Best Kind of Christmas Tree?

What Kind of Christmas Tree is Best?

Best Christmas Tree?

There are many Christmas tree options- you can get a "real" Christmas tree, an artificial Christmas tree, and even a living Christmas tree.  I have done all of these.  Today I will share the pros and cons of each.

Real Christmas Trees

A "real" Christmas tree is a living evergreen tree that is cut.  You bring this tree home, place it in a Christmas tree stand with water, and dispose of it after the Christmas season.  A real Christmas tree tends to dry out, so you need to make sure to keep water in the stand and dispose of it before it dries out too much.  A dry Christmas tree is very flammable, and you don't want something like this in your house.

An advantage of a real Christmas tree is that it smells great.  You get a fresh pine smell.  Related to this is a downside- you'll have pine needles to sweep up or vacuum up as they fall from the tree.

The logistics of dealing with a real Christmas tree are a drawback.  You need to drive to a tree farm or store parking lot where Christmas trees are sold, tie it to the roof of your car, and drive it home.  Almost all real Christmas trees are too tall to fit inside a vehicle.  When you get the tree home, you need to remove it from the roof of your car, use a saw to cut an inch or so off of the trunk so it will absorb more water, and bring it inside.  Next, you set up your Christmas tree stand and work on getting the tree level.  The tree often looks fine when you are lying on the floor tightening the bolts that hold it in the tree stand, but then it looks crooked when you step back and look at it.  It can take a few tries to get it screwed into the stand level.  Next you carefully add water to the stand and go about decorating the tree.

One of the pros of getting a real Christmas tree is that it is fun to go with your family to the Christmas tree lot, pick out a tree, and bring it home.  This is much more of a memorable holiday event than hauling the artificial tree box down from the attic.

Cost is a negative for a real Christmas tree.  Real Christmas trees cost between $40 to $100 each, depending on the species and size.  This cost adds up year after year.  We spent hundreds of dollars on real Christmas trees during the years that we went with that option.

Pro:  Looks nice, smells nice, can be fun to pick out.

Con: Most expensive Christmas tree option, need to haul it home, drops needles, can be difficult to mount in tree stand, can be fire hazard if it dries out

Artificial Christmas Trees

The next option is getting an artificial Christmas tree.  One drawback of artificial Christmas trees is that assembly is required.  Some artificial trees have sections or branches that need to be installed in the right places to build the tree.  I don't think assembly is a big drawback since you are going to spend a lot of time decorating the tree anyway.

Some artificial Christmas trees come "lighted" with pre-installed Christmas lights which can be a big time saver.

You will also need to have a place to store an artificial tree year round, and you'll need to move your artificial tree every time you move.

Another disadvantage is that cheaper artificial Christmas trees look really fake- they are clearly made with plastic needles and no one is going to think it is a real tree.

An advantage for artificial Christmas trees is that they don't have good sides and bad sides like real trees have.  When I used real Christmas trees, we would need to look it over and decide which side should face out.  With an artificial Christmas tree it doesn't matter which side you are facing since the symmetry is perfect.

The initial cost of an artificial Christmas tree is typically higher than the same size of real Christmas tree, but since you can use an artificial Christmas tree for many years, this cost is offset in a few years.  An artificial Christmas tree is the most cost effective type of Christmas tree.

One reader reported that they bought an artificial Christmas tree over 30 years ago for $6 and are still using it!  You can save a lot of money over the years if you keep the same artificial Christmas tree.

Pro:  Cheapest Christmas tree option, lasts many years

Con:  Takes space to store, can look fake, requires assembly

Live Christmas Trees

One year we decided to try a live Christmas tree.  We got a small tree that came in a pot with its roots, and set it on a small table in our living room.  The live tree was only about 3 feet high, so we placed presents under the table.  We were able to put a few ornaments on this small tree.

An advantage of a live tree is that you can plant it in the spring.  If you want trees anyway, this can be a good way to collect evergreen trees to plant.

A downside of using a real tree is that the tree will be small compared to an artificial or cut Christmas tree.  I was willing to try a 3 foot tree instead of a 7 foot tree for similar cost.  Another consideration is that it can be hard to find live trees for sale- few stores offer living Christmas trees for sale.

Pro: Get a real tree without cutting one down, get a live tree to plant in your yard

Con: Hard to find for sale, you'll get a much smaller tree for the money

What Kind of Christmas Tree is Best?

• If cost is an important factor for you, get an artificial Christmas tree and use it for many years.  The cost per year is clearly least for an artificial Christmas tree.
• If you want to plant trees in your yard and can accept a smaller tree, try a live tree.  I liked the idea of not cutting down a tree for Christmas.
• If you enjoy the experience of picking out and bringing home a Christmas tree, then go with a real Christmas tree.  The cost for the tree is more, but you are getting more than the tree- you are getting the experience and memories as well.

Penny Pincher Journal

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

6 Ways to Save Real Money on Coffee

Beyond the Latte Factor... 6 Ways to Save Real Money on Coffee

6 Ways to Save Money on Coffee

You have probably heard of the latte factor- this is an illustration of the concept that a small amount of savings or investment can add up over time.  A common example is investing or saving $3 dollars every day instead of buying a latte, thus the term "latte factor".

I think the latte factor is a powerful concept, and I think there are several ways you can save money on coffee and use that money to pay off debt and build your wealth over time.

