Smart Spending

All we are saying is 'Give peas a chance'

2008-07-03T21:14:00Z

"Story Girl" at the My Money and My Life personal finance blog wondered if community supported agriculture were a frugal choice. She'd be paying $25 a week for an ever-changing variety of fresh, local produce. But $25 is "nearly half my weekly grocery budget," Story Girl notes.

Now she's really glad she did it. In an item called "Why I love CSA," she explained that there was more to the decision than simple frugality. "There are a lot of reasons why I consider this to be a good choice for me," she writes, "and why it may even save money in the long term."

Story Girl got to meet her "farmer," a woman who offered fresh lemonade and a tour of the garden. "I feel much better about buying produce from someone whose dog I've played with than from a huge corporation."

The produce is not only organic, it's delivered as quickly as possible. That means optimum nutrition as well as superlative flavor: "Tomato basil salad is practically a spiritual experience."

That $25 a week buys more than the two of them can eat, so they get to share with friends. Yet there's still so much left that they find themselves eating not just more fresh vegetables but also varieties they might not have taken a chance on in the supermarket. Story Girl notes that eating so much unprocessed food will make them healthier, possibly saving them money in the long run.

Then of course there's the "green" angle. Locally grown veggies requires a lot less transportation than that grown hundreds or thousands of miles away. In addition, Story Girl and her husband are supporting organic farming practices vs. factory farming that tends to use lots of chemical fertilizers, herbicides and pesticides.

If you're wondering what to do with your economic stimulus check, consider investing in a CSA membership. To find a local group, go to the Local Harvest site and type in your zip code.

Record $4-plus gas prices greet July Fourth holiday

2008-07-03T20:06:41Z

This post comes from Joe Benton at partner blog ConsumerAffairs.com.

The July Fourth holiday will see $4 gasoline throughout most of the country.

Consumers will spend more money per gallon on gasoline celebrating the national holiday weekend than they have ever spent in the history of the nation.

Retail gas prices set a record price for the fourth consecutive day, rising to a national average of $4.098 for a gallon of regular gasoline, according to the AAA Fuel Gauge Report.

The new record is a little more than a half-cent higher than the price just the day before.

Mid-grade gasoline now sells for an average $4.351, and premium goes for $ 4.508 a gallon. Diesel sells for $4.767, 3 cents short of the record price set June 16.

One month ago regular gasoline sold for $3.978 a gallon, and one year ago a gallon cost $2.949.

Gasoline now sells above $4 in 36 states and the District of Columbia.

Here is a look at some gasoline prices from around the country in the ConsumerAffairs.com July Fourth Gas Price Roundup:

California. Regular gasoline sells for an average price of $4.574 throughout the state. The record price was set June 19 at $4.610.
Texas. Regular gasoline sells for an average price of $3.957 in the Lone Star State and that is a record price for Texans.
Florida. The average retail price for regular gasoline in the Sunshine state is now $4.059 and that is a record high.

Other articles of interest at ConsumerAffairs.com:

July Fourth can be dangerous for dogs

Weekends hard on diets, study finds

Watermelon may have Viagra effect

Buy it right or buy it twice (or thrice)

2008-07-03T19:45:00Z

The old saying "When you buy cheap, you get cheap" isn't always true. I've gotten some terrific products cheaply at thrift stores and yard sales. And you may not have to pay top dollar for certain products -- a mop bucket from the dollar store does the job as handily as one from a more upscale retailer.

But you need to pick your spots, as evidenced by a recent item on the Five Cent Nickel personal finance blog. Owner-operator "Nickel" has a 10-year-old son who loves wearing a watch. Thus far, that's been a "kid" timepiece that costs between $10 and $12. Why spend good money on something for a 10-year-old, right?

Wrong. Since he started wearing watches, the boy has worn out three or four of them. "At a total cost of $30-$40 (possibly more)," laments his dad, who notes that replacement parts are either hard to find or almost as costly as buying a new cheap watch.

The solution: a nice little Timex Indiglo with a tough nylon strap that should last just about forever. "A much smarter decision in the long run," Nickel writes. "Too bad it took us three or four tries to get it right."

