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
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!
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

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Air Conditioner Troubleshooting Adventures

Avoid Expensive Air Conditioner Repairs!

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
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
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.

Penny Pincher Journal

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

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!
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
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?
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!

Penny Pincher Journal

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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
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
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?
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?

Penny Pincher Journal

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

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

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...

Penny Pincher Journal

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

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".
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.

Penny Pincher Journal

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

Rubberific Rubber Mulch- Lasts for Years

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
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
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.

Penny Pincher Journal

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

Cheap Duct Tape Projects and Repairs

Duct Tape for Cheap Projects and Repairs

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
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
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
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
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
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
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
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.

Penny Pincher Journal

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

Buy In Bulk: Save Money

Buy in Bulk and Save

Bulk Toilet Paper- Case of 80 Rolls!
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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- 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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I Got Gas for Under $1 a Gallon Today with Hy-Vee Fuel Saver!

Wow- Gas for Under $1

This Receipt Shows That I Got Gas for Under $1 Per Gallon!
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Gas Under $1 per Gallon- Price at the Pump
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This morning, I was almost out of gas and stopped at Casey's to fill up.  As usual, I swipped my Hy-Vee Fuel Saver card at the pump.  Hy-Vee Fuel Saver is a program that provides fuel discounts when you buy certain grocery items at Hy-Vee.

I was pleasantly surprised when I saved $19.48 on my gas today!  With my discount, my gas was just under $1 per gallon!

I Saved Nearly $20 on Gas Today!
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I often save a little bit on gas with Hy-Vee fuel saver.  My wife does most of the grocery shopping at Walmart or Target, so the few things I buy at Hy-Vee don't add up to much savings.  But today was different.  How did I save so much on gas this time?

I told my wife about this at dinner, and she said she bought groceries at Hy-Vee and had them look up my Fuel Saver number since she doesn't have a card.  That was a good move- it saved us nearly $20 on gas.

Here is an article that describes Hy-Vee Fuel Saver in more detail.  Hy-Vee stores are mostly in the Midwest, so you won't be able to find a Hy-Vee if you live on the coast.  The fuel saver discount works at Hy-Vee gas stations and also at Casey's gas stations which are abundant in the Midwest.

Hy-Vee Fuel Saver Works at Casey's and Hy-Vee Gas Stations
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Tips to Save on Gas with Hy-Vee Fuel Saver:

• If you shop at Hy-Vee at all, you might as well sign up for Fuel Saver.  You will save some money with almost no effort.
• Buy only things you need- don't buy extra stuff just to get the fuel saver discount.  You won't save money if you do.
• As my wife discovered, you can have the cashier look up an account with a phone number if you don't have your Fuel Saver card with you.
• Groceries at Hy-Vee are fairly expensive compared with Walmart, but with the Fuel Saver discount, you might still be able to shop at Hy-Vee and not spend that much more money.
• When you get a good discount built up, buy as many gallons as you can.  Luckily, my tank was almost empty when I got the big discount so I maximized my savings.

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Finding Cheap Dress Shoes for Under $25

How I Found Cheap Dress Shoes for Under $25

I got these new dress shoes for under $25!
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My black dress shoes were pretty much shot.  I noticed this when I nearly fell down at work and noticed that the sole was separated from the shoe, creating a trip hazard.  I have tried to repair such problems before using Superglue or other adhesives, but repairs like this are only a temporary measure.  I could take the shoes to a shoe repair shop and get the sole sewn back on for about $10, but the leather uppers were pretty much worn out too.  It was time for a new pair of black dress shoes.

My old black shoes were hard to walk in anyway- they weighed about 5 pounds each.  This time I wanted much lighter shoes.

Fortunately, I had $10 Kohl's Cash and a 30% off coupon from Kohl's in my coupon envelope in my car ready for just such a situation.  I like to keep my best coupons with me in case I need to buy something.

I checked out the black dress shoes at Kohl's and found some lightweight black dress shoes priced at $69.99 and marked down to $41.99 on clearance.

With my $10 Kohl's Cash and 30% off coupon, I saved $47.60 off of the original price.  The final cost of the pair of shoes was $23.96.

