I know people like quick fixes to their money problems. I personally think many money issues could be avoided in the first place with a well established emergency fund. But where do you begin if you don't even have one?
You have probably read about having a garage sale, or saving your change. Not bad ideas if the weather was warm and you have lots of things to sell. And as I have mentioned there is the 52 Week Savings Challenge that many are participating in. And on my Savings Advice Blog, I have been tracking snowflakes as a way to build up cash. Those sources of income come from many places, which you can read about over there.
I ran across a new idea for you today. This might be one single way to increase your savings. I found the explanation on this blog, The Simple Dollar. It is called $4 Per Gallon Savings. You basically charge yourself $4 for every gallon of gas you purchase at the pump. The amount you save is the difference between the total if you paid $4 and the actual amount you paid. The author of the blog mentioned above explains it in more detail. I think if one could make this idea alone a habit, it could quickly get an emergency fund started. Now if you ride a train or subway, this probably won't work for you the same way. Maybe you could round up your fare by a dollar, each time you ride and save those.
I find it interesting to read about alternative ways of saving. Have you come across any new savings ideas?
Friday, January 31, 2014
Wednesday, January 29, 2014
Frugal Inactions?
I've been keeping my mind open this week for more frugal things we are doing around our home that you might like to hear about. I realized some of the things that are frugal are things we don't buy or don't do. See if you notice those in the list below.
Do you buy some of things I buy, such as tea bags, or dryer sheets? Do you have an alternative? What are some things you don't buy, that many people do?
- Used half a dryer fabric softener sheet for an entire load of laundry.
- Used fabric napkins at dinner.
- Reused my tea bag once each day.
- Borrowed a movie at the library.
- Sent my sister a $5 Starbucks gift card I received for free.
- Used thread from my stash for a sewing project, and get to return the one I bought.
- Used the ends of old bread for breadcrumbs on our Chicken Parmesan.
- Used half the amount of seasoning in a recipe because I ran out. It still tasted great!
- Used a bar of soap that is very, very thin for washing my hands.
- Turned the thermostat setting down 2 degrees more for when we are sleeping.
- Wore long underwear under my jeans in the house so I wouldn't need to increase the temperature in the house.
- Only wore makeup one day this week.
- Used piece of flannel on our Swiffer to pick up dust and hair off the floor. Then tossed in washer.
- Drank water from the tap.
- Reused a mailing envelope to send a package.
Do you buy some of things I buy, such as tea bags, or dryer sheets? Do you have an alternative? What are some things you don't buy, that many people do?
Monday, January 27, 2014
Yes, Stay At Home Spouses Can Get Credit
There was a small period of time where stay at home moms and dads were not able to get credit cards because we did not have employment or income. Well we still don't have those, but currently we are able to use household income as a way of showing a source for paying our debts. I will refer you to this blog post on Million Mile Secrets for the details.
I personally talk to my husband about ALL credit that we open. We are honest and open about where we stand. Of course, it helps that we pay off our debt in full every month so there are really no worries when you know that is how we operate in our home. I would make sure you have an open line of communication with your spouse regarding credit card debt, especially if you are the one at home and looking to open an account in your name. It is only fair and likely how you would like to be treated if the employment situation was reversed.
The really nice thing about being able to open credit as stay at home spouse is that you can take advantage of credit card bonus offers twice! Double cash is good. Do not open credit cards for rewards unless you can pay your balance in full each month and have established this pattern already. We never pay interest on any of our credit cards.
Did you know stay at home spouses were legally able to apply for credit in their own names, but based on the household income?
I personally talk to my husband about ALL credit that we open. We are honest and open about where we stand. Of course, it helps that we pay off our debt in full every month so there are really no worries when you know that is how we operate in our home. I would make sure you have an open line of communication with your spouse regarding credit card debt, especially if you are the one at home and looking to open an account in your name. It is only fair and likely how you would like to be treated if the employment situation was reversed.
