Sunday, November 29, 2009

Pottery Barn Unstuffed

As I was weeding my growing collection of old magazines over this Thanksgiving break, I came across an interesting article in the October 2006 issue of Smart Money: Pottery Barn Unstuffed by Smart Money's investigative reporter, Ann Kadet. (Thanks to the power of google search, I discovered that folks have helpfully scanned and uploaded this article online. See links below.)

This article reminds me why I have, and continue to resist buying furniture from Pottery Barn, Restoration Hardware and Crate & Barrel. Are their products worth their high prices? Apparently not.

As Anne Kadet's article Pottery Barn Unstuffed reveals interesting discoveries. A $400 Pottery Barn coffee table has a very thin one-fortieth of an inch veneer. A $900 Crate & Barrel chair has hollow plastic legs, and a $1,200 Crate and Barrel bed has a heart of particle board and is held together by screws.

Links to the Smart Money article:

Saturday, November 28, 2009

Bargain Hunting at Target

Missed out on Black Friday deals? Looking to pick up bargains at Target after Christmas? You can pick up holiday and other merchandise at fantastic discount after Christmas.

From my past experiences, Target's typical post-holiday discounting schedule is as follows:
  • 50% off on day 1-3 after holiday
  • 75% off on day 4-6 after holiday
  • 90% off on day 7-9 after holiday
You should confirm with your local Target, as local managers have some leeway to set their own timetable.

In the past, I have picked up Christmas trees at 50% off (I wanted a fabulous tree), as well as Christmas cards, decorations and wrappings at 90% off.

When I enter my local Target, I often head straight to the markdown sections where the clearance items (with red price tags) are found. Target regularly mark down items with red tags at 30%, 50%, and finally 75% off. I normally wait until 50% or 75% before I buy.

Shopping with Coupons

New to using coupons? Wonder how is it like to start using coupons without prior experience? Slate.com's Alicia Barney has written about her experiences as a coupon newbie using coupons in a post entitled Supermarket Sweep: Using Coupons to Get Free Groceries. This article has links to useful coupon blogs and resources, as well as her own experiences.

Link: Supermarket Sweep: Using Coupons to Get Free Groceries

You Can't Handle The Truth About Stocks

Over the Thanksgiving break, I was catching up on my backlog of magazine reading. An article in the September 2009 issue of Money Magazine caught my eye: You Can't Handle The Truth About Stocks, which profiles the economist, Zvi Bodie of Boston University School of Management, who argues against conventional financial planning:
"If you need the high return of stocks to reach your goals, then you can't afford to invest in them."
Here are some of his thoughts:

"... The standard models that are used to give investment advice to millions of Americans are fundamentally wrong. We're told that over time, stocks get less risky, but that's bull. Stocks are always risky -- whether in the short or long run. Prices dropped by 37% last year. While improbable, there's nothing to say they couldn't drop by that much again next year or the year before you retire. And diversification doesn't take away that risk. That's why retirement money belongs in truly safe assets whose value won't go down -- not in stocks..."

"... If you look at most online retirement calculators, they make two assumptions: one, that you want to retire at age 65, and two, that people will be able to save only a certain amount -- say 10%. As a result, they spit out risky portfolios to get a higher return. Well, who says we all want to retire at 65 and can save only 10%? What if I retire at 70 or 75? What if I save 30%? Suddenly, you don't need to take so much risk in your portfolio..."

"... notice what they're being told. They're being told that by investing in equities, they are going to get a higher return without extra risk. That's the problem. You have to make a sacrifice somewhere -- whether that means accepting a lower standard of living now, picking a later retirement date, or taking on risk in your portfolio..."
Professor Zvi Bodie echoes what I earlier blogged in April 2009 in a 4-part posting entitled "Frugal Living & Managing Risk" (Part 1, Part 2, Part 3, and Part 4) where I explained why I invest 100% of my 401K in a stable value fund.

As I see it, Americans want to have their cake and eat it. They want to retire in style but do not want to sacrifice, i.e., save, for it. If we only save 5% of our monthly income for our retirement vs. 30%, then we would have to take a lot more risk to have the 5% match up to the 30% savings rate. No wonder we take too much risk with our retirement funds. For me, the answer is clear: a simple and frugal lifestyle, with less stress and blood pressure worrying which direction my retirement savings is heading.

Sunday, September 13, 2009

Seven New Rules For The First Time House Buyer

Are you a first time buyer jumping into the housing market? Confused by the conflicting advice from realtors, mortgage brokers, bankers, as well as well-meaning friends and family members?

The New York Times columnist, Ron Lieber's latest column, Seven New Rules For The First Time House Buyer sets out to debunk a long-standing but underexamined maxim of real estate, "you should always stretch financially when buying your first home," which got many first time buyers into hot soup in the first place, straight into the clutches of realtors and lenders who were only too willing to lend them the extra needed to finance that extra stretch.

It's now back to the basics, since the myth that housing prices only go up and up has been shattered by the recent financial downturn. To summarize, here the seven new rules:
  1. Get a fixed rate mortgage, put 20% down and borrow 80%, and aim to spend between 35%-45% of your pretax monthly income on your monthly mortgage payment.

  2. The best case for people stretching their income are those in their 20s and 30s, who are starting out in their careers, rather than those in their 40s and 50s.

  3. Before buying a house, do a realistic projection of future income flow, asking oneself: what if one spouse loses a job? what if there are children? etc.

  4. Too many people forget to factor in the costs of maintaining a house into their calculations on affordability.

  5. Buy either the cheapest or the best, but not in the middle. Why? If you can't afford the best, buy a cheap starter home and diligently save up for the best.

  6. Consider stretching out the home over time (i.e., making renovations or expansions over time) rather than stretching up to buy an expensive home

  7. The 8-hour rule: can you sleep soundly at night or will you stay up worrying about monthly payments? If it's the latter, than the house isn't for you.

As a homeowner who is still living in a house that I bought 6 years ago, here are the rules that guided my own home purchase:
  1. I put 20% down and borrowed 80% on a 30-year fixed mortgage.

  2. I budgeted for the home based on one income (mine) instead of the combined income of my spouse and I. This turned out to be prescient because my wife chose to leave the workforce to look after our kid, making me the sole breadwinner. Our monthly mortgage payment is comfortably within 40% of my monthly income. I'm glad that we fended off bankers, mortgage brokers and realtors who suggested that we used our combined income to buy a bigger home--no income stretching for us.

  3. I aim to accelerate the paydowm of the mortgage by making a 13th monthly payment.

Link: Seven New Rules For The First Time House Buyer (New York Times)
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Friday, September 11, 2009

More on Credit Cards

Credit cards have been in the news for the past two weeks. CNN Money has a recent article that credit card satisfaction has hit a new low. I have blogged about my recent frustrations with credit card companies closing my inactive card without notice and lowering my credit on an underused card.

