Technology Is Not Always the Answer

The following post is by MPFJ staff writer, Grayson Bell. Grayson, who runs the finance blog Debt Roundup, is a fan of personal finance, brewing beer, and working on cars.

There is no doubt we are a technically advanced society.

Almost everything we do revolves around technology. Some of our biggest advancements have spawned from the evolution of technology.

Just look at what the smartphone has done to our society. We are now instantly connected with people from anywhere. Not only that, but we can surf the web with a flick of our finger. The smartphone has almost killed the pay and home phone. They also allow us to get information quickly and easily. The same goes with email. Look at what it has done to our communication. The need for letters and mail has been reduced dramatically as we no longer have to write and send communications through “snail” mail. We can instantly shoot a reply right to your computer with a few clicks of a mouse.

By all standards, technology has allowed us to do some amazing things. We have been able to advance our healthcare, build better products and services, and the list goes on. While we all might think technology is the best thing since sliced bread, I do believe there is an evil side to technology. I think it is not always the answer.

Where Technology Goes Wrong

Don’t get me wrong, I love technology. My main job is revolved around it. I wouldn’t be able to blog like I do everyday without it. I do think it is an important aspect of our everyday lives, but it is not every part. At least not in mine. Over time, I feel we have lost some of our ability to comprehend what we learn around us.

Before technology was in mass, we had to absorb the lessons all around us. We would learn from other people right next to us. We would learn most of our skills from our parents, friends, teachers, and family members. We would think for ourselves and come to our own conclusions. I think technology has dumbed that down quite a bit. Have you ever been in a conversation with people who couldn’t answer any questions without looking them up in Google? Well, I have and it is utterly frustrating. I have met people where they couldn’t come to a conclusion to something without checking what people on Twitter said.

I am all for being connected, but it has been pushed to a point where we have lost our ability to think and comprehend for ourselves. Now we have to throw stuff out to the social world and see if they can help. Technology has slowly become the downfall of our basic communication skills.

How Technology Inhibits Us Financially

I have written before about how managing money is all about basic math. There is nothing fancy about it. This number plus this number minus this number. We all think we understand math, but I have seen otherwise.

With the influx of great financial technology like Mint.com or YNAB, we do not have to handle reconciling our money anymore. We can create a budget in software and have it hook to our bank accounts. We set up spending limits and then call it a day. The software takes care of the rest and notifies us when we are going wrong. I loved these services and still use Mint.com today. The difference between now and when I was first in debt is how I manage my money before I even look at Mint.

Now, I go back to basic math. I have brought the skill back where I can calculate how much items will be with tax before I even check out. I was never good at math in school. It didn’t interest me and I didn’t care. After I got into debt, numbers started to jump out at me. I looked everywhere to find numbers and found them in the strangest places. After a few years of getting back on my feet, I realized I had taught myself how to do complex math problems in my head on the fly. The better part is I could do basic math problems really quickly without the need of technology or calculators.

In order to get your finances back in shape, don’t be worried about stepping away from technology and relying on what your brain tells you. Remember, basic math will take you all the way you need to go with finances. If you need any complicated equations, then think about using a calculator or even put your finances in the trusty spreadsheet. Yes, it is technology, but you have to do all of the work and come up with how the math equations are run. I use spreadsheets for most of my numbers. Not only does it become a great budget spreadsheet, but it also is a fantastic math learning tool.

Technology is not always the answer to all of our problems. We have to remember technology was created by people who thought outside of the box and applied things they had stored in their brains. I do believe too much technology does make us a little dumbed down than we should be. Unfortunately, I have come across too many people that back up my statement. If we continue to over complicate how we manage our money, we might not ever understand the real reason we are having money troubles. Technology is going to be a part of our lives, but it doesn’t have to be every part.

How about you all? For your finances, are there certain areas where you prefer to do thing “the old fashion way?” 

What technological tools do you use in your finances?

Share your experiences by commenting below!

***Photo courtesy of https://www.flickr.com/photos/katerha/5520292679/sizes/l

Why It’s Easy To Save Money In The Summer

This is a post by MPFJ staff writer, Jeff. Jeff writes about Sustainable living and finances at his website, Sustainable Life Blog and chronicles his (semi successful) journey to earn money online at onlinesideincome.com. Jeff enjoys spending time with his wife and dreaming about financial independence.