1. Order simple coffee instead of fancy coffee drinks.  Save the lattes for a treat instead of every day.  This literally removes the latte factor from your budget, saving about $1.50 per day which adds up to over $500 per year.  Plus you can leave a lot of extra calories and fat out of your coffee.  

The coffee in the photo above cost me $3.14 at Starbucks.  Why did Dr. Penny Pincher buy a $3 coffee at Starbucks?  Here's the story behind this purchase...

2. Make great coffee at home.  You can make great coffee at home from fresh ground whole coffee beans for 60 cents per 16 oz. mug.  Coffee at a coffee shop costs about $2 per cup, so you can save about $500 per year by making your own coffee at home instead of buying it at a coffee shop.  If you drink two cups of coffee per day, this adds up to $1,000 per year in savings.

3. Cut back to one cup of coffee per day.  I used to drink two cups of coffee per day at a coffee shop.  Ouch!  Since then, I have started making coffee at home, and I have cut back to one cup of coffee per day.  

If you are drinking two cups of coffee every day and cut back to one, you'll save over $700 per year if you get coffee at a shop or over $200 per year if you make your coffee at home.  

When I cut back to one cup per day, I gradually reduced the amount of caffeine I got by mixing decaf coffee beans with my regular beans.  The key is to gradually reduce your caffeine consumption over a period of time to avoid caffeine headaches.  Here are details on how to painlessly cut back on how much coffee you drink.

4. Find cheaper coffee places.  McDonald's has coffee for $1.39.  This doesn't sound that much cheaper than $2 or more for coffee at Starbucks, but this adds up to a savings of around $150 per year if you drink coffee every day.

5. Go with a smaller size.  Generally, you can order small, medium, and large coffee.  People tend to order the largest size since it is the best value- for only 50 cents more, you can get nearly twice as much coffee.  But if you can train yourself to order the smallest size, you can save over $180 per year.

6. Don't buy scones, muffins, and other stuff at the coffee shop.  Coffee is expensive at coffee shop, but the snacks are even more expensive.  Just stick with coffee and save hundreds each year.

Penny Pincher Journal

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

How I Avoid Late Fees

Get Out of Late Fees!

No More Late Fees!

So you have been hit by a late fee- what can you do to avoid paying it?  Surprisingly, you may be able to get out of a late fee with one phone call and about 5 minutes of work.

Back when I had satellite TV, my credit card I was using for autopay expired and I got hit with a $25 late fee.  I was able to avoid this late fee by calling in and simply asking for it to be removed.

Yes, it really can be as simple as just calling and asking for your late fee to be removed.  I was also able to call my credit card company and have a late fee removed just by asking.  The representative said that they will waive the first late fee you get if you call in and ask.  

You may feel that if your payment is received late that you did something wrong and deserve to pay a penalty.  I don't see it that way.  The cost of a delay of a few days in receiving a payment is almost too small to measure.  Late fees are pure profit for the companies that charge them, and I am happy to spend a bit of effort to avoid paying extra. 

Another strategy I have used to get out of late fees is to simply not pay the late fee.  My bank sends my bill for my safe deposit box late every year, and it has a $10 late fee added by the time I receive it.  I send in a payment only for the safe deposit box and leave off the late fee.  I sometimes add a short note that I received the bill after the deadline.  This has worked every time so far.

Sometimes you can ignore late fees and they will go away, but this strategy does not always work...

My Late Fee Battle With the Utility Company

Before I signed up for autopay a few years ago, the utility company once received my electric bill payment one day late and I was charged a $10 late fee on my next bill.  I though this was ridiculous.  The utility company had to wait one day for my $100 payment, so the $10 late fee on $100 for one day late is equivalent to paying 3650% annual interest rate to the utility company.

I thought this late fee was crazy and I simply did not pay it.  Every month, I payed for all of the electricity I used, but did not pay the $10 late fee.  About 9 months later, I got a call from the manager at the utility company.  I explained that I was not paying the late fee and that is why I had an unpaid balance of $10 every month.  I asked if the late fee could be removed  The manager explained that the entire balance must be paid.  

I continued paying only for the electricity and not the $10 late fee for a few more months, and then one day I found a pink letter taped to my front door.  It was a disconnect notice.  If I didn't pay my bill in full within 48 hours, my electricity would be disconnected and I would have to pay $150 to get it connected again after I payed my bill.

I gave up and decided to pay my late fee.  What else could I do?  In retrospect, I should have called the utility company right away to request having the late fee removed.  If talking on the phone didn't work, writing a letter would be my next step.  I would have had a better chance to have the late fee removed from my bill if I had contacted the billing party right away.

Dealing with a utility company is sort of a unique situation, because I had no options to cancel service or switch to a different utility company.  I had no leverage at all, so the utility company had no motivation to consider waiving the late fee.  Most companies you deal with on late fees will be more likely to be persuaded to remove the late fee if you request it.

How To Avoid Late Fees

Back in the bad old days, I paid my share of late fees.  I would sometimes lose track of my bills and end up paying a few days late.  Paying a bill late can result in a late fee of $40 or more, depending on the bill.  In the days before electronic bill payment options were available, I remember once paying nearly $20 to overnight a check to avoid a $35 late fee.

Of course, you can avoid late fees simply by paying bills on time.  I have put many of my bills on automatic payment, and I use electronic bill paying to pay my other bills, often the same day I receive my bill in the mail.  

When an occasional late fee mishap occurs, I have been able to avoid paying the late fee using the tactics I have described in this article. 