Nickel provides another good example: the Teva sandals he bought to wear on his honeymoon a dozen years ago. At the time he quailed at spending $40 or $50 for a pair of sandals, but he wanted to be comfortable. He says there's plenty of wear left in them, and feels good about not having filled up the landfill with a succession of cheap footwear.

As someone who has a "Teva tan" on my feet all summer, I can relate. Let me add that mine is a Teva knockoff tan. I bought a similarly made, cheaper sandal and it's just as comfortable as the pricier brand. No more attractive, mind you, but hey, this is Seattle -- I've seen people wearing Tevas in church.

Why your boss won't let you telecommute

2008-07-03T17:21:02Z

This guest post comes from Randall at Credit Withdrawal.

If you work in a major metropolitan area, your daily commute probably eats up a significant part of your day. A half-hour commute (typically about 25 to 30 miles) can easily turn into an hour or more with traffic jams and congestion.

if you travel farther, the frustration level just goes up from there. Now that gas has topped $4 a gallon, it's moving from frustration to major hurdle for many people. The combined cost in time and money is causing many people to reconsider their jobs.

Add to this the cost of office space, and you would think it would be easy to convince most companies to allow telecommuting as a widespread practice.

Not so.

You slacker you!

One of the most common excuses I've heard is that there is no way to verify that the employees are working the full eight-hour quotient. Since most people in the office don't work a full eight hours, I've never understood exactly why this is an issue. It's more a red herring than a reason.

Verifying that work is completed on a timely basis is usually not a significant task for an organized manager. The problem is that most unorganized managers don't want their people too far away, because they can't "drop by" and make sure they're working, regardless of the schedule or deadline.

The saddest part of this is that many studies show that employees who work at home are not only happier, but they actually put in more hours of work when they're at home. It's easy to just "do a couple more things" when you only have to walk in the other room and fire up the computer. Productivity for more and more jobs isn't tied to a 9-to-5 schedule. Writing reports at midnight, or finishing off that sales survey at 3 a.m. is still working.

Out of sight, out of mind

Another common reason given is if everyone is gone, the team will have less communication. To a degree, this is true, but with today's myriad of ways to communicate (phone, IM, e-mail, virtual conferencing, etc.) it's really just a matter of making the effort to communicate. For those who can't or won't use alternative methods to sitting at your cube and yakking, this is a significant telecommuting deterrent.

Suggest a coordinated way to communicate with your co-workers, with fallback methods. For instance, start with phone conversations, followed by IM for short questions, and e-mail for detailed questions or conversations you want to continue. Videoconferencing for group meetings, with everyone getting Webcams, is also a possibility. (But you have to get dressed first! No exceptions! Letting your co-workers see you in your Transformers pajamas isn't going to get that next promotion.)

I can't do it, so you can't do it

Even as the common employee has more opportunity to telecommute, the same can't be said for managers. Managerial staff generally has to be more available to upper management, and consequently more visible to upper management, to be perceived as being effective managers. Politics, empire building, and other matters common to climbing the corporate ladder just can't be done at home. Schmoozing with the boss over his kid's acceptance to Princeton, or showing sympathy for his second divorce just doesn't sound the same via e-mail or over the phone.

As you move up the corporate ladder, it becomes more difficult to perform your duties from home. One reaction to that is the desire to keep your own staff within arm's distance as well. A manager whose staff works like a well-oiled machine is in line for a raise and/or promotion. If you can't show off your staff, chances for promotions are fewer. Even if everything looks good on paper (productivity up, defects down, deadlines met, etc.) many upper-level managers rely more on their "gut instincts" when it comes to judging a manager. A manager without (visible) staff is like a general without troops. Distinct disadvantage.

Ideas to change the hearts and minds

If you're campaigning to get telecommuting, compressed work schedules, or other means of shortening the commute to work, here are some possible reasons you might want to bring up to your boss.

Happy workers. Of course, a shorter commute (or none at all) would make for happy workers, and happy workers are less likely to leave the company. Losing good employees is the bane of all managers. If you could find a job doing what you're already doing, but be allowed to work from home, wouldn't you seriously consider making the jump?

Extended work hours. Most at-home workers end up working more, not less, so productivity would end up being higher overall. Management loves to squeeze as much work out of a person as it can, and if managers get even a part of the time the employee saves in a commute as some extra work time, it's a benefit to the business.

