“Saving” Archive
Jan
28
First off, thanks to everyone who has been checking in, anxiously awaiting an update. I sincerely appreciate your loyalty to the blog, particularly your encouraging comments. The loyal readers of this blog are what keep me motivated to continue telling my story.
So as most folks are aware, in early December I made one of the more dramatic lifestyle changes I’ve made thus far: I got rid of my car. I described my motivation in detail in an earlier post, but I will summarize here:
- Reduce Expenses
- Reduce Expenses
- Reduce Expenses
- Do my part for the environment
During the first 45 days, I have done pretty well at reducing expenses as a result of turning in my leased car. I estimated that I was spending between $180-$225 on gas each month, so I realized an immediate savings once the car was gone. In addition, I am saving about $95 per month for auto insurance, which again was an immediate savings. Conversely, because the car was leased I still own Honda Finance 5 more months of payments. As such, I won’t see the stellar savings until the summer, when gas in my humble opinion is likely to reach $4/gallon.
So, how is life without a car you ask? I’ve found that living without a car in a city like Seattle–which has good but not great public transportation–is quite easy to do and frankly fairly enjoyable. Other than the obvious expense reduction there have been a number of noticeable things that have come about as a result of living car-free:
1) I Get More Exercise
I walk a lot of places now that I don’t have a car. My neighborhood, according to Walkscore.com (and I agree) is fairly walkable, meaning banks, grocery stores, drugstores, public transportation etc., is all within a reasonable walking distance. I read somewhere that in order to lose weight, in addition to regular aerobic exercise, you should take at least 10K steps per day. With all the walking I do at work, on the way to work and on the way to the bus each day, I’m hitting nearly 13K steps per day, which makes me happy.
2) Other Expenses are Down
One thing I have noticed since having to rely on public transportation or the occasional Flexcar is that I spend significantly less money on things like groceries and household items. The reason is quite simple: I can only buy what I carry, so I only buy what I NEED. I think walking to your local grocery store, if practical, will cause you to be a lot more deliberate about your purchases and I will guarantee that you will see the savings in your wallet.
3) Less Stressed and More Focused At Work
Traffic here in Seattle is absolutely horrible, particularly the route I was forced to take each day to work. I found that by the time I dealt with traffic, drivers who didn’t know how to merge and–incredibly given I live in Seattle–how to drive properly in the rain, I was very stressed out and angry by the time I got to work. It would often take me an hour or so to cool down and be able to focus on the events of the day (also quite stressful). Now I find myself able to read, listen to my iPod or simply zone out on the way to work. I have about a 10 minute walk from the bus stop to my office, and by the time I arrive I am nice and relaxed and ready to focus.
Some of you might be wondering–and I thought about this myself–if I will ever own a car again. The answer to that question is yes. For the time being and for the foreseeable future I will live without one. That said, when I do buy another car, it will be something much more practical, fuel efficient and affordable.
Oct
2
Starting this Friday, October 5th, I will be starting the ‘One Less Car Challenge’ sponsored by the City of Seattle, whereby I will attempt to not drive my car at all for a month, with the exception of emergencies.
Although I have been carpooling and taking the bus a lot more often over the past two months since announcing I would move to a 100% car-free lifestyle next year, I have not gone a month without driving my car, so this will truly be a good challenge for me.
There are some nice rewards if I can successfully complete the challenge:
- $50 in Flexcar credit, of which I am already a member and active user
- Discounted membership to the Cascade Bicycle Club, the largest bicycle club in the nation, which also happens to be here in Seattle. I’ve yet to buy a bike, but this would be a nice benefit for sure.
Other than the obvious rewards, there are likely to be some other very tangible benefits to my body and my pocketbook:
- Taking the bus will mean more walking from point to point. This should keep me in shape or even help me get into better shape. I’ve been slacking from my diet and exercise program lately and need to get back on track. This would be a good catalyst/supplement.
- Without the availability of a car at my disposal, any impulsive or wasteful spending or temptation to spend will be eliminated. In addition, I will only buy those grocery items I need AND can carry home on the bus. This should keep me healthy and honest.