Because of the risks associated with debit cards, I see myself continuing to use credit cards for the foreseeable. For tips and strategies on how I use my credit cards, see: Credit Cards & Frugal Living and Careful Use of Credit Cards (My Frugal Living Tip #2).

On the one hand, if you want to swear off credit cards, you might find Walletpop's 6 ways to destroy a credit card securely very handy.

But if on the other hand, you want to continue using your credit cards, American Public Media's Marketplace (which I listen to daily on my commute home) has its list of 10 purchases not to put on credit cards.

See my other blog postings on credit cards.

Free Sample of Dove Heat Defense Therapy Hair Care

Free sample of Dove Heat Defense Therapy Hair Care.

via: www.dove.us

Free Sample of Curel Itch Defense Lotion

Free sample of Curel Itch Defense Lotion

via: www.curel.com

Wednesday, September 9, 2009

Target beats Walmart at cheap grocery prices

Everyone knows that Aldi's has rock bottom grocery prices, but Target beating Walmart at grocery prices?

Walletpop's grocery pricing survey suggests that Target beats Walmart by a small margin: Comparing grocery prices, Aldi wins overall, but Target beats Walmart. Not surprisingly, traditional full service supermarkets like Safeway, Kroger, Albertsons didn't fare as well as Walmart and Target in Walletpop's study, which also finds that Aldi has the lowest prices, but as anyone who has shopped there would know, selection is limited.

My own admittedly unscientific study, borne from my own weekly grocery routine, suggests that Target and Walmart are extemely close in pricing, especially if they are near to each other. Both Target and Walmart give the managers of their local stores some flexibility in pricing to compete with neighboring stores. Where I live, there is a Walmart, Target and Aldi within a one-mile radius and you can see my local Target and Walmart competing on the pricing of groceries and household items. In fact, prices on many household and grocery items are lower at my local Target than at Target in other neighborhoods.

My personal preference is to do my grocery shopping at my local Trader Joe's, which is about 5 miles away. Both Trader Joe's and Aldi's are owned by the same German parent company and they reflect that German ethos of frugal pricing. I shop for household necessities at Target, which gives me the opportunity to browse their close-outs and clearances too.

Link: Comparing grocery prices, Aldi wins overall, but Target beats Walmart
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Free Sample: Honey Nut Cheerios

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Free sample of Honey Nut Cheerios (General Mills Non-Challenge Promotion)

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Tuesday, September 8, 2009

Saving Money When Buying Software

Are you looking for tips on how to save money when buying software? This online article, How to buy genuine software online for less gives excellent advice on how buying software without paying retail, from comparison shopping for discounts, searching for coupon codes, and buying software at academic prices.

It would still cost you some money, but at least it is legit.

Link: How to buy genuine software online
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Monday, September 7, 2009

Are Free Checking Accounts Going the Way of the Dodo Bird?

Do you use a free checking account? I do. In fact, I have free checking accounts from three different banks, one national and one regional brick-and-mortar bank, as well as one online bank (ING Direct Electric Orange Checking). Why do I like free checking accounts? For one thing, they don't have minimum balances. I'm also one of the very few who religiously balance their checkbooks every night to the one cent and I'm proud to say that I have never had an overdraft. I also avoid ATM fees by withdrawing at my banks' ATMs. Better yet is a free checking account with tiered interest, which is the case with my ING Direct Electric Orange Checking.

How long will free checking accounts be around? This walletpop.com blog article, "Free Checking Accounts Aren't Long For This World" suggests that free checking accounts are slowly but surely vanishing. The main premise in this article is that banks need to make money in this new business environment and free checking isn't going to cut it if folks keep only a bare minimum in their free checking accounts and start being more careful about avoiding overdraft and fees.

What do you think? Do you use free checking accounts? Are you able to avoid the various fees (overdraft, ATM, etc) that banks use to make a profit off free checking accounts?

Article Link: Are Free Checking Accounts Vanishing?
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Sunday, September 6, 2009

My Frugal Living Tip #7: Try Freecycling

One way to live frugally is to take advantage of Freecycle, a grassroots non-profit movement of people who are giving away and getting stuff for free. By freecycling your unwanted gently used stuff, you not only help others who could make use of those stuff, but also keep them out of landfills. In return, you could request for stuff that others are offering, thereby saving you money.

Check out Freecycle's main website for more information and links to your local freecycle group.

Link: www.freecycle.org

Read the other entries in my Frugal Living Tips Series.

Friday, September 4, 2009

A Penny Saved is A Penny Gained #04

Today's roundup of my favorite money-saving tips:
  1. I filter my tap water (using Brita filters) instead of buying bottled water.

  2. I save on gas by consolidating all my shopping into as few trips as possible. This helps me cuts down on impulse purchases and forces me to plan my meals in advance.

  3. I buy generics rather than brand-name drugs (both over-the-counter and prescriptions). Whenver possible, I try to take advantage of the $4-per-prescription/refill generic prescription drugs at Walmart or Target.

  4. I replaced my landline with my cellphone.

  5. I borrow my DVDs from my neighborhood public library for free instead of paying for DVD rentals from Netflix, Blockbuster or Redbox.

  6. I drop my cable subscription in favor of over-the-air broadcast, watching free movies via Hulu.com and boxee.tv and borrowing DVDs from my neighborhood library.

  7. I comparison-shop to find the best prices.

  8. I mow my own lawn instead of using a lawn mowing service.

  9. I plug all my vampire adapters on a power-strip and turn off the master switch when I am not using those appliances.

  10. I lower my premiums on my car and homeowners' insurance by raising my deductible.
Read my other blog entries in A Penny Saved Is A Penny Gained Series.

Friday, August 28, 2009

Being Frugal at Fancy Restaurants?

So you want to eat a nice fancy restaurant but don't want to go broke or overpay. Well, you can have your cake and eat it. Lifehacker has two blog posts on this topic. The first, What not to order at fancy restaurants features New York Times columnist Frank Bruni's sagely advice on how to get your money's worth at fancy restaurants. A follow-up blog post features excellent tips from its readers on how to find value at fancy restaurants.

Bon appetit!

How to Save Money When Buying College Textbooks

It's that time of the year again when college begins and there is a mad scramble to buy textbooks for courses. Suffering from first time sticker shock when you look at the astronomical textbooks, whether as a parent of a freshman or a neophyte freshman wandering into the college bookstore for the first time? You're not alone.

