Reducing Expenses

Dinner with a Twist

byob2

If you want something more than pot luck but don’t want to pay a fortune for dinner out, try a BYOB restaurant. Check around, some restaurants will let you bring your own bottle of wine. Ask first, because there could be a “corkage fee” for bringing your own bottle. When you buy wine from a restaurant, your favorite bottle can be double the price of what you would pay retail. Check with your state, because some states will let you bring the partial bottle home, and others won’t. This is one way wine lovers can enjoy dinner out and still save some money.

One if Full Price, Two If Black Friday

The holidays are coming! The holidays are coming! Guard your budgets and hold onto your wallets. You might be thinking I’m crazy, but the retailers have positioned their holiday displays to disarm you of your cash.

Now is the time to remember how you felt last year when you overspent.

Can you make this year different? Can you stick to your list and not overspend? You can if you make a detailed plan. Write down exactly what you will be buying and the dollar amount you plan to spend.

Here are some suggestions that should help you with your holiday budget list.

1. Gifts

How much for immediate family?
How much for extended family?
How much for friends and co-workers?
How much for people whose services you use?

2. Entertaining

How much will it cost when you host a gathering?
How much will you spend on hostess gifts when you attend a party?

3. Travel

How much will it cost for local travel (gas, tolls, parking, etc)?
How much will it cost for long distance travel?
How much will it cost for vacation?

4. Traditions – this can be anything from an afternoon tea to a night on the town.

If you write it all down, you might realize you’re planning on spending $300-$500 on gifts for people who aren’t on your immediate family list. And hosting dinners can be expensive just because you want to put on a good appearance. Ever notice a big stain on the tablecloth and found yourself running to the store at the last minute to buy one full price?

Holiday fun can wreak havoc on your budget, but it doesn’t have to. Now is the time to get a jump start on planning, and to put away money for the details that are important to you. Think of it as your own layaway plan. Take money out of each check, in addition to your regular savings deduction, to create your own holiday fund.

Doing this now will make January 2013 less stressful.

Make Your Dream Vacation Affordable

Last issue we talked about vacationing locally and all the things you can do close to home. But, what if you really want to get away? How will you save money, then?

We travel often and are able to save in a variety of ways. Here are some of them:

Travel during shoulder season (that’s somewhere between peak and off-season). We’re going to Aruba in the Fall. The Caribbean is off season at that time because of the hurricane season, but Aruba is usually too far south to be affected by hurricanes.

Comparison shop to get the best deals – there are so many websites that will do this for you. I like Kayak for airfares.

Reward Programs – if you find yourself using a particular airline or hotel, join their program. I know you’ve heard that you may not be able to use your miles for flights. I can tell you that I haven’t found that to be an issue. You do need to plan ahead to get the reward you want. We have used airline miles for many trips, including a flight to Alaska in August.

For rental cars, we make our reservation early, but don’t prepay. Then we check back regularly to see if the price has dropped. You will be amazed at how much the price can drop closer to your trip!

Discounts and coupons – don’t forget about those. We recently went to an aquarium because our water company sent a buy-one-get-one-free coupon with your bill. Coupons and offers can come from a variety of sources. If you have a membership with a service like AAA or a store like Costco, check their mailings or website. Once you reach your travel destination, the visitors guides typically have clip-out coupons (make sure you pick them up when you arrive).

Stay at a place with a kitchen (or at least a fridge) to help your budget. You can shop when you get there for meals and snacks.

Bring your own food on the airplane. Take carry-on food versus buying in the airport or on the plane. You can’t bring drinks, but you can buy a beverage in the waiting area, or get a free drink after boarding. Your own food will undoubtedly be healthier and more satisfying than anything they have to offer.

We’ve had trips in the past where we’ve traveled for next to nothing. Our airfare was paid for with miles and our lodging with hotel points. We only had to pay for food, local transportation, and entertainment.

What do you do to save money on vacation? Join the discussion.

Save Money – Stay Local this Summer

Share Your Vacation Story!

Planning a great money-saving vacation? Share your tips! You can post your story in the comments below or on Facebook, LinkedIn or Twitter. Or, you can email me at book @ jillrussofoster.com. I can’t wait to be inspired by your summer plans!

Here are my suggestions!

Now that it’s Spring, you’re probably thinking about summer travel plans. I know I am. But, with the price of gas going up, you might be thinking, “Can I afford to do something this summer?” You can if you stay local. Here are some free or low-cost suggestions:

Local museums – Museums can be pricey, especially if you’re bringing the whole family. But most museums have free days or discount days. Check the website or call the museum to see when their next discount day is, then plan a vacation day around that.

City parks for movies, concerts, or theater – Many Parks and Recreation Departments host events. These might be free, or low cost, and all you need to do is pack a picnic. In our area, we have movies in the park, many music concerts and Shakespeare on the Sound. Check out your town’s website to see what they offer.