The really nice thing about being able to open credit as stay at home spouse is that you can take advantage of credit card bonus offers twice! Double cash is good. Do not open credit cards for rewards unless you can pay your balance in full each month and have established this pattern already. We never pay interest on any of our credit cards.
Did you know stay at home spouses were legally able to apply for credit in their own names, but based on the household income?
Saturday, January 25, 2014
Today's Frugal Habits
I will admit we aren't the most frugal people on the block. When I stop to think about things we do that are frugal, I can come up with several. Here is a peek into some of our frugal habits today.
We made our own coffee at home this morning. Right now we are using Trader Joe's coffee that we received as a gift over Christmas. It is really good. I consider this frugal simply because so many people run to the nearest coffee shop to get their fix of caffeine.
I made a list for the grocery store. I almost always make a list. Do I always stick to it? No. Generally, that is because I forget to put something on the list and then remember at the store that I do need it. Today, I didn't purchase anything that wasn't on the list. I used a few coupons, but otherwise bought generic and used my Target Cartwheel coupons.
We ate all our meals at home. Dinner was homemade pizza. I made the dough from scratch for two very large pizzas. The sauce for one pizza was from a jar, which we recently started using, but we have found it is too salty! The other pizza had leftover barbeque chicken that I had frozen in the freezer and made a point to thaw this morning. I was able to use barbeque sauce, onion and cilantro already on hand. I did buy shredded cheese. One of my goals this year is to get in the habit of shredding our own cheese. I think it is healthier without extra preservatives.
I sent my husband to get a haircut. I didn't technically send him, he knew he needed to go. :) Usually we have coupons from Great Clips, but we were out. I was able to find a competitor coupon for a $9.99, and Great Clips honored it. I noticed this on a sign in their store the last time I was there. That just means more coupons available if I keep my eyes open for them.
My husband is also working on getting ALL the lotion out of the bottle before we open a new one. The last step is to actually cut the bottle open to get the very last of it out. We do this with liquid makeup, hair styling products, shampoo, conditioner, toothpaste, and even laundry detergent. The first time I did this with some gel my daughter uses on her hair, I was shocked at how much was left that she could use. Probably enough for 3 days. Effectively this saves us from buying one bottle of hair styling product per year, which saves $16. Doesn't seem like a lot by itself, but if we use up everything we buy in full it saves us from buying more. We get the full value of our purchase as well.
We kept the thermostat at 69 degrees. I realize this isn't really low, but it was really tempting to increase it with the blowing winds and colder temperatures we were experiencing today. So I counting that as frugal for today. We do have a programmable thermostat which is set to drop to 62 degrees at night in the winter. I should probably try to drop it a bit more this winter to offset the need to have it a little higher in the day time hours.
We did do some shopping today, so I cannot say we spent nothing today. I purchased a pair of Smartwool socks for my sister. I spent about $20 for one pair. I know this seems crazy expensive, but these are socks made of wool that can be worn all year long. They will last years! So well worth it. We also bought three books of stamps today. The rate of First Class stamps is increasing tomorrow from $0.46 to $.049, which is a 6% increase. I bought three books of stamps to cover our needs for at least the next year...maybe more. I also bought some items from Joann's. I made sure to use a 40% off coupon on my most expensive item which was two yards of fabric normally priced at $7.99 a yard. This fabric and part of the rest of the purchase is actually a business expense that will be reimbursed. I helped the buyer out really. :) I suppose the other frugal part of this portion of our day is that we did all of these errands in one trip, so only one time out today in the car.
It's a Saturday night and we are staying in. My husband and I have a $5 bottle of wine and have purchased a movie rental. I like to say the movie was free, but we couldn't find a free one we wanted to watch. Instead we found one for $4 to digitally rent. We could watch it as many times as we want in the next 24 hours, but the likelihood of watching it more than once is slim!
In other frugal news...we used microfiber rags to do our dusting and cleaning. No disposable wipes, just reusable clothes that can be washed again and again.