Here is a summary of tips on how to avoid paying late fees:

• Use autopay to guarantee on-time payment and no late fees
• Use electronic bill payer service from your bank to pay your non-autopay bills as they come in
• If you do get a late fee, object right away and ask that the late fee be removed from your bill.  You can sometimes have a late fee removed just by asking.  It is worth a try!
• If requesting a late fee be removed by phone doesn't work, try writing a letter.  The company may decide it is better to remove the late fee than deal with complaints and risk you moving on to a competitor.

Penny Pincher Journal

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

Would You Wear Shoes With Duct Tape?

Why I Wear Shoes with Duct Tape

The other day my wife wanted me to wait in the car while she went in the store.  "Is it the shoes, or just me in general?" I asked.  After some consideration, she selected "the shoes" as the reason she wanted me to wait in the car...

Would You Wear These Shoes With Duct Tape?

When my shoes were dirty and foul smelling this spring, I gave them a bath and kept right on wearing them.

When my shoes got holes in them and my socks started getting dirty through the holes, I took action.  With a few cents worth of duct tape and a moment of my time, I may be able to get another year of use out of my tennis shoes.  Shoes with duct tape may not be the coolest fashion statement, but they work.

You may wonder why I patch up my old shoes with duct tape instead of buying a new pair.  The answer is simple: money.  I think spending money on a new pair of shoes when I have bills to pay is a terrible idea.  I would rather hang on to a little money for myself instead of paying $50 for a new pair of shoes.  There are so many things I have to spend money on, and new shoes is not one of them- as long as I have duct tape!

Wearing shoes with duct tape is not for everyone.  Most people would prefer to cut back on things that are less visible to others such as food or entertainment expenses.  Unlike most people I am ready, willing, and able to cut back on all of these expenses.

How to Extend the Life of Your Shoes with Duct Tape

Extend the Life of Your Shoes with Duct Tape

Here are some tips from my experience using duct tape to stretch the life of tennis shoes:

The key to using duct tape successfully on shoes is NOT to wrap the tape around the bottom of the sole of the shoe.  This makes the bottom of the shoes slippery.  I learned this the hard way on a previous shoe repair project when I nearly slipped and fell down while mowing.

Duct tape does not stick very well to the mesh material of tennis shoes, so I try to use the hard material along the edge of the sole as a place to get some good adhesion.  I also try to use fairly long pieces of duct tape and wrap it around so that it sticks to itself.

Another tip to make your shoes last longer with duct tape- make sure the shoes are really dry when applying the duct tape.  Duct tape will not stick very well if the shoes are damp or dirty.  It works best to apply the duct tape at warmer temperature, this seems to make the adhesive work better.

You might not be able to bring yourself to wear worn out shoes repaired with duct tape.  That's OK.  There are tons of other ways to save money instead.

Penny Pincher Journal

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

Rent-to-Own Ripoff: Undercover Investigation

Investigating Rent-to-Own Store Prices

Disguise for Undercover Investigation of Rent-to-Own Prices

As a staff writer for Wise Bread, I was recently assigned to investigate rent-to-own stores.  Are Rent-to-Own stores a ripoff?

Following is a slightly fictionalized account of this undercover investigation.

---

"Great to see you, Dr. Penny Pincher," said my editor as I walked into his office.  He was seated behind a large mahogany desk with only a desk lamp and a mechanical typewriter on its vast surface.

"Likewise," I said cheerfully, removing my hat.  I hung it on the coat rack and closed the door.  I enjoyed coming to my editor's office because that meant a new article assignment, and that meant money.

"I think people are being ripped off at rent-to-own stores, but I can't prove it," he said.  I always appreciate how my editor gets right to the point.  He manages a lot of writers and has learned to be efficient.

"Interesting topic," I said as I sat down across the desk from him.   "But I have never bought anything at a rent-to-own store."

"We're going to send you undercover," he said.

"But undercover investigations can be risky," I objected.  "Maybe we should send in a private detective instead."

"I thought about that, but we need you.  This is going to require math," he said.

"I see," I said.  "But I still think it could be risky."

My editor opened his top desk drawer and pulled out a fat envelope with "rent-to-own ripoff" typed on it.  The envelope made a deep thump when he dropped it on his desk in front of me.  From its thickness and the sound it made, I couldn't tell if it contained more cash than usual or not.

After a second or so of deliberation, I scooped up the envelope and slid it into the inside pocket of my sport coat as I stood up.  "I'm on it," I said and started toward the coat rack to get my hat.

"Wait," said my editor.  "You can't go undercover looking like that.  They'll recognize you as Dr. Penny Pincher.  You'll need a disguise so you can see how they really operate."

"Roger that," I said as I put my hat on and headed out.

I realized my editor was right.  If I went into the rent-to-own store and they recognized me as Dr. Penny Pincher, they could change their deals so that they would look better in my article.

Dr. Penny Pincher- Before Disguise

I got off the city bus at a department store on my way to the rent-to-own store and picked up a new hat for $3 on the clearance rack.  My disguise was complete, and I was ready to begin my undercover investigation...

Dr. Penny Pincher- In Disguise for Undercover Investigation

One of the shocking things I learned is that buying a TV at the rent-to-own store would have resulted in paying an annual interest rate of over 140%!

