Sunday, December 14, 2014

Tip 95: Bake and decorate your own cakes

Tip 95: Bake and decorate your own cakes

It is amazing how expensive it is to buy a decorated cake.  It is also amazing how easy and inexpensive it is to make your own cake at home.  All you need is a box of cake mix and a few simple ingredients such as eggs, oil, and water.  Baking and decorating your own cake costs only a few dollars compared with around $18 to buy a 1/4 sheet decorated cake at the grocery store or bakery.

I would put buying decorated cakes almost up there with buying bottled water as a poor use of money.  If you need a lot of cakes for a big event, it might make sense to buy them from a place that has the capacity to make a lot of cakes.  But it seems pretty expensive to buy a single cake unless you’ve forgotten an important occasion and need to get a cake quickly.

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Tip 96: Stay off the hamster wheel

Tip 96: Stay off the hamster wheel

I sometimes feel like my family and friends are in a different socioeconomic group than myself.  It seems like everyone around me has newer, nicer clothes and fancier technology and stuff.  Maybe I should buy new stuff so I can be more like everyone else...  That is the kind of thinking that can get you on the hamster wheel of debt.

There will always be a newer, blingier cell phone that you don’t have.  Someone will always have a newer car or newer clothes than you.  As soon as you buy something and take it home, it is no longer new.  I try to focus on functionality instead of having new things.  Do I have a car that runs and is reliable?  If so, what more do I need from a car?  Do I have a cell phone that works so I can stay in touch with my family?  If so, what else do I need?  Do I have clothes that allow me to go out in public without embarrassment?  Well, maybe...  My kids are pretty embarrassed by my old clothes, but I think they would be even more embarrassed if I tried to wear the latest clothing styles.  The shirt I am wearing now is at least 10 years old.  I bought the jeans I am wearing at K-mart in 2009 for $8.  I would be more embarrassed to wear expensive clothes- I would rather have money to take care of my family than spend it buying expensive clothes for myself.

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Tip 97: Avoid spending deathtraps

Tip 97: Avoid spending deathtraps

There are some places you can enter where there is almost no chance of a good outcome.  For me, places like Pier One, the pet shop, the car dealer come to mind.

Pier One is a fine store, but I don’t think they sell anything I really need there.  However, that store seems to be able to extract money from my wife somehow.  She really likes their stuff and it is hard to look around there without her wanting to buy something.  So the best move seems to be to stay away.
The pet store is another potential deathtrap.  You can walk out of the pet store with $1000 less in your wallet if you find a cute puppy you can’t leave without...

Car dealers are another potential problem area.  You can go in not realizing you need a different car and walk out with a car payment.

Willpower is a good thing, but you need less willpower if you simply avoid stores and situations that you know will tempt you to buy expensive things that you don’t really need.  What kind of stores are deathtraps for you?

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Tip 98: Don't throw away all the old batteries

Tip 98: Don't throw away all the old batteries

When a toy or device goes dead and you change the batteries, it could be that all of the batteries are dead, or it could be that only one or two batteries are dead and the others are fine.  Many people throw away all the batteries when they change the batteries.  I use a battery tester and check batteries before I throw them away.  Batteries cost as much as $1 each, so it is worth a few seconds to check.

Tonight I had a dead night vision goggle system that turned out to have 2 dead AA batteries and 3 good batteries.  We also had an Airsoft BB gun that would not shoot- it had 2 dead AAA batteries and 2 good ones.  So just tonight I saved 5 good batteries by checking the used batteries coming out of dead toys before throwing them away.  Why throw away good batteries?

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Tip 99: Buy less stuff that is made to be thrown away

Tip 99: Buy less stuff that is made to be thrown away

Some products are made to be purchased and then thrown away.  Why would anyone buy something just to throw away?  Products like paper towels, garbage bags, disposable diapers, soap, and cleaning chemicals are disposable- you buy them and then throw them away or wash them down the drain.
If you follow my tip on making your own rags, you won’t need to buy paper towels.  You can wash a rag and use it over and over.

How many different cleaning chemicals do you really need?  I try to just stick with a few basic cleaning products instead of having a lot of specialized cleaning products to store and sort through.
Whenever I buy something, I try to think about the exit strategy for that item in my mind.  How will I throw it away or get rid of it?  Sometimes this helps me decide not to buy something.  If it will be a lot of trouble to dispose of, or if I realize that it will not have a very long useful life before I need to dispose of it, then maybe I don’t want to buy it.

I recently threw away an old TV set at the landfill.  It was a small 13 inch TV set, an old fashioned tube TV.  It came with the house I bought and I had no use for it.  Actually, I recycled it rather than throwing it away- you are not supposed to throw away old CRTs at my landfill.  But wait, there’s more- I had to pay a fee of $10 to recycle it!  This free TV set ended up costing me some money to throw away.
I also ended up with a bunch of compact fluorescent light bulbs.  I am switching to LED light bulbs, so I’ll need to get rid of the compact fluorescent bulbs.  They contain mercury, so a special trip to the landfill or to a recycling station is needed to dispose of them.

Another type of product that gives me pause when I think about throwing it away is the cheap flat-pack furniture that you can buy at Target, Walmart, and other stores.  I have several bookshelves like this that are made out of particle board, not solid wood.  They are heavy, but likely won’t last very long because the particle board is not very strong.  I wouldn't want to burn them to get rid of them because the adhesive in the particle board would release toxic fumes.  Maybe I could break them up into small enough pieces to throw them away with my garbage, but that sounds like a lot of work.  Perhaps it would be better to find some used solid wood bookshelves instead, so I wouldn't need to think about disposing of them for a long time.

Thinking about how long a product will last and how you will get rid of it can help you avoid buying things you won’t get much value from owning.

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Tip 100: Use fans to lower your bills

Tip 100: Use fans to lower your bills

Running an air conditioner in the summer to stay cool is expensive.  You can save money in the summer by raising your thermostat setting and using fans to stay cool.  Fans use much less electricity than air conditioning.  Place the fans so that the moving air is blowing on you to facilitate heat exchange and cool you off.  Use ceiling fans to inexpensively circulate cooler air from the floor toward the ceiling.  In summer, a ceiling fan should rotate counterclockwise when viewed from below.  The fan should turn so that the up-turned edge of the blade is leading.  This results in air being pushed down directly under the fan.  This ceiling fan direction provides the most cooling effect from moving air.

Another way to use fans to stay cool inexpensively is to pull cool air from outside into your house after dark when it cools down outside.

Your ceiling fan can also help save on utility bills in the winter.  You’ll need to reverse the direction of the ceiling fan using a switch on the fan so that it rotates in the proper direction.  In winter, the ceiling fan should turn clockwise when viewed from underneath so that downward turned edge of the fan blade is leading.  This results in air being pulled up toward the ceiling fan.  This will mix cooler air from near the floor with warmer air near the ceiling and circulate it throughout your living space.  This way you will be able to turn down your thermostat and still be comfortable.

Spend less on utility bills by letting fans keep you comfortable.

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Tip 101: Read Penny Pincher Journal

Tip 101: Read Penny Pincher Journal

If you are interested in saving money, keep looking for new ideas and ways to spend less money.  A good idea on saving money can be worth thousands of dollars to you.  It is worth some time and effort to be alert for new ideas and innovative ways to save money.

OK, you may have figured out that I write Penny Pincher Journal since my name is Dr. Penny Pincher.  Penny Pincher Journal is my blog about saving money and products that can save you money.  Penny Pincher Journal has lots of interesting ideas on saving money, and the best part is that Penny Pincher Journal is free.  Check it out on the internet- here is the link.

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