's almost $4k tied up in the two of them. You don't want to risk having bad pictures, but it seems like there's money to be saved here even if two people are required.


• $2k for flowers and decor seems a bit high as well. I remember us getting bids from several florists and the costs varied widely. So I would suggest shopping around. I've also heard it said that the minute you mention the flowers are for a "wedding" the price doubles or triples. So call and see what the estimates are if you would simply like to decorate your home. Another idea: look for a grocer who uses flowers as a loss leader. We have a local one that sells long-stem roses at a fraction of the cost the nearest florist does.


• Really? Are we at the point where we need to pay someone almost $2k to plan our weddings? Ugh.


• Spending $1,600 for a wedding site seems crazy to me. We got married in a church and I believe the donation to them was $50. Of course this was back in the day, but still. At worst, lump the site in with the reception place and get a "deal". At best, pick a quaint church where it costs a fraction of the average.


• I've heard that you can rent wedding dresses. I think Costco might also sell them. I'm betting you can get something nice for well below $1,000.


• The rehearsal dinner actually seems like it's a decent price to me.


• The rest is just rounding at this point. We've covered the big money above.

If you want a few more ideas on how to save on a wedding, see these posts:

• How to Have Half a Million Dollars at Retirement by Controlling Wedding Costs


• Save on a Wedding by Having It in the Winter


• Save Money on Wedding Expenses by NOT Telling Suppliers that Your Purchase is for a Wedding


• Save Money on a Wedding by Renting a Wedding Cake

Personally, we're planning on giving our kids a set amount of money and letting them decide whether they would prefer having a wedding or whether they'd like to make a down payment on a house (or spend the money on something else.) Then it's up to them to decide.

By the way, a close friend of mine says that this plan is unfair to my daughter (or overly benefits my son -- however you want to look at it.) He says that since the bride's family is expected to pay for the wedding, any amount we give our daughter would likely go for that. But my son could keep his money from us and allow his future in-laws to pick up the wedding tab, giving him an unfair gift when compared to my daughter. What's your take on this line of reasoning?

How to Save 6% (or More!) at Panera

I recently wrote about how much my wife and I like Panera Bread. Not only do we get great food and service there (and even a free cookie recently!), but we also save a decent amount on each trip. PLUS we recently saved even more money thanks to a recent grocery store promotion.

Here are the details:

• We buy Panera gift cards at our local grocery store using our Amex Blue Cash Preferred card. Then we use the cards to pay at Panera, saving us 6% off each and every purchase. (FYI, we use gift cards this way to save on a whole host of services, restaurant trips, shopping purchases, and the like.)


• Recently Meijer (the grocery store where we get our gift cards) offered us a $5 grocery certificate if we bought $100 in gift cards from them. So we purchased $100 in Panera gift cards (we gave one away as a birthday present and kept the rest for us), saving 6% off the purchase of them (so we got them for $94). Then we got a $5 coupon on groceries which we used (FYI, we also got 6% off the groceries we purchased). It was a win-win all the way around.

FYI, we don't get coupons like that often, but they happen more than you might expect. They come from the Catalina systems that print out coupons after you make grocery purchases. So they have figured out that we are gift card buyers and that we respond to general savings offers. Good! I hope we get many more offers like this!

Saving Money by Being Friendly (Again)

Several years ago I suggested that we all could save money by being friendly -- by making friends with store clerks who could then open the doors to savings for us. Well, I recently applied this tip again and it saved me a decent amount.

A couple weeks ago I was in the process of looking for new car tires. I started by considering two main options:

• Costco -- I have purchased tires at Costco several times because 1) they have usually been the best price (both the base price as well as they offer regular tire promotions) and 2) they offer Michelin tires, which I like. This said, there are also reasons not to choose Costco, mainly: 1) they don't allow you to make appointments to get your tires put on or rotated (which can be a huge time suck if you don't get there at the right time) and 2) they are not located anywhere close to my house/work (which makes #1 all the worse -- I drive 15 miles to wait two hours!)


