Showing posts with label Ways to Save Money. Show all posts
Showing posts with label Ways to Save Money. Show all posts

Wednesday, July 22, 2015

The Trouble with Having an Emergency Fund

Emergency Fund- Bad Advice?



I have read on many personal finance blogs that the way out of debt starts with building a cash emergency fund, with a goal of being able to cover several months of expenses using your emergency fund.

Although this may work well for some, for me there are several problems with this approach.

First off, I don't want to park this kind of cash in a savings account making 0% interest!  Let's say several months of living expenses amounts to $10,000.  If you keep this in savings account for 30 years at 0.85% interest, you'll end up with $12,903.  If you invest this money instead and get an 8% return, you'll end up with $109,357.  So having the cash emergency fund would cost you around $100,000!  You can run the numbers yourself on my savings calculator.

Not everyone who recommends having an emergency fund recommends keeping $10,000- I just wanted to pick out a number to make my point.

The next problem I have with building a cash emergency fund while you have credit card debt- if you have credit card debt at 20% interest, paying that down seems to me to me to be the best use of any available funds.  It would be hard for me to look at money sitting in a savings account and not pay down high interest credit cards.



My third major problem with advising people to build up lots of cash and keep it around- it would be tempting to spend it!  Even if you have credit card debt, if you have $10,000, or even $2,000 sitting in a savings account, I think many people would be tempted to spend it if the right opportunity came along.  Maybe a fun project car to fix up, or getting in on a special vacation offer, etc.  If you have $0 savings and mostly maxed out credit cards, it is harder to spend more money and you won't forget that you are in debt.  If you have money sitting around not being used, I think it would be at risk for unplanned spending.

In Case Of Emergency...

So, what if you don't have an emergency fund and a financial emergency comes along?  No matter how much you have in an emergency fund, something could happen that would take more money than you have saved up.  In this case, you would end up using credit or borrowing from your retirement fund to pay for the emergency.

This is not good, but I think most people would be further ahead focusing on paying down credit cards and building investment funds rather than parking cash in an emergency savings fund.  Hopefully that emergency won't happen, but if it does happen while you are still paying down credit card debt, you'll have some funds build up in investments and some credit cards paid off that will be resources to get through the emergency.

Is Putting Money In an Emergency Fund Bad Advice?

I discussed my concerns about emergency funds with a popular blogger, Chris Peach at Money Peach.  He replied that from the math perspective, my objections to advising people to set up an emergency fund make sense.  But from a behavioral perspective, getting people to develop the discipline to save money and watch that savings account grow is powerful and can change behavior.  Plus having a cushion can help people avoid charging more on their credit cards.

I think Mr. Peach had a nice comment when he said I can be right on my blog and he can be right on his blog.  Nicely said.  From my perspective, setting up an emergency cash fund when you could be paying down high interest debt or investing with a historical average return of around 9% doesn't make much sense.  But if you are trying to change your behavior and get away from depending on credit cards, maybe setting up an emergency fund could help.



Even with my reservations about putting a lot of cash in an emergency fund, I do keep cash around.  What if the electronic networks go down and credit cards don't work for some reason?  I like to have enough cash to cover a couple weeks of food and gas at least in case of a disaster.

In conclusion, having cash at home or in a saving account has a cost.  If you have credit debt, you could be getting a 20% return on the money.  If you invest in stocks, you could be getting a 9% historical average return over the long run.

From the perspective of optimal financial results, I would recommend people with credit card debt to pay into an emergency fund only if this will help control credit card spending.  Otherwise, use all available funds to pay down the high interest debt and at the same time invest some money in stocks.   I would suggest saving up enough cash to cover basic expenses for a few weeks to survive a disaster.


Copyright © 2015 by Dr. Penny Pincher.  All Rights Reserved.  Privacy Policy

Monday, July 13, 2015

Pants Are Not Optional At Work!

When Pants Are Required... Quickly


What To Do If Your Pants Fail At Work!
What To Do If Your Pants Fail At Work!
Image Source: Dr. Penny Pincher

Sometimes at work I get a memo with a dress code for a meeting that says something like "shirt and tie".  I always joke that pants must be optional...

Last week, I was wearing some 20 year old pants at work and they failed badly.  I don't like to spend money on clothes, but my career is my most valuable asset, and I couldn't very well go walking around with my fly fully open all day!

I briefly considered some options to repair my pants with office supplies such as tape or staples.  I saw lots of opportunities to make a bad situation worse and decided not to repair my pants with office supplies.

The next option I considered was to drive home and change pants.  There were two problems with this.  First, I didn't have that much time- it would take me at least an hour to drive home, change pants, and drive back.  The next problem was that it would take a couple gallons of gas and put about 40 miles of extra wear and tear on my car.

So, I decided to run to the Kohl's store that was a few blocks away.  I had a Kohl's coupon in my car, and Kohl's has some great clearance bargains.  Kohl's was a natural choice.  I slipped out of my office before anyone saw my problem pants and soon arrived at Kohl's.