What frugal thing did you do today? How much did you save?
We made our own coffee at home this morning. Right now we are using Trader Joe's coffee that we received as a gift over Christmas. It is really good. I consider this frugal simply because so many people run to the nearest coffee shop to get their fix of caffeine.
I made a list for the grocery store. I almost always make a list. Do I always stick to it? No. Generally, that is because I forget to put something on the list and then remember at the store that I do need it. Today, I didn't purchase anything that wasn't on the list. I used a few coupons, but otherwise bought generic and used my Target Cartwheel coupons.
We ate all our meals at home. Dinner was homemade pizza. I made the dough from scratch for two very large pizzas. The sauce for one pizza was from a jar, which we recently started using, but we have found it is too salty! The other pizza had leftover barbeque chicken that I had frozen in the freezer and made a point to thaw this morning. I was able to use barbeque sauce, onion and cilantro already on hand. I did buy shredded cheese. One of my goals this year is to get in the habit of shredding our own cheese. I think it is healthier without extra preservatives.
I sent my husband to get a haircut. I didn't technically send him, he knew he needed to go. :) Usually we have coupons from Great Clips, but we were out. I was able to find a competitor coupon for a $9.99, and Great Clips honored it. I noticed this on a sign in their store the last time I was there. That just means more coupons available if I keep my eyes open for them.
My husband is also working on getting ALL the lotion out of the bottle before we open a new one. The last step is to actually cut the bottle open to get the very last of it out. We do this with liquid makeup, hair styling products, shampoo, conditioner, toothpaste, and even laundry detergent. The first time I did this with some gel my daughter uses on her hair, I was shocked at how much was left that she could use. Probably enough for 3 days. Effectively this saves us from buying one bottle of hair styling product per year, which saves $16. Doesn't seem like a lot by itself, but if we use up everything we buy in full it saves us from buying more. We get the full value of our purchase as well.
We kept the thermostat at 69 degrees. I realize this isn't really low, but it was really tempting to increase it with the blowing winds and colder temperatures we were experiencing today. So I counting that as frugal for today. We do have a programmable thermostat which is set to drop to 62 degrees at night in the winter. I should probably try to drop it a bit more this winter to offset the need to have it a little higher in the day time hours.
We did do some shopping today, so I cannot say we spent nothing today. I purchased a pair of Smartwool socks for my sister. I spent about $20 for one pair. I know this seems crazy expensive, but these are socks made of wool that can be worn all year long. They will last years! So well worth it. We also bought three books of stamps today. The rate of First Class stamps is increasing tomorrow from $0.46 to $.049, which is a 6% increase. I bought three books of stamps to cover our needs for at least the next year...maybe more. I also bought some items from Joann's. I made sure to use a 40% off coupon on my most expensive item which was two yards of fabric normally priced at $7.99 a yard. This fabric and part of the rest of the purchase is actually a business expense that will be reimbursed. I helped the buyer out really. :) I suppose the other frugal part of this portion of our day is that we did all of these errands in one trip, so only one time out today in the car.
It's a Saturday night and we are staying in. My husband and I have a $5 bottle of wine and have purchased a movie rental. I like to say the movie was free, but we couldn't find a free one we wanted to watch. Instead we found one for $4 to digitally rent. We could watch it as many times as we want in the next 24 hours, but the likelihood of watching it more than once is slim!
In other frugal news...we used microfiber rags to do our dusting and cleaning. No disposable wipes, just reusable clothes that can be washed again and again.
What frugal thing did you do today? How much did you save?
Friday, January 24, 2014
Play With Your Tax Refund: Calculators
I wrote a post quite awhile back on my Savings Advice blog about checking your withholding, especially if you generally receive very large refunds. The post is on this blog too, here . I think tax season is a good time to evaluate whether getting a large refund is really worth it. We have had our share of them over the years. In the beginning, I just couldn't figure out how to avoid them. It just happened it seems. Well, in truth not really in most cases. It really comes down to knowing how to calculate how much you should have withheld based on your expected salary and other factors. The IRS has a calculator to help you figure this out. And it is free!
