Got No Dough - Saving Money in Slim Times

As I was checking my bank account online this morning (yahoo, it’s payday!), I glanced down through my account information. It listed the rewards and benefits of our particular account and that’s when I realized what a great decision we made in choosing our bank. Being frugal doesn’t always mean finding ways to save money, it can also deal with ways to make money.

I believe the benefits vary by state, but I would seriously like to recommend Washington Mutual’s Free Checking Account. Some of the key benefits include:

• Free Checks for Life
• Free Wire Transfers
• Free ATMs
• Free Online Banking
• Free Check Safekeeping
• No Monthly Fees
• Free Identity Theft Services
• Free Account Alerts

Here in California (not sure which other states offer this), we also get:

• Free ATM Withdrawals Worldwide
• Free Gold Debit Mastercard with Rewards (I’ll come back to this later)
• One Free Overdraft or Bounced Check Refund Per Year
• Free Outgoing Wire Transfers

At first glance you may not see anything special, but there are three particular things about this account that stick out to me.

1. Free Checks For Life - Unless you can get a promotional offer, checks can be a little pricey. They cost about $20 a box and depending on how many checks you write, it can add up. Hypothetically, let’s say you write about 15 checks a month. At that rate you will use about a box a year. Savings: $20 a year
2. Free Gold Debit Mastercard with Rewards - Every time I use my debit card, I earn .03¢. I LOVE to earn money by doing things that I normally do anyhow. We opened our account in May and so far I have accrued $11.46. The rewards will be deposited on our account anniversary date, so we still have 6 months. Earnings: $23.00 a year
3. One Free Overdraft Charge Refund Per Year - I’ll confess - I don’t make it a habit of bouncing checks, but life happens. I’ve already used my free overdraft this year. Savings: $30.00 a year

If you do wire transfers or use ATMs you can save more money, but these were the three that apply to me most often. Based on that, when May 2008 rolls around, I will have $73 more in my pocket than if I had gone with another bank. Sounds like a pretty smart decision to me.

Before I get started with this, let me offer you something right off the bat. We’re all frugal people here - so here’s a free eBook called Money For Life - Budgeting Success and Financial Fitness in Just 12 Weeks. Quick overview of budgeting, but for a beginner, it might be helpful.

I just wanted to make a mention of Mvelopes Personal Budgeting Software for those people who may not have heard of it. It is based on the envelope system of budgeting, where a certain amount of cash is set aside in an envelope. There is one envelope per category and once the money is gone - you’re done spending in that category until you can replenish it.

I think this is a very simple budgeting method that requires little time to set up and execute. The downside is that you may be tempted to “borrow” from another envelope which completely defeats the purpose.

Now, even easier, is the Mvelopes software. With just a couple of mouseclicks you can fund your different categories and see how much is left to spend. It easily downloads your information directly from your bank automatically. Best of all, it can be accessed from ANYWHERE - including your cell phone.

I’d highly recommend at least giving it a try with their FREE 30 day trial. Just cancel at the end of the 30 days and you’re done. Or continue using it if you really love it and it works for you.

Lynnae at beingfrugal.net has surprised me and tagged me for this little exercise of 5 Classes to Fix My Life.

Here are the rules for the meme:

“Devise a list of 5-10 courses you would take to fix your life. It’s more fun to be in classes with friends, so include one class from the person who tagged you that you’d also like to take. Tag five.”

1. Plumbing 101 - We can be in this class together.  I don’t want to talk about how many leaks I’ve turned into floods because I didn’t know what I was doing.  I do know how to change the flap in the toilet though, so maybe I can skip the introductory class and go to intermediate.
2. How To Shut Up While You’re Ahead 101 - Need I say more?  “Better to remain quiet and appear the fool, than open your mouth and remove all doubt.”
3. Nixing Impulse Buys 101 - One of my absolute biggest weaknesses are those little impulse buys that they put right there in the checkstand.  Oh, and the candy aisle.  On day one they can teach me how to say no to little Mr. Candy Bar who jumps into my basket.
4. Just Say No 101 - This is a co-requisite to the above class.  In this course, though, you learn how to say no to the PEOPLE who ask you to do things that you just can’t do.  The second half teaches you to say YES to the things you should be doing - like taking a nap.
5. Time For Yourself 101 - The house will not implode, self destruct or otherwise fall apart if I were to take some time off to relax and kick my feet up.  Now I just have to keep repeating it and maybe I’ll believe it.  Must R-E-L-A-X.