Cosumerist has two recent blog postings that you might be interested in. The first post warns you about how textbook publishers are fighting the used book market by pushing high-priced "textbook packets." The second post, College Textbooks: Shop Around, Ask Yor Professor, And Save offers tips and strategies on saving money when buying college textbooks.

Here are my tips for saving money on textbooks, from my own experiences many years ago as a perpetually broke graduate student:
  1. If you're on campus, head over to the campus bookstore, look up the textbooks assigned for your courses, take note of the ISBNs, and then hit the web (Amazon, etc) to see whether you can find a used edition at a lower price. In particular, Amazon Marketplace is filled with students flooding the market with textbooks they don't want to keep.

  2. If it is a bundled package, try e-mailing your professor or TA to find out what exactly is in the bundle, and what you really need for the course.

  3. If the current edition is too expensive, you could buy an older edition but check with your professor or TA before doing so. I doubt that there are major changes in Philosophy or Literature textbooks, but you might need the latest information for your engineering or psychology courses.

  4. Look up your college bulletin boards, textbook exchanges, etc. There might be students who are looking to sell off their previously used textbooks.

Wednesday, August 26, 2009

Do You Practice Extreme Couponing?

WCVB TV (Boston) recently featured a mom with extreme coupon skills: Mom Feeds Family For Under $10 A Week

Is it possible? Sure, it is, but it requires discipline, long term planning and flexibility (i.e., no impulse buying, on-the-spur-of-the moment cravings). I've previously blogged about using coupons here and here.

As for me, I use coupons primarily for household items (paper towels, detergents, etc.) and organic food (e.g., Mambo Sprouts, Organic Valley). My own savings from using coupons aren't as high because I avoid those coupons for processed food with artificial additives. Long temr health is more important saving money. I'd rather save on long term health costs in the future. It helps that there are organic food coupons out there. One just have to hunt harder for them.

Happy couponing!

Free Sample: Hallmark Connections card

Get 1 free sample of Hallmark Connections Card from Walmart.com

source: walmart.com

Monday, August 24, 2009

Dealing with Credit Cards

Did you receive letters in the mail from credit card issuers canceling your dormant credit cards, reducing the credit limit or increasing the interest rate? If you did, you're not alone. Many folks received such letters. In my case, Bank of America summarily canceled my dormant AAA credit card, which I haven't used since they took over the MBNA, without informing me. I only found out when I did my routine login of the account (I do this to ensure no charges are posted) and discovered that I couldn't log in. Upon enquiring, I found out that the account was closed for inactivity. American Express sent me a letter raising my APR from a fixed rate to a higher floating rate and Citibank cut my credit limit by 20% on the basis that I only utilize a small percentage of my credit limit.

So what should you do? The New York Times columnist, Ron Lieber discusses the various options that you have in his recent article, Maybe It's Time To Change Credit Cards. You might find useful advice and tips that you could use. As for me, I will continue doing what I've always been doing, paying my balance in full every month and keeping an emergency fund fully funded (it is presently funded at 9-months salary replacement, my target is 12 months) and not using credit cards as an emergency fund.

I have discussed my views on credit card in two earlier blog postings: Credit Cards & Frugal Living and Careful Use of Credit Cards (My Frugal Living Tip #2). At the end of the day, credit cards cannot replace personal savings that you accummulate through disciplined monthly saving. For me, credit cards function best as a float, allowing you to earn interest on money you have to pay your credit card bills in full in a high-yield online savings account. That's the only way for credit cards to work to your advantage. Carrying a balance at high interest rates will turn into a burden that would take years to overcome.

For further reading: More New York Times' articles on credit and debit cards.

Save More At The Supermarket

Looking for tips on saving money at the supermarket? How do you balance your frugal sensibilities with healthy living? Shopsmart has an informative PDF filled with tips and suggestions that you might find useful: Save More At The Supermarket.

Link: Save More At The Supermarket (PDF)

Friday, August 21, 2009

Seventh Generation Coupons & Special Offers

Seventh Generation Coupons & Special Offers (require membership in the Seventh Generation Nation)

source: www.seventhgeneration.com

Cleaning Your House The Frugal & Healthy Way

Tired of using strong chemical cleaners that not only make you nauseous but also take a bite out of your pocketbook? Looking for frugal, sensible, natural or homemade alternatives to keeping your house clean? Here are some resources to get you started:
Happy frugal cleaning!

Wednesday, August 19, 2009

6 Simple Ways for Freelancers to Increase Productivity

In this dismal economy, many folks are turning to freelancing, whether voluntarily or involuntarily. If you are freelancing, you might be interested in Smashing Magazine's 6 Simple Ways For Freelancers To Increase Productivity. Here you'll find good tips and suggestions that might help you be more productive.

Tuesday, August 18, 2009

Choosing Affordable yet Safe Baby Products

Buying baby products isn't for the faint hearted. One gets bombarded with ads for all kinds of gizmos and contraceptions with often unproven claims. Not only that, these gizmos can such the cash from your wallets if you aren't watching. The Consumerist Blog has come out with their latest Guides For Choosing Safe, Affordable Baby Products that you would want to consult before parting with your hard earned cash on baby stuff.

Monday, August 17, 2009

Five Best Apartment Search Tools

Looking for an apartment online? Bewildered by all the options and advertisements from commercial agents? Head right over to Lifehacker's Five Best Apartment Search Tools, which highlights the five best online tools for your apartment search.

Happy apartment hunting!

Saturday, August 15, 2009

Choosing Between COBRA Or Individual Health Insurance For the Newly Unemployed

For the tens of thousands who are joining the unemployment rolls each week and losing their employer-based health insurance, the question arises whether one should go on COBRA or purchase an individual health insurance. If you are in this situation, you might want to consult the very helpful analysis by Jonathan of MyMoneyBlog.com: Unemployed: COBRA vs. Individual Health Insurance.

Coupons For Nestle Products

Coupons for Nestle Products

via: Walmart.com

Friday, August 14, 2009

How Outlet Malls Have Convinced Shoppers into Thinking They're Getting a Sweet Deal

Outlet malls seem to be proliferating all over the place, offering deals to attract customers. But are their deals really as great as they advertise? Personally, I haven't been to an outlet malls for more than 10 years. The few that I've visited didn't offer anything that I couldn't get a better price at discounters such as TJ Maxx, Ross or even Big Lots. Anyway, if you have a nagging feeling of being snookered at outlet malls, this article from AlterNet would validate those feelings: How Outlet Malls Have Convinced Shoppers into Thinking They're Getting a Sweet Deal.

What are your outlet mall experiences?

