10 Things You Don't Need- Guest Post @ Frugal Fanatic

10 Things You Don't Need- Guest Post

My Guest Post at Frugal Fanatic!

My guest post is up today at Frugal Fanatic!  The subject is 10 Things You Don't Need.  This piece talks about some things you can easily cut to reduce your expenses and have more money left to pay debt or invest.

Addi did a great job formatting this, and I like the photo with the title.  Thanks for featuring my post!

Check out the post here to learn 10 things you don't need:  10 Things You Don't Need.

Here's a clue in the photo below about #1 on the list:

Penny Pincher Journal

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Top 3 Ways To Build Wealth With FREE MONEY

Yes, There Really Is Free Money!

The other day I was paying a bill for a visit to the doctor's office.  The bill was unexpected and was for over $100, so this was painful.  I set the bill in front of me as I had my morning coffee.  I wanted to examine the bill to see if there were any extra charges included that I could ask to have removed, but there was almost no information on the bill other than the amount that needed to be paid and the due date.  After thinking about the bill for awhile, I realized that I could use my Health Savings Account (HSA) to pay all of it instead of taking money from my very limited checking account.

I had forgotten about my HSA.  My contribution comes out of my paycheck every time and I don't even see it.  My balance had reached nearly $2,000.  This is a nice cushion for health care expenses.

This got me thinking about free money and how I am using free money to build my wealth.

Health Savings Account- Get 34% Free Money

The Health Savings Account is a program where you can put pre-tax money into a dedicated savings account and use it for health expenses.  The "pre-tax" part is where the free money comes in.  The Federal income tax rate is about 25% and the state income tax here in Iowa is about 9%.  This means that I gain about 34% on money that I put into the Health Savings Account- not bad.  So if I put in $1,000, about $340 of this is free money- it would have gone to taxes otherwise.  My HSA plan even allows you to invest the money in the HSA into investment funds so it can grow until you need it for health expenses.

401k Plan- Get More than 50% Free Money

There are some other sources of free money that I am using to build wealth.  The big one is my 401k program at work.  My employer will match retirement contributions at 50% up to 4% of my salary.  So if I put in $2,000 and my employer will put in $1,000 of free money.  I like free money and always contribute enough to get the maximum employer matching funds.

The other free money aspect of the 401k plan is that you contribute pre-tax money, and the money invested grows without taxes, at least until you take it out.  Unfortunately, you have to pay taxes on the gains when you withdraw from a 401k fund.

I also contribute to a ROTH IRA investment using post-tax money.  This is money that I have already paid taxes on, but I will not need to pay taxes on my ROTH IRA funds when I take them out someday.  I like the idea of not paying taxes on my gains, so I have some ROTH retirement investments in addition to my 401k investments.

529 Plan- Get Free Money For College

Another way I am using free money to build wealth is my 529 plan contributions.  A 529 plan is a way to save for college that provides some significant tax benefits- more free money.  Gains on investments in a 529 plan are not taxed.  In addition, Iowa and many other states offer state income tax offset for contributions.  This is a great way to save money for college and take advantage of free money for college.

It Takes Money to Make Money...

All of these ways to get free money require investing your own money to get the free money.  For the Health Savings Account, you need pre-tax funds to contribute.  For the 401k plan, you also need pre-tax funds to contribute, and for the ROTH IRA you need post-tax funds to contribute.  And for the 529 education program you need post-tax funds to contribute.

Where can you get money to contribute to take advantage of the free money?  You may need to pinch pennies in your budget to free up funds to contribute to these programs.  One of the reasons that these programs provide free money is to encourage people to save and build wealth.

Find ways to save money on things you don't really need and put this toward saving and investing- and get your free money.  You can start small, with only a few dollars each month.  The important step is to get started and watch your account balances grow over time.

If you need some ideas on how to get money to invest, here is my free book: 101 Ways to Spend Less Money Now.

Penny Pincher Journal

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The Trouble with Having an Emergency Fund

Emergency Fund- Bad Advice?

I have read on many personal finance blogs that the way out of debt starts with building a cash emergency fund, with a goal of being able to cover several months of expenses using your emergency fund.

Although this may work well for some, for me there are several problems with this approach.

First off, I don't want to park this kind of cash in a savings account making 0% interest!  Let's say several months of living expenses amounts to $10,000.  If you keep this in savings account for 30 years at 0.85% interest, you'll end up with $12,903.  If you invest this money instead and get an 8% return, you'll end up with $109,357.  So having the cash emergency fund would cost you around $100,000!  You can run the numbers yourself on my savings calculator.