Here is a link to the full article so you can learn how much it really costs to buy something at a rent-to-own store and learn about much less expensive options:  This Is How Much A "Rent-To-Own" TV Really Costs

Penny Pincher Journal

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

Used EVO CX Exercise Bike Review

Used EVO CX Exercise Bike Review

Used EVO CX Exercise Bike

I am always looking out for cheap used exercise equipment that I can use to stay in shape.  I have been looking for an exercise bike for a year or so since my old 20 year old Schwinn Airdyne broke.  I wanted something much more sturdy and capable of providing a quick, intense workout.

Last week, I found what I was looking for- and more- at the 2nd Wind used exercise equipment store.


The store obtained some used professional grade exercise bikes from a fitness center and was offering them at a substantial discount.  The EVO CX can be ridden like a standard exercise bike, but it has a neat trick.  It has a sway mechanism that allows you to stand up and work your core.  This simulates the motion of standing up and riding a bike up a steep hill.  What a workout!  I feel like I could leap over a small building after doing this a few times...

This sturdy piece of gear is just what I needed.  It is a heavy item, I would guess it weighs around 100 pounds.  I had my teenage son help carry it to my exercise room upstairs.  The base does have wheels to make it easy to position in your workout room.

The EVO CX is quickly and easily adjustable since it is designed for heavy use by people of different shapes and sizes in a fitness club.  It has a nice handle bar assembly that holds 2 water bottles plus your cell phone.  The hand rest allows a lot of different hand and arm positions while riding.

This is a simple "spinner" exercise bike.  You don't need to plug it in, and it does not have automatic exercise programs.  There is a red resistance knob that you can turn to increase or decrease the resistance.  Pushing the button stops the pedals from spinning when you are ready to stop.

EVO CX Professional Grade Exercise Bike

This bike includes a built-in computer to track your time, distance, and heart rate, although I did not get the wireless heart rate strap with my used model.

Really, this is two exercise machines in one.  You can ride this like a standard exercise bike, or you can set the switch to allow sway and stand up.  The exercise you get by standing up and swaying is more like running or sprinting.  I am in pretty good shape from riding my real bike up hills all summer, but this exercise bike is able to challenge me with a good workout that takes only a few minutes.

If you are looking for a really solid exercise bike to add a piece to your workout, check out the EVO CX.



These are pretty expensive new, check out used EVO CX on eBay:

EVO CX on eBay

Penny Pincher Journal

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

Straw Bale Garden Harvest

Harvesting Vegetables from My Straw Bale Garden

 One Day's Harvest From My Straw Bale Garden 

I have started to write this "Straw Bale Garden Harvest" post a couple times now, but the garden just keeps on going.  We had a beefsteak tomato tonight with dinner and still get great cherry tomatoes every day.  Even thought the garden is still producing, I will go ahead and summarize the harvest.

If you want to learn all about straw bale gardens, you can learn everything from planning through harvest:

• Starting a straw bale garden
• Conditioning the straw bales
• Straw bale garden timeline
• Does a straw bale garden work?
• Straw bale garden harvest (this article)

Watermelon

Watermelon from Straw Bale Garden

Last week, I had one of the best watermelons I have ever had.  Yes, I grew it in a straw bale!  Of all the things I planted in straw bales, I was most skeptical of the chances of growing good watermelons.  I usually have a hard time growing good watermelons in a regular garden, and thought it would be even harder planting a watermelon in a straw bale.  I don't know if it was the weather, or the soaker hose that I used to
provide regular watering, but the watermelon did well and we got 3 big ones.

Cantaloupe

Cantaloupe from Straw Bale Garden

The cantaloupes produced small fruit, and I am waiting a bit longer to try one.  Since they are small, I hope they will grow a bit more.

String Beans

String Beans from Straw Bale Garden

We had string beans pretty much all summer long.  Having the beans raised up on top of straw bales made them easy to harvest.

Tomatoes

We planted some beefsteak tomatoes that were started from seed, but they just didn't do very well.  From a single growing season, I can't tell if they just didn't do well in the straw bales, or if the weather in general just didn't work very well.  We got a few tomatoes, but far less than we hoped.

Cherry Tomatoes

Cherry Tomatoes from Straw Bale Garden

I would say the cherry tomatoes were our best crop.  They started producing and just wouldn't stop.  I even had plenty of extra cherry tomatoes to share at work.

Broccoli

The broccoli grew very well and produced a lot of broccoli, but I didn't eat much of it.  We had tons of white cabbage butterflies and so we had lots of worms in the broccoli.  I could have sprayed it, but I didn't want to mess around with chemicals.  The butterflies got it this year.

Cauliflower

Same story with the cauliflower- it grew well, but there were a lot of worms.  The problem with pests had nothing to do with the straw bales, we just have a lot of butterflies around.  Next year, I might try putting tents over the cauliflower and broccoli to keep the butterflies off, or maybe use some Sevin garden dust to keep the pests down.

Lettuce and Spinach

The lettuce and spinach grew very well in the straw bales, we planted both of these as seeds right in the bales and covered the seeds with a bit of soil.  I almost forgot about these crops- we finished harvesting these in early spring.  We had fresh salad a number of times.

Jalapeno Peppers

Jalapeno Peppers from Straw Bale Garden

We got lots of jalapeno peppers and they were really, really spicy!

Bell Peppers

We harvested 8 or 10 peppers, which was OK for the small number of pepper plants we put out.  The peppers were on the small side, but this may have been due to the variety of pepper.