36 Risk Factors Creditors Use To Deny You Credit

If you ever wondered what's the reason behind your bank, lender or credit card company denying you credit, Consumerist has a list of 36 risk factors creditors use to deny you credit. If you know that you'll be in the market in the near future for a loan, now's the time to look at these 36 items and fix or clean them up before you approach your lender.

Free Sample: Emergen-C

Free sample of Emergen-C

via: Walmart.com

Wednesday, July 8, 2009

Free Sample: Huggies Pure & Natural Diaper

Free sample of Huggies Pure & Natural diaper

(via Huggies)

A Penny Saved Is A Penny Gained #03

Today's round-up of my favorite money saving tips (continued):
  1. I avoid ATM fees by always keeping track of my cash balance and withdraw money fee-free from the ATM of my own bank before I run out of cash.

  2. I watch movies and catch up on my TV series on Hulu and Boxee instead of shelling out money for cinema tickets, Netflick, Red Box, Blockbuster or my local cable company.

  3. I brownbag my own lunch instead of eating out during lunch time at work.

  4. I fill my own reusable water bottle with filtered tap water (I use Brita filters) from home instead of buying expensive bottled water.

  5. Instead of buying ready-to-eat salads, I make my own salad by buying bulk vegetables and cleaning them myself.
Read my other blog entries in A Penny Saved Is A Penny Gained Series.

Friday, July 3, 2009

Tips On Finding A Comfortable Coach Seat Without Upgrading

It's high season for summer travel and airlines are enticing would be travelers with all sorts of fare sales to fill empty seats. I have previously blogged about "saving money on your summer air travel."

It is one thing to save money by finding the cheapest air tickets, it is quite another thing to find a comfortable coach seat without paying extra or upgrading, in view of the fact that airlines are shrinking legroom to squeeze more seats into planes.

I swear by www.seatguru.com to help me figure out which seats are the most comfortable (e.g., lots of legroom). After finding the seats I want, it's time to figure out how to book those seats. In order to do just that, I have learned a great deal from the following resources:
See also my previous blog postings:

Thursday, July 2, 2009

Tips on Buying Organic Food

Many people want to buy organic food for its health and environmental benefits but balk at the higher prices. On the one hand, going 100% organic in one's grocery shopping would strain the grocery budgets of many households in today's depressed economy. On the other hand, it is possible to buy organic food without busting one's finances.

If your finances are tight and you have to be highly selective in your grocery shopping, the trick is to buy organic for those produce that are at highest risk of exposure to pesticides or chemical residues, while buying conventional produce for those at lowest risk of chemical contamination. The Consumerist has a helpful article, "When Is It Worthwhile to Buy Organic?" that, among other things, lists the so-called "Dirty Dozen" with the highest pesticide/chemical residues. These are the items that you should buy organic.

Resources:

Tuesday, June 30, 2009

Tips on Buying Milk

How do you decide which is the best milk to buy? What is value for money? What are the differences between 1% and 2% milk? Between cream and half-and-half? Between powdered and fresh milk?

Two articles -- "How to buy the best milk" (Cooking Light) and "A Family's Guide to Buying Milk" (Mambo Sprouts) offer you tips on how to decide which milk to buy for your family.

Saturday, June 27, 2009

A Penny Saved Is A Penny Gained #02

Today's round-up of my favorite money saving tips (continued):
  1. I always live within my means, buying only what I can afford.

  2. I always pay off the balance on all my credit cards in full at the end of each monthly billing cycle.

  3. I believe in saving diligently to pay for all my expenses instead of charging the expenses to my credit cards and being saddled with high interest for my poor planning.

  4. To assist me in figuring out how much I need to save to manage my cash flow, I keep a strict budget and plan all my expenses.

  5. I keep an emergency fund in case I should lose my job. At present, I have saved up enough to cover 8 months of unemployment. My goal is to save up enough money to cover 12 months of unemployment.
Read my other blog entries in A Penny Saved Is A Penny Gained Series.

Thursday, June 25, 2009

How to Avoid Being Fleeced When Buying A Car

Since the legislation for the "Car Allowance Rebate System" (CARS), popularly known as the "cash for clunkers" rebate program was passed, car dealers are now waiting for the hordes of potential new car buyers heading their way to sign the dotted line for a new vehicle. If you are one of those potential new car buyers, below is a round-up of resources to find out whether you qualify, what your "clunker" is worth, and how to avoid being fleeced by car dealers:

Wednesday, June 24, 2009

My Frugal Living Tip #6: Know when you can safely ignore "dry clean only" labels to save money

You can often ignore "dry clean only" labels and save money on high dry clean bills. Indeed, it's more like killing two birds with one stone, i.e., saving money and environment by reducing the discharge of highly toxic dry clean solvents on the environment.

Do you know when you can safely ignore "dry clean only" labels and when you ought to follow those labels? These two posts below from the folks at EcoSalon give you helpful advice and tips:

Read the other entries in my Frugal Living Tips Series.

Tuesday, June 23, 2009

Online Banking Rate Comparison

I must admit that I haven't done much to update my early blog post on online savings accounts. If you want to know how the various online banking institutions compare among themselves, Get Rich Slowly has done a wonderful job compiling the various rate charts for easy comparison: Online Banking: 13 Choices for Higher Interest Rates and Increased Security.

Looking at the chart, it is clear that Ally Bank (formerly known as GMAC Bank) offers some of the best rates in the industry. My Money Blog has reviewed Ally Bank here and here. I am so tempted to move some of my funds, which is sitting in an HSBC Online Savings account with a paltry 1.55% annual interest rate to them. Any thoughts?

Link: Online Banking: 13 Choices for Higher Interest Rates and Increased Security (via Get Rich Slowly)

Sunday, June 21, 2009

Saving Money on Your Summer Air Travel

Summer has begun! Frugality is the new buzzword these days and everyone is looking to save money. Holiday travel is no difference. Over the years of traveling, I have discovered ways of saving money on air travel by experience. Here they are, in no particular order:
  • If time is on my side, which is the case with leisure travel, I always use www.yapta.com to help me track air fares. www.yapta.com tracks the ups and downs of the flights I'm interested in. When the price drops to my target level, I make a beeline to the airline's website to book my flights. In addition, www.yapta.com also has fare/rate deals that might work for you.

  • If time is not on my side, i.e., I need to travel on specific dates and times at short notice for busines trips, I start my flight search on www.kayak.com and www.mobissimo.com to ascertain what the cheapest rates are. Being obsessive compulsive, I double check by searching on www.orbitz.com and www.travelocity.com even though these two sites are aggregated in www.kayak.com and www.mobissimo.com. I have discovered that no two websites give me exactly the same results, and hence I hedge my bets by searching everything.

