Family and Life

Learning and Saving

by Jeff on October 8, 2009

There are a lot of things in the world I know nothing about. Not knowing about something can be very expensive. Allow me to illustrate…

The brake light came on in our car a couple of weeks ago, and we started looking around at different places we could have them checked. We were a bit confused, because just a month earlier, when the car had been in for a yearly inspection, the tech told us that the brakes “passed with flying colors”. The funny thing is, two months earlier a different tech at the same shop had told us to change them soon, since we only had about 10% left on the pad.

Needless to say, I was perplexed. It just so happens that the brakes on our car are one of the things I knew nothing about.

After calling around and comparing prices, we found out that we were looking at about $150 more than we were expecting. I was hesitantly thinking about taking it to one shop when I decided to call my father-in-law. He’s very handy and knows quite a bit about cars. He offered to take a look at the car when we were up at his house over the weekend.

He pulled off the tires, and was able not only to teach me how to tell if the brakes were wearing out, but how to change and care for them. I also learned about rotating tires and how to tell if the shop really rotated them like they told us they did (and they didn’t!)

This simple trip saved us about $200 this weekend, and will save us much more in the future. I feel comfortable changing the brakes on the car, and I also know quite a bit more about how it works and how to maintain it.

There are some of you who are reading this right now who could probably change the brakes on your car in your sleep. But what happens when your computer needs to be repaired, or your daughter needs braces, or you need to find a yoga class on Monday nights?

Far too often we trust what we’re told by companies and what we see in advertisements and think it’s our only option. Just like I learned to be proactive about my finances, I learned that I can do more than just blindly take the car to the shop down the road and get ripped off. It’s a simple and obvious lesson, but one that I think more people could learn from.

We each have a built-in network of advisors – family, friends, co-workers – who are experts in areas we are not. Their insights and advice can not only help us learn, but save money as well. Learning to turn to these people is something that isn’t always natural, but can be very beneficial. These people are often more than willing to share their advice and knowledge, and will do so because they want to help you.

What are some of the ways you use the people around you to learn and save money?

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Wedding Donations, Smart or Tacky?

by Jeff on September 10, 2009

Source: PayPal Wedding Invite Irks Some Guests

The recession has forced almost everyone to make a change in one way or another. For one Atlanta couple, their wedding has turned into more than they had anticipated.

Vanessa Caldwell and Cole Parker are getting married on Nov. 11, and needed a way to cover their expenses. They decided to turn to their friends and family for help.

Caldwell started a website, www.dollarforawedding.com, soliciting donations to help pay for the event. The couple’s wedding announcement even has a Paypal link to allow guests to donate directly. So far, the couple has received enough donations to cover $750 of their $2,000 budget.

The couple also has deals with the florist and the photographer, allowing them to advertise at the wedding, in exchange for no charge for the pictures and flowers.

The idea was born out of necessity. As business owners, the couple puts every spare penny they have into growing their small business, leaving them without much in the way of spending money. The recession forced them to cut back, and they needed help paying for everything.

Some who visit the couple’s website or are aware of their plan aren’t sure how to react. Some view the request for donations as an ‘admission’ price charged to guests, or as just plain tacky. Others see no problem with lending a helping hand.

Part of me sees this as an interesting idea, but I would feel obligated to pay if I was planning on attending. I wouldn’t want to show up and eat the food and listen to the music if they’d asked for help and I hadn’t paid. I understand wanting to give some ‘direction’ to those who might give you a gift, but isn’t that what a wedding registry is for?

Is asking guests for financial help a one-time thing, or will we see more of this in the future? How would you feel if a friend or family asked for a donation instead of a gift?

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Preserving the Harvest

by Jeff on July 23, 2009

If you planted your garden in mid-to late April like we did, you’ve already started to see the beginnings of your harvest. Our green onions have been out of control for a little while now, and our radishes are starting to get nice and big as well. We’re just now getting great peas and beans, and out tomatoes are right around the corner. It looks like it’s going to be a good year for the garden (if we can keep the birds away).

One of the best things about having your own garden is that you can walk right out into your backyard and pick some fresh produce and eat it right there, on the spot. No running to the grocery store or the farmer’s market to stand in line, no $4 for a pound of strawberries, and no pesticides or other “unknowns” to wash off.

It’s never too early to start thinking about how you’re going to handle the extra harvest from your garden. Taking a little time to prepare can help ensure that your hard work and tasty vegetables don’t go to waste. We’re going to have way more food than we can handle all at once, and so we’ve been looking into different ways to preserve our ‘leftover’ vegetables.