Clearance on Clothes at Kohl's- 80% Off
Clearance on Clothes at Kohl's- 80% Off
Image Source: Dr. Penny Pincher

The first pair of bargain pants I picked up had a waist of 40 inches and length of 30 inches.  Not even close!  After about 1 minute of scanning and looking for my size, I found some nice Dockers brown corduroy pants in just the right size: 34W, 34L.  And they were priced at $5.80.  With my coupon, the total ended up at $5.28.

Receipt For Emergency Pants
Receipt For Emergency Pants
Image Source: Dr. Penny Pincher

I wasn't planning to spend $5.28 on clothes, so this is $5.28 of extra spending, but all things considered things turned out pretty well.  I could have missed an hour of work and spent money on gas for an extra trip home, or I could have used office supplies to repair my pants which may have looked ridiculous.

I wonder how long a pair of brand new Dockers corduroy pants will last?

Copyright © 2015 by Dr. Penny Pincher.  All Rights Reserved.  Privacy Policy

Sunday, June 28, 2015

Making My Old Shoes Like New Again

Shoe Wash Today!  I saved over $50...

Wash Your Shoes Instead of Throwing Them Away!
Wash Your Shoes Instead of Throwing Them Away!
Image Source: Dr. Penny Pincher

I have not worn my "good" tennis shoes for a few weeks.  The cat decided to spray them, so I set them outside to get some sun and rain for awhile.  These shoes are a couple years old and have small holes in them, so I thought getting sprayed by my cat might be the end for them.

But these are some of the nicest tennis shoes I have ever owned.  I originally bought them for my son for $25 at Famous Footwear, but they weren't quite right for him.  I was going to take them back to the store, but that would take a driving trip and I needed shoes and liked these.  They were a size too small, but $25 was a great deal, and like I said, I needed shoes...

That was 2 years ago, and the shoes have been great.  They are very lightweight and have memory foam.  I decided to wash these shoes the old fashioned way and try to get another year of life from them.


I Washed My Shoes- No Need to Throw Them Away!
I Washed My Shoes- No Need to Throw Them Away!
Image Source: Dr. Penny Pincher
My son also had a pair of shoes in the same situation (darn cat!).  I set the shoes on the grass and blasted them with a hose.  Then I put the shoes in a bucket, added some car wash soap that I had handy in the garage, and blasted them some more.  I let them soak in the soapy water for a couple hours, then scrubbed them with a scrub brush that I use to wash the tires on my car.

Next, I set them out to dry in the sun.  I should have shoes back in action after a few days of drying.  I am going to keep them somewhere where my cat can't get them.

Reusing two pairs of shoes instead of buying new ones will save over $50.  That's real money- $50 will buy a day's worth of food for the family.  Try washing your shoes to give them new life.  If you need to replace your shoes, check out how I got a pair of dress shoes for work for $25.


Copyright © 2015 by Dr. Penny Pincher.  All Rights Reserved.  Privacy Policy



Recycled Plant for Hanging Basket = Free

Plant Rescued, Money Saved!


Our hanging basket got dried out after we forgot about it- I brought it back to life with lots of watering
Image Source: Dr. Penny Pincher

We got an outdoor flower in a hanging basket early this spring and forgot about it. It was dried out and looked mostly dead and the flowers were all gone. My wife mentioned getting another plant to replace it. I decided to try to rescue the plant (and also rescue some of the money in my wallet). I filled the pot overflowing with water every day and fertilized once a week. Now after a few weeks, it looks better than ever!

This worked out well for everyone involved- we didn't buy another plant, so my wallet is happy. We have a nice looking flower, so my wife is happy. And, of course, the plant is happy with how this worked out.

You might ask how much I spent on fertilizer and extra water to bring the plant back to life.  My house is on a community well, with no water meter, so the water was free.  You would think with unmetered water that people would use water like crazy, but surprisingly, people here are very careful with water.

I found the fertilizer in the garage from a past year, so I'm going to count that as free as well since I didn't have to buy it. 

I should note that the "Before" picture was actually taken after to give an idea of what the plant looked like.  It was actually much more dried out and I don't think there were any green leaves remaining.


Copyright © 2015 by Dr. Penny Pincher.  All Rights Reserved.  Privacy Policy

Monday, June 22, 2015

The Bridges We Cross on the Road to Debt: Guest Post @ Modest Money

The Bridges We Cross on the Road to Debt

The Bridges We Cross on the Road to Debt
The Bridges We Cross on the Road to Debt
Image Source: Public Domain Image Courtesy of Wyncliffe

My guest post went live today at Modest Money, which is one of the top 5 personal finance websites on the internet!

The post is about how people get into debt, why being in debt is bad, and how to get out of debt- all in 1,000 words.

Here is my favorite quote from the guest post:

"There are bridges you cross on the road into debt. These bridges make it easy to go further into debt. When you decide to turn around and leave debt behind, you realize that there are no bridges on the way out. You have to swim across."

-Dr. Penny Pincher

I write about my experience on the road to debt and crossing the bridges of student loans, credit cards, car loans, and mortgage loans on the way in.

The quote above reflects how easy it is to sign your name and cross another bridge going into debt, but there is no such easy way to get out of debt!  Getting out of debt takes hard work to find ways to spend less money and make more money if you can.