I am so glad it’s finally summer – it is my favorite time of year.

The weather where I live (Wyoming) is perfect – always sunny and not too hot. There is so much daylight to take advantage of, and I just cant help but feel energized every day when I wake up. Summer is a great time to have some fun and enjoy life, but summer is also a great time for one of my other favorite things – saving money.

The first thing that summer helps me save on is entertainment. Every Friday night in my town, there is a free concert, which typically lasts from 6-8 pm. My wife and I go down there, meet and chat with our friends, enjoy some live music and relax after a long week in the dwindling daylight and company of great people. Even though these acts are not big names, they do play enjoyable music, and both my wife and I like the time to catch up with friends that we don’t get to see much during the week. If we were to arrange something like this when the weather is not nice, there would no doubt be a cost associated with it (even a small one) due to travel, finding an activity, bringing food to a dinner, etc etc. These concerts are a great free way to hang out and enjoy all that the summer has to offer. You don’t need to go to an “organized” activity to enjoy the nice weather outside though. Consider taking a walk through your neighborhood at night or head over to a local park with your family and enjoy!

One of the next things that I love about summer is riding my bike. I am a pretty die-hard commuter and very against driving (I have not driven to work in 3+ years), but the summer time allows for me to ride my bike to more places than just work. I can ride it to the hardware store or to go pick up groceries, and I don’t have to worry because it’s almost always very nice out and riding my bike isn’t as much of a chore during the summer as it is when the weather is mediocre or downright poor. The best part about this is that I’m not the only one in town who feels this way, so I see a lot more bikers during the summer when the weather is nice than I do when the weather is not nearly as good – it makes biking much more fun!

My most favorite thing about the summer time though is that I can finally hang my laundry out to dry with out it freezing solid! I love to dry my clothes outside because they come in all dry and they smell so fresh! Hanging the clothes out saves us so much energy and so much money during the summer that we try and do it as long as we possibly can. The weather does not always cooperate for us, but we can usually knock 15-20 dollars per month off of our electricity bill (or more) when we hang our clothes out to dry.

We love the nice weather during the summer and all the opportunities it provides us to enjoy the outdoors and save some money.

How about you all? What do you like to do during the summer time that is cheap or free?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/shedboy/3627728169/in/

Can You Rent a Car Without a Credit Card?

The following is a post by MPFJ staff writer, Kevin Mercadante, who is a professional personal finance blogger, and the owner of his own personal finance blog, OutOfYourRut.com. He has backgrounds in both accounting and the mortgage industry.

Most people generally assume that you need a credit card if you plan to rent a car from a car rental company. While it’s typically easier to get a rental with a credit card, it turns out that it’s not an absolute requirement.

Since methods of payment have become more diverse in recent years, car rental companies have responded by being more flexible in the methods of payment they will accept.

Acceptable Forms of Payment – Apart From Credit Cards

In addition to credit cards, there are at least three other forms of payment that are accepted by car rental companies, some more common than others.

Debit cards – Debit cards are in common use, and widely accepted by car rental companies. Typically, if you use a debit card to rent a car, the car rental company will run a credit check on you, as well as imposing a deposit requirement – generally $100 to $300 – which will be reserved on your debit card until you return the car and settle the bill. However, car rental companies are increasingly imposing the same restrictions for people who use traditional credit cards to rent their cars. The difference between renting a car with a credit card or a debit card is becoming increasingly small.

Cash – This payment method comes as a surprise to most consumers, not the least of which since car rental companies don’t advertise their willingness to accept cash. But several car rental companies actually do, though the terms under which they will vary widely from one company to another – or even from one rental office to another within the same company.

Prepaid debit or gift cards – Some companies will accept these as a form of payment at the end of your rental, but they cannot be used to reserve your rental, or as upfront payment at the time of actual rental. Typically, you’ll need a credit card or debit card for both credit verification and upfront rental authorization, but the rental company will accept your prepaid debit or gift card as final payment when you return the car.