• -- They just opened a brand new store (garage?) a few blocks from my house. It's between my house and work and near where I swim (so I drive by it four times almost every day). In other words, it's very convenient. I wasn't sure how they were on price but thought they might match competitors.

BTW, I did consider Discount Tire for a bit since they had been so great fixing my tire for free. But I was sure the best they would do was match Costco and they were not as convenient as Belle Tire (though more convenient than Costco). So my strategy was to compare Costco's price with Belle's and if Costco was way cheaper, then see if Discount Tire could get at least close to Costco's price. But it didn't get that far.

My first stop was Belle Tire. I chatted with the assistant manager and we hit it off. While he looked at tires for me on the computer we talked sports, their new store, and, of course, the weather. He then quoted me a 65k Michelin tire for $949 for my Highlander. I thanked him and told him I'd be back in touch. I then went to Costco a few days later (while on a shopping trip) and got their quote for the same tire: $937. I asked the attendant if they had a planned rebate because they regularly do with Michelin tires, and he said they did -- a $70 rebate that would be offered in a few weeks.

I emailed the Belle Tire guy and asked if he would 1) match the Costco price and 2) match the Costco rebate. He said they would match the price they had their own $70 Michelin rebate coming up as well, so I could take advantage of that. So Belle ended up the same price as Costco and was way more convenient (I am, after all, going to be getting the tires rotated there every 5k miles for the next 65k miles). Sold! I was going with Belle.

I stopped in a few days later to order the tires and set up an appointment. The assistant manager was there and greeted me and we chatted a bit more. I asked when they were able to put the tires on my car and he said something like, "I'm not supposed to be telling people this yet, but starting this Saturday we will be offering a $50 off Belle Tire coupon. It can be combined with other offers. So if you wait until Saturday, you'll get the price match, the $70 Michelin rebate, and the $50 Belle Tire coupon. Your price will go down to $817."

How cool was that? By simply being friendly and working with him I landed an extra $50. Cool!

I ordered the tires, set an appointment, dropped the car off that Saturday, and an hour later, my new tires were on the car.

So consider this yet another reminder of the fact that you can save money simply by befriending store workers and being nice to them. And not only that, being nice and friendly is a much better way to go through life IMO. :)

Inexpensive Ways to Keep Kids Entertained this Summer

US News lists as follows:

1. Afternoon Matinee
2. Local Parks
3. Public Swimming Pools
4. Backyard Game Day
5. Indoor Fun

I like this list, especially the local parks (we have one that has a splash pad, basketball courts, soccer field, tennis courts, and playground equipment about four blocks from our house) and swimming pools (we have an Olympic-sized pool at the high school near our house that costs less than $2 per person to get in to) ideas. We use those quite frequently.

I'd add these to the list:

1. Play with friends. Whatever happened to just getting together with friends to ride bikes, shoot baskets, listen to music, play video games, and the like?

2. Go to church. Our church has all sorts of fun activities for kids (slip and slide night, movie night, sleepover at the church, etc.)

3. Volunteer. Our kids helped run Vacation Bible School for a church near our neighborhood (not our church.) They had a blast helping younger kids have a blast.

4. Attend free (or inexpensive) camps. My son has been to two free three-hour basketball "mini camps" as well as basketball nights where the cost is only $3 for three hours of games.

5. Get a job. My daughter has been pet sitting as the entire neighborhood has been going on vacation. We generally take vacations when others are not, thus saving ourselves both money and hassle.

6. Take a class. Our kids are homeschooled and we keep going during the summers. It's a nice time to have a relaxed schedule but still get a credit or two in. This way we can have a lighter load during the "official" school year. (FYI, our "school" this summer has included a trip to Gettysburg and an upcoming trip to D.C., so we try and keep it both educational AND fun!)

