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

Thursday, June 4, 2015

Interview with Dr. Penny Pincher on Debt Discipline

Personal Finance Blogger Interview Series: Interview with Dr. Penny Pincher


Blogger Interview: Dr. Penny Pincher
Blogger Interview: Dr. Penny Pincher
Image Courtesy of Equationaudio CC-SA-30

My interview on the personal finance site Debt Discipline went live today!

Check it out on Debt Discipline at:
http://www.debtdiscipline.com/interview-series-dr-penny-pincher/


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

Saturday, May 30, 2015

Real Life on a Budget by Jessi Fearon

Book Review- Real Life on a Budget by Jessi Fearon


Real Life on a Budget by Jessi Fearon


If you are looking to improve your financial situation, having a budget that you can follow to meet your goals is essential.  Real Life on a Budget is easy to read and provides some solid advice on how to get on the right track financially.  This is the third book written by Jessi Fearon who also writes at the personal finance site The Budget Mama.

Real Life on a Budget is written in short chapters that cover topics related to setting financial goals, setting up an emergency fund, paying off debt, planning a budget, and dealing with issues that can derail a budget.  Each chapter ends with a "challenge" which prompts the reader to implement the concepts that were covered in each chapter.

I think most people who want to improve their financial situation will be able to relate to this book since it is written from the perspective of someone who was deep in debt from using credit cards to live above her means and was able to turn things around through frugal living and staying on a carefully planned budget.  Jessi describes the challenges of staying on a budget while balancing life with her husband and kids- this is the "real life" that is mentioned in the title.

If you don't have a budget, or have a budget that is not working for you, Real Life on a Budget would be useful reading.  This book is well-written and provides specific steps to set goals, plan a budget, get out of debt, and tips to stay on your budget.

Thanks to Jessi for providing an advance copy of the book to review here on Penny Pincher Journal.  The book will be distributed starting June 30, 2015 on Amazon and can be pre-ordered now.





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

Wednesday, May 27, 2015

Decluttering: Get Money for Your Stuff, and Get Your Space Back!

Decluttering- Get Your Space and Money Back!


Taking Away a Load of Clutter
Taking Away a Load of Clutter
Image Source: Dr. Penny Pincher
Not so long ago, I saved almost everything.  If I had something, I didn't want to throw it away- what if I were to need it someday?  Why throw something away when I might need to buy the same thing again someday?

Broken items got saved- in case I got around to repairing them someday.  Even items that were not repairable got saved- in case I needed the spare parts for something someday.

I would even pick up free stuff that other people were giving away.  Actually, I still do that if is is something I will use immediately.  But I used to accumulate stuff- just in case I would need it someday, I would have it and I wouldn't need to pay for it.

Frugal thinking can tend to encourage keeping too much stuff.  This may sound like hoarding, but I think this is different since I didn't have any emotional attachment to the stuff.  I just didn't want to throw anything away that might be useful so I could avoid paying for it in the future.

Dumpster of Clutter at the Landfill
Dumpster of Clutter at the Landfill
Image Source: Dr. Penny Pincher

I came to realize that saving lots of stuff- even free stuff- has a cost.  My garage and even house was packed full with stuff I wasn't using.  Even if I wanted to use some of my stuff, it would be hard to find the good stuff since there was so much junk mixed in with the stuff.

Now, I don't have as much stuff.  I still have a small stockpile of boards, fencing material, landscaping fabric, hardware, and an impressive collection of tools.  But now all of the things I have are things that I plan to use and they are all neatly organized in my shop and garage.  Sometimes less really is more.  I can easily find items when I need them, and I can usually remember what I have and where I put it.

So how did I go from having so much clutter to having a nicely organized shop and garage with just the right amount of stuff around to handle almost any project?  The answer: "decluttering".

I still feel a little pain throwing stuff away, but it has gotten easier.  I realized that I didn't miss any of the stuff I threw away after sorting it based on whether I had any plans or need to use it.

Another Load of Clutter from My Garage and Yard
Image Source: Dr. Penny Pincher
Decluttering doesn't necessarily mean throwing things away.  I sell a lot of things on craigslist and at consignment shops.  Sometimes I sell things on eBay and am surprised by how high the bidding goes.  Selling things certainly is less painful than throwing things away.

On my trip to haul away clutter, I loaded up my SUV and first stopped at the consignment shop on the way to the landfill.  That way I could see which items the consignment shop would accept and take the rest to the landfill.  To my delight, the consignment shop took everything that I offered.  This is a win-win.  I get paid for the stuff, and I don't have to pay to throw it away at the landfill.

Here are some tips on how to declutter to take back control of your living space:

  1. Start working in a small space- pick a room or even a part of a room and start sorting into "keep" and "go" piles.  Don't worry at this point about where stuff will go if it is in a "go" pile.  Put stuff in the "keep" pile if you use it or plan to use it soon.  Put everything else in the "go" pile- even if it was expensive or you just got it recently.
  2. OK, now you can worry about what will happen to the stuff in the "go" pile.  Move the "go" pile out to the garage or other area where you can sort it further and not worry about it ending up in the "keep" pile somehow.  Sort the "go" pile into piles for "sell" and "throw away". 
  3. Haul the "throw away" stuff to the landfill, or put it out on the curb with the trash.  If it makes you feel better, you can put a sign on the stuff that says "free" and see if anyone takes it.  I have actually gotten rid of a fair amount of stuff just by putting it out with a "free" sign.
  4. Now, have some fun with the "sell" pile.  The easiest way to deal with it is to take it to a consignment shop, but you'll only get about 40-50% of the sale price.  You can try to make more selling some of the better items on craigslist or eBay.  Another idea is to have a garage sale, but there are usually a lot of unsold items after a garage sale that you will still need to get rid of.


My Shop, After Decluttering
My Shop, After Decluttering
Image Source: Dr. Penny Pincher


Now, repeat this decluttering process on another room or part of a room and enjoy the free space and extra money you are getting back!

Also important- don't buy extra stuff to replace the clutter you have cleared out...


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


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