Ok, sadly - I do not know five blogging people to tag - yet.  Sooooo….I will use this opportunity to get to know some people hopefully.  Ok, if you’re reading this - then YOU’RE IT!

I’ve seen a few discussions regarding the difference between being frugal and being cheap. Just this morning I read Crossing the Line: When does frugal become cheap? and again it got me thinking about some of the crazy things people will do to save money. But, there is a bigger issue to think about. When does being frugal become illegal? Here are 5 ways:

1. Downloading software/music/movies for free. Yes, a lot of software, CDs and DVDs are outrageously priced, but that does not make it legal to obtain them for free through shady sources. And no, just because everyone else is doing it doesn’t make it legal either. That is, of course, unless the thought of the FBI knocking on your door excites you. INSTEAD: Obtain used software at yard sales, eBay or from friends. Music can be downloaded from iTunes for 99 cents a song. Or find a video store that will rent movies for a buck. Vongo might be another good choice for you if you rent a lot of movies each month.
2. Creative accounting on your income taxes. This is especially tempting for those of us who are considered independent contractors. The more deductions you have, the less tax you pay on your income. Weigh the options - save a little money and worry about Uncle Sam knocking on your door or pay the taxes you rightfully owe. INSTEAD: Know what you can and can’t deduct - there are probably many categories that you overlook. Save receipts and keep good records and hopefully Uncle Sam won’t bother you.
3. Getting a “special” cable box from a friend. A word of advice - cable boxes typically come from the cable company. If you’re buying one from a friend, chances are good that you’re doing something illegal. I’m sure you’re saving lots of money - but is it worth the risk of getting caught? INSTEAD: Look into lower priced alternatives to your local cable company. Satellite companies tend to cost less and their packages have the premium channels you want.
4. Knowing the cashier didn’t charge you for something. You’re watching the cashier scan your items and she accidentally skips one. SCORE! There’s $9.99 you just saved! Oh, but wait…what do you do when you walk out the door, the alarm goes off and the item is not on your receipt? I think they might use the word “shoplifting” a few times. “Prosecution” might even be mentioned. INSTEAD: Don’t buy what you can’t afford. If you really really want something, comparison shop and find it on sale. Then, when the cashier forgets to scan it, you can remind her. No police involvement, no embarrassment.
5. Borrowing supplies from work. I think people use the word borrow to help justify their actions. A ream of paper - $2.50, a pack of pens - $1.99, highlighters - $2.99. Bail because your employer turned you in for stealing - $1000. INSTEAD: If Walmart is too pricey for you, check our your local dollar store. They typically have these supplies for - you guessed it - A BUCK!

So, please, before you do something that may be considered unethical or illegal - think about it. Are the consequences worth what you might save?

For some reason, making your own laundry detergent seems to be a popular thing to search for and it’s a topic that people have lots of questions about. Let me tell you about both sides of this coin and you can make your own decision.
There are three main points to take into consideration when trying to decide if making your own laundry detergent is the right decision for you - cost, how well it works, and ease of making it.

Cost

As I’m sure anyone who does laundry knows, the price of good laundry detergents can be pretty outrageous. So, I guess this logically becomes one of the areas where people want to save money. According to Trent at The Simple Dollar, his recipe had a cost of about three cents per load opposed to the economy size of leading detergents costing about 30 cents per load. On the other hand, the startup cost can turn some people away. Be prepared to spend between $10 and $20 to get started. Remember, you save money because the price per use is lower and your ingredients will make several batches.

Jill Cooper writes a great article (Demystifying the Great Laundry Detergent Dilemma) which really makes us stop and analyze WHY people want to save money on something like laundry detergent. Is it really the cost of laundry detergent that we’re trying to cut back on - or have we overspent in so many other areas of our life that this is one of the only places where we still have control? Perhaps making your own detergent is not the answer to saving money, but rather cutting back on the amount of laundry that you do.

How Well Does it Work?