What suggestions do you have for entertaining kids inexpensively this summer?

Which Is Better: Getting More or Paying Less?

Here's an :

When offered the possibility of 33% off a product or the same product with 33% more quantity, which would you choose?

If you answered that there's not much difference between the two options (or something similar), you would find yourself smack dab in the same boat as most Americans. That's the main finding from a recent University of Minnesota study detailed in the Economist -- that "most consumers view these options as essentially the same proposition."

But they are not equal. One of them is a better deal. Moneyland goes on:

The discount is by far the better deal. As the Economist puts it, because most shoppers are “useless at fractions,” they don’t realize that, for instance, a “50% increase in quantity is the same as a 33% discount in price.”

The piece highlights a part of the study where students were asked to evaluate two offers on coffee beans. One offer had with 33% more beans for free while the other simply took 33% off the price. The students viewed the offers as essentially equal. But Moneyland shows how they are not equal:

But let’s do the math, using some easy round numbers for the sake of simplicity. Say the initial price is $10 for 10 oz. of coffee beans. Hopefully, it’s obvious that the unit price is therefore $1 per oz. An extra 33% more “free” beans would bring the total up to 13.3 oz. for $10. That $10 divided by 13.3 oz. give us a unit price of $0.75 per oz. With a 33% discount off the initial offer, though, the proposition becomes $6.67 for 10 oz., for a unit price of $0.67 per oz.

So why do consumers make this sort of mistake? Moneyland attributes it to the following:

• Shoppers do the math incorrectly.


• They are infatuated with the idea of getting something extra for free.

For those of you who aren't aware of it, "free" is the most powerful marketing word ever invented. Shoppers will do all sorts of things they might not otherwise do (including spending more money) simply to get something "free." Take it from someone who has been in marketing for over 20 years, giving away stuff for "free" can be quite profitable. :)

But the math part is strange. It seems to be an easy calculation. But for some reason, people aren't making it. Perhaps it's just the "lazy math" that says 33% more is the same as 33% off. Or maybe it's the fact that people assume that a larger-sized item is a better value. I know they often make this assumption when shopping at club stores. But if you do the math, you'll find that the larger sizes are sometimes a good deal and sometimes not.

We almost always break things down into a per-size equivalent (ounces, for example) to compare one item to another. And since we usually have our phones with us (which have calculators) this is quite easy. Why don't others do it?

How about you? Do you do these sorts of calculations or do you think the savings are so small that they aren't worth the effort?

Use Someone Else's Frequent Buyer Card for Savings and Rewards

I have recently run into a few cases of needing/using frequent buyer cards in a creative way to save money for the users as well as earn points for the owner. Oh, do you think the user and the owner are always the same? Well in these cases, they are not. That's what made these situations so interesting to me.

Have you ever needed a frequent buyer/member card in order to save on purchases but you don't have (or want) a card? We found ourselves facing this predicament recently.

Every year we visit my brother-in-law and his family in Pennsylvania. And every year we end up at the same Giant Eagle grocery store stocking up on supplies (so he doesn't have the burden of having to feed us.) Giant Eagle is one of those grocers who has two sets of pricing -- one (lower) price for those with member cards and one (higher) for those who don't.

Now we could sign up for a member card (they're free) but we really don't want to be part of a club (and carry around a card) that we only use once a year. Besides, in the past we have asked the register clerk if she would simply swipe her card, and she's helped us out -- enabling us to get the lower price. So why do we need a card?

But this year as we approached the register, my wife tried a different strategy. She called her sister (who shops at Giant Eagle and has a card), got her number, and we used it. So we got the savings (almost $20) and my sister-in-law got the points -- it was a win-win proposition!

A similar situation happened to my boss while his family was on vacation in New Orleans. They were at a restaurant and his daughter was texting with a friend. The friend happened to have a coupon for free desserts from the restaurant because she was a frequent customer there. She emailed the coupon to my boss's daughter and they family enjoyed free desserts from the restaurant.