Fewer sick days. Many employees have to take sick days off when spouses or children get sick or are suddenly out of school (teacher conferences, unexpected half-day let-outs, snow days, etc.). Also, bad weather conditions or anything short of a national emergency can be dealt with because employees can still do work from home. Fewer sick days = more productivity.

Less office space needed. I've personally seen this at a number of large businesses. You get a lot of employees, but end up not having room for adequate workspace. And with office space at a per-square-foot premium in many places, it makes economic sense if you can eliminate the need to acquire more office space.

Just going up to the boss and asking if you can work from home probably will be a non-starter unless you can leverage these reasons, and probably a few more, to show that it's a benefit to the company as well as yourself. Your company and boss might be willing to work with you, if they can see a positive side for them as well.

It's not an impossible task to convince the boss to let you work from home, just difficult.

Good luck!

Do you have any ideas on how to convince the boss to allow you to telecommute? Leave us a comment and share them with everyone.

Laptops, shoes, headphones, push mowers, HDTVs

2008-07-03T12:42:51Z

Here are today's hot deals from dealnews.com:

MSI Wind Intel Atom 1.6GHz 10-inch wide-screen subnotebook for $499.99 with free shipping. Although that's list, it's the lowest total price we could find for this mini laptop.

Reebok men's Dare DMX6 athletic shoes for $29.97. Coupon code BF226 cuts it to $24.97. With $5.99 for shipping, it's the lowest total price we could find by $45.

Wireless stereo headphone two-pack for $19.99 with free shipping. That's $1 under our last mention and, at $10 each, the lowest total per-unit price we've seen.

American Lawn Mower Co. push mower for $80. With free shipping, it's $49 below list and the lowest total price we could find.

Sharp 32-inch wide-screen LCD HD television for $617.46 with free shipping. That's $13 under last month's mention and the lowest total price we've seen.

One big way to get intense about financial independence

2008-07-03T02:57:49Z

This post comes from Trent Hamm at partner blog The Simple Dollar.

You are going to be fired from your job this Friday.

Read that statement again. Close your eyes for a moment and imagine if that sentence were true in your own life. Would you be ready?

Most people would panic if they came to work and found a pink slip, simply because they're not in a financial place to handle that situation. They'd furiously apply for unemployment benefits, start chugging the Pepto-Bismol, and hurl their resume out there to 100 new places, hoping -- praying -- for a new job to come along quickly.

How could one be prepared for such a blow? In an uncertain economy, it could happen at any time, no matter how safe you think your job is. Do you remember the "safety" of the Enron folks in 2002-2003, for instance?

Right now, start acting as if the above statement is true at all times. Believe constantly that you're just a few days from being fired and then try a few of these new behaviors on for size.

Stop spending foolishly. This is the biggest step. If you're spending money in needless ways, curb that severely until you're in a state of financial independence. If the thought of getting fired makes your stomach tighten, you're not there yet.

Start building a solid emergency fund. Count every dependent you have. For each one of them, you should have at least two months of living expenses in a high-yield savings account. I'd recommend three months per dependent. That way, if everything falls apart, your family is protected.

Build a real budget. This doesn't mean pulling numbers out of the air and assigning them to arbitrary categories. This means counting up every dime you spend for a month, sitting down with all of it, figuring out where you can cut the fat, and setting some goals for the next month. Do that over and over again and you'll start feeling in control of your spending.

Pay off all of your high-interest debt. Sit down with all of your debts and construct a debt-repayment plan. Given that this is urgent, I recommend starting with the debt with the smallest balance -- just to get rid of that monthly payment -- and keep working from there.

Minimize your required monthly bills. Also look at all of the bills you pay in a given month. Could any of them be trimmed back a little or even eliminated? Look especially at any entertainment bills and any memberships you pay for. Do you use those enough to justify the cost? Remember, every dollar of fat you trim here will roll straight into getting rid of those debts much faster.

Start firming up your social network. Invest some time touching base with the people you know. See what they're up to these days. You shouldn't actually look for job opportunities, but instead look for opportunities to help out your social network. If your network is strong, when the moment comes and you do get that pink slip, you'll have a lot of strings to pull to help you get back on your feet.