Getting a basic idea of what you are going to need equipment-wise can help you prepare. Based on materials you might already have the cost will be unique for each individual situation, but I’ve estimated the following costs out on the assumption that you’re starting from scratch (like we are).

Freezing

We are definitely going to try this method. It’s one of the easiest ways to store vegetables, and if you blanch (’flash boil’) the vegetables before you freeze them they will retain their nutrients much better and keep much longer. We’ll be able to freeze some of just about everything, expect our spinach.

Cost: Super Cheap
Needs: A box of Freezer Ziplock Bags (wish we had some extra freezer space, but the freezer above our fridge will have to do.)

Pickling

I’d like to try this one out, but I don’t know if our cucumber plants are going to survive the constant attacks from the birds. We don’t have any beets, and I’m not sure if you can pickle tomatoes or peppers. Pickling looks to be a bit more difficult to master than other methods – the process itself is easy but apparently takes ‘just the right touch’ to be successful.

Cost: Moderate
Needs: Canning salt, pressure/water bath canner, vinegar, jars, lids, rings, spices, brine

Jams/Jellies

Most people think of fruits when you mention preserves, but vegetables are catching on as well. I recently had a great jalapeno jelly that greatly complimented my bagel with cheese. We didn’t end up growing strawberries, so we’ll probably skip the ‘preserving’ this year

You can do freezer jam as well, which is very common. It’s quicker, cheaper, yummier, and doesn’t have as many preservatives.

Cost: Moderate (cheap after you have a canner)
Needs: Water Bath canner or pressure canner, pectin, jars, lids, rings, freezer containers (if you decide to do freezer jam)

Canning

There are two canning methods: pressure canning and water bath canning. I still have memories of our entire kitchen table being covered with jars full of tomatoes and peaches that we enjoyed all winter long. We’ve got seven tomato plants and a lot of carrots, peas and beans that will be canned if they aren’t frozen.

If you are persistent you can pick up canning jars at Salvation Army, Savers or Goodwill-type places.

Cost: Moderate (need lots of cans, lids and rings and a canner)
Needs: cans, lids, rings, pressure or water bath canner

Drying

A food dehydrator is a necessity here, and since we don’t have one we will not be drying this year.

Cost: High
Needs: Food Dehydrator, storage bags or containers

Juices

If you’re a fan of V8 you can use a juicer or a blender to create your own tasty beverages. Tomatoes, peppers, carrots and radishes would all add up to be a tasty treat. Adding a bit of lemon juice can help equalize the tastes. SD Gal is a big fan of tomatoes and I’m sure some of this juice will find its way into our fridge. This could be frozen as well.

You can also do fruit juices. My mother used to make an excellent grape juice by putting the grapes straight into the jar. I don’t remember exactly what else she did, but boy was it good!

Cost: Moderate
Needs: cans, lids, rings, pressure or water bath canner

Storing

Some foods (like potatoes and radishes) can be easily stored in a cool, dry area.

Cost: Free (unless you buy boxes or bags)
Needs: Boxes or bags

You don’t have to have a green thumb to cash in on the benefits of canning, preserving and storing food. If you are unable to have your own garden, another option is to build a stockpile of produce from local growers. Stop by local orchards and farms, farmer’s markets, and roadside fruit /vegetable stands and inquire about special deals at each. Take your spoils home, preserve the in whichever method you prefer, and enjoy nutritious produce all winter long!

For a very full rundown on the exact specifics of each of these preservation methods, check out PickYourOwn.org.

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Seven Great Gifts for College Graduates

by Flexo on May 22, 2009

in Education, Family and Life

If there is a college graduate in your life, he or she is about to receive a number of gifts. The first gift will be the realization that it can be difficult to find a job in this economy right now if the goal is to get a job in the same field of study as the degree. Without a job, our graduate might have little choice but to move back in with mom and/or dad and weather through the recession with curfews as if life were to replay high school.

The next gift will be the shock of the real world in the form of a job. Suddenly the graduate will have to report to work, perhaps at 8:00 am. It might have been easy to blow off early morning classes, but consequences in college were limited compared to the thread of being fired in the first month on the job.

Soon after that, perhaps six months after graduation, the first student loan payment will be due, shackling the graduate into earning enough money to pay off college debt in ten or more years.

If there is a college graduate in your life this year, consider these graduation gift suggestions.