The limitation on both prepaid debit and gift cards is that each is for a fixed amount. There is no room on these cards for a car rental company to pursue additional compensation in the event that you retain the car beyond the agreed upon rental period, or return it in less than perfect condition.

Now that we’ve established acceptable payment methods beyond credit cards, let’s take a look at three major car rental companies and their individual policies in regard to the acceptance of cash in particular (since all accept debit cards, but only very limited use of prepaid debit or gift cards).

Hertz

Hertz has the most accommodating policy in regard to acceptance of cash for a car rental. You can even use cash for the upfront rental, however you must first obtain a Hertz Cash Deposit ID Card. Since cash is problematic for a car rental company (no paper trail to identify you), they use the ID card to overcome that issue.

It order to be eligible to obtain the ID card, you must be at least 18 years old and pay a $15 nonrefundable processing fee.

IMPORTANT: The application for the Hertz Cash Deposit ID Card will take at least 30 days. For this reason, you will not be able to show up at one of their stores and rent a vehicle immediately. If you plan to pay for your rental with cash, you will need to complete your application and have it ready to go before you need to rent a car.

Enterprise

Enterprise has its own procedure for cash paying customers. They call it the Cash Qualification Process, and unlike the Hertz Cash Deposit ID Card – which is good for a specific length of time – the Enterprise version must be done each and every time you want to pay cash for your car rental.

In order to qualify, you must provide the following:

• Two current utility bills
• Most recent paycheck stub
• Driver’s license issued from the rental state (you’d do well to presume that this provision prohibits paying cash if you are renting a car outside of your home state)
• A minimum deposit plus the entire cost of the rental at the time of pickup (Deposit amounts vary by location from $100 to $300)
• Proof of insurance
• Personal reference (no specifics are given on the types of references that are acceptable)

If the amount of cash that you have paid exceeds the final cost of the rental, you will be credited back to your account within 15 business days.

IMPORTANT: The company website warns that not all locations will accept cash payments even if you qualify under the Cash Qualification Process. If you plan to pay cash for your car rental with Enterprise, you need to check with the specific location where the transaction will take place, to make sure that they are willing to accept cash.

Avis

Avis is the least cash-friendly car rental company. They will accept cash as full payment upon the return of your vehicle, however in order to reserve or rent a vehicle upfront, you must have either a credit card or a debit card.

The only place on the Avis website that clearly indicates the acceptance of cash – on this very limited basis – is the FAQs page, and you must enter “Requirements for renting”, then “Forms of payment” to find the policy at that.

At any car rental company, and especially if you intend to pay with cash, you should check the company’s website, or call their 800 number, to get the specifics. Not only does each company have its own requirements for the acceptance of cash (or any other payment method), but they may not accept that at all locations, and company policies do change from time to time.

A credit card is always the best way to rent a car, but it’s also nice to know that there other options if you need them.

How about you all? Have you ever used a form of payment other than a credit card to pay for a rental car? Why or why not?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/fanofretail/8615633564/sizes/n/

How I Handle My Champagne Taste

The following post is by MPFJ staff writer, Catherine Alford. Cat is a freelance personal finance writer who blogs at www.BudgetBlonde.com. 

Despite the fact that I write about saving money and frugality all across the web, I do have just a touch of champagne taste. Basically, if I walked in a room with a bunch of purses or shoes or clothes, I would inadvertently always pick up the most expensive one.

This “skill” doesn’t always translate to budget friendliness and so over time I’ve had to find a system of sticking to a budget while still incorporating some of the pretty, champagne-y things that I come across in my life.

1. Save for Special Moments

I think one place where people get into money trouble is when they treat themselves whenever they want. They might walk through the mall after a hard day and buy a little pick me up. They might get a promotion and say, “I deserve this,” as they pick up a new bracelet.

Now, don’t get me wrong. There are those special moments where it’s definitely nice to give yourself a prize and to you, a promotion might be one of those things. To me, I really try to stick to birthdays and Christmas. Oh, and Mother’s Day now too. J Those are the occasions where I feel like it’s okay to get something nice or splurge.

Women are always talking about getting “just because” gifts from their husbands (or wanting to get just because gifts) and while those are nice, I’d much rather my husband save up all those “just becauses” for something nice at Christmas.