Onions

I would say onions were the only crop that failed.  The onions didn't grow very will in straw bales.  I planted about 30 onions from onion sets and we didn't get any at all.  I think I did not water them enough.  As I have mentioned, it takes regular watering to have success with a straw bale garden since the straw bales don't seem to hold water as well as the ground.

Potatoes

The potato plants grew very well in straw bales, and I look forward to a very easy harvest in a few weeks.  I'll simply pull the straw bale apart and scoop up the potatoes- this should be much easier than digging into the ground looking for the potatoes.  I like to harvest potatoes just before Thanksgiving and will probably use them in Thanksgiving dinner.

Cucumbers

I almost forgot about the cucumbers since we pulled the plants last week.  They produced tons on cucumbers all summer long.

My Straw Bale Garden at Harvest

Thanks for following the straw bale garden this year!  Look for more gardening adventures next spring...

Penny Pincher Journal

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

How AdBlock Could Break the Internet

Will AdBlock Break the Internet?

A few days ago, Apple announced that its new iPhone will support AdBlock software.  Apple is always making innovative upgrades to iPhones, so something as simple as supporting AdBlock may not sound like such a big deal.  But this could break the Internet.

If you are not familiar with AdBlock, it is software you can install so that ads do not appear when you look at websites.  I first saw AdBlock in action a few years ago when I tried to look at one of my websites on my wife's computer.  None of the ads on my page were displayed and I thought my ads were broken. I mentioned this to my wife and she explained that she runs AdBlock software on her Mac desktop.

Even back then, I realized it would be a big problem if too many people started using AdBlock.

"What's the problem?" you say.  There is all this free stuff on the Internet that you want to look at, but the ads are annoying.  Why not just block the ads and make it easier to surf the net?  The reason that all kinds of free stuff is available to read on the Internet is that the people publishing it can make money from the ads.  If there is no money to be made, people will stop putting free content on the Internet.  This includes bloggers like me on up through sites like the New York Times.

Apple's announcement raises the level of concern since this brings AdBlock to the mobile phone platform, which is a growth area for Internet advertising.  Also, featuring AdBlock as an innovative feature will encourage more users on desktop and mobile android platforms to adopt AdBlock.

As someone who likes to get free stuff, I am concerned.  If Internet ads dry up, there will be less free stuff that I can access as publishers like bloggers and news sites reduce the amount of free material they publish.

Perhaps some of the best content from the large publishers will move behind a pay wall.  But I won't pay.  As I have cut back my budget, I stopped getting a newspaper and also stopped getting cable TV.  Free stuff on the Internet is a major source of news and entertainment for me, and I don't want to see the quality content and variety go away.

Of course, I am also a publisher of free content on the Internet and revenue from ads provides a motivation to keep publishing new material.

What Could Be More Annoying Than Ads?

It will be interesting to see how this will unfold.  I agree that some Internet ads are pretty annoying, especially the pop-over ads and video ads, but alternate ways to pay for Internet content seem even more annoying.

• Imagine having to subscribe and log in to each your favorite sites, not to mention paying a monthly subscription.  
• Imagine having to type in your credit card number and pay a small amount, even 10 cents, to read articles you find as you surf the Internet.  
• Imagine having to launch a separate app to view each of your favorite sites.  Using custom apps from each publisher is a way to get around AdBlock that works on browsers.
• Imagine if the distinction between content and ads is blurred- think product placement.  News articles may have product promotions integrated into the story to get by AdBlock.

I am still optimistic that AdBlock proliferation could end favorably- there is a lot of money in play, and technology can change quickly.  One of the most promising scenarios is that only the most obnoxious ads will get blocked and the good ads- like mine- can get through, and people can enjoy free content on the Internet.

This seems better than the alternative where all ads get blocked, and a different way for readers to pay for content must be established.

Penny Pincher Journal

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

Pay This Bill- It Will Make You Rich!

Pay This Bill- And Get Rich! 

Your Most Important Bill!

Would you be surprised if I told you that by paying one of your bills you will become rich?  The strange thing is that most people are not paying their most important bill.

Let’s start by figuring out which bill could make you rich if you pay it.  Is it your mortgage?  Your electric bill?  Your grocery bill?  Your tax bill?  It’s none of these, and most people will not figure it out without some clues.  Part of the reason this most important bill doesn’t get paid is because people don’t even think about it.

You’ve probably heard the expression “pay yourself first”.  With this clue, do you know which bill is your most important bill to pay?

Image Credit:  Public Domain Image , Source: https://pixabay.com/en/letters-envelopes-letter-stack-post-286541/

What Does It Mean to Pay Yourself First?

You may have heard the common personal finance advice to “pay yourself first”, but what does that mean?  Paying yourself first means to take money for your savings or investment out of your paycheck first, and then pay other bills, such as the ones mentioned above.

Paying yourself first is not what most people do.  Most people spend their paycheck until it is gone and then hang on to make it to the next payday.  If you don’t pay yourself first, you will always be doing this!  The only way to break this cycle is to pay your most important bill first and save or invest money to build your wealth.

But What If There Is No Money Left After Expenses?

I think many people intend to save or invest any money that happens to be left at the end of the month, but there just never happens to be any left.  It is simply too easy to spend money if it is available.

People respond differently to bills than they do to goals.  If you give most people a bill, they manage to pay it somehow.  They understand that there are consequences for not paying a bill.  Not paying yourself first also has big consequences that grow as you pass your peak earning years and your income starts to decline.

 Even worse, the longer you wait to start paying yourself, the less time that your money will have to grow.