I just saw on Twitter that Experian, the giant credit reporting agency, sent out a tweet with a link to the "great guest post by @Dr_PennyPincher on @ModestMoney"

Great Guest Post by Dr. Penny Pincher!
Great Guest Post by Dr. Penny Pincher!
Image Source: Dr. Penny Pincher


Thanks to Modest Money for featuring my guest post.  This is my first guest post, so I'm pretty excited!  You can read the entire guest post here:

The Bridges We Cross on the Road to Debt



Copyright © 2015 by Dr. Penny Pincher.  All Rights Reserved.  Privacy Policy

Wednesday, June 17, 2015

Air Conditioner Troubleshooting Adventures

Avoid Expensive Air Conditioner Repairs!

Avoid Expensive Air Conditioner Repair
Avoid Expensive Air Conditioner Repair
Image Source: Dr. Penny Pincher
Summer has arrived, and that means it is time for central air conditioning if you have it, and if you are lucky enough to have it working.  As you'll see, I have not always been so lucky...

Growing up in an old farmhouse on a small farm, we had no air conditioning.  We had fans in the bedrooms and in the living room.  The downstairs wasn't too bad, but the upstairs bedrooms were pretty warm at night, even with fans going.  When I was about 14 we installed a window air conditioner in the living room.  I don't remember how much that cost, but I think it was about $100, and I know it used a lot of electricity.  We ran it on a few of the hottest days of the year and it made a big difference.

Tips to Keep Your Air Conditioner Working

Since then, I have owned several houses and all but one of these had a central air conditioner.  Almost every central air conditioner I have owned has had some trouble.  In general, there some simple things you can do to avoid trouble with your central air:

  • Change the furnace filter regularly.  If the filter is dirty, it reduces the air flow and reduces the cooling effectiveness.  If you don't remember when you last changed it, it is probably due for a change...
  • Trim back plants growing around your A/C unit to allow the heat exchange to work efficiently.
  • Use fans instead of central air when it makes sense.  A fan right next to you can keep you cool, and using a fan is less expensive and saves wear and tear on your expensive A/C unit.

Installing New Furnace Filters Can Avoid A/C Issues
Installing New Furnace Filters Can Avoid A/C Issues
Image Source: Dr. Penny Pinche

Each time I have called a repairman to troubleshoot the central air, it has cost more than the window air conditioner that we bought growing up- just for the repair!  A new central air conditioner costs about $3,000 to install, depending on the size.  Repairing a central air conditioner costs $100 to $300 or more, depending on the problem.


This is Where Furnace Filters are Installed
This is Where Furnace Filters are Installed
Image Source: Dr. Penny Pincher

Air Conditioner Repair Incidents

Following are accounts of the incidents I have had with my air conditioner over the years, and an explanation of each problem.  Hopefully this will help you avoid some expensive service calls or at least understand what could be wrong with your air conditioning.

A/C Incident 1:  A/C running, but not cooling.  We moved into a house in the winter time and tried to turn on the A/C when summer came around.  Everything seemed to be running, but it just wasn't cooling.  I called a furnace repairman to come and check it out.  This system had a furnace filter installed in the ceiling, which I did not find when I was checking for problems.  Simply changing the very dirty filter made the A/C work well.  This service call was around $100!

How to avoid expensive repair:  Make sure you find your furnace filter and change it!

A/C Incident 2:  A/C not running.  My wife was 9 months pregnant.  It was July and very hot, with temperatures running over 100 degrees at nearly 100% humidity.  This was a house that I just bought, and I wasn't very familiar with the infrastructure.  The A/C stopped working mid-morning on the 4th of July.  I wanted to wait until after the holiday weekend to call a repairman since it was a holiday, but my wife was pretty uncomfortable anyway and it was only getting hotter, so I called a repairman right away.

The problem turned out to be a blown fuse in the fuse box right next to the A/C unit outside.  I checked the circuit breaker panel inside, but it didn't occur to me that there would be a separate fuse box outside with glass fuses.  The repair bill was around $200!

How to avoid expensive repair:  If your A/C unit stops running, check for a fuse box next to the unit.  You can probably get new fuses for about $1 each...

A/C Incident 3:  A/C running, but not cooling.  We lived at an old farmhouse that we were fixing up.  One of the first improvements we made was to add a central air unit.  It worked great for 3 or 4 years and one summer it just wasn't cooling.  I checked the furnace filter- but it was totally clean.  We didn't want to spend money that year to call a repairman, so we went all summer without using the A/C.  The next spring it still wasn't working.  I had been reading about A/C troubleshooting on the Internet and had isolated the problem to inside the plenum.  I wasn't willing to cut into it- we can live without A/C, but I didn't want to risk ruining the furnace.  Heating is not optional in Iowa...

So, after a year without working A/C, I finally called the repairman.  I was right that the problem was in the plenum.  Somehow, a bunch of dog and cat fur had accumulated inside and was almost completely blocking the flow of air.  Apparently a furnace filter had gotten very humid and collapsed, leaving the air return unfiltered for some time.  We had the return air cover off while working on some things, so tons of fur got into the furnace.  After the repairman removed the fur mat that had formed and sealed the plenum back up, it was good as new.  It cost over $300 for this repair!

How to avoid expensive repair:  Make sure your furnace filter is installed correctly and is in good condition.  Dirt and fur can cause real problems if they get into your plenum.