The truth is, when you constantly tell yourself no and deny yourself those impulse buys, it makes a birthday gift or a Christmas gift so much more special and worth it.

2. Look for Great Sales

Ever major designer has sample sales and online sales. You can also find great deals at consignment stores in nice areas. I just moved 40 minutes outside of Manhattan, and there are a lot of wealthy people in the area. Just the cars that drive around are enough to make my head turn, so it’s no surprise that the “consignment” stores here feature some of the most expensive designers and brands around, some that I’ve never seen in person before.

While the consignment prices are still out of my price range, it would be great for someone who works in a big Manhattan office and wants to wear certain things without paying the high prices.

I find most of my deals in “surprise” or “last minute” sales online. One of my favorite brands is Kate Spade, and I get things from there from time to time at factory outlet stores or online. It’s just such a bright and happy company, and I enjoy the things they make. I just can’t buy them whenever I want!

3. Eat Out Just Once

My husband’s love of food is probably akin to my love of Kate Spade. He’s such a foodie and really has a blast searching out new and interesting restaurants and other food experiences. He and I have discussed it many times, and we’d rather have one nice meal out every month instead of grabbing take out several times.

Now, this has been hard for us lately because we’re so exhausted taking care of two newborn babies. Take out has really been our friend. However, over time, once we get comfortable having people watch the babies, we’re going to go on one date night a month to a nice restaurant. Just think, one $100 meal equals getting takeout 4-5x in one month, which isn’t uncommon in my house. Whether it’s Chinese food or a quick pizza, we’re often making those orders at 8pm after realizing we’re both starving and have no energy to cook!

4. Fewer, Quality Pieces

The last way I combat my champagne taste is to commit to a few, quality pieces and leave it at that. So, if I’m going to buy a purse, I’m more likely to buy a brown one than a lime green one. Sure, the lime green one would look great with one outfit in the summertime, but the brown one would last me for years and would work all year round. The same goes for clothes. One high quality black dress would work for many occasions, from work to night whereas a flowery sundress might only be appropriate for spring.

Basically, once I got in the mindset that it was okay to spend some money on clothing as long as the style was timeless and the quality was good, I had way less clutter in my closet and clothes that lasted much, much longer.

All in all, it’s definitely possible for a frugal person to have champagne taste as long as you keep it in check. It only becomes a problem when you completely disregard your budget and treat yourself constantly. However, if you save up for special moments and buy only a few items, you can enjoy your champagne taste all year long.

How about you all? Do you have champagne taste too? How do you balance it in keeping up with healthy finances?

Share your experiences by commenting below! 

***Photo courtesy of http://upload.wikimedia.org/wikipedia/commons/2/20/Strawberry_and_champagne.jpg

Get Rid of Clutter Once and For All and Stay Clutter Free

The following post is by MPFJ staff writer, Melissa Batai.  Melissa is a freelance writer who covers topics ranging from personal finance to business to organics to food.  She blogs at Mom’s Plans where she shares her family’s journey to healthier living and paying down debt.

You’ve likely heard stories about adult children who spend weeks cleaning out their elderly parents’ home that is full of trinkets from the 1950s as well as old games and toys their now grown children used to play with.  When the parents pass away, the kids are left to sort through decades of “stuff” their parents acquired and never disposed of once they no longer needed them.

My husband and I are moving 1,750 miles from Chicago, IL to Tucson, AZ, in just two weeks.  I’ve never moved that far (my farthest move previously was 7 hours when I was a grad student with very few possessions).  Even though my husband’s new employer is giving us a moving allowance, I don’t want to move stuff we don’t need.

Over the last six weeks, I’ve been packing and weeding out clutter we don’t want to take with us.  I was shocked and surprised by all the stuff we no longer need that we’ve held onto.

Baby Stuff

We have three kids, but our youngest “baby” is now 4 years old.  Yet, downstairs I found:

• a crib,
• playpen sheets,
• baby and toddler clothes as small as size 12-18 months up to 4T that my daughter just outgrew,
• baby gates,
• outgrown Halloween costumes

Why, oh why, was I holding onto these things?  The crib was wobbly by the time our third child outgrew it, so we weren’t even comfortable selling it.  It just needed to be put out in the trash, but instead, it sat down in our basement for nearly two years.  Why?