  • Once I find the fares I want (within my budget/target range), I avoid booking fees by booking directly using the airline's website. I find that many airline websites' sometimes run special fare sales from time to time, or more frequently, award bonus airmiles for booking with them.

  • I also sign up for the airlines' e-mail lists of last minute deeply discounted tickets. These tickets are usually only offered the beginning of the week for weekend travel, so you have to be willing to travel on very short notice. Also, these tickets have restrictions on departure and return flights, so you would have to be willing to plan your travel around these restrictions.

  • As a frugal traveler, I always travel deeply discounted coach. But this does not mean that I consent to be stuck in the dreaded middle seat. Before I book my flights, I always consulted my trusted guide to airplane seating, www.seatguru.com, which allows me to identify the decent and comfortable coach seats on my flights.

  • It seems to me that the cheapest flights tend to be on Tuesdays and Wednesdays (unless they are holidays), as well as Saturdays. I try to book my travel on these days, whenever possible. I also try to avoid Mondays and Fridays, which tend to be more expensive.

  • If you can spare some time, hang around in www.flyertalk.com, which bills itself as "an interactive community that provides up-to-date information on travel-related loyalty rewards program." I have learned so much about finding deals listening in to the conversations of hardcore road warriors who know the ins and outs of air travel better than I do.
See also my previous blog postings:

Friday, June 19, 2009

Frugal Traveler's Review of Travel Websites

The New York Times' Frugal Traveler's most recent blog posting: Travel Web Sites: A Click-On Showdown is a much read if you are planning your summer travel. Here you will find the lowdown on various travel websites and which ones land the best travel bargains.

From my own experience, I can safely say that no one website is the cheapest. Unfortunately, you have to search all the websites to find the best deals.

For more information, see my previous blog postings:


Thursday, June 18, 2009

Saving During Tough Times


This week, ABC World News is running a series entitled, The New Normal, where ordinary Americans share their struggles, hopes and dreams about coping with the severe economic downturn. Highlights of this series include:

Monday, June 15, 2009

Top Ten How-to Cooking Videos

In this deepening recession, many folks are rediscovering the "joys" of cooking, except that having eaten out for ages, cooking seems to be a lost art for many. Are you one of those looking to save money by eating home cooked meals, but find yourself somewhat limited by your cooking skills? All is not lost. The folks at Lifehacker have compiled this list of Top Ten How-to Cooking Videos to help you out. Enjoy!

Sunday, June 14, 2009

A Penny Saved Is A Penny Gained #01

Today's roundup of my favorite money saving tips:
  1. I borrow books, magazines and DVDs for free from my local public library instead of buying new, subscribing or renting.

  2. I reuse plastic grocery bags as liners in my trash bins.

  3. I buy machine-washable clothes to save on dry cleaning.

  4. I mixed vinegar, water and baking soda as homemade natural cleaner instead of buying commercial products.

  5. I brownbag my own lunch to work.

  6. I eat my breakfast at home instead of making impulse breakfast purchases on my way to work.

  7. Whenever possible, I buy gently used stuff at consignment or thrift stores.

  8. Whenever possible, I double my savings at supermarkets by combining coupons with sales.

  9. I watch over-the-air HDTV broadcast and catch up on movies and TV shows for free online using Hulu and Boxee instead of paying for cable.

  10. I take advantage of free or discounted promotions for various services and cancel before the various promotions end.

Saturday, June 13, 2009

Best & Worst Fast Food















Are you one of those who are turning to fast food as a frugal and affordable way to fill your stomach? Are you someone who likes the pricing of fast food but wonders whether it is possible to to have your cake and eat it, i.e., saving money by eating fast food without compromising one's health. Lifehacker's two recent articles are useful to help you decide on what kind of fast food you want to eat:

Friday, June 12, 2009

How to Save Money with DTV Transition

Today, June 12th is the day that over-the-air TV stations are going fully digital (digital TV or DTV). If you ever thought about dumping your cable provider, now is a good time to do so. Nothing beat the fact that over-the-air digital TV, which is broadcast at 1050i, is free. All you need is a HD TV (either LCD or Plasma) and an antenna.

If you are ready to take the plunge, PCMag.com columnist Sascha Segan has written an excellent column, How I Slash My Bills with Tech (Part 2), explaining how he dumped cable for broadcast digital TV and saved big bucks in the process. The two items he recommends in the article:
are excellent products. The Winegard SS-3000 Amplified Indoor UHF/VHF Antenna is the Rolls Royce of TV antennas. I agree with Sascha Segan that this is simply the best indoor antenna out there and worth every penny of added cost, compared to the cheaper rabbit ears type one can pick up at Radio Shack.

Here's my set-up:
I have a cheap Viewsonic 32" HD LCD TV that I bought on sale from Office Depot. Because I live within city limits in an area with good reception, I settled for the cheap RCA powered/amplified rabbit-ear antenna.

I have had this set up for more than a year now (since last summer), and I have had excellent HD broadcast digital TV reception for free, which I supplement with free movies and TV episodes via www.hulu.com, www.tv.com, and Boxee.

I have not had cable since 2003, the date when I decided to get all my TV, movies and episodes via over-the-air broadcast and online. You can make the jump too, and save money in the process.

My Frugal Living Tip #5: Consignment & Thrift Stores Offer Excellent Value for Money

It is possible to be frugal and fashionable at the same time. Instead of buying new, consider buying gently used stuff at consignment and thrift stores for bargains.

Indeed, I visit my local Goodwill, Salvation Army and St. Vincent de Paul stores to browse for good finds on weekends. If you visit these stores in better neighborhoods, they usually have higher quality donations that look almost like new. Why pay full price when you can get items that are like new at a fraction of the price?

A recent New York Times article, Look Who's Shopping Goodwill makes the same point too.

Bottom line: bargain hunting in consignment and thrift stores is fun. You never know what you'll find.

Read the other entries in my Frugal Living Tips Series.

Thursday, June 11, 2009

Saving money by finding new uses for coffee grounds


Natural Home Magazine has a fascinating article on creative uses for old coffee grounds.

The tips in this article is not only environmentally-friendly, but they also help you save money. Now you know that coffee grounds can be used as fertilizer, odor repellent, natural flea rinse, and natural exfoliate.

Article Link: Multipurpose Coffee Grounds

Wednesday, June 10, 2009

New Pinecone Research Sign-up Link

Pinecone Research is looking for new members. For the uninitiated, Pinecone Research offers $3.00 per completed online survey. My experience with Pinecone Research has been great, and I have no hesitation recommending them. Membership is by referral only.

If you are looking to join Pinecone Research and have been chasing that elusive referral sign-up link, you're in luck. Here is the sign-up link (won't last long).