Think of the money you need to invest to build a retirement fund as a bill and pay that bill first.  If you run out of money, you’ll need to cut something else instead of being late to pay your most important bill!

How Much To Bill Yourself?

If you have a detailed budget, you may be able to analyze your expenses and determine a reasonable amount to save each month.  If you are like most people, you do not have a detailed budget.  In this case, start with a small amount of savings- such as $50 or $100- and take this out of your paycheck before spending on anything else.

Another way to approach deciding how much to pay yourself is to set an investment goal and work backwards to figure out how much you need to save each month.  Using an estimated average return on investment, you can try out different monthly contribution amounts to see how long it would take you to reach your goal using this investment goal calculator.

You may be surprised to see how much even a small regular contribution can grow over time!

How To Pay Yourself First

Pay your most important bill by putting your investment funds from each paycheck in a savings account or investments account away from your other money to help avoid spending it.  If you leave your investment funds in your checking account with your other funds, it is more likely you will spend it rather than investing it.

I automatically take my investment contribution out of each paycheck to fund my 401K retirement plan through my employer.  Contributing to a 401K plan has two major advantages:  1) you contribute funds on a pre-tax basis, and 2) many employers offer matching funds.  I get $1 of “free” money from my employer for every $2 that I contribute.  If your employer offers a 401K program, make sure you are not leaving free money on the table!

Even if you are already contributing to a 401K plan or do not have access to a 401K plan at work, you can benefit from other investment types.  I contribute to a Roth IRA every month using post-tax funds.  The advantage of a Roth IRA is that you will not need to pay taxes when you take money out of a Roth retirement account after it grows.

Regardless of how you invest the funds that you pay yourself, you need to have money available to invest.  Adjust your spending to make room for your new bill by cutting back on your least important spending- such as fast food or buying items you don’t really need.

If you think of the money you need to save or invest each month as a bill and pay it, your spending will naturally adjust just like it does when you take on any other new bill that you have to pay.

Most of your bills increase over time, and your most important bill should increase also over time as your income increases and you find ways to make more money and cut your expenses.  The point of paying yourself first is to treat the money you save and invest as your most important bill and pay that first.

If you are having trouble paying yourself, start by cutting your expenses so you can afford to pay your most important bill.  If you are looking for ideas to save money, check out Penny Pincher Journal to find more than 101 things you can do right now to save money...

Make It Happen!  Next Steps to Pay Yourself First

• Decide how much to pay yourself every month or every payday
• Use an Investment Calculator to help set your goals
• Make sure you are getting the maximum company match 401K contribution
• Adjust your spending to make room for your most important bill
• Check out this free ebook with 101 tips to save money and cut expenses
• Set up an automatic deposit into an investment account

Dr. Penny Pincher Bio:
Today’s post is by Dr. Penny Pincher at Penny Pincher Journal.  In 2013, Dr. Penny Pincher bought a puppy on impulse that changed his life.  He realized he would have to quickly find ways to spend less money to cover this unplanned expense that put a big dent in his budget.  He started searching for ways to spend less money and sharing penny pinching tips on his blog.  You might wonder if Dr. Penny Pincher is really a doctor... yes he is- with a Ph.D. in engineering.

Penny Pincher Journal

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

Why Pay Too Much For Bad Coffee?

"Most people drink bad coffee, and pay too much for it.  I'm not sure which is worse..."  Dr. Penny Pincher

Me and My Great Coffee (Only 60 Cents!)
Image Source: Dr. Penny Pincher

You have probably heard of the "latte factor" that is described  by many personal finance experts.  The concept is that you can get ahead financially by saving or investing your money instead of spending it on buying a latte every day.  This is certainly true, but I don't think that many people are actually drinking lattes or other fancy coffee drinks that cost $3 or $4 dollars every day.

I do think that a lot of people buy $2 coffee at coffee shops or even pay $1.79 for bad coffee at convenience stores or fast food drive-thru windows.  Some people buy more than one cup of coffee every day.  I used to be one of those people...

I realized how much I was spending on coffee and decided to make coffee at home instead.  Over time, I figured out how to select whole bean coffee and grind it at home.  I learned a lot of tricks to make really good coffee at home for only 60 cents a day- I even wrote a book about it.



I also cut back from drinking several cups of coffee every day to drinking only one really good cup of coffee every day.  It can be a bit unpleasant to cut back on coffee since it is mildly habit-forming.  Here's how I was able to cut back on coffee and avoid caffeine headaches.

So even though I wasn't drinking $4 lattes, I was able to save a lot of money on coffee.  For the purposes of approximation, let's say I was spending $4 per day to buy 2 cups of coffee at a coffee shop.  Now I spend 60 cents per day on coffee.  This savings of $3.40 per day adds up to over $1,200 per year!

You might say that I have 60 cents more per day that I could cut on coffee, but I am not interested in cutting back on my one good cup of coffee that I make every day.  I think a great cup of coffee is worth far more than 60 cents, so I will make room for this in my budget and continue to enjoy my coffee every day.

If you have become stuck in a rut of paying way too much for bad coffee, consider learning to make great coffee yourself at home.  Not only will you save money, but you can get much better quality coffee as well.

Penny Pincher Journal

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

My Sharing Economy: Getting By at the Office for Free!

Give and Take at the Office

The other day, someone at the office offered me a piece of candy, and of course I took it.  For one thing I was starving, the candy was free, I wanted it.  For another thing, it is sort of a bonding event to share stuff at the office with coworkers and I wanted to participate.