A/C Incident 4:  A/C not running.  This incident happened at the farmhouse as we were selling it and moving out.  We needed to repair the A/C so it would be working for the buyer.  The problem was that a mechanical component failed in the air conditioner.  I didn't pay much attention to what it was since we were moving out.  This repair cost about $150.

How to avoid expensive repair:  Some repairs cannot be avoided-if your A/C has a mechanical failure, it will need new parts.

No More A/C Problems!

This is my second summer living at my current house and I have not had any trouble at this house with my air conditioner... not yet anyway...

Good luck staying cool this summer, whether you use a fan, window air conditioner, or central A/C.


Copyright © 2015 by Dr. Penny Pincher.  All Rights Reserved.  Privacy Policy

Wednesday, June 3, 2015

The Lunchbox- A Tool To Save Money Every Day

The Lunchbox- My Tool To Save Money Every Day

I didn't spend any money again today!  A key reason for this success is that I did not need to buy any food, beverages, or snacks all day.  The lunchbox helps a lot with this.

My Lunchbox Holds Enough To Last All Day!
My Lunchbox Holds Enough To Last All Day!
Image Source: Dr. Penny Pincher

I have the biggest lunchbox I have ever seen.  Its intended purpose might been as a 6-pack cooler or something, but I like that I can pack a full-sized box of cereal or full-sized Tupperware containers.  It is a soft-sided insulated box and has a nice padded strap for easy carrying.


My Giant Lunchbox
My Giant Lunchbox
Image Source: Dr. Penny Pincher

Every day, I put a couple re-usable freezer packs in the bottom and then load it up.  Usually I have some refrigerated left-overs.  I often take yogurt or cheese sticks.  Bananas are a great item to pack- they only cost about 25 cents and have a lot of nutritional value.

Today I packed a jar of peanut butter, a knife, and a bagel to make a protein-packed breakfast.  I also raided my kid's supply of generic apple sauce.  Sometimes my kids write on their food with a marker so I don't take it, but I did not see any such markings on the applesauce!

Beverages

I like to drink coffee while I drive.  I drank my "good" coffee made from fresh ground whole beans long before I started driving, so I made a travel cup of instant decaf for the road.

Take Coffee From Home- Why Pay More?
Take Coffee From Home- Why Pay More?
Image Source: Dr. Penny Pincher

In the old days I would drink soda ("pop") during the day, but now I like water better.  Water is free and has no calories or harmful chemicals- can't beat that!  Soda seems to go for nearly $2 now in a lot of places!

Savings from Packing Lunch

Of course, the items you pack in a lunchbox aren't free, but taking your lunch and snacks with you is so much less expensive than eating out for lunch and buying snacks in the vending machines.

Eating a fast food lunch seems to get more expensive all the time, and fast food is loaded with fat and calories you don't need.  I would say I save around $10 per day by taking my lunch and all of my snacks and beverages with me.

You don't need a fancy lunch box to save money by taking your lunch.  I actually got my lunchbox on the clearance shelf at Target for less than $10 and have enjoyed it for years.

Once you get in the habit of taking your lunch, it becomes almost automatic.  If you are eating out or buying food at work, try packing your lunch to save some real money.  You can save THOUSANDS of dollars per year!


Copyright © 2015 by Dr. Penny Pincher.  All Rights Reserved.  Privacy Policy

Sunday, May 31, 2015

Save 50% on Coffee: Get Half Price Coffee All the Time!

Get Half Price Coffee Every Day!

Wouldn't it be great if you could get coffee for half price all the time?  I figured out a way to do just that.

No, the solution does not involve making your coffee at home- I do this already.  It is something else, and it is pretty obvious, really.

How to Get Coffee for Half Price
How to Get Coffee for Half Price
Image Source: Dr. Penny Pincher

This morning, I opened my drawer where I keep my coffee beans this morning to reload my grinder.  I always grind whole beans just before brewing my coffee.  I had an open bag which had more than enough to fill the grinder, and I also noticed I still had a full bag in the drawer as well.

Loading the Grinder with Whole Coffee Beans
Loading the Grinder with Whole Coffee Beans
Image Source: Dr. Penny Pincher

I wondered, "Why do I have so many coffee beans left?"  My wife picks up coffee beans for me at the grocery store.  I like to have the freshest possible beans, so I don't keep extra bags around.  But I have an extra bag with a pound of coffee beans today.  Why?

I Had Extra Coffee Beans In My Drawer- Why?
I Had Extra Coffee Beans In My Drawer- Why?
Image Source: Dr. Penny Pincher

I was drinking two 16 oz cups of coffee every morning.  I would brew a pot and pour two travel mugs to take with me in the car on work days, or I would drink the pot at home on weekends and holidays.

One time on a business trip when I was away from my coffee-making equipment, I realized that it was not practical to drink that much coffee every day.  I can make coffee myself for about 60 cents per 16 oz serving.  At a coffee shop, it costs over $2 per cup, which adds up to over $4 to meet my daily coffee needs.  Drinking a lot of coffee causes issues beyond the cost- it takes a long time to drink that much coffee, and it drives the need for frequent restroom breaks in the morning.