See my earlier blog post about PineCone Research and other paid survey sites.

Tuesday, June 9, 2009

Affordable Steaks for Summer Grilling

Summer is just round the corner and the aroma of sizzling steak is wafting gently over many backyards. In case you're wondering whether it's possible to grill steaks without breaking the bank, the Washington Post is helpfully offering you tips on how to search for affordable cuts of steaks, as well as how to grill those steaks:

Monday, June 1, 2009

Good news for summer travelers: online travel agencies end fees

As I was glancing through my morning news, this article caught my eye: U.S. online travel agencies end airline booking fees. This is certainly good news for summer travelers looking to save on fees.

Before you book your airline ticket for that summer getaway, here are my previous blog postings that might interest you:

Saturday, May 16, 2009

Dilemmas of Debt: Suze Orman, Edmund Andrews & Credit Card Issuers

This weekend's New York Times Magazine (May 17, 2009), with Suze Orman on its cover, focuses on a theme that is at the forefront of the American national financial psyche: "Dilemmas of Debt."

As the magazine cover indicates, Suze Orman and her approach to debt anchors the various discussions in this issue. The lead article Suze Orman is Having a Moment, focuses on Orman and her financial philosophy: "Track your spending. Stay out of debt. Take care of your car. Look (sic) into a Roth I.R.A." Notwithstanding the quibbles I have about her endorsement of certain companies and products, her fundamental message about frugality resonates very well with my own too, viz., living a frugal yet balanced and healthy life.

The piece about Orman is juxtaposed with the New York Times economics reporter, Edmund L. Andrews' reflections on his own subprime mortgage mess: My Personal Credit Crisis. This article is a summary of his forthcoming book, Busted: Life Inside the Great Mortgage Meltdown (W.W. Norton), which is scheduled for publication in June 2009.

Reading the article about Orman's financial philosophy and Andrews' ruminations of his own financial missteps reminded me about a news article that appeared earlier last week: Thriving Norway Provides an Economic Lesson. The underlying theme of this article is how Norway's frugal and contrarian spirit places it in a position to thrive while others, like Britain and the U.S., are strugling to stay afloat in an ocean of debt:
The global financial crisis has brought low the economies of just about every country on earth. But not Norway.

With a quirky contrariness as deeply etched in the national character as the fjords carved into its rugged landscape, Norway has thrived by going its own way. When others splurged, it saved. When others sought to limit the role of government, Norway strengthened its cradle-to-grave welfare state.
By far, the most fascinating article in this issue is What Does Your Credit Card Company Know About You? This article describes how credit card companies are looking to human psychology to not only understand the motivations behind spending and paying, but also using those insights to squeeze as much as possible from their debtors.

See also other articles in this blog on:

Wednesday, May 13, 2009

Frugal Living & Planning for College

One of the biggest bill a family will face, besides buying a home, is college education. The average price of college education in the U.S. has risen well above the average rate of inflation. For the longest time, families cope with the ever rising cost of college by drawing equity from their homes or borrowing ever larger amounts of student loans, especially from private lenders. But with the collapse of the housing and financial sectors, many families are being forced to rethink their college planning strategies.

What if you are the frugal sort with no intention of going into massive debt to finance your offspring's education? What if you are heading to college and not wanting to graduate with a heavy debt load?

It comes as no surprise that many families and their kids are looking more and more toward the public university as an affordable choice that offers value-for-money college education. But as a recent Money Magazine article warns us, with soaring applications and diminishing state budgets, public universities may not be the panacea to college tuition sticker shock.

So what can you do about the ever rising college tuition bill? An earlier Money Magazine article, Ease the Tuition Squeeze offers six tips for dealing with this dilemma:
  1. use your savings strategically
  2. apply higher - and lower
  3. play it safer
  4. borrow smart
  5. make tuition less taxing
  6. stop worrying (at least for now)
Links:

Tuesday, May 12, 2009

My Frugal Living Tip #4: Consider Used or Refurbished Instead of New

One of my favorite spring time ritual is rummaging through stuff at weekend garage sales. You never know what you might find. I haven't been that lucky to find hidden gems that turn out to be valuable antiques. No such luck. But I've picked up many household items (furniture, shelving, kitchenware, home decoration items, etc.) that not only saved me a considerable amount if I were to buy them new, but they also add charm and character to my home.

In other words, rather than spending lots of my hardearned cash buying new stuff, I can get the same used stuff from garage sales that look like they have always been in my home.

Likewise, I visit my local Goodwill, Salvation Army and St. Vincent de Paul stores to browse for good finds on weekends. If you visit these stores in better neighborhoods, they usually have higher quality donations that look almost like new. Why pay full price when you can get items that are like new at a fraction of the price?

As for books and movies, I turn to my neighborhood public library instead of buying new books and dvds. As far as I am concerned, why should I buy new books and dvds when I can borrow them? True, it may take a while to get that latest bestseller or dvd release, but I don't mind waiting if it saves me money.

As for those times when I want to buy a book or dvd for my personal collection, I visit my favorite online store Amazon.com for web-based purchases and my local Half-Price Bookstore where I regularly pop in to browse for interesting finds.

Read the other entries in my Frugal Living Tips Series.

Monday, May 11, 2009

How to Get The Best Seat On the Plane

How do you balance frugal traveling with comfort? Is it possible to get a decent (and even comfortable) seat in coach? Sascha Segan's latest article in Frommer's, How to Get The Best Seat on the Plane explains how you can land that elusive seat, with help from www.seatguru.com, which I myself consult regularly when I plan my own air travel. It is possible to travel frugally yet comfortably. You just need to do some sleuthing.

Link: How to Get The Best Seat on the Plane

See also my earlier blog posting:


My Frugal Living Tip #3: Make Saving a Way of Life

I have blogged about saving here (My Experiences with Online Savings Accounts), here (Frugal Living & Managing Risk, III), here (Frugal Living & Managing Risk, IV), here (Thrift Nation), here (Free 49-page Personal Finance E-Book from The Simple Dollar), here (11 Ways to Save Money Now) and here (Changing Values: From Borrow/Spend to Save/Being Frugal).

Cultivating a lifelong lifestyle of saving is like cultivating a lifelong lifestyle of healthy eating. Sure, both ways of life are plain, boring and require much discipline. But the rewards are real. Lifelong saving leads to financial health just as lifelong healthy eating leads to physical health.

This doesn't mean that we don't splurge once in a while. Far from it. Just as it's nice to indulge in a rich dessert, e.g., rich creamy chocolate mousse, so too we should give ourselves a financial treat as dessert once in a while.

We end up leading an unhealthy lifestyle when we don't watch what we eat. Sure, it feels good to eat all those rich fatty treats and desserts instead of fruits and veggies, but at what cost to our physical health?