Keep your resume polished. The best time to get your resume in great shape is right now, when you don't have the stress of needing to cram something together. Polish it up and get it looking good.

Spend your spare time developing skills or laying the groundwork for a side business. Don't spend your spare time watching "American Idol." Spend it improving yourself and making sure you're in a more secure position with multiple streams of income.

This is a waste of time because I'm not going to be fired! There are two immediate responses to this complaint. First, when that pink slip shows up on your desk, your complaint will seem really foolish. Second, even if that pink slip never does show up, executing these steps over a period of time will create a situation where you can walk away from your job whenever you want to -- the feeling of true financial freedom.

So take that phrase and put it all over your environment so you'll see it time and time again. It will remind you throughout the day to keep your eye on the ball and put yourself in a position where it doesn't matter anymore.

Here it is, one more time:

You are going to be fired from your job this Friday.

Other articles of interest at The Simple Dollar:

Financial Independence Week: Handling independence for the first time

Financial Independence Week: When and how to cut direct financial ties

Financial Independence Week: Should I expect my parents to rescue me?

On July Fourth, celebrate freedom from 'wants'

2008-07-02T16:06:00Z

Last July, I was in debt. This year I don't owe a thing. That's the kind of independence I'll be celebrating this Friday: freedom from obligation. And to paraphrase Franklin D. Roosevelt, I'll also be celebrating freedom from wants.

"Freedom from want," according to FDR's famous Four Freedoms speech, means "economic understandings which will secure to every nation a healthy peacetime life for its inhabitants." I'd like to define that further. To me, a "healthy peacetime life" means having my needs met and my wants under control.

The way FDR used it, "want" is a noun that means a lack of basic necessities. These days we're much more likely to use "want" as a verb -- and we don't just apply it to the basics. We want huge cars, designer labels, showpiece houses, the coolest technology.

Oh, and we want it now.

I'm not against wanting things. I just think we should be careful about how we go about getting them.

To want is human
I want a home of my own. Someday I'll have one. But not today, and tomorrow's not looking good either. Until I am able to change my situation, I'll plan and save.

I also want to travel. Due to personal circumstances, that's not in the cards right now. Until it is, I'll just keep wanting it. That's not the end of the world.

Neither of these desires is selfish. Both are probably attainable. And both of them are worth waiting for, I think.

The things we want are goals. We can work toward them. It's when we start to think of these wants as needs that we're liable to make dumb choices to get them. Think "subprime mortgage."

Buy now, pay for years?
Sometimes the need-want line is blurry. You need shelter, whether it's renting an apartment or buying a house. You probably don't need a five-bedroom behemoth in the suburbs even though everyone else -- especially builders and lenders -- seems to think you do. But homeownership isn't for everyone, and it's definitely not for those who can't really swing the loan. (See "subprime mortgage," above.)

You need food and clothing. You can and should do this within your means. Using credit cards for expensive restaurant meals and $1,000 jeans is like offering yourself up as an indentured servant. High interest rates mean that you'll spend years and years paying for your freedom, and always on someone else's terms.

On Friday, join me in a declaration of personal independence by resolving to make smarter financial decisions. Start by remembering to be grateful for what you have instead of dwelling on what you don't. Our true needs are pretty basic. Just ask anyone for whom "want" is a noun.

Video games, albums, video cards, shoes, TV tuners

2008-07-02T13:25:00Z

Here are today's hot deals from dealnews.com:

Touchstone's Turok for Xbox 360 or PlayStation 3 for $19.99. Shipping adds $4.49, or spend more than $25 for free shipping. Either way, that's the lowest total price we could find by at least $15.

Downloads of Shania Twain's "Come On Over" for $2.99. That's the lowest total price we could find for this 16-track, DRM-free album, released in 1999.

Gigabyte GeForce 8800 GT 256MB 256-bit GDDR3 PCI Express 2.0 x16 video card with Gigabyte cooler for $99.99. A $30 mail-in rebate cuts it to $69.99. With $6.99 for shipping, that's $130 under our February mention and the lowest total price we've seen for any GeForce 8800GT 512MB card.

Nike men's Total 90 Shoot shoes for $29.97. Add coupon code 141705 to your cart to cut them to $26.97. With shipping at $7.99, it's a $23 drop and the lowest total price we've seen by $13.