I decided to cut back to one 16 oz cup of coffee per day.  As I learned on the business trip, cutting coffee too fast can cause headaches!  Over a two week period, I gradually reduced my coffee consumption from two cups per day down to one cup per day.  At first, it seemed like I was missing something by only having one cup of coffee in the morning, but I quickly got used to it and it has become the new normal.

Is it obvious how to save 50% on coffee?  Drink half as much!  At first, this may sound like the punch line of a joke, but this is a reliable way to save 50% on coffee all the time.  My extra bag of coffee beans in the drawer reminded me that I am saving money on coffee beans, which is by far the biggest factor in the cost of making coffee.

If you are curious, here is an article I wrote that goes into a lot of detail on the cost to make coffee.

Get Other Things for 50% Off!

This concept of saving 50% by consuming half as much works on other things besides coffee.  Want to reduce your fast food bill by 50%?  Go out to fast food places half as much!

There are many areas of you budget where this concept will not work well- most people could not cut their utility bill of gasoline bill by 50% because they are already pretty efficient in these cost categories.  But some expenses have a lot of room to cut, and cutting an expense by half is a good goal.  A 50% reduction is significant enough to motivate you to put in some effort to achieve, and half is a simple amount that is easy to track when you have reached 50% savings.

What expenses could you cut by half just by consuming less?


Copyright © 2015 by Dr. Penny Pincher.  All Rights Reserved.  Privacy Policy

Sunday, May 24, 2015

Free Dish Network Plan

Free Dish Network Plan

I signed up for the free plan from Dish Network!

See photo for details on how to activate the free Dish Network plan...

The Free Plan From Dish Network
The Free Plan From Dish Network
Image Source: Dr. Penny Pincher

Actually, I have been without Dish Network for almost 2 years now.  I saw this satellite dish in the trash the other day and couldn't resist taking a picture.

Yes, Dish Network does have a free plan.  The free plan involves mailing your receiver back to Dish Network.  You can throw away your dish if you like.  The down side of the free plan is that you don't get any channels.  The up side is that your bill is $0.  You can see why I went with the free plan!

I still like to watch TV once in a while.  We get Netflix, Hulu, and Amazon Prime via internet, so we can watch plenty of movies and TV shows.  I prefer streaming video because you can watch whenever it is convenient.  You can also catch up on episodes if you fall behind.  Of course these streaming video services are not free, but they add up to much less than my Dish Network bill which was over $100 per month.

We use a Roku streaming video player, and I can get some news broadcasts on streaming news channels or on Roku's news video service.  If you don't want to pay for streaming video channels, there are lots of free streaming channels available on Roku.  You can sign up for streaming channels on Roku's website after you get your Roku player set up.




I also have an indoor HDTV antenna.  I can get a few channels with this, which is useful to watch live sports.  I like to watch some college and NFL football in the fall, and sometimes I like to watch local news and weather.  Of course buying an antenna is not free, but you can get an amplified antenna for under $40 and receive high definition (HD) over the air for free with no monthly bill.



Are you sold on the free Dish Network plan yet?  The free price is hard to beat, but you may want to get some streaming video services or an indoor HDTV antenna...


Copyright © 2015 by Dr. Penny Pincher.  All Rights Reserved.  Privacy Policy

Sunday, May 17, 2015

Penny Pincher Calculators

Calculate How Much Money You Can Save

Last year I got a used book on JavaScript at a half-price bookstore and figured out how to make calculators to let you figure out all sorts of things right on a web page.

Last night, I moved my JavaScript calculators from dppmoney.com to right here on Penny Pincher Journal..  I decided it would make more sense to have the calculators on Penny Pincher Journal instead of my other website.

Penny Pincher Calculators are Easy to Use- Just Type in Your Information and Click "Compute"
Penny Pincher Calculators are Easy to Use- Just Type in Your Information and Click "Compute".
This one calculates how long it takes to pay off a credit card and the total cost of payments.
Image Source: Dr. Penny Pincher

These JavaScript calculators are all really easy to use.  I tried to use color-coding and provide some example values right in the calculator so you can easily see how to use the calculators to better understand your financial options.

You can calculate some interesting things, such as how long it would take to save $1 million dollars.  You can also calculate how much you would save with credit card consolidation or how much you would save by refinancing your mortgage.

Penny Pincher Calculators

Here is a list of Penny Pincher calculators to help you save money:

Mortgage Refinance Calculator- calculate how much you would save by refinancing your mortgage.  How much lower would your house payments be after a refi?  Your mortgage is likely you biggest loan- you can save a lot of money if you can get a lower mortgage interest rate.

Debt Consolidation Calculator- calculate how much you would save on interest by combining several high interest debt accounts into a debt consolidation loan with a lower interest rate.  You would be surprised how much you can save on interest.

Credit Card Consolidation Calculator- calculate how much you could save by taking several high interest credit cards and consolidating these into a lower interest credit card consolidation loan.  Some credit card interest rates are 20% or even more.  Find out how much you can save with a balance transfer to a lower rate card.

Credit Card Payoff Calculator- figure out how long it will take to pay off your credit card.  Try out different monthly repayment amounts and see the effect on how long it takes to pay off a credit card and the total amount you will pay.