If you are trying to take control of your finances and get out of debt, this change to your withholding could actually mean more money in your pocket each time you are paid! That means you would have MORE money to work with each month to pay down those debts. It could mean getting a debt paid off sooner, and paying less interest on that debt. That would be a huge relief to me personally.
Now, I'm going to call you out. Somebody reading this is saying to themselves "but I won't have a big refund in February, and I wanted to buy X." Really? You want to stay in debt and have more stuff? Yes, I get a new sofa, bathroom makeover, vacation, Playstation, or carpet all sound really good. But you really, really need to look and see if that item is something you would have bought at any other time of the year. Would you have spent the amount equal to your refund last June for that same thing you want? Why not? Oh, you are in debt and don't have any money? Who's money do you think this is that is coming to you in this big lump sum? It is YOUR money. You do have that money, but you have been sending it to the government who doesn't need it for free each month and letting them hold it for you, again for FREE. Banks actually pay you interest if you park money with them.
The average tax refund is $2,651. If you had that money in your pocket each month you would have an additional $220.92. Nice huh? What would you do with it if you were receiving that much EXTRA each month? I suppose some could go to that debt goal you might be working on. Maybe you could increase your emergency fund with a little. Or even save some for that thing you want to get. If there were four goals you are working on, you could just divide that extra in fourths and use over $55 each month towards meeting each of them at the same time.
I challenge you to consider how you could plan your finances if you had that extra refund money in your hand each month. It's okay to dream about it. Think and ponder it. Mull it over. Get excited! Okay, and a little scared knowing there probably won't be a big refund the next year. If you get an emergency fund set up, you will have money to fall back on every month, rather than waiting for that one time per year to save you. There really is freedom and security in having less debt, and more savings. Again, I dare you to at least try the process on paper of changing your withholding (on the W4) and planning your budget with more money in your pocket each pay period.
Tell me about how it goes. Did it make you feel motivated with your goals? Were you excited or scared?
P.S. If you need help calculating your net paycheck amount based on the new withholding amount, check out Paycheck City for a free calculator for hourly and salaried workers.
If you are trying to take control of your finances and get out of debt, this change to your withholding could actually mean more money in your pocket each time you are paid! That means you would have MORE money to work with each month to pay down those debts. It could mean getting a debt paid off sooner, and paying less interest on that debt. That would be a huge relief to me personally.
Now, I'm going to call you out. Somebody reading this is saying to themselves "but I won't have a big refund in February, and I wanted to buy X." Really? You want to stay in debt and have more stuff? Yes, I get a new sofa, bathroom makeover, vacation, Playstation, or carpet all sound really good. But you really, really need to look and see if that item is something you would have bought at any other time of the year. Would you have spent the amount equal to your refund last June for that same thing you want? Why not? Oh, you are in debt and don't have any money? Who's money do you think this is that is coming to you in this big lump sum? It is YOUR money. You do have that money, but you have been sending it to the government who doesn't need it for free each month and letting them hold it for you, again for FREE. Banks actually pay you interest if you park money with them.
The average tax refund is $2,651. If you had that money in your pocket each month you would have an additional $220.92. Nice huh? What would you do with it if you were receiving that much EXTRA each month? I suppose some could go to that debt goal you might be working on. Maybe you could increase your emergency fund with a little. Or even save some for that thing you want to get. If there were four goals you are working on, you could just divide that extra in fourths and use over $55 each month towards meeting each of them at the same time.
I challenge you to consider how you could plan your finances if you had that extra refund money in your hand each month. It's okay to dream about it. Think and ponder it. Mull it over. Get excited! Okay, and a little scared knowing there probably won't be a big refund the next year. If you get an emergency fund set up, you will have money to fall back on every month, rather than waiting for that one time per year to save you. There really is freedom and security in having less debt, and more savings. Again, I dare you to at least try the process on paper of changing your withholding (on the W4) and planning your budget with more money in your pocket each pay period.
