Reducing Expenses

How to painlessly cut the cost of necessary expenses

Do you feel like you’ve cut your expenses to the bone – that there’s literally nothing else to cut? I want to challenge your thinking on that. Have you looked into what I call the necessary expenses (things that you need or are required to have) to try to get a discount or find a cheaper supplier?

This is what I did for our household:

I contacted our electric company and went from 15¢ to .08¢ per kilowatt. This saved us $40 the first month alone. Now I have reminders on my calendar to check before the next possible rate change in 6 months.

I was contacting our credit card company about a dispute issue and they asked if there is anything else they could do for me. I responded, “I would love a lower interest rate.” They immediately reduced it by 2%. Yes, sometimes it can be as easy as that.

I called our cell phone provider to pay a bill (normally I pay online, but my computer had crashed) and they said they could lower our bill by $20 per month because of our loyalty – without me even asking! Another $20 back in our budget.

If you want to try lowering the cost of your necessary expenses, always be polite and ask simple questions, like….

Why did my bill go up?
What are my options for reducing my bill?
My budget doesn’t allow for me to pay this, what can we do to reduce the cost?

All these little savings add up to more money in your pocket. If you can’t reduce your bill, shop around and see what’s out there. Then, bring your findings back to your current providers to see what they can do.

Let me know how you do.

Plant something!

Welcome to our May Blog Hop!

This month we are so excited to help you in your business and life. You’ll find fabulous articles, how-to’s and resources for you today that have helped each consultant, blogger and business owner on the hop in their own lives and businesses. Get ready to be inspired for a wonderful month ahead of you as you move along through the blog hop.

You may just be starting the blog hop or may have come from 3. M. Shannon Hernandez at The Writing Whisperer on Natalie Bradley’s Blog Hop. If you get off track at any time, the full lineup below will help you move along from blog to blog so you make sure to see and learn from all of the articles featured here today.

Plant Something!

I was brought up with a family that had a backyard garden. Especially now when I am making a great effort to eat more fresh and locally grown food, the garden makes sense. The garden my grandparents had when I was growing up took most of the backyard. Unfortunately, that doesn’t work for me. I have to keep mine small so that it’s something that I can manage and is not too overwhelming for me. I usually start around March with seeds inside (although in some years I buy plants in another month), but you can start your seeds outside in May!

Go ahead and try it. You can have a garden in your backyard or a container on your deck – whatever works for your situation. You can grow whatever appeals to you, from herbs to tomatoes. There is nothing better than going out and picking what you want to eat when you are ready to eat it.

You are probably thinking, “What does this have to do with saving money?” Lots! The more you grow the less money you spend at the grocery store.

Lettuce is a very easy vegetable to grow. Put seeds in the soil and within two weeks you have lettuce for your salads. No more buying lettuce at the grocery store, or wanting a salad only to find out that the lettuce in your fridge is bad. You pick the lettuce leaves as you need them.

Think about what you would like to grow today.

The next stop is 5. Deb Brown at Touch Your Client’s Heart on Natalie Bradley’s Blog Hop! Thanks for visiting and I hope to see you again next month!

Blog Hop participants lineup:

Natalie Bradley at Natalie Bradley Consulting
Rochelle Togo-Figa at RTF Coaching
M. Shannon Hernandez at The Writing Whisperer
Jill Russo Foster at JillRussoFoster.com <<– you are here!
Deb Brown at Touch Your Client’s Heart
Vicki Heise at Vicki Heise ~ Live Your Healthy Life
Kim McDaniels at iBiz Design Duchess
Robin Hardy at Integrity Virtual Services
Heidi Kleine at Worth it Woman
Ronda Neufeld at Ronda Neufeld Relationship & Life Coach

How to Get What You Paid For

I have always been the kind of person who stands up for herself. It’s just something that I learned to do early on, and have gotten better at over the years.

What does it mean to “self-advocate?”

When you have a legitimate issue that is fixable, and you take it to the next level by contacting customer service or a manager, you are self-advocating.

By “taking it the next level”, I mean communicating politely. It doesn’t mean going all Liam Neeson on the issue.

Here are three examples of what I have been able to accomplish with a phone call:

1. I purchased a certain service while on vacation and felt mislead. The written description did not explain the service properly. If I had understood what they were saying (the way they meant it), I wouldn’t have bought it. So, I filled out the online survey and asked that the company call me. When they did, I explained what I understood the service to be and they clarified what it was supposed to be. After advocating for myself and politely saying that I didn’t think it was worded properly, they gave us a free dinner for two in a specialty restaurant the next time we sail on that cruise line.