Monthly Car Payment Calculator- calculate your monthly car payment given the loan amount, interest rate, and length of loan.  How much car can you afford?  How much lower will your car payment be with a 5 year / 60 month loan or even a  6 year / 72 month loan?

Savings Calculator- let's say you deposit a certain amount of money every month and receive interest over time.  This calculator will let you figure out how much your savings will grow over time.

The Millionaire Calculator- this is my favorite.  Enter your savings rate and rate of return to figure out how long it will take to reach your goal.  The default goal is 1 million dollars.  You can also choose to account for inflation and capital gains when calculating how long it will take to get 1 million dollars of purchasing power.

Investment Calculator- let's say you are investing in a retirement fund and want to find out when you can retire.  Input how much you invest and your average return to calculate how long it will take to reach your goal.  You can account for inflation and capital gains tax.

Mortgage Payment Calculator- there is more to a house payment than principal and interest, you also pay taxes and insurance.  Use this calculator to estimate house payments including principal, interest, taxes, and insurance.

Walking Time Calculator- this one is not about money, but useful to figure out how long it will take to walk.  Enter the distance to walk and select your walking speed (leisurely, purposeful, or brisk) to get an accurate calculation of how long it will take to walk.  Walking is less expensive than driving and is healthy as well.

Check out these easy to use calculators to help you find ways to save money.

Copyright © 2015 by Dr. Penny Pincher.  All Rights Reserved.  Privacy Policy

Friday, May 15, 2015

Rubberific Rubber Mulch- Lasts for Years

Rubberific Rubber Mulch


Bags of Rubberific Rubber Mulch
Bags of Rubberific Rubber Mulch
Image Source: Dr. Penny Pincher

When my wife brought home some bags of rubber mulch to try this spring, I was skeptical.  Regular wood mulch is pretty cheap and works pretty well.  We usually get the cheap Cyprus mulch.  The down side of wood mulch is that it breaks down and looks faded and old after less than a year.

Rubberific Rubber Mulch is an interesting idea.  It is made from shredded up tires that are dyed.  It looks just like wood mulch, and considering that old tires seem to last forever, I think this mulch will last a long time.

Rubberific Rubber Mulch In My Flower Bed
Rubberific Rubber Mulch In My Flower Bed
Image Source: Dr. Penny Pincher

The rubber mulch itself is really light since it is dry.  I am used to picking up bags of wood mulch that are much heavier for the same volume.  I was surprised how much the shredded rubber looks like chipped wood.  You wouldn't notice unless you are really looking closely.

Rubber mulch could be one of those things that is more expensive at first and pays for itself over the years.  Replacing mulch every year not only requires the cost of the mulch, but also time and the gas to drive around to get the mulch.  The Rubberific rubber mulch costs about 3 to 5 times as much as wood mulch, depending on what kind of wood mulch you get.  This product has a chance to be cost effective if it really does last 10 to 15 years.

Rubberific Rubber Mulch- Shredded Tires Looks Like Wood Mulch
Rubberific Rubber Mulch- Shredded Tires Looks Like Wood Mulch
Image Source: Dr. Penny Pincher

Just as I was getting impressed and thinking that rubber mulch really is "Rubberific", I remembered the mulch we used in a different flower bed this year.  It was a rock mulch.  The rock mulch will last much longer than 10-15 years- more like billions of years!  But wood mulch looks better than rocks in the shady location in front of our house, so the choice is between wood and rubber.  In the shade, it may last even longer than the advertised 10-15 years, so I may never need to replace it.

I can think of a few downsides to using rubber mulch.  It is more expensive than wood mulch.  Since the recycled tires certainly contain a lot of chemicals, I wouldn't want to use it around vegetable plants or fruit trees.  Also, I think rubber mulch placed in the sun could get really hot and maybe even smell like rubber tires on a hot day.

I think trying out rubber mulch in a shady flower bed is a good place to experiment with it.  If you use mulch in your landscaping, check out rubber mulch for a longer-lasting alternative to wood mulch.



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Tuesday, May 5, 2015

Cheap Duct Tape Projects and Repairs

Duct Tape for Cheap Projects and Repairs


Trailer brake light repair with duct tape
About 35% of one of the brake light covers on my trailer was missing.  This was pretty easy to repair!
Image Source: Dr. Penny Pincher

Duct tape is useful for making quick repairs and doing simple projects.  If a few cents worth of duct tape can save you from replacing something for awhile at least, it is probably worth doing.  Some of the features I like about duct tape are:


  • Duct tape is fairly cheap, a few bucks for a roll 50 or 100 feet long that will last you a long time
  • Duct tape is durable, some repairs and projects using duct tape will last many years
  • Duct tape is easy to work with- you don't need any special tools, skills or experience


Duct Tape is Handy to Have Around for Projects and Repairs
Duct Tape is Handy to Have Around for Projects and Repairs
Image Source: Dr. Penny Pincher


I like duct tape so much that I mentioned this as a topic in my most recent book as one of the 101 ways to save money.  You can read Tip 90 about using duct tape for cheap repairs here:
Tip 90: Duct Tape and Other Cheap Repairs

Duct Tape Repairs

Repair Gloves with Duct Tape

The other day while working in the garden, I felt some weeds poke my thumb.  This was surprising since I was wearing heavy leather gloves.  Unfortunately, a hole had developed in the thumb.  This was clearly a repair that called for duct tape.