Of course to really participate, I would need to share something too.  I looked around my office thinking about what I could share that wouldn't put too big of a dent in my wallet, and my gaze fell upon a bowl of cherry tomatoes that I brought for lunch.

Perfect!  I had way more tomatoes than I could comfortably eat.  I washed each cherry tomato carefully, removed the stems, and even tried them off with a paper towel.

I walked around offering cherry tomatoes and telling my story about how I grew the tomatoes in a straw bale.  This is actually true- you can read how I grew my entire garden by planting in straw bales this year.  I even put some tomatoes in paper coffee cups and left them for people who were away.  It became a game for people to figure out where the tomatoes came from while they were away from their desk.

Everyone liked the tomatoes- from what I heard, none of them made it home with anyone.  They got eaten almost immediately or in the car on the ride home.  I am starting to want more of those cherry tomatoes as I read this.

I picked some more tomatoes tonight to take in to the office.  Not only are cherry tomatoes from my garden free, but they are healthy for people.  Maybe they will offset the effects of everyone eating candy today.  I also like that I have a unique thing to share.  I guess someone could buy a bunch of cherry tomatoes at the grocery store, but this would be expensive and they would be nowhere near as fresh as mine that are straight from the garden.

For me, I enjoy sharing something that takes a bit of work rather than spending money.  I think most people would rather buy a box of donuts or a bag of bagels to bring to the office and be done with it, even if it costs $20.  I can grow a lot of vegetables in my garden with $20 worth of investment.

Sharing produce from my garden works great during harvest season, but what the rest of the year?  I have shown up at office events with canned salsa made entirely with produce from my garden.  Another neat- and cheap- thing to bring to the office is a fresh loaf of bread to share.  When I had chickens, I always had eggs to share- this was popular and cost me nothing since I had extras.

Protect your wallet by thinking about cheap ways you can participate in the "sharing economy"!

Penny Pincher Journal

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

Fear of Muffins

Do You Know The Muffin Man?

Muffins for breakfast?  What could possibly go wrong?
Image Source: Dr. Penny Pincher

Where I live, the muffin man works at the local convenience store, about 3 miles away.  He, or maybe it's she, makes the muffins every morning.  They are really big and sell for $1.49 alongside donuts and cinnamon rolls.

The other day over Labor Day weekend, by son wanted go get muffins for breakfast.  This was a pretty reasonable request.  It was breakfast time, muffins are a relatively healthy breakfast food option, and my wife was at work so buying muffins would have been an easy way for me to take care of breakfast.


So why did I say no?

Fear The Muffin Man

My first thought was that driving several miles and spending that much time in the car would be a waste of time and money.  Next, the cost of muffins would have added up to $4.50 for the three of us, and what if my sons wanted to get a bottle of milk or something else too?  The money envelope would have been rapidly depleted.  Finally, there are other things that could go wrong on a muffin seeking adventure.  What if we drove all the way there and the muffins were sold out?  What if we got a flat tire or my 10 year old car broke down along the way?

I told my son that I had an idea.  "Check the cupboard," I said.  He quickly found what I was remembering.  There was a box of muffin mix.  Instead of wasting time and money, we could have all the muffins we could handle for a fraction of the cost!

Make Cheap Muffins at Home!
Image Source: Dr. Penny Pincher

I put him in charge of making the muffins.  In addition to the powdered mix and can of blueberries that came in the box, he added water, oil, and eggs.  After some mixing, preheating, and baking we had a dozen muffins.  We munched on muffins all day and even had some left to give my wife when she got home from work.

I don't know exactly how much the box of muffin mix cost.  I would guess around $3 since they have fresh blueberries.  Considering the cost of other ingredients and cost of electricity, I would say the muffins cost about 30 cents each to make at home.

Making muffins at home was much more enjoyable than driving to a convenience store to buy some- and much less expensive as well.

I think my son is the muffin man now!  If he can make muffins at home for 30 cents each, we have little to fear...

Penny Pincher Journal

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

Is Cereal a Rip-off?

Is Cereal a Rip-Off?

Today, I will look at the value of a box of cereal.  How much food are you getting?  Corn Pops are very simple, so it is easy to figure out how much corn is in a box of Corn Pops.  Is cereal a rip-off, or a good deal?

How Much Corn Is in This Box of Cereal?
Image Source: Dr. Penny Pincher

Corn Pops Really Are Popped!

I made an interesting discovery yesterday while eating breakfast cereal with my kids.  I did a little research, which involved reading the back of a Kellogg's Corn Pops box.  Did you know Corn Pops are actually "popped" corn?  I always thought that corn pops was made from corn flour and shaped through extrusion or something like that.

If you look closely at the corn pops, it make sense that they are puffed up corn kernels.  The back of the box says the corn kernels are cracked in half and then "popped".  Then some sugar is added, of course.

Corn Pops are "popped" corn!
Image Source: Dr. Penny Pincher

Eating something that is literally a whole grain seems pretty healthy, and the fact that Corn Pops are sweetened using sugar rather than high fructose corn syrup seems like a good thing.

How Much Corn Is In A Box of Corn Pops?