2. I purchased a massage through a discount website but was unable to reach the massage therapist. I contacted the website and asked for assistance in getting a.) the appointment or b.) a refund. Everything was settled to my satisfaction, because I kept records of my attempts to contact the therapist (date, time of call and response).

3. I received a medical bill in the mail for services that were not covered by our insurance, months after the service date. I contacted the billing company to ask why they waited so long to bill me. They explained that they had let the billing person go and that they were behind in the billing. I explained my case, which was we have changed insurance companies since the time of the appointment and I didn’t know if I could go back and dispute the insurance claim since this was several months before. In addition, the H-S-A account we had with that insurance was now closed. We compromised and settled the bill for an amount which we both agreed was fair.

What you need to stand up for yourself

1. The will and desire to get what you paid for.

2. The ability to stay polite and calm. I can’t stress this enough. This isn’t about ruining someone’s day or getting something extra. It’s about establishing the facts – did you, or did you not, get what you paid for?

3. Documentation – What was purchased and when (a receipt is great), what is the issue, how often and when have you contacted the merchant.

If you are doing online chat with customer service, make sure you keep a copy of the chat transcript. I recently learned that if you are dealing with a merchant who records your calls, you can and should get a recording reference number as additional documentation. Even I can learn something new.

It doesn’t always work

You will never know if you don’t try. I think you need to try to get an amicable resolution that is fair to you and the other party. If not, you can always avoid that service in the future, or leave a negative (but fair) review.

For the Price of a Text Book…

Some of you may know this already, but I’m taking a few classes to finish my degree. For those of you going to college, have a child in college, or about to go to college, this may help your wallet.

I have talked about the cost of text books before, but this was my first experience as an adult in today’s market.

I took a class this summer. The textbook was $60 used or $40 for a rental. Thinking I’d like to keep it for future reference, I decided to buy used. Imagine my shock when I discovered that the college bookstore didn’t carry the textbook for a class the college was offering. I had to prepay and have it ordered in.

After the class was over, I was shocked again when the bookstore wouldn’t buy it back. The college is offering the same class with the same book, so why not? Wanting to recoup some of my costs, I sold it online for $11.75 (postage was paid by the publisher).

Now I am taking my second class and that textbook was substantially more – $200 to buy new and $100 to buy used. I did my research and checked a number of websites for the best deal (remember to search by the ISBN number to get the correct edition). I decided to rent it for $40. On the first day of class, the Professor mentioned that we could have used prior editions. Knowing that ahead of time would have saved me a lot of money.

Lessons learned:

1. Don’t shop at the college book store.

2. Compare prices (new, used, or rental) from several online retailers.

3. Check for digital editions depending on your learning preference.

4. Plan ahead so you don’t have to expedite shipping. The cheaper the shipping the better the deal.

A couple of hard lessons learned that I will put to good use for the remainder of my classes. Textbooks are expensive. Learn from my mistakes to cut a nice chunk off of college costs.

You Can Be Frugal AND Buy Organic

I like to save money, but I have my limits. Sometimes the high-priced item is better (or just preferred). That means I have to be frugal in other areas of my life so I can splurge on the things that are important to me.

We spend more on groceries than most people we know. We prefer organic – fresh when we can get it. We prepare most of our own food at home, then take our lunches, snacks and beverages to work with us.

Where we splurge

You might be thinking, “that sounds frugal,” but it’s not (for us). Meal planning and grocery shopping is time consuming and can be costly. We’ve learned a lot about the food industry over the last few years and have made significant changes to our eating. That means we’re buying more organics and fewer processed foods. Unfortunately, the healthiest choices are often more expensive. Therefore our food budget can seem like a splurge.

Where we’re frugal

We make similar choices with our cleaning ingredients, but here we’re able to save money. We’ve learned to make our own cleaners with vinegar, Castile soap, baking soda, etc. This is time consuming but it is cost effective.

With the warmer weather, we can grow our own vegetables. This year we are growing several types of lettuces, tomatoes, peas, broccoli, herbs and berries. This helps cut our food budget significantly in the summer months, and (depending on the bounty) we are able to freeze items to have well into the winter months. This reduces our food budget for part of the year.

This is how a balanced budget works. If you spend more in one area, you have to reduce in others. Your spending should not exceed your income. If it does, you may end up in debt, and that’s not a healthy choice.