Here is a question that will definitely give you a variety of opinions. Some say it works wonderfully and easily replaces their more expensive brand. Some say that it doesn’t take out tough stains, especially those that children are prone to get on their clothing. And yet others say that it works well for awhile, but then later clothes start to look dingy and dirty. I think a lot of the responses are going to depend on the ingredients that were used to create the detergent and the laundry habits of the person using them.

Ease of Making It

All in all, the process of making laundry detergent is fairly simple whether you are making powder or liquid. Shave some Fels-Naptha Laundry Bar Soap, mix some water, measure some washing soda. You would just have to be careful during the parts that involve heat and sharp objects. It doesn’t seem too terribly time consuming either, but for those of us with children, the time and energy may not offset the cost savings.

In Conclusion

The initial cost of buying supplies may be a little more than you are used to paying for your laundry detergent, but the cost per use is definitely lower. If you decide this is right for you, make sure you are buying quality ingredients so that you will not have any issues with your clothing not getting clean (and staying clean!). And lastly, and probably most importantly, do you have the time necessary to create the detergent?

For me personally, I choose to buy commercial detergent and would rather save money by doing less laundry.

Give It a Try!
Here are links to recipes for liquid detergent:
The Simple Dollar - How to Make Your Own Laundry Detergent
Inexpensive Homemade Laundry Detergent Recipe
Brown-bag Blog: Make your own Laundry Detergent

Inspired by the article 25 Ways I Save Money by Dawn.

1. Keep the air conditioner/heater turned down.
2. Use less water by installing a low flow shower head.
3. Air dry clothes when I can (especially large blankets & jeans which take forever to dry).
4. Keep my dryer filter clean and my change my furnace filter regularly.
5. Turn off lights/appliances when I’m not using them (just today I had go around after my husband and kids and turn off SEVEN lights).
6. Keep the tires on my car inflated to the proper level.
7. Use the air conditioner in my car sparingly.
8. Keep my car tuned up.
9. Use the cruise control whenever possible.
10. Try not to let my car idle anymore than I have to.
11. Shop at the Dollar Store BEFORE I shop anywhere else.
12. Catch movies on video rather than in the theater.
13. Buy books from thrift stores for a buck.
14. Get magazines from retailers who give me an extra 10% off.
15. Order fast food off the dollar menu.
16. Make my grocery list based on which foods are on sale that week.
17. Make my own snack packs by putting cookies and chips into small snack bags.
18. Make lunches out of leftovers from the night before.
19. Drink water instead of soda (ok, I wish I could do this more, but I’m an ADDICT).
20. Eat fruits and veggies that are in season.
21. Save Starbucks for special occasions
22. Split a meal with my kids when we eat out.
23. Clean everything with vinegar and water (the stuff is amazing!).
24. Recycle all of our plastic, glass and aluminum.
25. Regift anything that I receive and don’t need.

If you ask most people what’s on their credit report, they probably have no idea. This is a dangerous thing because not only do credit reports contain errors, but this is one of the only ways to protect yourself from identity theft.

Typically a credit report can cost from $8 - $10 except under certain circumstances (e.g. you’ve been declined credit based on information obtained in a credit report). The small cost probably deters some people from obtaining their credit report, but truly, it shouldn’t. That’s a small price to pay to protect yourself.

The Fair and Accurate Credit Transactions Act of 2003 (FACTA), however, will let more frugal people also obtain a copy of their credit report. It requires the three national credit bureaus - Experian, TransUnion and Equifax to provide consumers with a free copy of their credit report once every 12 months.

What Does This Mean For You?

If you play your cards right, you can obtain a copy of your credit report all year long. Just get a copy from Experian in January, Equifax in May and TransUnion in September (or any way you want to do it). The point is to get one report every four months.

You can obtain a copy of your report online, by phone or by mail. If you request it online, you will have to answer some security questions to verify your identity. When I requested my last report, the questions were regarding my car loan (who financed me and how much the loan was for). Sometimes they’ll ask you which county you live in or if you’ve ever lived on a certain street. It’s a multiple choice questionnaire so you shouldn’t have too much trouble with it.