Finally, I ALWAYS use my wife's frequent buyer card when I go into Panera Bread (I occasionally meet a business there for breakfast.) I don't get any savings out of the effort, but she gets points, and has so far received a free smoothie, a free danish, and a coupon off a salad (which is what she usually gets there.)

So, I've seen lots of creative ways to use frequent buyer cards recently. I'm sure you all have additional suggestions or stories of your own. Please add them in the comments below.

Shopping for Insurance

Since "regularly shopping for insurance" was #31 on my list of the 52 best money saving tips, I thought I'd follow my own advice and compare our current insurance costs to those offered by other companies. Given the savings some people have seen ($1,400 here and $1,300 there), it seemed like the effort could well be worth it.

It's been a while since we quoted out our insurance. Too long in fact. We haven't shopped for insurance for years. We love the service at AAA (our current provider) and over the years they haven't raised our rates -- they have LOWERED them. So I felt like we were getting a good deal. Then in a discussion at work I mentioned that I had AAA insurance. Someone said, "Really, I always thought they were so expensive." So we decided to find out. If AAA was close to the others (even if they were a bit higher), we would stick with them. But if we found big savings elsewhere, we were ready to move.

My wife did all the hard work -- getting the quotes. I provided her with our current statements from AAA for car, homeowner's, and umbrella insurance to make sure we were quoting the exact same coverage we had now. In addition to asking for a quote given our current status, we also asked for quotes assuming my son was a driver -- which he will be in less than a month.

Next we had to decide what companies we should get quotes from. I prefer to have an agent I can go see if needed. Therefore the GEICOs of the world were out. They may be fine (I'd be interested in hearing from those of you who do/have had experience with them), but if anything happens, I want to have a dedicated person on the task. I've only needed insurance a few times, but when I have, it's been very nice to have an agent to rely on (and stop by their office if need be.)

From there, we asked our neighbors and friends what insurance companies they used and liked. We eliminated the ones we had never heard of and ultimately ended up with State Farm and Allstate as contenders. In addition, we decided we'd try Costco's insurance program just to see what they had to offer.

Over the course of a couple weeks, my wife got the bids. Here are the annual premiums given our current status:

• AAA - $2,253
• Allstate - $2,447
• State Farm - $2,794
• Costco - $3,230

Then with my son as a driver:

• AAA - $2,853
• Allstate - $3,391
• State Farm - $3,284
• Costco - $4,784

A few thoughts on these results:

• Looks like we are getting a good deal with AAA!


• Though I haven't broken out the numbers above, AAA was the cheapest option on each individual type of insurance (car, homeowner's, and umbrella) as well as the total.


• Allstate wasn't out of the realm of reason, but the other two seem high.


• For some reason, State Farm gave us a quote for umbrella insurance that was lower than what we wanted. Since they were already higher, we didn't get a re-quote, but their actual numbers would probably be $50 to $100 higher than what's above.


• My son adds $600 a year to the bill with AAA. This is less than I had expected. He adds only $500 with State Farm, but almost $1,000 with Allstate and $1,500 with Costco. Yikes!


• Looks like Costco is far from the cheapest alternative. I wonder how many people go with them simply because they assume everything at Costco is cheaper.

Of course, these numbers are particular to our vehicles, house, deductibles (which we keep high), area of the country, and so on. So the answers could be different for others based on their specific criteria. To be clear, I am NOT saying that what is cheaper for me will be the best deal for anyone else. I am saying you need to quote out your insurance to find out for yourself.

So we're sticking with AAA, which I am happy to do. They have always treated us quite well and it's good to know they are giving us a good price too.

How about you? Do you shop around for insurance? If so, what have you found? If not, do you feel you're leaving money on the table?

Questions on "Showrooming"

"Showrooming" is the practice of looking at/checking out a product at a store, then leaving and buying it cheaper online. How it works and what retailers are doing about it was highlighted in if you'd like more details.