Libraries – Check your library’s event listings (we use our library all year long). Many libraries host interesting talks, movies, and even musical events.

Holiday Celebrations including parades and fireworks – What is your town doing? Check out nearby towns, too.

State Parks – You’ll get a change of scenery and a day outside.

Tourist activities – Be a tourist or visitor in your town (or nearby) and check out the sites. Try to see your town with new eyes and check out the funny little restaurants, art stores, outdoor art, and important town landmarks.

Get together with family and friends – Plan a get together to reconnect. We have one planned for July already.

Go to the Beach – This is one of my favorite places to relax.

Street Fairs and Festivals – Many areas have multiple festivals throughout the summer. There are arts and crafts fairs, ethnic celebration festivals, and antique car shows. You can buy pottery one weekend, and dance the polka the next. Use the internet to see what’s happening in your area.

What do you have planned? Join the discussion.

What Don’t You Do with Your Money?

I’ve shared two ways we save money in our household – careful food shopping and credit monitoring. Now I’ll tell you what we don’t do that saves us money.

We don’t have a data plan with our cell service

We have cell phones, but that’s it – just cell phones. We don’t have text messaging or a data plan. We lowered our minutes to the lowest plan available and we regularly come in way below our limit.

We don’t have HBO.

Only in the last month have we upgraded to an HDTV and that’s because one of our two TV’s needed to be replaced. We still have one older TV and we don’t plan on replacing it unless it stops working. We have a basic cable package and get our movies free – either from the library or the free on-demand selection our cable company provides. We gave up our paid movie channels a while back. We don’t have a DVR either – still using the VCR.

We don’t hire home contractors (often).

We do a lot of home maintenance and repairs ourselves. Last year, we painted the garage. This year we painted the bathrooms ourselves. We don’t have a landscaping service to take care of our yard. (It helps that we don’t have a big yard to take care of.) I really enjoy gardening. There is nothing better than picking fresh vegetables and eating them within minutes while they’re still super fresh.

We don’t buy new cars.

We drive older cars. Mine is a 1995 with 167,000 miles and it runs fine. I just had a tune up and the mechanic says the car is in great shape. Having older cars works perfectly for us, because we don’t like making payments. I’m not into fancy cars – all I need is reliable transportation.

You might be thinking that we lead lives of deprivation, but I can assure you that we are not missing out on anything. We only spend money on things that are important to us. If we spent money on things that we didn’t enjoy (but made us look good to other people), that would mean having less money for things we do enjoy – like nice vacations.

What don’t you do with your money? Join the discussion.

How do you save money at the pump?

With the price of gasoline going up every time you drive by the station, what are you to do? There are a couple of things you can do to save money at the pump.

1. Clean out your car. The more weight you carry in your car, the more gas you use. Take out the stuff you don’t need and make a habit of doing this regularly.

2. Combine your shopping. Run errands in one trip versus going out today for something, then again tomorrow for something else. Map out your stops to get your errands done in an efficient manner.

3. Drive at a steady pace. Quick starts and hard braking can use more gas than driving at a steady pace. While you’re at it slow down. Driving above the speed limit is a waste of gas.

4. Pay with cash. Many gas stations charge a premium to use your credit card at the pump. Save money by using cash for your fill ups.

5. Plan ahead. Use your computer to help you save money when you need to purchase gas. Websites like Gas Buddy can find you a lower price and apps like Cheap Gas can do the same from your smart phone. (Gas Buddy also has an app for Android)

So, how do you save money at the pump? Let me know in the comments.

Less Junk Mail Equals Less Spending?

Having trouble controlling your spending? Try something new – control your mail!

You heard me. Control your mail. For the past five years, I have worked extremely hard to get off advertisement mailing lists. My mailbox is no longer stuffed with unwanted fliers and catalogs. Oh, I still get catalogs and fliers, but only from my favorite stores. And, I have asked each of my favorites not to share, rent, sell or do anything else with my contact information. Thanks to privacy laws, I can completely trust all of them to keep my personal information to themselves.

This has reduced my mail considerably.

You are probably wondering, “What’s the connection here? I thought you were talking about controlling spending not junk mail.” Easy. What I don’t see won’t tempt me. No more impulse buying because a slick ad has convinced me I need it. If I didn’t know I needed it before, then I will probably live without it. And if I do need it, I won’t need a glossy image to sell me on it.

I don’t think I’m weak minded. These ads are designed to make you hunger for the kind of ideal life that only an expensive food-processor can give you. If you’re like me, you’ve spent many a weekend morning browsing through Sunday fliers, lusting after small appliances and “just in time for spring” capris.

Now, I have less mail to go through and more money saved. This is a bonus for my time and my budget. Try it yourself. You won’t believe how much less spending you have to list on your budget tracker with this little step.