#30Ways2Save for Financial Literacy Month April 2014

I’ll add a video here each day in April. The newest video will be on top. Scroll down for all budgeting tips you can handle!

How to take the trip of a lifetime (cheaply). For more details on our amazing trip (and our amazing savings) go here

What do you do when you checkout at the grocery store? Look at the gum, the magazines, talk to the cashier? Here’s what you should be doing.

How to get deals on concerts and events

What about rewards cards? Are they worth it?

How to negotiate a lower price

Where to find free videos, music and audio books

Which foods are always 50% at the grocery store?

What’s your bank charging you? Find out how you can avoid bank fees in today’s #30Ways2Save tip.

Have you ever run into a store for just 1 item, and come out with 20 instead? Those impulse buys can be budget killers. Here’s the best way to stay on track

Eating on a budget? Turn 1 healthy, filling meal into 2 healthy, filling meals

Get Matching Funds to Double Your Savings with This Program (If You Qualify)

How to keep your frequent-flyer account active and earn miles – without flying!

Lower your electric bill with this easy trick

How to find free workouts in your neighborhood

What to do when your rates increase

Where’s Your Unclaimed Money?

Use Cash to Avoid Overspending in Grocery Stores and Restaurants

Prescriptions – Can You Get Them Cheaper?

Shop Off-Season for Beautiful Clothes on a Budget

Free Movies and Entertainment (without pirating)

Finances: An Honest Look

My finances weren’t always in great shape – too much debt, weak savings, with some self-indulgent spending for good measure. To stay on top of my finances, I have had to take the occasional “honest look”. I think of it as a 3-way mirror view of my situation. By that, I mean that enlightening view you get in the department store changing room where you find out how people see you from the back on a bright, sunny day.

First, I encourage you to step in front of that mirror and take an honest look at your spending and debt. You may want to stick your head in the sand. Please don’t. I can assure you that no matter where you are with your money, with action you can firm up your finances.

You need to ask yourself these questions:

Are you using credit cards for your basic expenses?
Are you making multiple transfers from savings to cover your checking account?
Are your wages running out before the end of the month?
Are you avoiding your bills by not opening your mail or emails?
Are you only making partial payments on utilities and credit cards?
Are your credit card balances going up versus down?

Answer these questions honestly – either alone or with the person you share your finances. Again, Be Honest. You may be thinking, “It’s the economy” or “I wouldn’t be in this situation if not for…” You have to face the reality that is, not what should have been. You cannot change the past. All you can do is to pull your head out of the sand and address the issue now by taking action.

The first thing to do is to track your spending. Keep a list of all that is coming in (income) and going out (expenses). That is the only way you can determine how much of a shortfall you have.

Once you know, you can begin to make changes. You will see where your money is going and can cutback and eliminate unnecessary spending. If you need help, I offer coaching packages that can get you through this.

You want to take action on the overspending now, Trust me, in my 20s I had maxed out many credit cards and had to pay off all that debt. At times, I worked three jobs and it seemed like it would never be paid off, but I did and you can too. The sooner you start the better off you will be.

Start today before it’s too late, and it snowballs into something so big that you cannot manage it, and the only answer is bankruptcy.

How We Cut Costs So We Can Afford Great Food and Travel

Saving money is a passion of mine and all these snow days have given me more time at home. Instead of online shopping, I stayed inspired by watching TV shows on frugality, doing some online research, and reading many books.

After learning about all the creative ways a person can cut costs, I wouldn’t say that I’m a cheapskate. I just scrimp and save in some areas, so I can splurge in others.

Reuse and Borrow

We do reuse and borrow versus throwing away or buying. I suppose that some people might think it’s pretty miserly to rinse and reuse a plastic baggie, or to save packing peanuts. But it works for me. We also like to lend equipment amongst close and family members. We don’t all have to own our own tile cutter or a rotor router – it’s easier and cheaper to borrow from someone you trust.

Recycling – Including Rainwater and Kitchen Scraps

We are avid recyclers. Our town accepts all plastics, glass, metal, newspapers and other paper at the dump. It doesn’t seem like work to me. Honestly, my mother was a recycler and that’s just how I grew up. We have a rain barrel in our yard for watering the flowers and garden. We have a compost bin for our fruit and vegetable scraps, which is a really great fertilizer for our vegetable garden.. We have cut down our trash to about a bag a week.

The extra work saves us money on our water bill, fertilizer, and our trash bill. And, it makes me feel good.