Not everyone who recommends having an emergency fund recommends keeping $10,000- I just wanted to pick out a number to make my point.

The next problem I have with building a cash emergency fund while you have credit card debt- if you have credit card debt at 20% interest, paying that down seems to me to me to be the best use of any available funds.  It would be hard for me to look at money sitting in a savings account and not pay down high interest credit cards.

My third major problem with advising people to build up lots of cash and keep it around- it would be tempting to spend it!  Even if you have credit card debt, if you have $10,000, or even $2,000 sitting in a savings account, I think many people would be tempted to spend it if the right opportunity came along.  Maybe a fun project car to fix up, or getting in on a special vacation offer, etc.  If you have $0 savings and mostly maxed out credit cards, it is harder to spend more money and you won't forget that you are in debt.  If you have money sitting around not being used, I think it would be at risk for unplanned spending.

In Case Of Emergency...

So, what if you don't have an emergency fund and a financial emergency comes along?  No matter how much you have in an emergency fund, something could happen that would take more money than you have saved up.  In this case, you would end up using credit or borrowing from your retirement fund to pay for the emergency.

This is not good, but I think most people would be further ahead focusing on paying down credit cards and building investment funds rather than parking cash in an emergency savings fund.  Hopefully that emergency won't happen, but if it does happen while you are still paying down credit card debt, you'll have some funds build up in investments and some credit cards paid off that will be resources to get through the emergency.

Is Putting Money In an Emergency Fund Bad Advice?

I discussed my concerns about emergency funds with a popular blogger, Chris Peach at Money Peach.  He replied that from the math perspective, my objections to advising people to set up an emergency fund make sense.  But from a behavioral perspective, getting people to develop the discipline to save money and watch that savings account grow is powerful and can change behavior.  Plus having a cushion can help people avoid charging more on their credit cards.

I think Mr. Peach had a nice comment when he said I can be right on my blog and he can be right on his blog.  Nicely said.  From my perspective, setting up an emergency cash fund when you could be paying down high interest debt or investing with a historical average return of around 9% doesn't make much sense.  But if you are trying to change your behavior and get away from depending on credit cards, maybe setting up an emergency fund could help.

Even with my reservations about putting a lot of cash in an emergency fund, I do keep cash around.  What if the electronic networks go down and credit cards don't work for some reason?  I like to have enough cash to cover a couple weeks of food and gas at least in case of a disaster.

In conclusion, having cash at home or in a saving account has a cost.  If you have credit debt, you could be getting a 20% return on the money.  If you invest in stocks, you could be getting a 9% historical average return over the long run.

From the perspective of optimal financial results, I would recommend people with credit card debt to pay into an emergency fund only if this will help control credit card spending.  Otherwise, use all available funds to pay down the high interest debt and at the same time invest some money in stocks.   I would suggest saving up enough cash to cover basic expenses for a few weeks to survive a disaster.

Penny Pincher Journal

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Straw Bale Garden- Does It Work?

Can You Really Grow Your Garden In Straw Bales?

Straw Bale Garden Jalapeno Peppers
Image Source: Dr. Penny Pincher

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

I was a little skeptical when I started my straw bale garden back in April.  I was looking for an easy way to get a garden started at my new house without a lot of hard work breaking sod and building up the soil.

I bought 25 straw bales from a local farmer for $5 each.  I used some metal stakes that I found in the garage to stake them down, and used some landscape fabric between the bales to prevent weeds from growing between the straw bales.  You can learn more about starting a straw bale garden in my earlier posts.

The big question I had, of course, was "Would this really work?"  Based on what I have seen through mid-July, I can say that it is working!

Straw Bale Garden Cucumber

Image Source: Dr. Penny Pincher

We have harvested a few things so far- spinach, peas, and cucumbers.  As you can see in the photos, the plants are growing like crazy.  It is hard to even see the bales under the cucumbers.

Benefits of a Straw Bale Garden

The main benefits of a straw bale garden are that it is easy to start without breaking ground or roto-tilling, and provides easy raised garden beds without building anything.  Also, there are very few weeds to deal with in a straw bale garden.

Straw Bale Garden Broccoli
Image Source: Dr. Penny Pincher

Drawbacks of a Straw Bale Garden

Some of the negative aspects of a straw bale garden are that you need to buy a lot of straw bales and get them to your garden.  It also takes a couple weeks of work to condition the straw bales before planting.  

