Archive for the ‘Miser Tip’ Category:
So, Hope had been on me for months to get her an iPhone. I finally broke down and got her one for Christmas. I was really dreading the purchase of this trendy device. Why, you may ask? Well because I am frugal and practical! These phones cost a fortune but worse than that is the additional monthly charges on your cell phone bill.
For the last couple of years she has been using the phone you get for free when you sign up for 2 year plan with the provider. I thought that was sufficient, I mean the phone is for calling folks right?
Well she said she wanted to check her emails remotely and listen to her iTunes without her ipod. In the end she always wins, but I try to put up a good fight anyway.
To me these things are the biggest time wasters ever. Well maybe second only to Facebook. Really, with all the “apps” you can waste hours playing with the silly phone. I can undertand email, especially for business use. All the other stuff just seems like fluff to me.
MISER TIP: I finally rationalized the purchase by buying stock in a little microcap tech company that does what? Sells apps for smart phones!
If you have to spend money, you might as well get a deal. At least that is my line of thinking. So for the benefit of fellow readers I wanted to share a couple of websites that I have used, one for purchasing and one for low price events.
The first is www.fatwallet.com , this website alerts you to various deals but also offers online coupon codes for internet purchases. Case in point, when I was establishing this blog site with my host I searched fatwallet and found a promotional code for discount. Just like that I saved $15 for Hosting services. They also have a pretty neat selection of “current deals” that users submit.
The second is for all those in metro Atlanta: http://blogs.ajc.com/atlanta-bargain-hunter/ , this is a blog from the Atlanta Journal and details everything from personal finance to cheap entertainment. It’s a good reference to use for anyone looking to save money on entertainment in the ATL.
If there are any websites that you commonly use, submit a reply and I will post them for everyone to use.
MISER TIP: if you have to spend the money, do a little homework and find the bargain!
As a financial planner I have the pleasure of working with a lot of clients to help them develop strategies to reach their personal goals, but unfortunately that means that sometimes I neglect my own finances. Realistically, if you do this for a living the last thing you want to think about when you get home in the evening is your own finances.
Case in point: reviewing my own expenditures for things like auto and home insurance.
I have seen hundreds of clients budgets through the years. So statistically I have a fairly good idea at what folks spend on the common areas such as food, transportation, utilities and basic committed expenses. One day it dawned on me that I was paying to much for auto and homeowners insurance. I guess it was just one of those areas that I had procrastinated about changing. Having been with the same agent and insurance company for years it was more of a comfort level thing, but after seeing what my clients were paying I knew it was time to review.
First step was reviewing the Auto coverage. I had been paying just over $200 per month for 2 cars. A simple comparison search online and I found the same coverage (actually increased my liability limits) for half the price. My new rate was $100 per month. That’s $1200 per year in savings, so it made a significant impact on cashflow.
The next step was shopping around my Homeowners insurance. As with the cars, I knew that I had been paying to much but had procrastinated about searching for a new policy. As it turned out it was a fairly easy process of answering some questions for an agent and letting them produce a quote. The result was that I was able to shave $500 per year off the cost of my homeowners policy by shopping it around. Same amount of coverage and a reputable carrier so it made sense to do it.
$1700 per year in savings by taking the time to review something as simple as home and auto insurance!
MISER TIP: If you have been with the same insurance company for several years it doesn’t hurt to get competing quotes, even if you stay with the same carrier you might be able to negotiate lower rates.
Like most of the country, here in metro Atlanta we have seen golf course communities pop up everywhere. With many of those communities the developers spent lots of cash on the golf course to attract the homebuilders/residents. Well like everything else in realestate they are now feeling the pinch as we now have a great deal of finished golf courses in developments with just a few homes. So to keep the lights on at the courses they are offering deals for golfers, both with non-member greens fees and with full golf memberships.
Even prestigeous country clubs are not immune to the slowdown. I have seen membership rates for some of Atlanta’s finest cut by 1/2 or more. So if you are a golfer in search of new courses to play or join, start your search! There are deals to be had, if it is your thing.
In case you were wondering, I am to a bit to frugal to pony up the cash to join one of these clubs. Although, if the rates keep dropping and the wife suddenly becomes interested in a country club, then maybe……….
Reading through some financial publications I once again came upon a discussion of compounding interest. Most folks have seen and heard this stuff many times, but it can’t be reiterated enough. Especially if you are trying to explain to kids / teens / young adults to think about long term financial security. I know – it sounds boring. I can immediately see younger folks tuning out when I talk about this. But the chart doesn’t lie and the numbers are amazing. I just wish I had done this in my 20’s. Like many folks I was more concerned with other things to think real hard about it.
Below is a chart that I just did that compares 2 folks: one saves $2000 a year beginning at 22 for 10 years. The other waits 10 years and saves the same amount but all the way until retirement. They both earn 8% annually. Looks like the early saver wins again.
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Okay, so I am self proclaimed Miser. Not really but Hope (the wife) tends to think so. I would call myself more of a frugal person than a Miser, but it just didn’t make for as good of a Website name.
The point is that being frugal is much different than being cheap. Personally, I am happy to contribute to a good cause as I think that brings out the best in people. And yes I did open the wallet over the weekend, but you know what? It felt good! With all that is happening in the economy today there are a million reasons for folks to watch their spending and and be frugal when it counts. But when a neighbor is in need then it is time to step up to the plate.
We had a great benefit event in our community over the weekend. Several neighbors planned a Run and Silent Auction to raise funds for a neighbor whose child is undergoing some major medical procedures. It was an incredibly inspiring event as the turnout was probably 3 or 4 times the number expected. It felt good as everyone forgot about themselves for a day and came out to support one of our own.
So whether you volunteer your time or contribute financially, sometimes it’s okay NOT to be a Miser!
Links:
http://www.active.com/donate/lilyanderson
http://supportkingdomkids.com/