1. Free room and board. There is a time and place for the “sink or swim” mentality, which comes from the idea that throwing a baby into a pool will force it to instantly learn to swim in order to survive. I’ve never known anyone to take this literal approach, but in the current state of the economy you could do your graduate a favor by allowing her to start her career without having to worry about the first several rent checks.

Rent-free living should not last forever.

2. Clothing. Every job has expected attire, even if the environment is very casual. Professionals need professional clothing, whether for interviews or in the office. The graduate is going to need to project an image in the workplace, and clothing is important to making that happen. A gift certificate would work well for clothing, allowing the graduate to choose her attire, but some guidance may be necessary because not every graduate has experience in dressing appropriately for professional situations.

3. A computer. Powerful and reliable notebook computers are relatively inexpensive now. Remember to pre-load important software for someone who will be starting their first post-college job: financial management software. I use Quicken 2009, which is available on sale here, and I still prefer the robustness and flexibility of desktop software like Quicken over web-based financial management like Mint and Quicken Online

4. A gas gift card or monthly commuter pass. Transportation is one of the many expenses new workers have to pay up front before receiving their first pay check. If your graduate has a job lined up and a place to live, she should have determined her transportation needs.

5. A car. If you have the means, a used car would make a good gift for the graduate as well. It doesn’t have to be the latest model, but employers expect employees to have reliable transportation; a clunker that breaks down once a week and causes the new employee to be late arriving to the office will not make a good impression and will not do any favors for career advancement.

6. Cash. Money is helpful when wielded for the forces of good. If you trust the graduate to use the money responsibly, to pay down debt for example, cash can be a good way to go. But don’t give cash if you will be offended if the recipient chooses to use the money for vacation or entertainment. If you cannot give cash with no strings attached, don’t give cash — try a gift card.

7. The gift of mistakes. The last thing a graduate wants is to be told what choices to make. Some guidance is helpful, particularly in choosing the first job out of college, as many graduates do not know the effect this choice can have on earning potential for the rest of the graduate’s life. But let them make mistakes, and when they do, help them interpret them as learning opportunities.

If you are a parent of a graduate this year, what gifts, if any, will you be bestowing upon your graduates?

Students and former students, what gifts have you received or would you have liked to receive?

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Smithee’s New Long-Term Goals

by Smithee on April 7, 2009

My goal was never to have all the money I could get my hands on.

On the other hand, I’ve never solidified my financial goals. Up to now, it’s mostly been about what I don’t want, rather than what I do:

I don’t want more rooms in my house than I can use
I don’t want to have to hire a security firm
I don’t want to go to fundraising dinners for politicians
I don’t want people around me who only like me for the luxury I share with them
I never want to do any “shmoozing”

It’s things like that which I’ve long associated with wealthy people. Maybe these are stereotypes that only happen in fiction, I couldn’t say. More realistically, I’ve only had one (not)goal for many years: I don’t want to be in danger of being homeless. That’s not a productive goal. I think it’s time I change my thinking.

Flexo has written about different types of goal-setting in the past, which helped me start germinating ideas subconsciously over the past few months. Here’s what I’ve got so far for my long-term goals:

I want moderate luxury: a perfect example of this is our living room TV. I bought a used HD projector ($900) and a cheap 92” screen for $75. I hung the screen myself for less than $10, and we’ve had an enormous gorgeous high-def TV for years. I don’t need a separate media room or surround sound. What we’ve got is great.
I want to eat breakfast outside: I want enough time in the morning to be able to make myself some eggs and bacon, coffee or tea, and take it to the backyard to enjoy. Usually this is only possible on vacation. I think in order to do this every day, I’d need to work from home.
I want my evenings and weekends to myself: I know too many people who think about, and perform, work during non-work hours. I’ve always felt this is indicative of a management flaw. The people at my current business tell me I work faster than anybody else, so that may also have something to do with it.
I want lots of open space: I’ve always lived in metropolitan areas, so I probably don’t have it in me to switch instantly to farming, but I like to think that by the time work slows down for us, we’ll at least have a kind of subsistence farm situation.

For many months, excluding one huge setback last fall, my only goal has been “get rid of the credit card debt”. I’m still going to do this, but a recent salary cut decided for me that my plan of paying off $1,000 a month won’t work anymore. After adjusting our budget, instead of $532 leftover per pay period, I have about $228. So, new plan: save the leftover salary money. It’ll either grow in a bank account, or go toward home improvements (including my wife’s increasingly impressive garden), or upcoming vacations. You know, things that improve the quality of life. Things that I’ve been ignoring for far too long.