I listed the other items on Craigslist and a local mom group that I belong to, and all of the items were out of my house within 2 weeks, and I made close to $200.  Why did it take a semi-cross country move to motivate me to sell these things?  I could have done this two years ago, and enjoyed more space in my house, not to mention the extra cash.

Books

Another surprising find around our house?  Books that I’ve held onto, in some cases, since college 20 years ago.  What’s funny is that I haven’t picked up any of those books in years.  I still love to read, but now I do my reading on the iPad or with books that I borrow from the library.

All of the many books went right to Goodwill.  I had over 10 grocery bags full of books to giveaway!

Why Do We Hold On To Things That No Longer Suit Our Lifestyle?

Susan Bali, M.D. argues that we hold on to things because, “It’s hard to clear out the clutter.  It’s also hard to continue to keep life clutter-free even if you do clear it out because ‘nature abhors a vacuum'”  (Psychology Today).  In other words, if you have empty space, you’ll find a way to fill it.

Keeping Items for Sentimental Reasons

What I found is that I held onto many of the baby items because I was sentimental about my children’s baby years.  They’re growing so fast, and by keeping the crib, baby blankets, and tiny clothes, I felt like I still had a piece of those baby years that went so quickly.

Of course, that thought is completely irrational, which is why I got rid of all but a few outfits like the one I brought the babies home from the hospital in.

My husband, meanwhile, is sentimental about all of their little drawings and art projects.  We have three bags worth downstairs that I still haven’t convinced him to trash.  Here’s hoping that in the next two weeks, he parts with most of the artwork.

Just In Case I Need It

Another reason I personally kept a lot of stuff that I no longer needed was because I was worried I might need it someday.  Years ago, when I had a desktop computer, I bought an ergonomic keyboard.  I never ended up using it, but we kept it just in case my old keyboard died.

About six years later, it’s still in the basement collecting dust.  I don’t even use a desktop now, just a laptop, so there’s no need for the keyboard.

So many of the things we think we might need aren’t really necessary.  For most items, it’s easy to simply borrow them from friends or family temporarily or to rent them out, in the case of rarely used items.

Laziness

Finally, while I knew that a lot of the items downstairs need to go, decluttering and selling your stuff is time consuming.  Honestly, if we weren’t faced with the prospect of a looming 1,750 mile move, I wouldn’t have devoted the hours I have to emptying out our basement.

It is far better to keep from accumulating clutter in the first place than spending hours purging it all.

How to Keep Your House Clutter Free

Now that I’ve cleared out the clutter and will have a clean slate, so to speak, in our new home in Arizona, my goal is to not let the clutter multiply again.  I’ve set some ground rules for myself to keep the clutter at bay:

1.  Ask yourself, “Do I really need this, or can I borrow it from someone else?”  Our basement also held some tools that we bought 10 years ago for my husband to complete a project.  Instead of buying the tools, we should have just borrowed or rented them.  From now on, I want to see if there’s an alternative way to get something I may only need once or twice rather than buying it and letting it sit, unused.

2.  Keep an area of your house where you can put things you want to get rid of.  Once a month, I plan to do a sweep of my house and look for stuff that we no longer use or haven’t used in quite some time.  I’ll put them in a box for donation or garage sale.  By doing this monthly, I’ll be able to keep the clutter down.  (I’ll also have to hide the box somewhere so my husband won’t come and take things out of the box and put them back in our home.  He’s sneaky that way.)

3.  Practice being content.  So many times, we buy things just because we think they’ll make us look better or feel better when what we have already is often plenty.

Stuff usually doesn’t make us feel better.  In fact, the opposite can occur.  We can feel worse after buying something because we have less money (or more debt) after the purchase and more stuff cluttering our lives.

I’m trying to practice being a minimalist with my as well as my kids’ wardrobes.  We don’t need deep walk in closets with tons of clothes.  I do laundry nearly every day.  Surely 10 or 20 pieces that we each love is plenty for our wardrobes.   Of course, in our culture of more is better, paring my clothing down this much is a bit radical.

