Joe's Money

Winter is here and if you don’t control your thermostat, you can expect one of those hefty bills from your friendly energy company.  Here are some ways to save on your heating bill.

1.  Planning on being out for the evening?  Turn down the thermostat.  Also, if you’ll be away for a weekend or longer, lower your dial to 55 F.  You will save on heat without risking a freeze up to your pipes.
2.  Whenever you are able to turn the thermostat down significantly, you will save a little on the operation of the refrigerator and freeze.  They simply won’t need to work as hard to maintain the lower temps.

3.  Try to accustom yourself to lower temperatures.  Lower the thermostat by one degree every week for 3 to 4 weeks.  Gradually, you may be able to save a chunk of money by lowering the thermostat by just three to four degrees.

4.  Try turning down the thermostat at night by 5-10 degrees and then fire it back up in the morning.  This can easily shave 5%-10% off your monthly bill.

5.  For increase ease, install a programmable thermostat.  These are generally available for most heating systesm and can be had for less than $50.  You may not even notice the difference in temperature as you will be sleeping throughout the lower temps.  You can program these to heat up the house right before you get home and then back down before you leave.

6.  Some programmable thermostats have a weekend setting.  This makes it even easier.  These will be a great money saver for you.

7.  If you heat your home with electricity, you can take advantage of the individual room thermostats.  Simply turn off heat to rooms that are not used.

8.  When its time to open the windows in the spring, don’t forget to turn the thermostat off.  When the cooler temps enter the house, this will trigger the furnace to go into overdrive wasting lots of fuel.

9.  Planning a party or get together?  Every person in the house puts out as much heat as a 175 watt heater.

Follow these and compare your current heating bill to your next one.  You will be thrilled to see the savings!

Everyday I am amazed at the prices I see online in comparison to their retail counterparts around town.  I’m convinced I’m never leaving the house again.

There are so many benefits of shopping online.  Chances are, you can save on sales tax.  As long as the site you are buying from does not have a physical presence in your home state, guess what, no tax!  In my home state, this saves me 7% on everything I buy online that would usually be taxed.  On top of the tax savings, the prices for most items are significantly cheaper than those in the stores.  Online dealers don’t have to pay a staff, don’t have to have a giant physical store to display their goods, and so on.  This makes it easier for them to keep prices low.

Some of the online merchants I ofter use are Amazon, Newegg, and often times even the websites of popular clothing stores.  Clothes aren’t taxed anyways so you don’t have to worry about them having a presence in your state.  The other day, I was able to pick up 2 t-shirts and a hooded sweat shirt for $29 shipped to my door.  The t-shirts were a whopping $6 each.  Have fun finding that locally.

The best advice I can give you is look around online first.  Live by the rule never pay retail!

Buying a used car can save you loads over the price of a new comparable car.  Follow these tips to make sure you don’t get taken for a ride.

1.  Have a plan

Do some research first.  Narrow down your search by looking online at multiple dealers, private party sellers, etc.  Compare the prices and know about what the vehicle is selling for both at dealers and via private party.

2.  Know What You Want

Have all the features you need planned out ahead of time.  If you have a few kids, a third row seat may be needed, know how many miles you put on the car, etc.

3.  Do All Research and Shopping Online From Home, Not at the Dealership

There are way to many places online to research and find exactly what you need.  Don’t waste time by going into the dealership until you have narrowed down your search.  Look at the local dealers and find out which ones have cars you are looking for.

4.  Go to All of the Dealerships and Look before Making Any Offer

Check out all the vehicles on your list.  Get a asking price for all of them.  Since you know what you need, the salesman shouldn’t be able to ask you all the probing questions.  How many kids do you have, how much do you drive, etc should all be avoided.  Never let the salesman know if you are out of a car at the moment.  You want to stay clear of anything that makes you look like you can’t walk away.

5.  Don’t be Afraid to Walk Away

Even if you are in love with the car and know its the one for you, don’t be afraid to walk away.  Use your research to your advantage.  Let the salesman know that a comparable vehicle can be had elsewhere for less money.  If they don’t budge, walk away.  There are tons of cars on the market, you’re bound to find a similar one again.  Stay calm and don’t let the salesman get you.  Walk away.