I have also found that the straw bales don't hold water as well as soil, so they require more frequent watering.  I have set up soaker hoses right on top of the straw bales so I can let this run occasionally.  Believe it or not, I also found the soaker hoses in the garage so I didn't have to buy them either.

Straw Bale Garden Tomatoes
Image Source: Dr. Penny Pincher

Some crops do not work well in straw bales- growing sweet corn in straw bales is not recommended, and I planted my zucchini in a small patch in the ground instead of in straw bales.

Even though I have listed more drawbacks than advantages to straw bale gardens, I think a straw bale garden is a good solution in some situations.  If you want a small garden and don't mind watering it frequently, a straw bale garden could work well.  The cost of the straw bales and amount of watering could be prohibitive for a large garden.

I plan to use the straw bales to make compost and transition to some garden in the ground and perhaps some new straw bales again next year.

Does Straw Bale Gardening Work?

Straw Bale Garden Herbs
Image Source: Dr. Penny Pincher

The harvest is just getting started, and it has been great to have some fresh vegetables growing right outside the back door.    I wanted a garden that would be fairly easy to get started and not too expensive.  So far, the straw bale garden is working out very nicely.

Check back for more updates on how the straw bale garden turns out.

Penny Pincher Journal

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Pants Are Not Optional At Work!

When Pants Are Required... Quickly

What To Do If Your Pants Fail At Work!
Image Source: Dr. Penny Pincher

Sometimes at work I get a memo with a dress code for a meeting that says something like "shirt and tie".  I always joke that pants must be optional...

Last week, I was wearing some 20 year old pants at work and they failed badly.  I don't like to spend money on clothes, but my career is my most valuable asset, and I couldn't very well go walking around with my fly fully open all day!

I briefly considered some options to repair my pants with office supplies such as tape or staples.  I saw lots of opportunities to make a bad situation worse and decided not to repair my pants with office supplies.

The next option I considered was to drive home and change pants.  There were two problems with this.  First, I didn't have that much time- it would take me at least an hour to drive home, change pants, and drive back.  The next problem was that it would take a couple gallons of gas and put about 40 miles of extra wear and tear on my car.

So, I decided to run to the Kohl's store that was a few blocks away.  I had a Kohl's coupon in my car, and Kohl's has some great clearance bargains.  Kohl's was a natural choice.  I slipped out of my office before anyone saw my problem pants and soon arrived at Kohl's.

Clearance on Clothes at Kohl's- 80% Off
Image Source: Dr. Penny Pincher

The first pair of bargain pants I picked up had a waist of 40 inches and length of 30 inches.  Not even close!  After about 1 minute of scanning and looking for my size, I found some nice Dockers brown corduroy pants in just the right size: 34W, 34L.  And they were priced at $5.80.  With my coupon, the total ended up at $5.28.

Receipt For Emergency Pants
Image Source: Dr. Penny Pincher

I wasn't planning to spend $5.28 on clothes, so this is $5.28 of extra spending, but all things considered things turned out pretty well.  I could have missed an hour of work and spent money on gas for an extra trip home, or I could have used office supplies to repair my pants which may have looked ridiculous.

I wonder how long a pair of brand new Dockers corduroy pants will last?

Penny Pincher Journal

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25 IS THE NEW 65: How To "Retire" Outrageously Early And Do Whatever The Heck You Want

Book Review- 25 Is The New 65 by Travis Hornsby

I recently stumbled across Travis Hornsby's book 25 Is The New 65: How To "Retire" Outrageously Early And Do Whatever The Heck You Want while it was free on Amazon for a 3-day promotion when it was launched.  This book is about how Travis (aka TMONEY on his blog) was able to get through college with a respectable amount of savings and lived a very frugal lifestyle while working full-time a few years.  Travis clearly did not enjoy his time working in the corporate world and decided to get out and go a different way.  Living a frugal lifestyle allowed Travis to save and invest enough after working only a few years to "retire" at a very early age.

In this case, "retirement" does not mean never working again, but instead means working part-time or working on things that he enjoys and wants to do to continue to make some money.  Also, this sort of retirement will require living a very frugal lifestyle, living on about $16,000 per year.

This is clearly not the path for everyone.  There is a trade-off between having time to do whatever you want and having money to experience things that cost money.  I am fortunate that I have a career that is interesting, so I don't see working as a form or torture.  Of course, I would like to retire someday, but for me I don't mind the lifestyle of having a professional career and making lots of money for awhile.

