Want to save money? Just ask!

It's amazing, but true. God helps those who help themselves. Here are some real examples of how we've saved money by simply asking.

Lower Interest Rates - When my grandparents were still alive, I would sometimes help them with their finances. They didn't really understand how credit card debt worked, and they were really being taking advantage of by the size of their interest rates. So, in one phone call, I was able to drop their rates by 4%. That might not seem like much, but it really added up over time.

Waive Late Fees - During our marriage, Jason and I have been late with one credit card payment. Since we have a good history with the company, I simply called and asked to see if we could skip the $25 fee for our mistake. The call representative didn't even need to ask her manager. In less than 5 minutes, the fee was gone. If you try this, and get a no, try asking for a supervisor.

Lower Your Monthly Costs - A few years ago, I got a glimpse of our telephone/DSL bill, and I was shocked how high the cost was. For DSL alone, we were paying $49.99/month. I called the company to see why it was so high. They said we could get the same services for the following year for $19.99/month for the year and $29.99 for the next two years if we agreed to stay with them during that time. That was our plan anyway, so it was a really easy way to save $840.

Negotiate Lower Service Fees - When it came time for our fuel pump to have a check-up before winter, I really wanted to go with the company who installed it without paying the fee they wanted to charge. So I called a couple of competitors to see who had a better rate. I found one willing to charge $30 less. I called my favorite company back, and they were happy to match the competitor's price. I've even had companies honor coupons from the yellow pages from other companies in order to get my business.

In each of these cases, we saved money for things we would have purchased anyway by simply asking. How have you asked for a savings? Let us know in the comment section below!

The Great Pantry Experiment -- Day 10

We're 10 days into our Pantry Experiment (see the original post for details), and we've made our first trip to the grocery store.  Here are the groceries we bought:

One gallon of milk -- $1.99
Two green peppers -- $1.69
One bag o' salad -- $0.99
A bunch o' bananas -- $1.36
A dozen yogurts -- $4.80

Total -- $10.83

Now, to be fair, we did also buy two big bags o' cat litter, but as we don't eat cat litter, and the alternative is to have cat excrement scattered about our house, we won't count it here.

We now actually have enough fruit in the house to last us for the next two weeks, and enough yogurts to last us until the end of January.  I can't say that our pantry is any noticeably emptier, but there are spots here and there where I can see shelving I hadn't seen in a while. 

One of the unexpected byproducts of this experiment is how much faster our shopping went on Friday night.  My wife and I are usually very fast shoppers anyway, but this shopping trip (the milk, peppers, and salad from Aldi, the rest from Meijer) was especially fast.  Why?  We found ourselves bypassing ... well, everything, all because we knew it wasn't on the "approved" list of things to buy.  On any normal shopping trip, we'd wander the aisles, looking for good deals and loss leaders, either for eating in the coming week, or else to stock up.  Knowing that we weren't doing any of that -- weren't, in fact, buying anything except one of the Approved Items -- meant we went in, went straight to the areas we needed to visit, then paid and left.  No dalliances in the frozen food aisles, no visiting the canned soups or rice packets in case they might be on sale -- just in and out. 

We're also finding some really good and interesting recipes because we're tossing together a little of whatever we have on hand.  Tonight we're taking a tub of frozen chili and adding ... well, I'm not sure what my wife is adding to it, but it will bulk up the chili, and let it last for two or three days instead of just one.  Meanwhile, we're taking that money we would have otherwise spent on groceries and attacking our mortgage (another $428 or so going against it this week), which is what this whole 40-month experiment is all about.

Anyone else taking the Pantry Challenge?  If so, share your experiences in the comments section.

How Much Is Too Much?

As I look at the numbers on the right of this blog, as I see the red one going ever lower and the green one creeping higher, I find myself more and more obsessed with them, and specifically with making the red one disappear entirely.  I find myself looking for more and more ways to throw extra money -- any extra money -- toward the loans: a dollar here, ten there, anything I can find.  As part of that, I find myself looking for other ways to earn extra money, all in the name of ridding us of these loans as soon as possible.

There are times, however, when I start to worry that I'm becoming too obsessed with it.  Right now, I work 25 hours a week as a school librarian; several hours of practice, rehearsals, and services for church; 6 hours of private piano lessons; and the hours I spend composing and arranging music.  All of these things bring in money, but I'm already at or past 40 hours on the week.  Despite that, there are many times where I think about taking on more work -- probably more private piano students -- to bring in more money, but that would be at the detriment of one of the other parts of my work.  Even if I could add in extra students and keep all my other jobs intact, those lessons would cut into the time I spend with my wife and cats, or with my family, or reading and relaxing, or ... well, you get the idea. 

So where is the balance?  How do you know when to say when?  Dave Ramsey in his Total Money Makeover says "live like no one else so one day you can live like no one else."  I know that paying off this debt will require hard work and sacrifice, but how much is too much?  Where is the line between working to pay off the debt and having no life outside of work?  Is it really worth an extra $50 a week to lose out on a couple of hours with my wife? 

These are the questions behind the money.  The numbers all look great on paper, but when you put them in the real world, you discover that two plus two may not really equal four, or it may equal four (with some reservations).  Maybe just the fact that I'm aware the potential problem exists will make it less likely I'll work too hard and forget to live my life.

Where do you draw the line between debt reduction and still having a life?  Put your thoughts in the comments section below. 

Frugal Staples

Keeping a well stocked pantry can be a huge asset in lowering your grocery bill. These pantry items are not only inexpensive, but they are healthy and easy to prepare.