Since I am a Penny Pincher, an obvious question comes to mind:  Are Corn Pops a good deal?  People often complain about the high cost of cereal.  Since Corn Pops are simply made from corn, it will be pretty easy to check the cost for the main ingredient in this cereal

It Is Easy to See That Corn Pops Are Puffed Up Corn
Image Source: Dr. Penny Pincher

You can get a 12.5 oz box of Corn Pops for $2.33:  Corn Pops Cereal, 12.5 Ounce

Being from Iowa, I know that corn is selling for about $4 per bushel.  So how big is a bushel?  A bushel is 2150.42 cubic inches or 35.24 liters.  That is a lot of corn for only $4!

My 12.5 oz box of Corn Pops measures 7 7/8 inches wide by 12 3/16 inches high by 2 5/16 inches deep.  This works out to a volume of  221.95 cubic inches.  I'll be generous and assume that the entire volume of the box is filled with Corn Pops, even thought there is some packing inefficiency.

So even before considering that the Corn Pops cereal is puffed up, the cost of corn to fill a box of cereal would be $4 x (221.95 / 2150.42) = 41.3 cents.

I would estimate the the Corn Pops are increased in volume by at least a factor of 2 after they are "popped".  Since less corn is required, this would bring the cost of the corn to make a $2.33 box of Corn Pops down to only 20 cents!

Based on this, it is clear that cereal has a pretty significant mark-up.  I understand that processing the corn and sugar into cereal, packaging it, and transporting it costs money and this cost is reflected in the price.  But a mark-up of about 10x does seem pretty steep.

On the other hand, paying $2.33 for a relatively healthy box of cereal seems like a pretty good deal compared with other food that you could buy.  So is cereal a rip-off?  I'm going to strike a compromise:  I'll keep buying Corn Pops, but I'll complain about how expensive they are!

Penny Pincher Journal

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

A Dishwasher For Billionaires

A Dishwasher Fit for a Billionaire?

Dishwasher for Billionaires
Image Source: Dr. Penny Pincher

Yesterday, I was loading my dishwasher just after dawn on a beautiful August morning.  Light was streaming in from the sunrise, and my stainless steel dishwasher was glistening.  I have a bit of history with this dishwasher...

This is a dishwasher that I installed myself.  We tore out the old cabinets and removed the old plumbing- all that was left was 2 copper pipes and a drain pipe sticking out of the floor.  After installing a new sink base, I used a torch to sweat on new shut-offs and installed a new dishwasher all by myself.  I was so relieved when I turned on the water and in my plumbing installation was not leaking.

Then trouble struck.  After only running one load of dishes, the dishwasher would not turn on and reported an error code.  Not only that, but the tub of the dishwasher was leaking too.  The appliance repairman subtly suggested that we get a different one instead of trying to repair this brand new unit with so many problems.  If you want the whole story about the lemon dishwasher, I wrote an article about it at HubPages.

Anyway, I hauled the carcass of the faulty dishwasher back to Lowe's and got my money back.  I decided to go with a different brand from a different store.  I got an awesome Bosch dishwasher from an independent appliance shop.

The new dishwasher has worked perfectly for over 7 months now.  It is super quiet, has a stainless steel interior, a nice third rack for small items, and the middle rack is also adjustable.  I ran a lot of loads to "test" it before sharing it with the rest of my family.

So what does this dishwasher have to do with billionaires?  As I was loading it and it was glistening at me, reminding me of how it came through when I really needed a dishwasher, I thought to myself,

"Even if I were a billionaire, I wouldn't want a different dishwasher."

Below is a link to the dishwasher I got on Amazon.  Some of the reviews complain about the drying capability, but this is an energy efficiency feature.  You cam just crack the door while the dishwasher is still hot after running, and the dishes will dry without using any energy.  I would rather save money on my electric bill than pay to get the dishes dry quickly.

Bosch SHP65TL5UC 500 24" Stainless Steel Fully Integrated Dishwasher - Energy Star

What Else Is Fit for a Billionaire?

This thought of keeping the exact same dishwasher even if I had billions of dollars and could easily get any dishwasher I wanted to replace it made me think- what else would I keep, even if I suddenly became a billionaire?

I would keep my current house and vehicles.  The vehicles are well-maintained and do everything I want from them.  My wife's car absorbed the force from being rear-ended by a big Dodge Ram pickup truck and kept her safe.  My son really likes his first car, and I am just getting started owning my 10 year old Toyota Highlander.  I would replace the windows on my house and upgrade the floors, but the location and yard is great.  I can think of lots of nice places to visit, but I can't think of a nicer place to live.

One advantage of keeping my same stuff if I became a billionaire is that it would help me blend in and avoid attracting unwanted attention.  Being a billionaire does have some down sides.  I have always thought that fortune would be much better than fame if you could choose one.  Now you know why I use a nom de plume.

Sure, I might do some traveling and maybe even get a vacation home somewhere if I really had billions of dollars, but I already have pretty much everything I want.  OK, I would also get a Class A motorhome.  Not that I have thought about this much, but it would be 40 foot diesel pusher with 3 slide-outs and an outdoor kitchen.  Plus, I would go ahead and put in a swimming pool at home.  But I don't think I would buy that much more stuff.

I think the biggest change I would make would be how I spend my time- I would no longer be concerned about making money... or would I?  If I had billions of dollars, I would probably be working hard at keeping track of all of that money and trying to invest it wisely.  I could hire people to help manage all of that money, but I would still need to keep track of my people.  So, I suspect that I would actually spend a lot more time thinking about money as I do now.

Maybe being a billionaire wouldn't be that much better than my life now.  When I'm loading my dishwasher, I can't tell the difference.

Penny Pincher Journal

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