- I will save close to $200 for the month in gas related to my commuting and errand running. This is probably the BEST benefit of all, at least in the context of debt repayment.
I am a very strong believer in the concept of car-sharing through FlexCar, so if you live in any of the following cities please contact me and I can send you a referral:
Seattle, Portland, San Francisco, Los Angeles, San Diego, Washington D.C., Atlanta, Gainesville, Baltimore, Philadelphia, Pittsburgh, Columbus, Milwaukee or Phoenix
Wish me luck on my challenge. I am going to create a page on the blog to specifically track and detail the challenge so I don’t create too much clutter on the blog.
Jul
19
First off let me apologize again for the lack of posting. My laptop has been in the hands of the Toshiba repair folks but luckily my warranty hadn’t expired just yet (two weeks left) and the repairs were free.
So without further ado, here comes some fresh content for all you loyal readers. I usually don’t break up my posts but since this a very long post, but one I think most people will find interesting, I’ve included a “More” tag so your screen isn’t completely filled by this post.
While browsing the aisles at the public library–Seattle has an amazing public library system–I came across a book that may change the way I live my life going forward. The title you ask…..How to Live Well Without a Car: Save Money, Breathe Easier and Get More Mileage Out of Life.
The book is part ‘How-To’ but mostly ‘Why You Should’ go car-free, with the crux of the argument focusing on the true expense of owning a car. Adding in insurance costs, fuel costs and maintenance costs to my car payment and I have estimated it costs me between $700-$750 per month to support my car habit. OUCH!
Jun
11
Today I took a vacation day in order to get the final details of the DMP proposal to my creditors (for those accounts that are open and not already with the collection agencies, i.e. AMEX). I’m glad I had this meeting as it was both an eye opener from a budgeting perspective and somewhat of a relief to see that if the proposals are accepted, my interest rates will be knocked down dramatically. As my readers know, I was paying as much as 32% on some of these cards and now the top interest rate for a given card will be 9.9%. I’ve had prior dealings with the creditor who is charging 9.9% and in my case they knocked it all the way down to 0%, so I’m hopeful they will do this again. So, the good part is that my interest rates are lower, payments each month are only slightly lower, but the bulk of my payment will be applied to the principal. According to the DMP estimate, I will be debt free in 53 months given the current plan. This doesn’t include any additional payments I make from my side income and annual bonus, all of which can be directed to a specific creditor as long as I notify the Credit Counseling Agency how I want the money directed.
Now for the bad news. The bad news is that given my current budget and child support obligations, I have less than $100 cushion every month. This does NOT include any of side income because it hasn’t been reliable enough to include in a monthly budget worksheet at this point. I, unfortunately, have a leased car so there isn’t much I can do in terms of getting out of the lease early and avoiding those payments for the next 12 months. I have frankly cut just about everywhere I could with one exception; my current apartment.
In an earlier post, I posed the question of ‘To Move or Not to Move’, and I had decided at the time that sacrificing a quiet, stable apartment and decent neighborhood would not be a good idea, unless absolutely necessary. Well, it looks like it WILL be necessary. Rent eats up a good deal of my budget each month, and while my apartment is new and nice inside, it frankly isn’t worth what I am paying for it. I won’t go into specifics of what I pay each month, but suffice to say I can save probably $300/month by moving to an older place in a different neighborhood that might involve a longer commute. Since I plan on utilizing public transportation at least 75-80% of the time going forward, as long as there is bus access within walking distance (or a Park & Ride within 2 miles or so), I am going to move. Until I can rid myself of my car payment and have a reliable second income source, my budget is just too tight should something unexpected come up. This budgeting exercise was also a reminder of how important an emergency fund really is!
I’ll keep you updated on the search for a new apartment but given I have the day off, I think I will make good use of the time and hit some of the places TODAY!