6.  Leave Emotion Behind

Whenever you are shopping for a big ticket item, always leave emotion behind.  If you are sitting in front of your dream car, don’t let them know you fell in love.  If they know you want or need the car badly, they know they can probably get you for more money.  Keep a neutral face and attitude.  Let them know its the right car, but it needs to be the right price.

7.  Don’t Be Afraid to Be Rude

Salesman usually are, at least when it comes to getting the price down.  Being rude can show them you mean business and you are not going to tolerate the typical nonsense.  You are not there to make friends, you are there to get the best possible price on a very expensive purchase.  Again, don’t let emotion get in the way.  You only care about you, not how much the salesman makes in commission.  They will always say we can’t go any lower.  Its a lie.  Used cars have much more margin than new so there is much more leg room to negotiate.

Follow these steps and you will hopefully be on your way to a new set of wheels.

Well, it turns out no matter what income bracket you’re in, you probably still broke with negative net worth.

This book was a real eye opener for me.  It describes the perception and the reality of millionaires and how they got their millionaire status.  The truth is, the average millionaire is not driving a $100,000 sports car, or even a new car for that matter.  The folks driving the $100,0000 sports cars are usually just as worse off financially as the person making $8/hour if not worse.  They make more they spend more.  The doctors and lawyers may be book smart, but according to the author, they are decades behind on financial literacy.

Check it out, this is a good, inexpensive read!  Enjoy!

Link to purchase book – Used copies starting at only $.50

I hear a case of living beyond your means just about daily.  The entitlement factor in this country is unreal.  You need to get realistic and buckle down your finances.

Unfortunately, most people in our society have been brought up to live beyond their means.  We are surrounded by images and videos of people living extra large lifestyles that are simply out of reason for most.  Growing up with the constant barrage of the rich and famous, has created a society that not only thinks they need this lifestyle, but think they are entitled to it.

When growing up, most teenagers spend their parents money.  Unless they are working, they are likely spending their money on frivolous things like fancy clothes and electronics.  According to statistics, only about 42% of high schoolers find paid employment.  According to the statistics, less than 50% of teens are working, so their parents are funding their popularity contest.  They are simply keeping up with the teenage Jones’s.

Unfortunately, this upbringing sets the teenagers up for failure later in life.  They are taught that at no matter what expense, they must appear to be keeping up.  This is proven by their average credit card debt of over $5,000 for age groups 25-34 year olds.  Had they been taught the value of the dollar at a younger age, perhaps the frivolous spending would have stopped.

The worst part of this ridiculous spending spree is, that age is not a factor.  The statistics are similar for just about all ages.  Many books state the same.  The more you make, the more you simply spend.  Doctors, lawyers, and the like are all chasing their tails with the fast food burger flippers just on a different scale.  If you earn $20,000 per year, maybe you spend $10,000 on keeping up with the Jones items.  If you’re making $100,000 per year, your simply spending $50,000 on most expensive Jones items.

I don’t know the Jones’.

Many people have the ability to carry the perception of being well off for long periods of time.  However, eventually, the jokes on them.  The charade is over and all that is left is the consequences of leading this type of lifestyle.  The result is usually a lifetime of debt.  I like to refer to this as chasing your tail.  You can chase it all you want, but your never going to catch it.

What you need to realize is, you need to stop buying items you don’t need on credit.  If you don’t have the cash, DON’T BUY IT.  Its that simple.  You need to learn to sacrifice for the better long term goals.  Take a serious look at your spending. Tell yourself, you don’t know the Jones’.

Here are a couple of quick tips

1.  Learn to budget and search for bargains.  If you can’t pay cash, don’t buy it.
2.  Do not give children credit cards.  They do not have the financial foundation to handle them.
3.  If you have credit card debt, call your provider to negotiate a lower rate.
4.  Pay off small balances first, then tackle the larger ones.  Remember, always pay at least the minimum though.
5.  Once you’re out of debt, don’t go chasing your tail again, stay out of debt!

I can’t begin to tell you how much you can save by buying store brand or “value” brand groceries.  I never had really bothered to consider store or value brand items until I started to have the drive to save.  Now, I find myself constantly looking for value alternatives.  Between the grocery stores, and super stores, you can find almost any food or household item available in a value brand.  I have picked up many of these items to find virtually NO difference in taste or quality 95% of the time.  On the occasion, you will get a bad apple out of the bunch but overwhelmingly you will realize that this stuff is the same.  There have been articles online and news stories on TV about how many of the value branded items are actually manufactured by the name brand counterparts.