So too, when we don't save, but instead finance our lifestyle through debt, debt and more debt, we might have the latest toys and gadgets to show off to others, but at what cost to our financial health?

Is there hope to get out of the vicious cycle of debt that have plagued the modern American society? Perhaps, there may be, as yesterday New York Times article, Shift to Saving May Be Downturn's Lasting Impact. What do you think? Do you agree? As for me, the jury is still out.

Read the other entries in my Frugal Living Tips Series.

Sunday, May 10, 2009

My Frugal Living Tip #2: Careful Use of Credit Cards

I have blogged about credit card use here (Credit Cards & Frugal Living) and here (Damage Control for Your Credit Score).

Credit Cards are like wine: both are meant to be used in moderation.

Let me explain: medical experts say that 1 glass of wine is good for one's health. But when one binges on wine, one becomes an alcoholic and needs to stay away from wine as far as possible. This is because the ill effects of alcoholism far outweigh the healthy benefits of wine.

Ditto for credit card use. As I explained in my earlier blog post, Credit Cards & Frugal Living, one should use credit cards judiciously, spending only what one is able to afford and paying off the balance in full at the end of each monthly billing cycle.

In other words, don't binge on credit card and end up addicted to easy credit. If you can't control your credit card use, then take a pair of scissors and cut up all your credit cards and close your accounts, just as a recovering alcoholic has to stay away from wine, no matter how healthy a single glass can be.

But if you are able to use credit cards judiciously, then you can reap the benefits of leveraging your monthly float between spending and paying, as well as earning rewards (cash back, rebates, statement credit, etc.) for using your credit cards.

Read the other entries in my Frugal Living Tips Series.

Saturday, May 9, 2009

My Frugal Living Tip #1: Maximizing Savings with Coupons

I have blogged about using coupons here (Using Coupons), here (Online Coupons & Coupon Codes Sites) and here (Balancing Frugality with Healthy Living).

For my inaugural "Frugal Living Tip Series," let me share with you how I maximize my savings with coupons:

GOOD:
Using coupons to get a discount off the full retail prize (e.g., using a 50-cents off coupon to buy a tube of toothpaste at $1.50. Price paid = $1.00 + tax). This is where you start.

BETTER:
Combining coupons with store sales to get a discount off the sale price (e.g., using a 50-cents off coupon to buy that same tube of toothpaste at a sale price of $1.20. Price paid = $0.70 + tax). This requires some planning and figuring out the sales patterns/trends (e.g., supermarket A tends to have sales on toothpaste toward the end of the month).

BEST:
Using coupons at stores with a coupon doubling policy and combining that with store sales to get double discount off the sale price (e.g., using a 50-cents off coupon at a store with double coupon policy, i.e., 50 cents + 50 cents discount, to buy that same tube of toothpaste at a sale price of $1.20. Price paid = $0.20 + tax). For this you have to patronize stores with a coupon doubling policy (e.g., Kroger, Giant, Safeway, Meijer, etc.). Note that drugstores (CVS, Walgreens) and discounters (e.g., Target, Walmart) do not have coupon doubling policy.
PS: I personally don't have the time and patience to play the "Drugstore Game" (combining coupons + sales + rebates at Walgreens or Extra Cash Bucks/ECBs at CVS). If you, unlike me, have the time and patience, you could not only save but also get cash back under certain limited situations.

Read the other entries in my Frugal Living Tips Series.

Friday, May 8, 2009

Changing Values: From Borrow/Spend to Save/Being Frugal

Here is another recent article from the folks at Money magazine that talks about frugality and saving money: How the Crisis is Changing You. This article makes the case that frugality and saving money are in, debt and plastic are out, and bling is bad. The author, Dan Kadlec claims that the financial crisis and its ensuing economic meltdown have engendered a major shift in the financial values of Americans that he thinks will persist over time.

Do you agree?

Article Link: How the Crisis is Changing You

11 Ways to Save Money Now

Here's the latest online piece from the Money magazine team that touches on a subject that is dear to my heart: 11 Ways to Save Money Now. My favorites are:

#3: Accept the new norm and set realistic investment goals
How true! In other words, we have to accept the reality that we won't see the kind of outlandish returns of the 1990s and early 2000s for a long, long time, and therefore we have to plan accordingly.

#4: Lose Rate By Refinancing Your Mortgage
My take: But this works only if you are (1) gainfully employed with a real full time job (i.e., "no job, no loan" is the new banking mantra), and (2) you have real equity in your house (i.e., your house is now under water). If you are the lucky few, take advantage of it. Otherwise, blame your mortgage broker for tempting you into a loan that is way too much for your finances.

#5: Juice your credit score an extra 20 points
Easy steps, but require discipline to pay down that revolving balance though...

#6: Go cold turkey on monthly services...
#7: Turn off the TV...
This advice really works. I save a bundle by not having cable (since 2003), no Netflick, Blockbuster, etc. As for #7, I watch over-the-air digital HD broadcast with rabbit ears antenna on my digital LCD TV, borrow DVDs from my neighborhood public library and use hulu.com, boxee.tv, etc., to watch older full-length movies on a netbook that is hooked up to my LCD TV). Cutting a few dollars here and there and we're talking about real, cold hard cash being saved!

#8: Reorganize your insurance drawer
I did that in 2008 and save several hundred dollars by raising the deductible on my car insurance to $1,000/- and my home fire insurance to 2% instead of $500.00. Think about it: you don't want to claim insurance on small claims to avoid insurance companies jacking up your premiums. It makes more sense to save money by having the highest possible deductible and be disciplined enough to put that money saved into your emergency fund in a high yield online savings account. That way, the money and interest earned go to you and not to the insurance company.

11. Start your own "working capital" fund
Very good advice (my 12-month emergency fund also covers job search expenses, in case I'm laid off).

Article Link: 11 Ways to Save Money Now

Thursday, May 7, 2009

Free 49-page Personal Finance E-book from The Simple Dollar

The Simple Dollar is offering a free 49-page personal finance e-book (in PDF format), Everything You Need to Know About Personal Finance on Just One Page, which collects and discusses Trent Hamm's favorite ideas and strategies about good financial planning and frugal living in one highly readable book. Here you will find Trent discussing in detail, his five-point plan for personal finance success:
  1. Spend less than you earn (My comment: how true! Frugality and saving is still the best way to personal finance success, and not leveraging and gambling).

  2. Earn more (Trent offers lots of strategies to increase your income and earning potential)

  3. Life Frugal! (My comment: my sentiments exactly!). In this section, Trent outlines 100 great tips for frugal living, as well as things to avoid.