Get Your FREE Credit Report NOW!

www.annualcreditreport.com

And, as a side note, please do not get scammed into visiting a look-alike site. There are many malicious people who are just waiting for you to visit their site so that they can sucker you out of your money. If you’re in doubt - visit http://www.ftc.gov/freereports and follow the link on that site to make sure you get to the correct page.

You’ve probably always heard that there’s no such thing as a free lunch. Or that you can’t get something for nothing. And the cliche list goes on and on. Well…I just wanted to share a little something with you that can almost prove those phrases wrong.

I’ve been a member of My Points for almost 10 years (and I cross my heart and hope to die that they are legit). They send emails to you at your preferred frequency and you click a button at the bottom of the email to say that you’ve read the email. From there, you receive 5 or 10 points just for reading the email and many times you’ll receive even more points for taking advantage of the offer in the email.

Very very simple and does not consume much time. After you’ve accumulated enough points, you can redeem them for gift cards to various merchants, restaurants, gas stations, etc. It used to take a couple of weeks before you would receive your card, but during my last redemption about a week ago, it only took 2 days to receive my $25 gift card for Walmart!

So, as you can see - I did indeed get something for nothing…ok, almost nothing.

Check it out here: Join MyPoints NOW!

Typically, when people think of opening a savings account, they think of sitting in a bank waiting for a representative to help them.  Well, welcome to the 21st century!  You can now open a savings account from the comfort of home (and you can wear your PJs if you’d like).

One of the easiest, and most well know online savings banks is ING Direct.  Some of the features/benefits of this account are:

• No minimum balances (I can attest to this.  I have exactly $1.11 in my account)
• No fees or service charges
• Direct deposit is not required
• High interest (4.30%!)
• Automatic savings (It can come straight out of your current bank account)
• Access your account online 24/7
• FDIC insured

To get started, you just have to fill in an application that contains personal information about yourself.  Next you will have to agree to the terms and conditions.    Then you’ll make a transfer from your current bank account to fund the opening balance.  And lastly, you review your information and finalize your account.

It’s super easy!

Make sure to have your checkbook handy during the process (or memorize your routing number).  You’ll need the routing number to make the initial transfer of money.  ING will also make two small deposits in order to verify that the account belongs to you.  Once your initial deposit has been made, it will take a few days to link to your current checking account.  Then, your account will be frozen for 10 days before any withdrawals can be made.

All in all, I think this is a wonderful service and obviously I highly recommend it.

Everyone knows that the price of gas has been outrageously high, even despite the ups and downs it has had over the last year or so. Because most of us have no choice but to use our vehicle, we must find ways to save on gas before it bankrupts us.

1. Check your tire pressure and make sure it is at the proper level. Most tires will have the proper pressure (listed as PSI) written on the tire itself. Otherwise, you can check the owner’s manual or look for a sticker inside of one of the door frames. If your tires are cool, leave the tires a couple of pounds low to allow for expansion when they heat up.
2. Have the oil changed regularly. Most manufacturers recommend an interval range from 3000 miles to 7000 miles or 3 to 6 months. Also, when you have your oil changed, make sure you are using the proper weight oil. If in doubt, ask your mechanic (there are too many factors that can influence the brand/weight of oil to use).
3. Change your air filter regularly. This is a very inexpensive maintenance item and should be changed as often as the manufacturer recommends. **A heads up to those of us here in fire prone areas - change your air filter more often because smoke and soot will clog it up!
4. Drive the speed limit. Just 5 or 10 miles over the speed limit can really add up! Just watch out for the impatient drivers who may be behind you wanting to do 90mph on the freeway.
5. Accelerate slowly. Not only will you save a ton of gas, but you’ll avoid giving yourself and your passengers whiplash.
6. Use cruise control. In conjunction with #4 and #5, using the cruise control while on the freeway makes sense. For safety’s sake, only use it when you are in free flowing traffic.
7. Don’t let your car run idle. If you know you’re going to need to be idle for more than one minute, turn the engine off. There’s also no reason to “warm up” your vehicle in the morning. 30 to 45 seconds should do just fine.
8. Tighten your gas cap. Most caps will click 3 times - otherwise, you’re letting your liquid gold gasoline vaporize into thin air (literally).
9. Empty your trunk. Excess weight of items being stored in the trunk can significantly decrease your gas mileage.