The Thrill of a Great Bargain

Buying on sale is kind of a thrill. The new curtains we bought for the bedroom were on sale – plus we had a coupon! The curtains originally sold for $39.99 a panel. They were marked 75% off to $10 and we had a $5 off coupon. So they became $7.50 per panel. Trust me; I didn’t buy them for the price. We only bought them because we liked them and they would look great in the room. But getting them on sale with a coupon is a great feeling. It was a great find.

Where We Splurge

Yet there are things that we are not frugal about. If you have followed this newsletter, you know that we travel. It’s true that we are able to get great deals when we want them, but sometimes we want to travel at a peak time when the weather is great and the price is higher. We’re also not frugal on our food choices; we spend extra on grass fed meats, wild seafood and organic vegetables.

The Bottom Line

Bottom line is that you need to be comfortable with your choices. But if you are an over-spender (stay tuned for next week’s newsletter on overspending), you should try to find ways to cut costs on things that aren’t important to you so you can afford the things that are.

Tell us, what’s your favorite cost-cutting trick and your favorite splurge item.

How to Negotiate a Lower Price

Let’s talk about negotiation. I’m not as comfortable negotiating as I would like to be, but I’ve been trying it out and it works!!!! Honestly, what have you got to lose? The worst they can say is “no”.

I bought Dave a big screen TV with a great online deal, but when we tried to set it up, we realized it didn’t fit on the TV stand. That never occurred to me, and we had company coming for the holidays. So the search was on to find a media console at a good price, in a style that matched our furniture, before the family arrived. Was it possible? Yes.

Both Dave and I (together and separately) checked many stores – furniture stores, clearance centers, consignment shops, online websites, etc. Some stores had what we wanted but couldn’t meet our timeframe. Another store had one we liked, but the price was over our budget. We even found one that we liked and fit our budget, but it was out of stock. This was a full-blown all-out search as time was running out.

Then we found it – the perfect one. So here’s how we negotiated:

1. The store couldn’t get it to us in time, but we asked if we could buy the floor model. Yes, we could.

2. They had a poster in the window advertising 20% off with store credit. We asked if we could get the store credit discount if we paid in full right then. Yes, they gave us the advertised discount even though we didn’t open a store credit account.

3. The floor model had a few nicks and scratches, so we asked if they would give us an additional discount for imperfections. Yes, they would.

We walked away with the media console that afternoon at an amazing price.

Bottom line, it wasn’t horrible to negotiate. We simply asked questions. We were not pushy or demeaning about the product or the staff. And, yes, we would have politely walked away if we didn’t get a price that worked for us.

So, the next time you’re out shopping, ask questions that might help you negotiate a better price. You may well get the answers you wanted to make the sale a win-win for everyone.

Happy Negotiating!

The Worst Things You Can Do With Your Money

This is my personal top five list of the worst things you can do with your money

no-1 1. Pay ATM fees (or for that matter, any bank fees) – There are banks out there that won’t charge you just for the privilege of having a checking account. You shouldn’t be paying a monthly maintenance fee or ATM fees. Ask your banker how to eliminate the fees. If they can’t, or won’t, move your money to a better bank.

2. Pay interest or finance charges on credit cards – Paying interest or finance charges is a complete waste of perfectly good money. It might have been a great deal when you swiped your card, but when you add interest, you’ll end up paying more than it was worth. If you currently have credit card debt, try moving it to a card that offers zero percent interest on transfers for the first 12-18 months. Once you are out of debt, pledge that you will not pay interest or finances charges ever again.

no-1 3. Sign without reading the fine print – Never sign anything that you don’t read. If you read it and don’t understand it, then ask questions or do your own research to understand it before going forward. I speak with so many people who just signed an agreement thinking they got a great deal, and then were blindsided hidden fees and additional charges. Were they really cheated? No, they just read the price in the big print, and not the details in the small print.

4. Pay for unused services (or things) – Are you paying a monthly fee for services you don’t use or could get for free? If you’re actually using them, that’s fine. But if you not, you could use that money for something that will actually make you feel good. I cancelled my magazine subscriptions because I wasn’t reading them. If you pay a credit monitoring service, you can do this for free with very little time investment. Are you paying for online services instead of using the free version? If so, are you actually making the most of it?

no-1 5. Duplicate Spending – Have you bought something at the store only to find out you already had one in the back of the closet? That is duplicate spending. You can resolve this by getting organized and getting rid of the clutter. If you know where to find something, you can easily access it before you go out and buy a duplicate.