Beans - Beans go with almost any cuisine and add bulk, protein, and flavor to your foods at a very low cost. We purchase ours at Aldi for $.59 a can. Specifically, black beans are an excellent source of fiber, iron, magnesium, phosphorus, and folate.

Oatmeal - Speaking of fiber, we have all heard how oatmeal can improve your cholesterol levels and your overall health. It's an excellent way to start a day and can make for a very satisfying snack. Avoid purchasing expensive and sugary envelopes. Purchase the large containers of oatmeal. Just add twice as much water as oatmeal and microwave until cooked to the desired texture. Add a handful of fruit, top with yogurt, or leftover crunchies such as cereal to make an excellent meal.

Peanut butter - We wait until they sell jars for a buck and buy like crazy. It has a very long shelf-life, is ready to eat in a moment, and is an excellent source of protein. It can be used in deserts, sandwiches, and even savory dishes. Using peanut butter instead of oil when preparing chicken tastes excellent with a little curry powder.

What other healthy, easy, and inexpensive foods are lurking in your pantry? Let us know in the comment section below.

Motivation

As I write this, it's Sunday evening, and that minute hand just keeps marching on around the clock.  In just about two hours, we'll have to go to bed and get up tomorrow to go to school.  After having the past two weeks off for Christmas vacation, 6:00 comes early.  Very early.

Now, don't get me wrong -- both my wife and I love our jobs, but however much we enjoy teaching children, it's hard to keep that in mind when the alarm is going off and the sun is nowhere to be seen.  By the same token, it's difficult to think about going off to earn money when all that we want to do is crawl further under the sheets and stay warm. 

So what gets us up and out the door in the morning?  Well, I suppose it's the knowledge that if we don't go, we'll get fired.  But it's also the knowledge of why we're working so hard to earn that money in the first place.  We have our goal in sight -- $120,000 in debt reduction.  Just knowing that every dollar we earn gets us closer to our goal of being debt free helps us get up in the cold and dark of a winter's morn and brave the rush hour traffic.

Motivation comes in many forms, and at least for now, this goal is ours.  What motivates you to go out and earn your daily dollar?  Share your motivations in the comments section below.

Penny Wise, Pound Foolish

There are a lot of clichés with no merit in reality. The adage “Penny-wise, pound-foolish,” is not one of them. A lot of my advice saves the sorts of pennies that turn into big bucks over time. However, there are some places in your life that saving is not really worth it.

Nutrition – You can definitely save a lot of money on groceries if you eat nothing but beans, rice, and occasionally ramen. However, it’s not a smart way to save money. You’ll spend more on medical bills when you develop rickets or scurvy than you ever could save. Plus, if you don’t give your body what it needs daily, your quality of life will diminish. When you don’t feel your best, you’re much more likely to splurge in other areas of your life to compensate.

Travel – For years, my husband and I dreamed of traveling to Hawaii. We kept putting it off for more practical (i.e. boring) goals. Finally, we decided the time would never be perfect, so this past July we went for it. We were wrong -- the time could be perfect. Those seven days were probably the best seven of our lives. We could have saved thousands of dollars by staying home, but that money was better invested in our happiness that it could have been in debt reduction.

Education – Whether going for your doctorate or going for your GED, the cost in time and money to further your education can be considerable. This is another area in your life where the money isn’t spent, but rather invested. The intangible benefits for your mind and spirit, coupled with the very tangible benefits in your career, make this a better use of your money than debt reduction. Besides, if you learn more about what you truly love, you almost always make money from it that you never expected.

What else in our lives takes precedence over debt reduction? Let us know in the comments section!

An Experiment...

With the new year upon us, and with us now one month into our debt payoff plan, the time has come to free up some extra dollars to throw towards the mortgage. To that end, we're going to undertake a 40-day experiment. We invite any of you who are so inclined to come along for the ride.

What is the experiment, you ask? Here you can see our pantry -- I dare say ours is not much different-looking than yours: all manner of boxed, bagged, and canned goods you've bought up to keep for a rainy day, then neglected to eat. Our freezer looks much the same way -- frozen dinners, chicken, cheese, and whatnot, all just sitting there waiting for us. Despite having all that sitting there just waiting for us, we still go to the grocery store once a week and plunk down $50, $70, $100 dollars for new food.

So here's the experiment -- starting on the 1st of January, and lasting through until February 10 (the end of our credit card statement), we will eat almost exclusively out of our pantry and freezer. We do plan on buying a very few things at the grocery each week:

• Bread -- One loaf a week for our lunches, no more than $1.
• Yogurt -- Four mornings a week, my wife eats a yogurt while I drive her to school -- nothing else sits well with her that early in the morning, so no scrimping there.  No more than $3 or $4 a week.
• Fresh vegetables -- Mostly green pepper, about $1.69 a week.
• Fruit -- for in our lunches; again, no more than $3 or $4 for the week.
• Milk -- we have no cow, so we'll shell out the $1.50 or $2.00 per week.

So, our hope is to get by with no more than $10 per week at the grocery.  Everything else we eat will come from either our pantry or freezer.  No restaurant meals, no other groceries.  A total of $50 on groceries for the length of the experiment, no more.  Not only should this free up some extra money for debt reduction, but it will clean out our pantry, prevent much of our canned and frozen goods from spoiling, and just generally be fun.  More than that, so much of frugality and financial solvency is attitude -- making due with what you have instead of constantly buying new.  What better way to help us get in that mindset than by making due with the food we already have on hand instead of constantly buying new?

Anyone else out there want to come along on the journey?  Post so in the comments section, and welcome!