StarTech TV tuner for computer monitors for $50.24 with free shipping. That's $15 under our mention from a month ago and the lowest total price we've seen.

8 natural ways to make water more flavorful

2008-07-02T12:15:03Z

This post comes from Xin Lu at partner blog Wise Bread.

In a previous article about gasoline prices I noted that many packaged drinks are quite expensive and that the cheapest drink out there is water. The main reason people don't drink water is that it is tasteless and not very "fun" to drink.

On the other hand, water is definitely better for you than sodas, so now there is a entire category of packaged drinks like VitaminWater that are basically bottled water with coloring, vitamins and flavor.

Instead of buying those drinks, you can add many things to water at home to make it more exciting to drink.

Salt. I am sure you have heard the term "electrolytes" in the marketing for energy drinks. Actually electrolytes are just ions that can be found in common table salt. Adding a little bit of salt to water helps your body absorb the liquid more quickly. As long as you don't go overboard with the salt, the water should be very quenching, and it would be great for workouts since the body loses salt through sweat.

Ginger. If you like spices, ginger is a great way to add a zing to your water. If it is added to boiling water, it is also a great way to clear your throat and sinuses during a cold.

Citrus. My husband's family members often freeze a small citrus fruit called kalamansi in ice cube trays and then put the ice cubes in water for flavor. The same can be done with other citrus fruits, and the water produced will be infused with vitamin C.

Herbs. Mint, lemongrass and parsley are great for adding aroma and a hint of green to your water. If you want to release the flavor, you can crush the plants a little bit before putting them into your water.

Cucumber. I saw this at a spa I went to in Hawaii. A water dispenser was half filled with cucumber slices, and the water dispensed tasted very refreshing and smelled a bit like cucumber.

Wine. A favorite of mine to add to water is plum wine or umeshu. It is a very sweet Japanese liqueur made from green plums, so I drink it with a lot of water. The distinct sweet flavor still comes through when there is one part umeshu to 10 parts water. I am sure the same can be done with other syrupy liqueurs.

Berries. Blueberries and strawberries have distinct flavors that could be soaked up by water. All you have to do is cut or crush a few of the berries into your water.

Vinegar. Adding vinegar to water is similar to adding citrus. You will get sour water that has vitamin C. When I was a kid, I liked adding apple vinegar to water before drinking it. I do not recommend mixing in balsamic vinegar because it has oil, but any clear vinegar is good for flavoring your water.

Of course any of these things could also be added to soda water if you want to make your own lightly flavored soda. The possibilities are really endless because you can mix and match the ingredients any way you want. What do you think? Do you prefer flavored waters over plain tap? What do you do to make your water more palatable?

Other articles of interest at Wise Bread:

Why buy one get one free is usually a bad deal

Should you choose a Roth 401(k) or a regular 401(k)?

Strategic thrift store shopping

Save money with a personal do-not-buy list

2008-07-01T23:54:16Z

Here's a clever budgeting aid from Chris at Cheaperversion: Create a do-not-buy list. "The purpose of a do-not-buy list is to banish the idea of purchasing unneeded items from your monthly budget," Chris writes.

Although Chris doesn't spell them out, there seem to be some unwritten rules here: Your list has to contain stuff you really want, but you're also allowed to buy cheaper or better-for-you alternatives, or the same product in smaller amounts. For instance, the top two items on Chris' list are 24-packs of beer (a 12-pack is on his weekend to-buy list) and "high-calorie" cookies (we're assuming cookies "lite" are OK).

If we applied those rules, our list could not include Cleveland Browns season tickets because we do not want them (not to mention that Cleveland is far away). It could include New York steak and a nice Chianti -- things we want, but we value saving for retirement even more. But having jumbo or chipped ham and a bottle of Iron City would be acceptable alternatives.

The purpose here seems not to be deprivation but finding frugal ways to spend limited funds so that there's something left over. For instance, Chris no longer buys newspapers because he can read the news he wants online for free.

Rounding out his do-not-buy short list are new cars (because of the depreciation) and brand-name food. At his house, they use a blind taste test when comparing brand-name foods with the lower-priced store brand. That sounds like solid advice from a guy whose Web site specializes in directing consumers to cheaper versions of popular products.