Sunday, December 14, 2014

Tip 76: Get free checking, avoid bank fees

Tip 76: Get free checking, avoid bank fees

My bank- actually a credit union- has a program where I get free checking if I use my debit card as a credit card 10 times during the month.  Most banks offer some sort of free checking.  If you don't get free checking, you can pay $10 to $20 per month or more on fees.  It is worth some effort to keep the money in your account instead of giving it to the bank.

Speaking of bank fees, the one that bothers me most is ATM fees.  You go to an ATM to take out money, and sometimes a box pops up that says you have to pay a fee to get your money out.  For example, I wanted to take out $10 to buy some food at some food stands at a local event.  It was cash only.  My usual ATM was out of money due  to the crowds.  I walked to another ATM- this one was going to charge a $4 transaction fee.  That works out to a 40% fee to get my own money out!  Of course I didn't pay it.  The cost for the bank to run the transaction is  likely too small to even calculate accurately, yet they are charging very high fees. 

I like to keep some cash around so I am not faced with ATM transaction fees if a need for cash come up.  Also, if  you need to get money out using your debit card, it is worth the trouble to find an ATM that is in your bank's network and does not charge transaction fees.  You can also use you card to get cash at a checkout of a store as well.  You can buy an item and ask for cash when you pay with your debit card.


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Tip 77: "Bank" at a credit union rather than a bank

Tip 77: "Bank" at a credit union rather than a bank

The fees and interest rates are typically lower at credit unions than at a bank, and you get all of the same benefits and FDIC protection for your deposits.  I recently did a comparison of interest rates on deposit accounts and rates and fees charged on loans between my credit union and a local bank.  My credit union won across the board.
What is a credit union?  A credit union is a non-profit organization that provides financial services to its members.  I like the idea that my credit union is not trying to get money from me.  Check out credit unions that are at convenient locations in your area and compare their rates and services with your bank.  You may find a better deal at a credit union that can save you money on interest and fees.

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Tip 78: Turn off unneeded lights and appliances

Tip 78: Turn off unneeded lights and appliances

One wasteful thing that bothers me is when I see that someone has gone away for work and has left there outdoor porch light on.  It will run all day, burning up electricity and costing money- what a waste!  I like to check my outdoor lights before I leave for the day to make sure none were left on.

Not only to outdoor lights get left on, but too often I find lights on in an empty room.  Turning off lights that are not being used is a good way to save electricity and lower your utility bill.  Sometimes I go too far and accidently turn off lights when someone is actually in the room.  I am OK spending a little money to run lights if there is someone in the room.  Most places, electricity costs 10 cents per kilowatt hour.  Therefore, running a 100W lightbulb costs about 1 cent.  I am willing to let this cost go if there is someone in the room.  Running lights when no one is in the room adds up over time and is an expense that is easy enough to avoid.

Another potential waste of energy is running unused appliances.  I just now got up to turn off a TV that no one was watching.  My flat screen TV uses about 300W when it is running, so it is worth the trouble to turn it off if no one is watching.  Sometimes, I even notice that the oven was left on during dinner.  I have gotten in the habit of checking to make sure it is off before starting to eat.

In addition to saving money on utility bills, you will extend the life of appliances by running them less.

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Tip 79: Can you eliminate an extra vehicle?

Tip 79: Can you eliminate an extra vehicle?

Owning a vehicle is expensive- you face depreciation of the vehicle, insurance costs, fuel costs, and maintenance costs.  If you can get away with owning fewer vehicles, you can save a lot of money.  In some places, public transportation such as busses or subways makes owning a vehicle less of a necessity.  Even in suburban areas where public transportation is less abundant, you may be able to join a carpool to work and find other ways to get around.  If you have more than one vehicle for your household, you may have an opportunity to sell one and save money.

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Tip 80: The art and science of the store return

Tip 80: The art and science of the store return

Returning things to the store is sometimes a convenient way to get money for items you later realized you don’t need or that didn't work out for you.  The rules that stores have place restrictions on returns and can make it hard to get your money back.  Here are some tips on returning items to the store that you might think couldn't be returned.

When I was moving out of a house, I found some project items and building materials in the attic for projects I never got around to doing.  There are a few ceiling lights and things like this.  Although they were purchased several years ago, they were still new in the box.  I decided to try to return them to the store.  Of course, I no longer had a receipt.  I was pleasantly surprised to see the items ring up and I received a gift card for store credit for the full price of the items.  I was probably better off not having a receipt- most receipts for returns expire after 6 months anyway.  So the lesson here is that if you have new-in-the-box  unused items, you might as well try to return them.  Someone else can use them, and you can get a full refund, even if it is in the form of a gift card.