This book does have some good examples of how you can live frugally to minimize expenses and boost your savings and investment contributions.  I liked his examples of "typical" spending by young people out of college and how this could lead to working for a very long time to pay off debt.

Many people do not learn to control spending until later in life, this book provides an example of what is possible with extreme financial discipline early in life.  If you are dealing with debt, this book can provide some motivation to cut expenses, boost savings, and get rid of that debt to find your path to freedom.

I enjoyed the exercise of thinking about how frugal I want to be and what trade-offs I am willing to make to have time available to pursue my interests.

Penny Pincher Journal

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Making My Old Shoes Like New Again

Shoe Wash Today!  I saved over $50...

Wash Your Shoes Instead of Throwing Them Away!
Image Source: Dr. Penny Pincher

I have not worn my "good" tennis shoes for a few weeks.  The cat decided to spray them, so I set them outside to get some sun and rain for awhile.  These shoes are a couple years old and have small holes in them, so I thought getting sprayed by my cat might be the end for them.

But these are some of the nicest tennis shoes I have ever owned.  I originally bought them for my son for $25 at Famous Footwear, but they weren't quite right for him.  I was going to take them back to the store, but that would take a driving trip and I needed shoes and liked these.  They were a size too small, but $25 was a great deal, and like I said, I needed shoes...

That was 2 years ago, and the shoes have been great.  They are very lightweight and have memory foam.  I decided to wash these shoes the old fashioned way and try to get another year of life from them.

I Washed My Shoes- No Need to Throw Them Away!
Image Source: Dr. Penny Pincher

My son also had a pair of shoes in the same situation (darn cat!).  I set the shoes on the grass and blasted them with a hose.  Then I put the shoes in a bucket, added some car wash soap that I had handy in the garage, and blasted them some more.  I let them soak in the soapy water for a couple hours, then scrubbed them with a scrub brush that I use to wash the tires on my car.

Next, I set them out to dry in the sun.  I should have shoes back in action after a few days of drying.  I am going to keep them somewhere where my cat can't get them.

Reusing two pairs of shoes instead of buying new ones will save over $50.  That's real money- $50 will buy a day's worth of food for the family.  Try washing your shoes to give them new life.  If you need to replace your shoes, check out how I got a pair of dress shoes for work for $25.

Penny Pincher Journal

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Recycled Plant for Hanging Basket = Free

Plant Rescued, Money Saved!

Our hanging basket got dried out after we forgot about it- I brought it back to life with lots of watering
Image Source: Dr. Penny Pincher

We got an outdoor flower in a hanging basket early this spring and forgot about it. It was dried out and looked mostly dead and the flowers were all gone. My wife mentioned getting another plant to replace it. I decided to try to rescue the plant (and also rescue some of the money in my wallet). I filled the pot overflowing with water every day and fertilized once a week. Now after a few weeks, it looks better than ever!

This worked out well for everyone involved- we didn't buy another plant, so my wallet is happy. We have a nice looking flower, so my wife is happy. And, of course, the plant is happy with how this worked out.

You might ask how much I spent on fertilizer and extra water to bring the plant back to life.  My house is on a community well, with no water meter, so the water was free.  You would think with unmetered water that people would use water like crazy, but surprisingly, people here are very careful with water.

I found the fertilizer in the garage from a past year, so I'm going to count that as free as well since I didn't have to buy it. 

I should note that the "Before" picture was actually taken after to give an idea of what the plant looked like.  It was actually much more dried out and I don't think there were any green leaves remaining.

Penny Pincher Journal

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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

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Interview with Dr. Penny Pincher on Debt Discipline

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

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

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

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

Penny Pincher Journal

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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

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Real Life on a Budget by Jessi Fearon

Book Review- Real Life on a Budget by Jessi Fearon

Real Life on a Budget by Jessi Fearon

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

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

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

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

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

Penny Pincher Journal

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

Decluttering- Get Your Space and Money Back!

Taking Away a Load of Clutter
Image Source: Dr. Penny Pincher

Not so long ago, I saved almost everything.  If I had something, I didn't want to throw it away- what if I were to need it someday?  Why throw something away when I might need to buy the same thing again someday?

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

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

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

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

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

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

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

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

Another Load of Clutter from My Garage and Yard
Image Source: Dr. Penny Pincher

Decluttering doesn't necessarily mean throwing things away.  I sell a lot of things on craigslist and at consignment shops.  Sometimes I sell things on eBay and am surprised by how high the bidding goes.  Selling things certainly is less painful than throwing things away.

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

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

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

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

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

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

Penny Pincher Journal

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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

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