And I’ll take half of whatever I earn from my freelance work to gradually pay down the pesky credit card. It’ll go a lot more slowly, but hopefully that will encourage me to do more, better work in my spare time. That will hopefully lead to a situation where I can work from home, in a place with lots of open space, and a backyard I can eat breakfast in.

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My Pets’ Worth

by Smithee on March 30, 2009

The author of Free Money Finance pointed out a story highlighting how the recession is affecting the health of pets. He or she also linked to a helpful chart of estimated costs for owning various kinds of pets.

Personally, my wife and I don’t even include pet care in our budget, because our affection for them goes beyond monetary concerns. I understand and sympathize with people who feel like they have to cut back their spending in multiple areas, and their pets’ overall health might have to be one of them. And I don’t imagine that this is an easy decision for anyone, but I would beg them to reconsider.

I should point out that the following doesn’t constitute what’s normally considered “financial advice.” These are just the thoughts I had when considering what to do in a worst-case scenario when my pet has a serious illness, and I don’t have the funds for it.

These are living beings, worthy of your care. And because you decided to take them in, they are dependent on you. If a pet gets ill, chances are it won’t get better by itself. Instead of “wait and see”, there are other options. In no particular order:

1). Use a Credit Card

My primary financial goal is to get rid of the credit card debt that I started in 1997 (this should drop to about $3,000 by the end of the week), but if it came down to a) sick pets or b) increased credit card debt, I would always pick B without hesitation. Your financial situation, though currently ebbing, will likely begin to flow again in the future. It’s not a fun choice, but some things are more important than interest payments.

2). Borrow Money from Friends or Family

You may be just barely getting by, assuming you’ve decided to let your pets’ health take care of itself, and you may want to avoid asking for help. But there’s a good chance that a friend or family member may be a real softie when it comes to pets, and will help you pay those bills, even if helping you pay other bills might’ve been something they’d avoid.

3). Plan Ahead with Pet Insurance

Lots of companies offer health insurance for your pets, and while I can’t currently recommend one in particular, it’s worth checking out.

4). Payday Loans

Payday loans are evil, period. But I think they’re slightly less evil than allowing your pet’s health to decline. If your pet is having an emergency health issue, I think this option is still on the table.

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8 Tips for Talking About Money With Your Significant Other

by Flexo on November 25, 2008

About the author: Margaret is a recent college grad who writes at love God, not money about how she and her boyfriend are saving up money to get married, pay off student loan debt and head to seminary.

Money is one of those things you’re not supposed to mention in polite conversation. But if you’re married or in a serious relationship, you have to talk about it.

My boyfriend is the spender; I’m the saver. He’s never had any guidance on how to manage money; my dad had me putting money in a savings account while I was still in the cradle. Coming from such different angles meant that starting the conversation about money wasn’t easy.

But it doesn’t have to be something you dread if you follow a few simple principles. Most importantly, pay attention to how your significant other views money, because that will help you learn how to best communicate what you’re thinking and feeling.

Tip 1: Start out slowly.

It would have done little to no good if I had immediately emphasized IRAs and CDs and how much money he can make in twenty years if he starts saving now. I started simply and slowly, not because he’s dumb, but because changing your views on money eventually transforms your entire life, and that kind of thing doesn’t happen overnight. I began the conversation by suggesting that he get on a budget. He was very positive toward this, so we sat down together and wrote up a plan. I also helped him set up an online high-interest savings account so that he could start building an emergency fund.

That said, it wasn’t all flowers and butterflies at the beginning. I helped him come up with a budget and gave him tools to track it, only to find out several months later that he hadn’t been tracking his spending at all, and often he had no idea how much money he had left in his checking account. At this point, I had to go back to square one. We revisited the budget and talked about why he hadn’t been able to keep track of his spending. I offered to keep track for him, if he would just give me his receipts.

It turned out that he really wanted to keep to the budget, but he got tired of keeping his receipts. I suggested he use his debit card for all his purchases so that he wouldn’t have to keep his receipts. That didn’t solve the problem completely — he still has trouble sticking to his budget sometimes — but by talking about it and being creative with solutions, we made the transition just a little bit easier.

One of the things I learned as a psychology minor is that it is more effective for you to come to a realization on your own rather than having someone try to persuade you. If your partner has outrageous spending habits, saying, “You should stop buying so many clothes” will not be welcomed. Choose instead to say, “Have you ever thought about keeping a budget? I’ve found it really helps me stay in control of my money.”