  4. Manage your Money! Here Trent outlines all the steps you can take to manage your money well, e.g., pay off high interest debts, build emergency fund, etc.

  5. Control your own destiny! How true.
In addition, Trent also includes his recommendations of personal finance books and blogs that you could read or follow.

In short, this free e-book is worth your time, not only because Trent has so generously shared it for free under the Creative Commons license, but his ideas and strategies are commonsensical yet ignored by many folks who fall prey to shortcuts that only lead to financial ruin.

Wednesday, May 6, 2009

Getting a free copy of your credit and other reports under FACTA & FCRA

Are you sick and tired of the wannabe rock star belting out that jingle about not checking his girlfriend's credit report with his band buddies in the freecreditreport.com ad? I am, especially since the TV ad is, in my opinion, not exactly truthful.

Here's the reality: you get your "free" credit report only after you sign up for a 7-day free trial membership in the Triple Advantage Credit Monitoring. More to the point, you will be charged a membership fee of $14.95/month after the free trial period expires. So "free" isn't really "free" after all.

It is a good idea to monitor all the data that various reporting agencies are collecting about you. Under the Fair and Accurate Credit Transactions Act (FACTA) of 2003 and the Fair Credit Reporting Act (FCRA), you are entitled to one free annual report from various reporting agencies in general, as well as one free report in the event of adverse actions being taken against you by an insurer, bank, etc., as I will explain in greater detail in the 2-part discussion below.


PART I: FREE ANNUAL REPORTS MANDATED BY FACTA

(A) Free Credit Reports

Instead of going to freecreditreport.com, head rather to the real site that is officially mandated by the Fair and Accurate Transactions Act (FACTA) of 2003: www.annualcreditreport.com

The website www.annualcreditreport.com is maintained by the three major US credit reporting bureaus (Equifax, Experian and TransUnion). Under the FACTA legislation, you are entitled to one free credit report from each of the three credit reporting bureaus (Equifax, Experian and TransUnion) every 12 calendar months. In addition to the free credit report mandated by FACTA, you could also purchase your credit scores from the three major credit reporting bureaus for a fee. If you discover any inaccuracies in your credit reports, you should dispute them as soon as possible, since banks, insurance, potential employers, landlords, etc., are relying on these credit reports to assess you as a person.

You do not have to request all three credit reports from www.annualcreditreport.com at once. If you request one report from a credit reporting bureau once every four months, you would have set up a rudimentary 4-month credit monitoring system. In my case, this is how I request my annual credit reports:
  • Jan = Equifax
  • May = Experian
  • Sept = TransUnion.

(B) Other Free Annual Reports that you should request

What many folks do not realize is that the 2003 FACTA legislation also mandates that you are also entitled to the following free annual reports:
  1. Your Comprehensive Loss Underwriting Exchange (CLUE) Report - this records all your insurance claims history;

  2. Your Employment History Report;

  3. Your Tenant History Report; and

  4. Your ChexSystems Report (comprising data on how you handle bank accounts, checks, overdrafts, etc).
You should request your free annual reports for 1 (CLUE), 2 (Employment History) and 3 (Tenant History) from www.choicetrust.com

You should request your free annual report for 4 (ChexSystems Report) from the Consumer Debit Resource site.


PART II: FREE REPORTS IN THE EVENT OF ADVERSE ACTIONS

Under the Fair Credit Reporting Act (FCRA), you are entitled to a free report of your relevant financial records if the following negative or adverse actions have been taken against you:
  • your bank/financial institution denied you an account or check-writing privileges. If you find yourself in this situation, you should head immediately to www.consumerdebit.com, where you can request your free ChexSystems report.

  • your insurer (1) denied insurance, (2) increased your rates, (3) limited your coverage or (4) cancelled your policy. If any of these 4 circumstances apply to you, head to www.consumerdisclosure.com for your free report. This site is maintained by ChoicePoint.
If there are inaccurate data in the ChexSystems or ChoicePoint reports, you ought to dispute the inaccuracies as soon as possible.

Tuesday, May 5, 2009

Damage Control for your credit score

Last Thursday (April 30, 2009), the Washington Post's personal finance columnist Michelle Singletary discussed the issue of involuntary credit card cancellation by the card issuer and its impact on one's credit score in her Color of Money column. She discusses two possible scenarios: (1) where a card hasn't been used in ages and the cardholder pays off the credit bill in full every month, (2) where a card holder carries a balance. Singletary rightly concludes that in the first scenario, there is no need for any damage control. But that is not the case for the second scenario, since the closure of a credit card will reduce the card holder's total utilization rate.

As I explained in an earlier blog posting, Credit Cards & Frugal Living, I was not happy when Bank of America unilaterally closed my AAA Visa Card (formerly a gas rebate card issued by MBNA) which has been dormant for ages. Since I pay off all my credit cards in full every month, my credit utilization rate is not affected by the closure and my FICO score remains in the excellent range.

Indeed, I totally agree with Singletary's ending sentence: "It would be great if the long-term impact of this credit crunch is people relying less on credit and more on cash." I treat my credit cards as "cash" and use them as my monthly float and to get rebates for statement credit (thereby bringing down my actual credit card bill every couple of months). As far as I am concerned, there is nothing wrong in using credit cards if you are able to withhold an equivalent amount in cash in your bank account to pay off all your credit cards in full at the end of each billing cycle. Otherwise, credit cards become a trap that ensnares a person in a vicious debt cycle.

Making Tough Calls in College Choices

The Washington Post article, Downturn Toughens Choice of University reveals the tough realities facing many incoming college students. Should they choose a public or private college? For the first time in a long while, students and their parents are thinking hard about going into heavy debt for a college education.

Personally, I don't see the point of borrowing $50,000 or more for an undergraduate education. Coming from a frugal family, I chose an in-state public university that offered me a 50% tuition grant-in-aid and the balance 50% from a subsidized loan. That was the best decision I ever made. I repaid my subsidized student loan in five years by making extra payments along the way. My graduate education was financed with my own savings together with a collection of different scholarships, grants, assistantships and work study awards that I cobbled together.

It is possible to be frugal and get a stellar college education. You just have to look beyond the hype.

Sunday, May 3, 2009

How to squeeze more life from your batteries

Lifehacker has come up with their Top 10 Battery Hacks, Tips and Tricks. While many of the tips are sensible practics that everyone, and not just frugal folks should do to squeeze more life from your batteries (e.g., turning off the LCD screen of digital cameras to save battery juice, turning off 3G when not in use, disabling all that eye candy stuff that suck power, etc.), the one that really got me chuckling is turning Size C batteries into Size D in a pinch with quarters! Now, who would have thought of that?