Showrooming is becoming more and more popular with the growth of smart phones and even apps designed to showroom (Amazon's app was the first I remember causing controversy in this way.) It's very easy to be in a store and at the same time check prices online on your phone.

But physical-location retailers hate it, saying it's unfair. Why? Because they provide everything for the customer -- the chance to see the product (try it out, touch it, etc.), a nice shopping environment, knowledgeable employees to answer questions, and so on. But then don't get the sale because the customer finds somewhere else to buy it at a lower price.

Of course price is not the only factor people consider when buying a product (selection, time, other charges/fees, etc. play roles as well), but it's a major one for sure.

Given these points, I have a couple questions for you about showrooming:

• Do you think showrooming is fair to physical-location retailers?


• Do you showroom yourself?

Personally, I think all is fair (within the law, of course) in the competition for sales. And in fact, showrooming can have benefits for everyone -- not only consumers, but physical-location stores.

The article linked above tells how showrooming has been impacting Best Buy's sales. As a result, Best Buy is making changes that will make it a better retailer. Becoming a better retailer will earn them more sales, more loyal customers, and so on. So the practice of showrooming (AKA "competition") has challenged them to do better. Retailers that respond positively to showrooming will be stronger and thrive. Those that sit back and complain will fall by the wayside.

I have showroomed in the past, but I do it more to make sure buying in person is not a total rip off. For instance, I was in Best Buy the other day to buy a belt clip for my phone. It was something like $25 at Best Buy. I looked at Amazon and it was $22 (or something like that.) I needed it right away and the price was close, so I bought it at Best Buy.

Now if the Amazon price had been $10, I would have felt that Best Buy was trying to rip me off. Even if I had needed it right away, I may or may not have purchased it there. Perhaps I would have dealt with the inconvenience of not having it immediately because I felt taken advantage of (and to save $15).

Furthermore, I rarely buy something after looking in just one place for it. For instance, I'm in the process of buying a computer for my son. I've looked in-store at Costco, Best Buy, and Staples so far. I've also looked online and in numerous ads. So if I ultimately buy at Staples will Costco complain that they provided the store for me to shop, the products to look at, and the employees to talk to just for me to buy it somewhere else? Of course not. Everyone considers this process fair competition for retail sales. So what's the difference if I look at a physical store and then buy it online?

I know, I know -- the physical retailer is providing some value (and thus has some costs) that the online store does not. But as I said, price is not the only factor people consider when buying -- just one of the factors. If the retailer "wins" on enough of those other factors and the price is close enough to what the online options are offering, the physical-location retailer will still get the sale. But oftentimes retailers want to offer sub-par service, selection, convenience, and then charge a big premium for their products. And they complain when they don't get the sale. They feel entitled to the sale when they simply should be earning the sale.

So yes, I do showroom, but not often and not as a standard practice. In many cases I simply forget to check online. But if I think of it, I will consult online prices before making a purchase.

So, what are your answers to the questions above? I'm interested in hearing what I assume will be a variety of comments.

Your Money or Your Life, Track Income and Expenses Monthly, Then Work on Lowering Expenses and Increasing Income

Today we're going to cover steps #5 through #7 from .

In the past we've covered one step at a time, but to be honest I don't see enough "meat" in the next three steps to warrant a post on any one of them alone.

Last time in this series we evaluated our spending, looking at each spending category and determining whether or not the amount spent on that item was worth it for us or not. Today's steps follow along this line of thinking and evaluation as well.

Here's step #5:

Make and keep up-to-date a chart of your total monthly income and your total monthly expenses.

The book has you create a hand-written chart with dollars on the vertical axis and time (broken into months) on the horizontal axis. Then for each month you make a mark for your actual income and your actual expenses. You then draw lines between the marks for each so they form a line -- and you can see your gap (the difference between your income and expenses) each month.