I think these shoes have potential to be a good pair of shoes for me.  I can't go too far wrong for $23.96...

My new cheap dress shoes- under $25 for the pair!
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Here is an article about Kohl's Cash and other ways to save at Kohl's.

Cheap Shoe Options- Used Shoes

If you are willing to consider buying used shoes, you can find cheap shoes for sale at Goodwill, thrift stores, or garage sales.  I think used shoes could be a good way to get some high quality shoes pretty cheap.  I suspect that there are lots of used shoes for sale that were originally very expensive and that have been worn very little for whatever reason.

If you get used shoes, you might want to disinfect the shoes with Lysol or something like that.  I have never gone with used shoes myself- I would be concerned with picking up a foot fungus, warts, or other diseases from used shoes.

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Envelope Budgeting Tips

Tips on Envelope Budgeting From My Experience

Envelope Budgeting Tips from Experience
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What is Envelope Budgeting?  For an introduction on envelope budgeting to save money and stay within your budget, see my earlier post that covers the basics of envelope budgeting.

Today, I will talk about some things I have learned that make envelope budgeting work better in practice.

Get a Good Envelope

Envelope budgeting really involves only two things:  an envelope and cash.  It helps to use a good envelope.  I have found that the money envelope gets some wear and tear as I carry it around and my wife also carries it around.  My bank has nice envelopes that they offer me when I take cash out.  I always get one of these.  These envelopes have a resealable flap and are made out of a tough paper that may have a bit of plastic content.  I think a regular mailing envelope would wear out quickly.  The resealable flap is useful to hold change in the envelope as well as bills.

Get the Right Bills When You Load Your Envelope with Cash

If you get too many small bills, they won't fit easily into an envelope.  Big bills are not accepted everywhere and I worry more about losing a big bill.  I have found that a mix of 10's and 50's works well.  The 10's are nice for smaller purchases, and the 50's work well for paying for a bigger trip to the grocery store.

Account for Spending Outside the Envelope Quickly

We have had a few times where we used a credit card instead of the money envelope when we did not have the envelope with us.  Actually this happened a few times.  I kept track of the amounts by writing it down on the envelope when I got home, and within a few days I removed this amount from the money envelope so I can deposit it into checking and use it to pay the credit card.  This works fine since the food budget is not effected.  We did use a credit card instead of money from the envelope, but then I took the money out of the envelope to account for this.  The trick is to keep track of any spending that should have been taken from the envelope and make up for spending outside the envelope quickly before you lose track and no longer know if you are staying within your budget or not.

One of the biggest problems with the envelope system is that it would be easy to stop doing it.  This is the same thing that happens when going on a diet.  You have good intentions and may do well for a few days, but then go back to your old eating habits.  If you have an easy way to make up for spending that should have some from the money envelope, then you can get back on track.

Pull Out Money From the Envelope Before You Go Into A Store

At first I was carrying the money envelope into stores with me.  It was sort of awkward sorting through the bills in the envelope at the checkout.  I realized that I can just put a few bills in my wallet while I am in the car.  Today I went into a store thinking the damage would be around $45, so I loaded $50 in my wallet from the money envelope before going in the store.  Paying was quick, since I knew exactly how much was in my wallet, and it was less awkward than carrying an envelope stuffed with cash around.  The total turned out to be just under $42, so everything worked out fine.  Worst case, if you don't take enough into the store, you can run back out to the car to get more from the envelope.

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Envelope Budgeting- Save Money with the Envelope System

What is Envelope Budgeting?

Money Envelope System For Budgeting:  All You Need Is Money and an Envelope!
Image Source: Wikipedia/Michiel1972 cc-by-sa

Envelope budgeting is a simple and effective way to both keep track of spending and avoid going over your budget.  When you get your paycheck, get cash for the amount you budget for an expense category and put it in an envelope.  For this discussion, I'll use your grocery budget as an example.

Let's say you get paid every two weeks and your grocery budget is $500 for two weeks.  On payday, get $500 cash and put it in an envelope for groceries.  Every time you buy groceries, take money from the grocery envelope and put the change back in the envelope.  You can check at any time how much you have spent on groceries by counting the money in the envelope.  If you like, you can keep your grocery receipts in the envelope so you can see exactly where your grocery budget went.