Tell me about how it goes. Did it make you feel motivated with your goals? Were you excited or scared?
P.S. If you need help calculating your net paycheck amount based on the new withholding amount, check out Paycheck City for a free calculator for hourly and salaried workers.
Tuesday, January 21, 2014
Free and Low Cost Tax Filing Options
Isn't it bad enough that we have to file a tax return in the first place, but it has become so complicated we need software to file many types of returns and generally have to pay for it? I'm really not complaining, but it does seem it has become more complicated and more costly.
First of all, if you income is below $58,000 per year you actually shouldn't be paying anything in order to file your taxes. The IRS has offered Free File in the past and is doing so again this year. The best way to find the free programs you are eligible for is to link directly to the IRS and click on the Free File tab. Or here is the link where that tab will take you. You definitely get to e-file your Federal return for free. It could be a different story based on your state, so look over your options closely before you get started.
If you are military, there are often options available specifically for you that may be entirely free. There may be some caveat that you need to have served in a combat zone, so make sure the free option really applies. If you aren't military, it is good to consider if your bank, professional organization, church or community offers a service for free preparation and filing. Do your homework...google lots of possibilities!
For those of us with incomes over $58,000 per year, there are still relatively inexpensive ways to prepare and file your income tax returns. Most of them are online services. In fact, I would completely avoid any in package software discs you might find in the store, unless you do not have internet access or the software comes with a rebate lending the software free! I have used TurboTax, TaxAct, HRBlock, and several other services. I know some people don't like to switch because last years information is often imported if you use the same service. I personally am happy to switch if I can get the service free or cheap. It doesn't take much time at all to input the information again.
Last year I was tipped off about another service called FreeTaxUSA (I don't get any referral bonus for saying this). The charge was free to complete and efile the federal return, and just $9.99 for the state. This year the Federal return is still free, but the state return is now $12.95. This is a very good price, but you can get it lower! If you use a coupon site, check to see if there is a coupon that will reduce the price you pay for this or tax service you end up using. I happen to know that Ebates has a coupon for 25% off FreeTaxUSA, with coupon code FREETAXUSA25, good all the way until November 1, 2014 (yes, even available for you late filers!). And if you connect through your Ebates account, you can also get 25% cash back. If I did my math right this brings your final cost after the rebate to $7.28. That is pretty good if you want the software and ability to efile your return. If you don't have an Ebates account, you can sign up here.
Right now I plan to use FreeTaxUSA, unless I find a better deal. If I do, I'll let you know!
Do your homework. Look around for the least expensive way to do your taxes that you feel comfortable with! Do you have any other good tax preparation services to share with others? Please leave them in the comments for others to check out.
First of all, if you income is below $58,000 per year you actually shouldn't be paying anything in order to file your taxes. The IRS has offered Free File in the past and is doing so again this year. The best way to find the free programs you are eligible for is to link directly to the IRS and click on the Free File tab. Or here is the link where that tab will take you. You definitely get to e-file your Federal return for free. It could be a different story based on your state, so look over your options closely before you get started.
If you are military, there are often options available specifically for you that may be entirely free. There may be some caveat that you need to have served in a combat zone, so make sure the free option really applies. If you aren't military, it is good to consider if your bank, professional organization, church or community offers a service for free preparation and filing. Do your homework...google lots of possibilities!
For those of us with incomes over $58,000 per year, there are still relatively inexpensive ways to prepare and file your income tax returns. Most of them are online services. In fact, I would completely avoid any in package software discs you might find in the store, unless you do not have internet access or the software comes with a rebate lending the software free! I have used TurboTax, TaxAct, HRBlock, and several other services. I know some people don't like to switch because last years information is often imported if you use the same service. I personally am happy to switch if I can get the service free or cheap. It doesn't take much time at all to input the information again.