Use Duct Tape to Repair Gloves
Use Duct Tape to Repair Gloves
Image Source: Dr. Penny Pincher

It took about 1 minute to repair the glove with duct tape.  In the picture, you can see that one of the fingers has also been repaired with duct tape.  I put that duct tape on last fall, and it has lasted through quite a bit of use already.

Repair Garbage Can with Duct Tape

After making this repair, I decided to look around and see what other repairs and projects I had around that use duct tape.  I didn't have to look far.  Right next to the workbench where I repaired my gloves, I have a garbage can with the lid repaired with duct tape.

Garbage Can Repaired with Duct Tape
Garbage Can Repaired with Duct Tape
Image Source: Dr. Penny Pincher

It would seem silly to me to throw away a garbage can or garbage can lid that would be repaired with duct tape.  The lid had broken and it would no longer snap in place on top of the garbage can.  I was able to simply tape the lid back together so that it fits on nicely again.  This repair has lasted for about 6 months so far.  The duct tape if flexible enough to handle some abuse as the lid gets dropped to the ground by the garbage man every week.  I guess I could have used black duct tape to make the repair blend in a little better, but the silver doesn't really bother me.

Duct Tape Projects

Continuing my walk around the house to see where I have used duct tape, I found some projects where duct tape was a key component.

Window Crank Pole Duct Tape Project

The first is my contraption to crank open 2nd story windows.  Before I made my pole, I would need to use a ladder to open and close the windows.  The pole is an old telescoping pole for a swimming pool net.  I duct taped a loop of heavy shoe lace on the end.  I used more duct tape to pad the metal pole to avoid scraping up the window cranks.

Duct Tape on Pole to Crank 2nd Story Windows
Duct Tape on Pole to Crank 2nd Story Windows
Image Source: Dr. Penny Pincher

As you can see in the picture above, I got fancy and used two different kinds of duct tape.  I used the thinner, stickier 3M silver duct tape to hold the shoe lace in place, and then I used the thicker black Gorilla duct tape to provide padding over the exposed end of the pole.

Telescoping Pole to Crank High Windows
Telescoping Pole to Crank High Windows
Image Source: Dr. Penny Pincher

This project was great- it only took about 15 minutes, it didn't cost anything since I had the materials around, and it was immediately useful.  I was able to crank my windows open that day without getting out a ladder.  I have been using my duct tape window pole for about 2 months now.

Temporary Table with Duct Tape

In the room with the high windows, I have a table set up to start vegetable plants from seeds for my garden.  The table I used is actually a temporary arrangement using some saw horses and scraps of wood.  I used duct tape to tape everything together.  With kids and pets running around, I wanted to make the temporary table as stable as possible.

Temporary Table from Scraps of Wood, Saw Horses, and Duct Tape
Temporary Table from Scraps of Wood, Saw Horses, and Duct Tape
Image Source: Dr. Penny Pincher

Duct tape was handy for this project, since I was able to make a stable table using some pretty small scraps of wood.  I didn't want to put screws into the saw horses, and that would have been more work anyway.  Now that I am done with the temporary table- the plants are going into the straw bale garden this weekend- I can just remove the duct tape and get my scraps of wood and saw horses back to use for other projects.

Clothesline Ratchet with Duct Tape

My next project using duct tape was just outside.  My wife put up a nice clothesline this year.  I say nice because it was so quick and inexpensive since we were able to put a clothesline up around two trees.  The problem was that the clothesline would sag under the weight of clothes hanging on it.  It was a lot of trouble to untie the knots and adjust the line every time it sagged.  The cotton clothesline is stretchy and tends to sag a bit over time.  I bought a metal ratchet that is normally used for a wire fence to use to tighten up the clothesline easily.  I was worried that the metal ratchet would cut the clothesline where the metal was in contact with the cotton clothesline, so I wrapped this part of the clothesline with duct tape to protect it.


Ratchet to Tighten Clothesline Protected with Duct Tape
Ratchet to Tighten Clothesline Protected with Duct Tape
Image Source: Dr. Penny Pincher
I used my favorite 3M silver duct tape again for this project.  You can see the duct tape to the left of the ratchet in the photo where I wrapped it around the clothesline to protect it from being cut or damaged from the tension of the line against the metal edge of the ratchet.  Just pull on the short piece of line hanging down to tighten up the clothesline.




I didn't need to try very hard to find examples of duct tape projects and duct tape repairs around my house.  A little creativity and a little duct tape can go a long way for making cheap repairs and doing quick and easy projects.

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Thursday, April 9, 2015

Buy In Bulk: Save Money

Buy in Bulk and Save

Bulk Toilet Paper- Case of 80 Rolls!
Bulk Toilet Paper- Case of 80 Rolls!
Image Source: Dr. Penny Pincher

Tonight I was looking for a replacement spark plug for my riding lawn mower.  I pulled up the manual to find the exact type of spark plug that was recommended, then searched on Amazon to find one.  I have Amazon Prime, so I get free shipping on most things.