How Does Envelope Budgeting Work?

There is something about spending cash that is more difficult psychologically than spending money using a credit card.  I learned this myself when we tried out the envelope system for food this month.  I was planning to bring my wife some lunch at work.  The thought of spending cash to buy her a sub at Subway was painful.  I texted her and asked if a peanut butter and jelly sandwich would be OK.  That is a good example of how the envelope system works.  When you have cash and can see it, it is hard to spend.

The other way that the envelope system works is that it provides a natural limit on spending.  If you buy groceries using a credit card with a $5,000 credit limit, there isn't much of a limit on how much you can spend on groceries.  If you aren't paying attention, there is no feedback at all that you have overspend until you get your credit card bill the following month.  Of course, you can check you credit card balance any time, but this requires effort.  If you buy all of your groceries using cash from your envelope, it requires no extra effort to see when you are running out of money!

Downsides of Envelope Budgeting

During the month trying out envelope budgeting, I have noticed a few negative aspects of this system:

1. You have to get cash to put in the envelope.  For me, this means a trip to the bank.  Buying with credit cards does not require a trip to the bank, so using a credit card is more convenient.  However, convenience isn't the point of envelope budgeting- saving money is the point.  So if I can save money, it is worth the hassle to go to the  bank a couple times a month to get cash for the money envelope.
2. There is risk in carrying cash around.  I recently went to the grocery store after stocking my envelope with cash.  I felt a bit uncomfortable pulling out the envelope and digging through $500 in cash to find the right bills to pay for $40 worth of groceries.  It would be easy for someone to grab the envelope and run, or to break into my car or house and steal the envelope.  However, I live in a safe neighborhood, so there is little actual risk of the cash being stolen.  I will probably be able to get comfortable with carrying some cash around with practice.
3. Dealing with change is a hassle.  It seems to take more time to count out bills to pay at the grocery store and then have the cashier deal with making correct change.  Credit cards are certainly a faster and easier way to pay.  But again, this is not about convenience- in some ways the envelope system is about making spending more inconvenient so you won't do it as much!
4. It is easy to end up at the store without your envelope.  What do you do then?  For maximum effectiveness of the envelope system, you should drive home and get the envelope.  However, what I have actually done is used a credit card from my wallet, kept track of the amount, and then adjusted the envelope later.  I couldn't deal with wasting money and time driving around when I could easily make up the difference and get back on track with the envelope system.

How Much Can You Save Using Cash Envelopes?

Again, I am just getting started with the envelope system, but I can see that we are saving money on food spending.  Knowing that you have a limited amount to spend that can run out, and being able to see when you are getting low on money in the envelope provides powerful feedback to help limit spending.  Using an envelope of cash for budgeting seems to be pretty simple and pretty effective.

If you don't want to deal with actually carrying cash around, there are software packages and apps for smart phones that can help you do envelope budgeting using credit cards or bank accounts.  The software helps keep track of your spending by category and provides a virtual envelope.  This would be more convenient than carrying cash around, but I do not think it would be as effective.  It is hard to spend "real money" and that is a good thing when you are trying to stay on a budget.

Keep Some Cash Around for Disasters

Another benefit of keeping an envelope of cash around is that it could function as an additional supply of emergency cash in case electronic transactions are not available.  We already keep some emergency cash around, but in an emergency the envelope would give us even more cash if needed.  In this case, by "emergency", I mean a situation where electronic funds are not available.  For example, cash could be the only way to make purchases if there is a widespread power outage or if electronic banking system get hacked or some other disaster occurs and credit cards and bank cards are not working.  Once during a flood and power outage, I saw people with credit cards and bank cards turned away from the grocery store.  Signs were taped to the door that said "cash only".  I think having some cash around at all times is a good idea.

Update:  Money Envelope Tips

Well, I have stayed with the money envelope system for several months now!  It is working to help keep us on target on our budget.  Here is an article I wrote with more tips on saving money with the money envelope system:
http://pennypincherjournal.blogspot.com/2015/03/envelope-budgeting-tips.html

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