In most major grocery stores, the price tags on the shelves display the cost per ounce of food.  Compare the name brand to the value brand.  This is the easiest way to save and there is no confusion even if the package sizes are different since it is measured in ounces of actual product.

Expand your horizons and save!

Once you have your emergency bubble inflated and your debt paid off, you can pay cash for almost anything.  This can have its up side.

I have heard of multiple discounts given simply for paying with cash Vs. a credit card or check card.  The reasoning for this is merchants have to pay a fee plus a percentage of the sale just for taking the card.  The percentages are usually pretty low but if you run tight margins it can add up.

I have heard this specifically at gas stations.  Many times, gas is very low margin only making a few cents per gallon of gas.  Now if the credit card processor is taking only a few percent, they just ate up your profits.  By offering a cash discount in between the retail price and the loss price after the fees, they can save more profits.  Pretty simple for not having to do anything!  More times than not its the mom and pop shops doing this and it will usually be prominently advertised.

Another one that can save you tons is on labor work.  This can be anything from having your roof replaced to having someone cut the lawn.  Many times, the smaller contracting firms have to put materials on credit.  If you pay cash, they may be able to negotiate a better discount if its cash your paying with.  This never hurts to ask.  A few months back, I was able to bring a roof bid down from $9800 to $9200 and get much better materials in the process.

1.  Sell Things You Don’t Use

This is an easy one.  With tools like eBay and Craigslist, the possibilities are endless.  Take a look around your house and find some things you don’t need or use anymore.  Even if you are not sure it will sell, you have nothing to lose.  Craigslist ads are free and reach loads of potential buyers.  If you need an even larger scale, try eBay.  Both are very easy to learn.

2.  Computer Repair Services

Are you good with computers?  Well guess what, most others are not.  Throw an ad in the local paper or again, on Craigslist.  Most of the big box stores charge big bucks for the same services.  If you know how to fix em up, give it a shot.  There are even easy ways to create your own website to support your business.  You can list your qualifications and pricing info.  Be sure to offer in home service.  Most people do not like the idea of a stranger picking up their computers and being on the honor system to bringing it back.

3.  Help With Moving

Can you spare some muscle?  People are often looking for a extra set of hands or two to help out with the ever so fun task of moving.  Movers can expect to make $15 an hour or more.

4.  Lawn Care

Lawn care is yet another task that many of us don’t exactly look forward to.  Put your mower to work!  Start small with some residential customers and build your way up.  Once you save up some money you could purchase a larger, commercial grade mower and hit the commercial seen for some big bucks!

5.  Resell a Product

Many products can be found online at wholesale prices, especially if you buy in larger quantities.  Take a look around, there are tons of options.  Some wholesalers will even drop ship good for you.  This simply means you make the sale and they will ship the item directly to the customer for you.  That way you don’t have to actually order the product, store it at your home, and ultimately ship it to your buyer.

6.  Sell Crafts or Keepsake Items

Are you good with crafts or other keepsake items?  You can easily turn this hobby into cold hard cash.  Some crafty folks have been seeing selling anything from your regular craft items to custom wedding invitations.

7.  Write an eBook

Are you an expert on a subject not as well known by others?  Write an eBook.  An eBook is simply a digital book.  You can sell these on eBay or countless other websites.  I have personally seen many for sale including topics like workout routines, gambling tips, gardening, and many other how to topics.  The best part of this is, once the eBook is created, it is all profit and you don’t have to ship anything!  Delivery is usually via email.

8.  Cleaning Services

Are you neat and tidy?  Between bringing the kids to baseball practice and too many other errands to count, sometimes we all can’t keep up.  Take advantage of other people’s busy schedules (or in some cases, laziness) and offer you tidy hands up for hire.

9.  Get a Paper Route

Shockingly, some paper routes for the major newspapers can actually pay quite well.  The local paper here advertises up for $400 per month for simple delivery.  Check around and see if there is anything available in your area.

10.  Rent Out a Room

The big question…  Is an extra $500 per month worth having someone else in your space?  Depending on what you can tolerate, this could be a very easy way to generate some extra income.  Also, depending on your home design, you may already be setup for success.  You might not even notice anyone coming in or out if you have a separate entry.  Be sure to check local laws, etc before offering a room up for rent.