I used to keep my finances by hand (in a ledger book) back in the "olden days." Then I got Quicken and have never looked back. I could create the chart they are talking about above in roughly 15 seconds (and include the past 15 years or so) using my computer and that software. Very easy.

From this information, they want you to then start concentrating on expenses -- and how you can cut them. There isn't anything about increasing income at this point (that's coming), it's all about eliminating costly things that you get no pleasure from. This spirit is evident in step #6 which is as follows:

Lower your total monthly expenses by valuing your life energy and increasing your consciousness in spending. Learn to choose quality of life over standard of living.

I'm all for cutting needless expenses (as regular readers are aware) and for spending on quality of life rather than standard of living. But was there really a need to go through all of this "life energy" stuff and 195 pages to get us to the point where we simply are concentrating on "cutting expenses"? Seems like a bit of overkill to me.

Anyway, the book continues with step #7 as follows:

Increase your income by valuing the life energy you invest in your job, exchanging it for the highest pay consistent with your health and integrity.

I'm going to say it now: I hate all this "life energy" mumbo jumbo. It's too touchy-feely for me. Why can't they simply say something like "time is money, so work to make more money in less time." I know, those aren't the right words, but you get the idea. All this "life energy" stuff makes me think this is a long lost book from the Starship Enterprise.

And at the end of step #7, we're now at page 233. Yes, 233 pages to say:

• Create a budget


• Evaluate what you can cut based on what you don't like/need


• Work to grow your income

Didn't I just recently say all of this in one post? I think I did.

And if you're looking for a short-list of ideas you can use to grow your income, check out 80-20 Your Career. These are the career-related tips that will give you the most results for your time and effort.

It's not going to be a surprise to those of you who are reading along, but I don't really care for this book. I Know that so many people have LOVED it, but it's too "out there" for me. Perhaps if I had read it when I knew less about managing money, then I would have liked it. Perhaps. But I don't think so.

So far, I haven't learned much from this book and it's been (almost) a waste of my time reading it. But there's a concept coming up in the next step that I do like (yes, I read ahead a bit), so stay tuned to see what that is...

Update: Click here to read the next post in this series.

'Til Death Do You Smart

The following is a guest post from Matthew Malone, a writer for , a leading retirement and Roth IRA Resource. Matthew is also a contributing writer to CBS SmartPlanet. His work has appeared in The New York Times, Cosmopolitan, Smartmoney.com, Fortune.com, Forbes.com, and other publications.

Saving enough for retirement means making smart financial decisions--and making them all the time. And the best way to maintain your financial health, and to provide for a comfortable retirement, is to know where you spend and why you spend it. Without such insight, you'll likely waste tens of thousands of dollars over a lifetime, money that could otherwise be waiting for you to enjoy when you decide to retire. Here are five easy to generate new savings, without sacrifice.

Use an online savings account for infrequent expenses

We can usually estimate and budget for monthly spending for things like food, electricity and cell phone bills without much hassle. But people often get into trouble when it comes to occasional but unavoidable expenses like a big car repair bill, year-end tax payments or annual subscriptions. That's because we fail to put away money each month to cover those inevitable charges. The best way to do so is to take the time to go through a year of spending (budget sites like mint.com can help) and get an idea of the source and size of your occasional expenses. Once you do that, sign up for an online savings account and pull money from your main back account each month to cover them. Sites like INGDirect allows you to create up to 25 individual savings account, which you can name and earmark for everything from clothing expenses to birthday and holiday gifts.

Buy used

We're often told that buying a used car is among the smartest financial moves you can make. But in the midst of life's everyday hustle, we often forget to apply the same wisdom to smaller purchases like household tools, lawnmowers, bicycles and furniture. If we give up an obsession with the shiny and new, we can save big, with little impact on our lifestyle. Sharpen the blades and buy a few new parts, and that used lawnmower will be good as new. A slipcover can do wonders for an old couch. And all that extra money can help you build up your retirement fund, something that will make you happier than any new rake ever could. Whenever you need to make such a purchase, check out yard sales, craigslist and eBay first.