How did I do it? By contacting these companies:

Direct Marketing Association, Mail Preference Service, P O Box 9008, Farmingdale, NY 11735
Mail Preference Service, Preference Service Manager, Direct Marketing Association, P O Box 3079, Grand Central Station, NY 10163
Companies that I receive subscriptions from (example – magazine subscriptions)
Store credit card companies and banks – request not to receive offers from them or their partners
www.OptOutPrescreen.com or 1–888–567–8688 to limit the offers you receive for pre-approved credit cards

That’s all you have to do! Yes, it takes some work, but it will pay off in the long run. You don’t have to tackle this every day or even during precious relaxation time.

What I did, was set aside the junk mail and take it with me for those annoying “hurry up to wait” appointments. Then I would make the phone calls from my cell. You know, when you’re sitting in the doctor’s exam room for 20 minutes waiting for a physical. Or when you have to leave early to meet someone across town “in case of traffic” then end up sitting in the parking lot waiting for the other person to show up. If you do it that way, you’ll be regaining time, not just saving time.

Tips for reducing car insurance costs

While you’re doing your taxes this month, you can be assessing your finances and looking for ways to save. Here are some tips that might save you money on your car insurance:

Most insurance companies will offer a discount for multiple policies, so try to have all your insurance policies with one company.

Consider a higher deductible. Remember, the deductible is the amount of money you might have to come up with if you have an accident.

Pay your premium in one yearly payment instead of monthly. Companies will sometimes add installment fees for multiple payments. There will also be late fees if your payment is not received by the due date.

You may be able to lower your car insurance premium by taking a defensive driving class.

Talk to your agent or insurance company to make sure that you’re taking advantage of all available discounts. Do you commute to work by bus instead of using your car? Do you have students on your policy who are away at school and only drive a limited amount of time. Does your car have certain safety features? Any of these scenarios could mean a lower premium.

In addition, you may want to check with other companies to see what they charge. It never hurts to comparison shop.

A bad credit score can also increase your car insurance. Join me on February 20 for our call Could Your Credit be Costing You Money?

Buy Used to Save Money

Do you want to save money? That’s probably a silly question, because everyone wants to save money. Let’s think of a better way to say this. Do you want to try another way to save money? I have a really simple suggestion – don’t buy new.

You’ve probably heard this advice when you were buying a car. A new car depreciates the minute you drive off the lot. If you buy used, you can negotiate a price that’s closer to its real value. Expand your thinking to other items and you could save money.

Let’s discuss furniture. Most people buy brand new furniture, but it doesn’t last forever – especially if you have kids and pets. What if you were to buy that sofa used – how much could you save? There are stores that specialize in selling gently used furniture, either on consignment or from furnished rentals. Much of this furniture is in great condition.

Many years ago (over 15), I was able to purchase our patio set – table for 6 with chairs, a chaise lounge and end table. The cushions had seen better days, but the furniture was in excellent condition. I paid $100 for all the pieces. I still have this set in the yard. All I had to do was purchase new cushions.

Let’s talk about kitchen items. Dishes, silverware and small appliances are always available at tag sales. Some of these items have never been used. Think of how many times you’ve been gifted with something you didn’t need. You can find brand new coffee makers, mixers, waffle-makers – still in the box with instructions – for sale cheap by your neighbors.

What about clothes? My assistant lost weight a year ago and didn’t want to spend a lot of money on new fall clothes. She went to a consignment shop and a thrift store and spent $40. What did she get? With $40 she was able to 4 pairs of jeans, 3 sweaters, 2 jackets and 4 long-sleeved knit shirts – all relatively new and in good condition.

Let’s be clear here, I am not talking about items that should have been thrown out. You can get good quality items. Depending on what you need, you can look at tag sales, consignment shops, websites, classified ads, etc.

I am not suggesting that you buy everything used. There are some things that come to mind that you shouldn’t buy used – underwear and makeup just to name two. But the next time you need something, consider the alternative. Have you saved money by buying used? Tell me about it.

Suggestions for lowering your expenses

You know how tracking your spending and budgeting are important things to do. These are the only ways that you can make the changes necessary to achieve your financial goals.

After suggesting that you track your spending, I did a month of tracking for my family. It was an eye-opener. Here are some of the changes we made:

Decreased our TV bill by eliminating channels and services
Eliminated some of our cell phone services that we didn’t use
Used a local pet store for some of our pet’s vaccinations (instead of the vet)
Planned our meals a week in advance using the supermarket sale flyer
Cooked ahead on weekends so that there was food available to eat for lunches

These reductions in cost saved us enough money that we were able to make some necessary home repairs without having to stress about tapping into savings to pay for it Our furnace is cleaned and tuned up for the winter, our roof is repaired, and the car had a tune up – all things that needed to be done, but were things I would have considered “budget-breakers” before reducing our expenses.

Our food spending is still higher than I would like, and I need to get that down even more. Next week, I will tell you what I did to reduce our grocery bill while still cooking meals at home.

Did you do the budget exercise with me? I know that several of you requested my budget worksheet. What did you learn about your spending? Let me know.