This seems like a obvious money saver yet some of us never buy anything used.  You can buy almost any item second hand.  This could include things like video games, movies, appliances, TVs, clothing, and cars.  Buying your car used will save you thousands.

There are great resources out there to help you save a fortune by buying used.  You can find almost anything online these days.

Craigslist

Craigslist has more than one use.  Obviously, you can find tons of used good here ranging from lawn mowers to video games, to light fixtures for your home.  Most on craigslist sell at a pretty good discount compared to buying new in the store.  More times than not, you can find what you’re looking for here.

Craigslist also has a services section.  Need some work done around the house?  Check it out!  I have seen great bargains to be had here.  Lawn and snow services, plumbers, computer technicians, etc.  You name it they are out there.  You can even use the wanted section to have them find you rather than the other way around!

Another great section on Craigslist is the cars and trucks for sale.  There are TONS of listings on here.  Skip the dealer, shop from home.  Both dealers and individuals can list here but private party is almost always cheaper than buying from a dealer.

Garage sales are also posted on Craigslist.  Garage sales are a great way to find many heavily discounted items.  Take a look!  This can help save you a lot of time too.  Rather than driving aimlessly to all of the sales in the area, use Craigslist to find only the garage sales that may have the items you’re looking for.  In most ads the garages sale host will list many of the items available.

Ebay

Ebay offers many of the same things that Craigslist does.  Ebay however is not limited to the area you live in though.  Ebay has more buyers and sellers than any other auction website.

Top 10 Things to Buy Used to Save a Fortune:

1.  You next automobile

Buying a used car will not only save you money on the purchase price but you insurance premiums will likely be lower.  Also, if you finance your car, you will pay less in interest since you should be able to pay it down faster.

2.  Clothing

People love to go clothes shopping all the time.  Let them spend the big bucks.  When they unload their 6 month old clothes that have been worn twice, you can realize the savings.

3.  Appliances

Used appliances usually go for a fraction of the new price.  If you can’t find exactly what you’re looking for, try a scratch and dent liquidator.

4.  Baby clothes

Obviously, the kids will out grow their clothes quickly.  Grab used items and save a bundle.  And, when your kids out grow them, you can resell them again.

5.  Entertainment items – Movies, games, etc.

Used movies and video games often sell for significantly less than they do new.  Check out eBay and Craigslist for some great bargains.  Many times, you can even trade with other parties and pay nothing!

6.  Computers

Computer junkies are known for upgrading their computers constantly.  The average user doesn’t need to be on the leading edge.  Do your homework and find something used that will fit your needs.

7.  Auto parts

First off, never buy from the dealer.  Even the auto parts stores will be much cheaper.  Craigslist as well as salvage yards can get you the same parts for much less money out of pocket.

8.  Tools

Tools are another category of items that seem to drop in price quickly.  Do it youselfers often come to the conclusion that they should have hired a professional and end up selling their tools at huge discounts.

9.  TVs

Another entertainment purchase.  Like computers, some people prefer to be on the up and up with this technology.  Take a look at the used ads and you can often get current or only slightly older models for a fraction of the new price.  Remember, even if you buy new, there is going to be something better in 6 months.

10.  Furniture

Furniture can be had for extremely low prices.  Especially now.  With all of the foreclosures happening, there are tons of deals out there with folks needing to unload their furniture.

Follow these tips and save tons!

1.  Remove unnecessary items.  The lighter the load, the less gas it takes.
2.  Use sites like GasMoney.com to find lower gas prices around your area.
3.  Use lower grade fuel if your car will accept it.
4.  Keep your distance and anticipate traffic changes, the longer you keep the car in motion without stopping, the less gas is used.
5.  Control your emotions, don’t floor it around the slower drivers!
6.  Use cruise control on highways.
7.  Don’t accelerate to stop signs and red lights.
8.  Drive at the posted speed limits to save gas and avoid costly tickets.
9.  Don’t warm up your car.  Driving slowly and avoiding hard acceleration  for the first few miles does the same thing.
10.  Avoid toll roads if you can.
11.  Use a GPS.  Find the shortest route possible.
12.  Car pool.
13.  Walk if the destination is close enough.
14.  Cover all of your stops in one trip.