May
7
A few weeks ago I wrote a post about 10 Easy Ways to Waste Money, so I figured it was time to write about ways to SAVE money. So here goes:
Replace your standard light bulbs with Compact Fluorescent Light Bulbs (CFLs) - Although they are slighly more expensive than standard light bulbs, they will last up to 10 times longer than a standard light bulb and use 2/3 less energy than standard bulbs that provide the same amount of light. I’ve used these bulbs since moving into my apartment a year ago and not only have I not had to replace any of them but my electric bill with lights often on all day for the dog has neven been more than $35/month.
Use the Library - Don’t buy another book or magazine subscription without exhausting the resources of your library. Yes, there are a few books that are worth buying because you will use them as a reference, but honestly, how many times are you going to read the last Stephen King novel?
Grocery Shop with a List - Like most things, if you go in with a clear-cut plan of attack, in this case a grocery list, you are much more likely to avoid the complusive purchases and the high-priced, strategically placed, processed food items. Plus, you will be probably be a healthier person for it.
Buy Generic or Private Label - There are many brand name items of everyday household items, food or otherwise, that we consumers pay a stiff premium for. Is it worth it? In my estimation, very rarely. I now buy generic or private label paper towels, dishwashing detergent, canned goods, frozen fruits and vegetables and other common household items. In some cases the quality is better than the brand names. I remember Kirkland Laundry Detergent–Costco’s private label–getting higher ratings than Tide by Consumer Reports years ago.
Don’t Overinsure - Be certain that your insurance coverage matches your coverage needs. For example, don’t carry collision and comprehensive on a car that isn’t worth more than your deductible and annual insurance premiums. If you have homeowner’s or renter’s insurance, make sure your coverage is inline with the value of your belongings. You can also save some serious dollars buy raising your deductibles.
Apr
29
Although my days of online shopping and buying things I “want” are behind me for a while, there are still things that I need to buy, such as plane tickets to visit my daughter and other members of my family, clothes for me (as I shrink in size) and my daughter (as she grows) and pet food for my dog. What I have recently discovered at Ebates is that I can get some cash back on these necessary purchases. For most common merchants the rebates are 3-5%, but I have seen some sites offering as much as 20% cash back for purchases made online. If you shop online at any of the most common sites out there, I promise you some value can be derived from Ebates. I can assure you they pay out as I have gotten two checks from them since signing up. Give it a try!
Apr
21
As I start to track my spending so I can develop a realistic budget–I plan on tracking my spending for 30 solid days before crafting my budget–I have already found a number of easy ways to waste money. Here are my Top 10. These are ALL things I have done recently or in the past and are ALL things I will not do anymore:
LATE FEES AT THE VIDEO STORE – This is a complete waste of money, particularly if you have already watched the movie. Bring those movies back the DAY AFTER you watch them.
OVERDRAFT FEES AT THE BANK — Another complete waste of money. Be dilligent about balancing your checkbook and link your savings account as an overdraft and you will avoid all those overpriced fees. Also, be SURE that you savings account is actually linked to your checking account. I thought mine was but found out it wasn’t when I got dinged with a $39 overdraft fee. After some negotiation with the bank, I was able to get this fee reversed but your mileage may vary on this issue.
ATM FEES — Another arch nemesis of mine. Easy solution here. Use your debit card for purchases. In our cashless society, it is very rare to find a merchant who doesn’t take Visa/Mastercard these days. Also be sure to take advantage of the ‘cash back’ option offered at grocery stores and many other merchants.
BUYING AND DRINKING SODA — I am currently participating in a very structured weight loss/exercise program sponsored by my employer and have learned that soda is about the worst thing you can put into your body. Not only do you typically waste anywhere between $1.00 and $1.50 for that 20 oz. Coca-Cola, but you are drinking something that provides absolutely no nutritional value meaning you will have to spend money on food to satisfy the hunger that will come shortly thereafter.
WRONG CELL PHONE PLAN — Make sure you have the right cell phone plan. Are you paying for minutes that you don’t use every month. Although I get the benefit of rollover minutes with AT&T (formely Cingular), I have clearly been on a plan that I don’t need. You should evaluate your cell phone plan on a regular basis to ensure you aren’t paying for minutes you will never use. This move alone can save you $20-$30 per month.