Another successful return was my cherry tree.  I bought a cherry tree at Lowe's in the spring and planted it in my front yard.  Trees from Lowe's have a 1 year guarantee, and I put the receipt in a safe place, just in case.  The summer was extremely hot and dry.  Even thought I watered the tree a lot, it dropped its leaves in August which is at least a month early.  I decided to give the tree a chance to come back the following spring before returning it.  Unfortunately, it did not leaf out in the spring and was completely dead.  I decided to take the tree back to exchange it, but during the year that had passed, I forgot where I put the receipt.  I should have kept it in the box with all of my other receipts, but for some reason I tried to put it somewhere special and lost track of it.

It took some serious effort to get a refund for the tree without a receipt.  The tree still had the tag on it, but they would not do a refund without the receipt- too many problems with returning trees to a different store is what one clerk told me.  I ended up bringing the tree in several times and explaining that I had a hole in my yard and that I wanted to get a new tree started.  No luck.  There was a way to search records for the purchase, which we attempted, but they needed the date of purchase which I did not have.  I was beginning to worry about the 1 year limit on the guarantee expiring.

After several weeks of working to return the tree, I walked into Lowe's with the dead tree and a shoebox full of receipts from Lowes.  Of course, I did not have the receipt for the tree, but I had tons of other ones from years of shopping there.  My point was that I was a regular customer at that Lowe's store location, and I had a tree with Lowes tags on it that I was trying to return.  I asked to see the store manager to go through my situation and the receipts with him.  The clerk recognized me and called the store manager.  After a brief exchange, they offered me a gift card with the full price of the tree.  I happily headed back to the nursery to pick out a replacement.

There are a few lessons to take from this story:  1) keep track of your receipts, 2) if you are returning something under warranty, don't wait until the last minute, and 3) persistence often pays off when trying to return something.


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Tip 81: Discount programs at grocery stores

Tip 81: Discount programs at grocery stores

One grocery store discount program I like is HyVee Fuel Saver.  When you buy certain items, you receive a discount for gas at Caseys or Hy-Vee gas stations.  For example, if you buy pumpkin bars, you might save 3 cents per gallon on gas.  The items that qualify vary all the time.  Since my car takes around 10 gallons to fill up, I can quickly estimate my savings if I buy a fuel saver item.  You can save money with the Fuel Saver program- the trick is not to buy things you would not normally buy.  I will sometimes substitute an item to get a discount- for example I might buy the pumpkin bars instead of cinnamon rolls to get the discount, but I don't buy more than I normally would without the Fuel Saver program.

The amount you can save depends on how many Fuel Saver items you buy.  I have received discounts of around 20 cents per gallon at times.  If you shop at Hy-Vee a lot, you can save some money on gas.  We buy some of our groceries at Walmart, which has lower prices but is a less pleasant place to shop and has less variety of some types of food items.

If you don’t shop at Hy-Vee or don’t have Hy-Vee in your area, see if you can find a different fuel discount program in your area that can save you money.

Another grocery store discount program I use to save money is a rewards program at an independent grocery store that is near my house.  You get a membership card to scan whenever you make a purchase and get points that you can use to get free grocery items each month.  One thing I like about this program is that you get points for everything you buy.  This differs from Hy-Vee fuel saver which only gives points for selected items.  Each month there are about a dozen or so grocery items that you can use rewards points to get free.  One month, you could get free orange juice and I did that several times.  This month, nothing looks appealing to me, so I’ll save my points for next month.

The price for saving at the grocery store with rewards programs is convenience and privacy.  The grocery store gets to track what you purchase and when.  This does not bother me that much, but you’ll have to decide for yourself whether privacy is a concern.  If you make your purchases using a credit card or check, it would be easy for the store to track your purchases anyway.  As for the convenience factor, you need to remember to bring your rewards card and have the cashier scan it every time.  This is not a problem for me- I just keep my Fuel Saver card and my grocery reward club card in my wallet so they are always ready when I buy anything at the grocery store.


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Tip 82: When to apply for a credit card to save money

Tip 82: When to apply for a credit card to save money

Sometimes you can save money by applying for a credit card.  We recently found a refrigerator that we liked and had been looking at it for a few months.  One weekend, it was on sale for $500 off and we decided to buy it.  I have plenty of credit cards, but Lowe’s had an offer that sounded pretty good.  If we applied for a Lowe’s credit card, we could get 10% off our purchase and get 0% financing for 6 months.  This was enough savings that I thought it was worth applying for a new credit card.  With the sale price and discounts, we saved around $800 from the original price.  I also will get 5% off every future purchase at Lowe’s using the new credit card.

I have also taken up offers to get credit cards that did not pay off as well as the immediate benefit from my new Lowe’s card.  One time I had loaded up on clearance winter clothes at Sears in the early spring.  They were selling Dockers dress shirts for $5 each and other great bargains.  I used my Sears Gold card to save an additional 5% off and then applied for a new Sears Blue card to save even more.  I ended up getting clothes for 90% off the original price!

Take advantage of offers to get new credit cards when you can save money on something you are planning to buy anyway.  If you pay off your credit card balance every month, it won’t cost you anything and you can save some money.


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