Stretch to max your match

Many employers offer to match some portion of retirement savings up to a percentage of annual income. For instance, they might match your contributions dollar for dollar up to 6 percent of your salary. At a $50,000 salary, that's $3,000 simply for being a conscientious saver. It's one of the best ways to quickly grow your nest egg. So make sure you stretch to hit the match "threshold." Otherwise, you're leaving free money (and a more comfortable retirement) on the table.

Subscription music

If you buy, on average, one or more CDs or downloaded albums a month, you're a great candidate for a digital music subscription. Services like Rhapsody and Spotify give you unlimited streaming (and in some cases, offline and mobile access) to huge libraries of music. The services cost about $10 a month. While there are some notable omissions from the catalogs (the Beatles, for instance), you probably already own music from your top bands anyhow. And the services allow you to check out new bands and genres of music without paying for a something you might never listen to again. You must, of course, have decent Internet access to make it worthwhile.

Keep texting--the right way

For many, texting has replaced e-mail and even phone calls as the preferred method of mobile communications. The trouble is, most cell carriers charge you $5 or more for a set number of texts (or 25 cents per text without a plan). But several services, most notably Google Voice, give you free unlimited texting to and from a smartphone, and even a home computer. While the services may require you to use a new number for texts, the number can be easily shared with a single e-mail and programmed into your friend's s list. At savings ranging from $60 to $240+ a year, it's a no brainer. One word of warning -- some services offer limited support for texts with media attached (photos, audio files or video attached), but those features are likely on the way in the near future.

Is Joining a Warehouse Club Worth It?

MSNBC asks . They start with reasons why it may not be a good deal. This includes the fact that people may need to feel they have to spend more at club stores to justify the membership fee:

Customers may believe they’re paying for a chance to save money, but some experts think membership fees actually cause consumers to spend more.

“Right after you join a warehouse club, the first thing you think is, ‘How am I going to earn back that entry fee I just paid?’” said Brian Wansink, a professor of consumer behavior at Cornell University. “It creates a spending, but also a justification mentality.”

As a result, Wansink says, you’re going to spend more so that you feel like you’re saving more.

They also note that many consumers assume that prices are cheaper because they are buying in bulk. As we've discussed here, that's not always the case. You need to calculate the per unit cost of a club store item versus that of an alternative store to see which really is the better deal. For more on this subject, see these posts:

• Health and Beauty Aids: Walmart versus Costco, Kirkland Brand versus Equate Brand -- Which is the Best Deal?


• Costco versus Walmart, Round 2


• 10 Things You Should Always Buy in Bulk


• 10 Things to Buy in Bulk


• 15 Things Not to Buy in Bulk

They also note that club stores have less selection which means you'll probably have to supplement shopping there with shopping at another store -- which further adds costs.

But in the end, MSNBC seems to say that club stores offer a good savings:

Warehouse customers who believe that bulk shopping is smart shopping may have a point. According to a Consumers' Checkbook survey published by the not-for-profit Center for the Study of Services, BJ’s prices were on average 29 percent lower, Costco’s 30 percent lower, and Sam’s 33 percent lower than the largest supermarket chains.

The survey found that a family that spends $150 a week at a conventional supermarket could save $2,270 a year when shopping at BJ’s, $2,344 a year when shopping at Costco, and $2,571 when shopping at Sam’s Club.

In addition to shopping for groceries and general merchandise at club stores, there are several other ways you can save including gas, vacations (we saved $50 on our cruise versus the best price we could find elsewhere), and free food (don't laugh, one lady claims she saves $2k per year eating samples.)

I have been a warehouse club shopper for many years (my company provides a Costco annual membership for employees) and it comes down to this: you have to know your prices. If you do, you can spot what's a good deal at a club store and what's not. It's that simple.