ENHANCED SUPER PREMIUM DIGITAL CABLE — Unless you are retired and/or work from home and can multitask between working and watching TV, you are likely wasting a lot of money on Cable TV. For many months I had the package that provided me all the bells and whistles, with all the premium channels. In all, I think I had 150+ channels of entertainment available to me. After some careful analysis (HA!) I noticed that I was typically watching broadcast TV, CNN, CNBC, MSNBC and perhaps 2-3 other channels outside of the most basic cable package available. So, I cut back to Enhanced Basic cable, check out CNN, CNBC and MSNBC on the web (which I was already doing) and saved myself nearly $60 a month.
OVERSHOPPING AT THE GROCERY STORE — Before I decided to start my exercise/weight loss program, I typically shopped at the grocery store every 2 weeks. As such, I would “stock up” on food in order to get me through the two week period. What I noticed was that I often wasted a lot of costly food by not using it before the expiration date. As my diet has dramatically improved to include very healthy foods–whichby definition are often highly perishable–I have saved myself a fair amount of money on groceries.
CREDIT CARD LATE FEES – In the age of online bill-pay, electronic money transfers and email payment reminders, there really is no excuse for this. I have paid my LAST late fee to a credit card company.
STAMPS — I’m not advocating you never buy stamps or never write another letter. In fact, written communication is often much more effective than a phone call or email. What I am referring to here is the use of stamps to pay bills. Every bill I need to pay can either be paid directly on the merchant’s website or through my online bill-pay offered by my bank. Yet, inexplicably, I found myself mailing some of my bills to merchants and in the process, writing/wasting checks. Given that I now pay ALL my bills online, I would posit that the roll of stamps I have will last me until stamps are $0.78 for first class postage.
PAYING FULL PRICE FOR BIG TICKET ITEMS – Although it is widely known that the price of an automobile is negotiable, I’ve found that many of my big ticket purchases in the past were also negotiable. When you buy a big-screen TV, appliances, multiple pieces of furniture or other items where the margin is likely quite high, I’d suggest you negotiate. You will often be surprised at a merchant’s willingness to reduce the price in order to ‘close the deal’. The worst thing that can happen is the merchant says ‘no’. The moral of the story: It NEVER hurts to ask.
Apr
21
If you are an automobile commuter like myself, you have obviously noticed that gas prices have risen sharply in recent months. In fact, 
as a recent MSN Money article points out, gas prices have risen on average, more than 33% since January. Here is what prices look like at my local gas station here in Seattle. I can tell you that two months ago, the cheapest grade of gas was in the $2.40 range, so you can see that prices have gone up astronomically since then. So what exactly is going on here, you ask? It sounds like there are several factors, when taken together, have resulted in both higher demand and a lower supply, a classic ecomomics example of how prices increase.
Usually, we see the peak demand for gas occurring in the summer, where demand tends to be higher due to people travelling throughout the country via automobile. This year, demand appears to be following a different trajectory. According to the American Petroleum Institute, demand reached a record high in the first quarter of the year, reducing inventories and driver prices higher.
That said, it appears there are number of significant supply side issues driving prices higher:
- Suppliers must shut down refineries for weeks to transition to producing cleaner, “summer blend” gasoline
- Several major refineries in Texas, California and Indiana have suffered fires or other unplanned outages in recent weeks
- Ethanol, a major ingredient in more than half of U.S. gasoline has become more expensive for suppliers
- Political unrest in oil producing nations, including Nigeria, Africa’s largest oil producer, have driven crude oil prices higher in recent week
So where will gas prices head this summer? Some pundits are predicting stability in the marketplace and that prices will drop several cents below where they were last summer. Others, myself included beleive that prices will only head higher as demand continues to increase. While there is a decent bus system here in Seattle, it is clear to me that most people still commute via automobile each day and once vacation season starts, things will only get worse. From my persepctive, gas prices are now at a level where I will commute via public transportation at least twice per week until my structured weight-loss program ends; then I will commute at least 4 times per week via public transportation.
How, you might be asking, can you find cheap gas prices in your neighborhood. Here are some good resources to find the gas bargains in your area:
Happy bargain hunting!