I found the spark plugs selling for $4 to $5 each.  Some two-packs were $8.  The manual wasn't clear whether I need one spark plug or two spark plug, and I couldn't remember if this engine has one cylinder or 2 cylinders.  I figured I might as well buy two- I'll either use them both this year, or if I only need one then I'll have it ready for next year.

Then I came across a deal for a 24-pack of  the same spark plugs for $8.57.  Shipping was still free, but delayed by a couple days since the package was heavy.  This pack was marked down from $83.76 which works out to $3.49 per spark plug.  At $8.57 for 24 spark plugs, that works out to about 36 cents per spark plug!  The bulk spark plugs are packaged in compact case, rather than individually packaged in cardboard boxes.

Bulk Spark Plugs- Case of 24
Bulk Spark Plugs- Save with a 24-pack
Image Source: Dr. Penny Pincher

I decided to buy spark plugs in bulk.  I have room in my shop to store the box of spark plugs, and I will be set with spark plugs for the life of my riding mower and then some.  I'm sure my wife will think it is a little ridiculous to buy a 24-pack of spark plugs, but it's a great deal!  I could sell or give away spark plugs to friends and still have plenty of spark plugs.  Buying 24 didn't cost much more than buying 2.

What to Buy in Bulk?

This bulk purchase of spark plugs got me thinking about buying in bulk.  What other things do I buy in bulk to save money?


Clearance Items You Know You Will Use

A few months ago, I found some really high quality oatmeal on clearance and bought a ton of it.  I bet I ended up buying a full shopping cart of boxes of oatmeal.  This is great stuff, and only cost 4 cents per serving.  That's hard to beat.  Before buying, I checked the expiration date and tried to estimate how much I would eat before it expired.  I know that food stays good a bit past the expiration date, but I didn't want to get carried away and buy more than I really needed.  Still being cautious, I bought a few boxes to take and home and try it.  After finding out that it was good stuff, I went back to the store and bought more.

So one category of item to buy in bulk is clearance items that you know you will use.  I wasn't shopping for oatmeal that day, but when I saw it so cheap, I knew I could save a lot of money if I bought it.  The cheap oatmeal saved me money since I needed to buy less food.

Things You Buy Anyway

Another category of item to buy in bulk is stuff that you are going to buy anyway.  I have dogs, so I need to buy dog food.  I buy the biggest bag of dog food that they sell.  The same goes for my cat food.  Bulk bags are not the most convenient size to haul around, but it is the least expensive per pound.  Take the cost of the bag and divide by the number of pounds to get the cost per pound.  The bigger bags of pet food are a lot less expensive per pound.

One benefit of buying pet food in bulk is that I don't need to buy it very often.  The big bags last a long time, which means I spend less on gas driving to the store to pick up pet food.

Toilet paper is another thing I buy in bulk.  We get big bales of 24 rolls, which is the lowest price per roll.  One downside is that we need lots of space in the closet to store toilet paper.  The upside is that this saves money, and we usually have plenty of toilet paper around.

Other than the bargain oatmeal that I mentioned, I can't really think of food items that I buy in bulk regularly.  Bulk food can get stale.  With food, I try to buy a little as possible.  I know some people buy tons of meat when it is on sale and put it in a freezer.  I don't have a freezer, so I haven't tried this.

When Buying In Bulk Wastes Money

There are plenty of ways that buying in bulk can go wrong, and you end up spending MORE money instead of saving money.

Things You'll Never Use

If you buy things you'll never use, it doesn't matter how good of a deal you got- the money spent is wasted money.  Imagine if you bought tons and tons of blank VHS tapes in bulk, then you ended up getting a TiVo or Roku and no longer have a need to record TV shows on VHS tapes.  Not only are the video tapes wasted, but you wasted space storing something that you will never use.  Plus you wasted money that you didn't need to spend.  When you buy in bulk, it commits you to use a lot of something and sometimes this doesn't work out.

With my example of buying spark plugs in bulk, I am taking a some risk that my lawn mower will break down and I will not need that type of spark plug anymore if I get a different one.  But I am not too worried because the spark plugs were so cheap, and I think I could probably sell extra ones on craigslist if I wanted.

No Room For All The Bulk Stuff

Another problem is if you actually buy more stuff than you have room to store trying to get the lowest unit cost.  At Sam's Club, you can buy some very large quantities of items.  I could imagine someone buying 144 rolls of toilet paper trying to get the best price per roll.  Then you really would need an entire closet to store it all.  Or you can buy a 50 pound bag of rice for really cheap- but where will you put it?  Running out of room in your house is not only inconvenient, but it can cost money.  If you have so much stuff packed into closets and cupboards that you can't find anything, you might end up buying things that you already have.  If your house gets too crowded, you might end up renting a storage garage, or even moving to a bigger house.  Added expenses like this would greatly offset savings from bulk toilet paper!

Finally, buying perishable items in bulk is risky.  You may have good intentions to use the perishable items right away, or to can or freeze them.  But there is a chance the bulk purchase will get stale or spoil before you can use it all.  In this case, you may be better off buying a smaller quantity and not wasting any than buying a bulk amount and wasting some of it.

Buy in Bulk

If you are careful, you can save money buying in bulk.  Make sure to buy items that you know you will use and that you have room to store.  It is worth checking the savings before buying in bulk- it is not always cheaper to buy in bulk.

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