Spending too much? Try cash

Posted by Tad Johnson - Apr 21st, 2008 at 21:04

First, a short story :

When I was a sophomore in high school, I wanted a CD burner very badly. This was back in the late nineties, and CDs were still a hot commodity (as the iPod was still just a glimmer in Steve’s eye). I went to BestBuy with some friends and found an open box burner for a [then reasonable] $130. I didn’t have a credit card, so I went to the ATM and pulled out seven crisp, $20 bills. I paid for the drive in cash and walked out a happy man.

Holding that much money ($140 was a lot of mowed yards) in cash makes you appreciate the amount–much more than a quick credit card transaction. I still spent it, but it made me really think hard about the purchase. And, it made me really value what I had bought (I made legal copies of all my store-bought CDs, naturally).

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This is a personal finance hack that you can use at any age. If you’re having trouble tracing down where your money is going, try switching to cash for awhile. You get instant feedback on your spending as you watch your wallet shrink.

I’ve written before about the benefits of using credit cards, but that’s only after you’ve mastered the art of personal finance and budgeting. Going on a cash-only plan for a few weeks is the perfect crash course to get your finances back in shape.

Save 17 cents per gallon

Posted by Tad Johnson - Apr 15th, 2008 at 22:04

You may have detected a theme as of late : gasoline is getting really expensive. On these pages, I’ve offered a silver lining to the escalating costs as well as some ideas to keep the costs down. Here’s another that fits into the latter category.

Get a credit card that offers at least a 5% rebate on gasoline purchases.

These come in a few shapes & sizes. Some are co-branded by a particular oil company (I carry a BP Visa card) while others are more generic (all the majors offer some flavor of gas rebate cards). Since gas is in many ways a fixed, recurring expense (assuming your driving patterns don’t vary too wildly) it makes sense to take advantage of these rebate offers. At $3.50/gallon, a 5% rebate is like saving 17 cents per gallon. Not bad!

As with any credit card rewards program, be sure that you don’t carry a balance month to month. These cards generally charge a higher interest rate to support their rebate offers, so a few months with a balance could easily wipe out a year’s worth of rebates.

http://www.rewardscards.com/gas-rebate-cards-ranked.asp

Gas Rebate Cards ranked via kwout

Energy Savings : Fill the Freezer

Posted by Tad Johnson - Apr 2nd, 2008 at 18:04

Your refrigerator is probably the biggest electricity user in your kitchen. With energy costs going up, you don’t want it to work any harder than it has to. Fortunately, there are some very easy ways to keep it running efficiently :

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  1. Replace the ancient model. If you’ve had the same refrigerator for 20 years or more, it’s time for an upgrade. Newer models are so much more efficient that they pay for themselves in energy savings in just a few years.
  2. Keep it clean. There’s a reason your fridge has wheels–you need to clean behind it every month or two. Dust buildup prevents even heat transfer, making it work harder.
  3. Fill the freezer. You want your freezer about 90% full for optimal efficiency. If you keep lots of frozen foods on hand, great. If not, fill the extra space with something easy, like ice. I fill up my empty milk cartons with water and place them in the freezer. If I need the space, I’ll just empty a few and throw out the cartons.

Remember, saving energy not only saves you money, it benefits the globe. Don’t let your fridge be an energy hog!

The Budget Theater

Posted by Tad Johnson - Mar 24th, 2008 at 20:03

Even with all the media alternatives, I still enjoy the good old fashioned movie theatre. There’s something comforting about the sticky floors, the warm popcorn, and the giant screen. The problem is, tickets have gotten expensive.

movie-tickets-popcorn.jpgGone are the days when you and a date could view a movie and get snacks for under $20. (At that price, you could buy the DVD!) Fortunately, there’s an easy alternative : the budget theatre.

Here in Milwaukee, the budget theatre costs a whopping $2 for a ticket ($1 on Tuesdays) and plays second-run movies–usually just before they’re released on DVDs.

Is it worth waiting a month to see that new movie? I sure think so. Since I’m a regular budget-theater-goer, I’ve more or less adjusted my internal movie release clock (after all, they’re all new movies until you see them!)

Saving a few bucks on a movie ticket isn’t going to make you a millionaire alone, but it’s just another example where a little patience can save you a bundle in the long run.

New from Amazon : Subscribe & Save Subscription

Posted by Tad Johnson - Mar 21st, 2008 at 7:03

Everyone’s favorite book music movie everything store (Amazon) has a pretty great deal on groceries : subscribe to your favorite items and they’ll deliver them automatically on a set schedule and give you 15% off and free shipping. Not bad for a vicenarian on a budget!

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There’s my first (and only) subscription. I eat a lot of Clif Bars, and they are kind of expensive in the store (usually ~$1.15/each). Between the bulk discount and the 15% subscription discount, I’m getting them for $0.85 a piece! Plus, they’ll magically arrive at my door every two months. Thanks, Jeff Bezos!

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