Even if they don’t stick to the budget the first few months, just tracking their spending will open their eyes to where their money is going. And that may lead them to address on their own their tendency to buy more clothes than they can afford.

Tip 2: Be patient and realistic in your expectations.

If you’re anything like me, it took you more than a few days to come to your current understanding of how to make wise decisions with money. Don’t expect your significant other to come to that point any more quickly. In fact, don’t expect them to ever feel exactly the same way you do about money. I’ve accepted the fact that my boyfriend will never, ever enjoy tracking every penny he spends, but that he can learn how the choices he makes today with money will impact his future. And so I focus on sharing personal stories I’ve read on blogs about how other people manage their money. This has actually made him more interested in personal finance, such that we listen to a podcast on personal finance together every week!

Tip 3: Don’t talk about money all the time.

If your finances are in trouble, then the last thing you need is for your talking about it to make it seem like money is the third member of your relationship. When my boyfriend told me that it sounded like I was getting a little obsessed with money, I knew it was time to step back. Now we pick a night each month to go out to eat and talk about his budget. Because I’m doing my best to avoid talking about money when we’re just hanging out, he actually looks forward talking about his budget once a month.

Tip 4: Only talk about money when you’re calm and composed.

If you just found out that your girlfriend maxed out her credit card, don’t start dialing her number. Wait. Money is a stressful enough topic on its own; add your own anxiety to the mix, and you won’t get very far. Of course, it’s most effective to talk about money before the stressful situations occur, but if you’re already in the thick of it, make sure you’re able to discuss any problems without being defensive or making broad generalizations. It’s amazing how quickly you can diffuse money-related tension by maintaining a calm presence of mind.

Tip 5: Stay in control of your own finances.

You are the best model for your significant other. If you’re telling him to save, save, save, but you consistently spend hundreds of dollars on clothes, then it will be hard for him to take you seriously. Even if you’re married and have joint finances, you can still manage your money in way that will keep you from being a hypocrite and also provide a very personal example of wise habits for your spouse.

Tip 6: See money as a means to an end.

You may be perfectly happy never going out to eat or buying new clothes, but that might not be the case for your significant other. Instead of letting it come between you, use money as a way to bring you closer together. Set a savings goal for a fun trip. When I helped my boyfriend make his budget, I made sure there was at least a small amount of what he calls his “fun money,” which he can spend anyway he wants. We also really enjoy cooking meals together, so we make sure we have a little extra money in the food budget for more exotic ingredients.

Tip 7: Choose your battles.

My boyfriend was fairly receptive to my suggestions, but you might be faced with a partner who isn’t so keen on making any changes with their finances. A few days ago, my boyfriend had about $40 left for food and eating out in his budget. He needed to buy groceries for the next week and have some money for food when traveling for Thanksgiving. I told him I wasn’t sure if he should go out to eat for lunch at work one day, but he went anyway and spent about $9. I was so tempted to get angry, but instead, I let it go. It wasn’t worth $9 for me to nag him and him to feel like I was completely oppressing him financially. That way, when a situation comes up where his choice about money really is important, he’ll know that I’m not just a Scrooge trying to take away all of his fun.

Tip 8: If all else fails, bring in a third party.

You can’t wait until your husband has hit rock bottom to address your finances. If your significant other feels like you’re nagging or doesn’t think that any of your ideas are appropriate or helpful, then bring another person into the equation who can speak into the situation. My boyfriend started talking to an older friend of his about money, and his talks with that man have done much more than many of my attempts. Seek out someone who your partner respects and ask them if they’d be willing to sit down and talk with you.

And encouragement is just around the corner. Just last week, my boyfriend was faced with car trouble. In the past, his parents had to loan him money to help him fix things like that. The cost for the repairs was almost $800, but he had been faithfully putting money in an emergency fund, and he had just enough money to pay for the expenses. He was so excited to tell his parents he wouldn’t need to use their money, and for the first time, I saw him taking pride in his control over his finances. All the pestering and obsessing I could have done would never have made him feel that way.

Above all, realize that change takes time. Celebrate staying within the budget, paying off credit card debt and finding more frugal ways to do things. Money has the power both to build up and to tear down, but by talking about money together in a positive way, you and your partner can stay in control of your relationship instead of letting money control you.

Photo credits: reebs*, crschmidt, gustavobando, Sabrina Campagna

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“Wife Swap” Looking for Investment Club Members

by Flexo on November 10, 2008