Last year I was tipped off about another service called FreeTaxUSA (I don't get any referral bonus for saying this). The charge was free to complete and efile the federal return, and just $9.99 for the state. This year the Federal return is still free, but the state return is now $12.95. This is a very good price, but you can get it lower! If you use a coupon site, check to see if there is a coupon that will reduce the price you pay for this or tax service you end up using. I happen to know that Ebates has a coupon for 25% off FreeTaxUSA, with coupon code FREETAXUSA25, good all the way until November 1, 2014 (yes, even available for you late filers!). And if you connect through your Ebates account, you can also get 25% cash back. If I did my math right this brings your final cost after the rebate to $7.28. That is pretty good if you want the software and ability to efile your return. If you don't have an Ebates account, you can sign up here.
Right now I plan to use FreeTaxUSA, unless I find a better deal. If I do, I'll let you know!
Do your homework. Look around for the least expensive way to do your taxes that you feel comfortable with! Do you have any other good tax preparation services to share with others? Please leave them in the comments for others to check out.
Monday, January 20, 2014
Tax Prep
I have been doing my own taxes since I had my first job at sixteen. I had to use paper forms, instructions and a pencil. I think I may have lucked out and been able to do the EZ form a couple times, but at some point I switched because of investment income. At least that is my memory...I could be wrong.
This time of year, I start keeping my eyes open for available tax forms in the mail, or notifications of availability by email. For those that arrive on physical paper, I have a file labeled 2013 Taxes (original I know). I also have a folder on my laptop with the same label, where I download donation receipts and tax forms. Both of these files were likely started sometime in 2013. Ideally, I should have started it right at the beginning of the year. It just doesn't always happen. In fact, I don't yet have a 2014 file.
I will admit I am a little partial to my physical folder. I usually write on the inside of the file folder a checklist of documents needed for filing. Once I have all of them in hand, I know I can start our taxes without much delay. My list this year includes the following:
My intention is to file online, as I have been doing for many years now. It makes it so easy...at least if the software is set up correctly. I've had at least two years where I have had to switch companies before filing because their software didn't do the calculations correctly. That sure doesn't give me faith to try them again in the future. I hope to have our return completed by the end of the week, as I am expecting I will have all the documents I need at that point. If we owe, I will not be too quick to send in our money early!
Do you have a system in place for getting your taxes ready for filing? Do you file your own taxes? Anyone still file by snail mail? Come back tomorrow, and I'll write up a few tips for finding low cost or free tax filing software.
This time of year, I start keeping my eyes open for available tax forms in the mail, or notifications of availability by email. For those that arrive on physical paper, I have a file labeled 2013 Taxes (original I know). I also have a folder on my laptop with the same label, where I download donation receipts and tax forms. Both of these files were likely started sometime in 2013. Ideally, I should have started it right at the beginning of the year. It just doesn't always happen. In fact, I don't yet have a 2014 file.
I will admit I am a little partial to my physical folder. I usually write on the inside of the file folder a checklist of documents needed for filing. Once I have all of them in hand, I know I can start our taxes without much delay. My list this year includes the following:
- My husband's W2
- 1099 - INT from all banks we earn interest from
- 1099 - R (for a rollover of IRA money...will not be taxable)
- 1098 from mortgage company with interest and real estate taxes paid
- Donation receipts
- Vehicle property tax amount
My intention is to file online, as I have been doing for many years now. It makes it so easy...at least if the software is set up correctly. I've had at least two years where I have had to switch companies before filing because their software didn't do the calculations correctly. That sure doesn't give me faith to try them again in the future. I hope to have our return completed by the end of the week, as I am expecting I will have all the documents I need at that point. If we owe, I will not be too quick to send in our money early!
Do you have a system in place for getting your taxes ready for filing? Do you file your own taxes? Anyone still file by snail mail? Come back tomorrow, and I'll write up a few tips for finding low cost or free tax filing software.
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