In the last month and a half, we’ve easily gotten rid of 1/3 of our possessions, and as the stuff goes out, I literally feel lighter and freer.  Our house has more room; we’re no longer drowning in a home full of possessions we no longer need.  I can’t wait to move into our new house and see all the space we’ll have!

How about you all? What things are you holding onto that you no longer need?  What’s your favorite way to stay clutter free?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/joeshlabotnik/227041790/in/

How To Save Money While Moving

This is a post by MPFJ staff writer, Jeff. Jeff writes about Sustainable living and finances at his website, Sustainable Life Blog. Jeff really enjoys traveling with his wife as much as he can, to wherever he can.

The time in your life that you have been waiting for is finally here – you’ve just finished college, and you have secured what you hope to be an awesome job in your field.

You’re going to start not long after graduation, but there is just one catch. You’re still living in your university town, and the new job you just accepted is quite a ways away. This move isn’t going to be too much like the ones that you’ve done recently. You’re probably not going to be able to cram all your possessions into a Honda fit and drive the 800+ miles to the location of your new job.

You need to move, and it needs to be done on the cheap. Here are our best tips to help you get the most out of your new move for the lowest possible cost.

1. Get Rid of that JUNK

You will most likely be shocked at the amount of stuff that you have managed to accumulate since you started college, and it is probably worse if you were not moving to a new house or apartment ever year. If you are anything like most of the people in the US, you probably have many things that you have not used in quite some time. Get rid of the things that you don’t want to take with you. Sell or give away all that old furniture that you got from other college friends Toss that costume that you wore to that one party one time. The more stuff you have, the more space you’re going to need in your moving truck and in your new apartment. Sell the stuff that has some value on craigslist or eBay, offer what is left to friends and then give everything else to a local charity. Everyone will be happy, and you can prevent materials from getting wasted!

2. DIY

There are plenty of moving companies out there and I’m sure that most of them do an awesome job, but right now you need to save some cash everywhere you can. You’re going to be looking at putting down a security deposit for your new place and most likely first and last months rent – which will be a good chunk of change no matter where you’re moving. Skimping on the movers and doing it with your friends will save you quite a bit of money and create some great memories in the process. This isnt going to be totally free though. Depending on how far you’ve got to move you need to compensate your friends. If you’re moving cross country or more than 4 hours away, pick one or two people and ask them to help and offer some pizza/beer/wine/cheese or whatever after the move is complete, and offer to pay their expenses back to their place. If your move requires a return flight for helping you, I’d stick with just 1 person to help – mostly to switch shifts while driving. If your move is in-town or close by, just bribe your friends with food and a bit of booze and thank them profusely for helping you.

3. Skip the Fast Food

Moving long distances takes time, energy and money – who wants to think about what to eat during all that? It’s very easy to simply stop for one (or a lot, depending on how far you travel) of fast food meals, but resist the urge. Stop at your local grocery before you leave and stock up on stuff to nibble on while you’re in the moving vehicle – like trail mix. If you’re going to be on the road for a while, make sure to get a cooler ready and pack things for sandwiches or another easy to prep while driving food. You can have the passenger prepare the food and hand it over to the driver while the driver keeps focused. If you have a very long trip (>10 hours) make some time to eat out, but find a special place to eat at while you’re on the road. The country is full of great places to eat and many are not as popular as they could be. Check yelp reviews or my personal favorite, Diners, Drive-ins and Dives for some great locations to stop at during your move.

4. Find a Place

The time after college is one of the best times in your life. Take full advantage of it. If you have debt, work to pay it off – and one of the best ways to do this is to find a roommate when you move to your new city. Living situations can be very expensive in some cities, and a great way to share costs is by living with someone.

5. Keep Your Receipts!

This is probably the most important and often overlooked part of moving. You can write off your move if your move is more than 50 miles from where you used to live, and your move is around your job start date. This is a huge boon, as you can write off supplies, gas, food etc from your move and it will save you money come tax time. If you’re looking for more information, see the IRS’s website on Moving.

That’s all the tips we have to help you keep your costs down while moving.

How about you all? Do you readers have any helpful tips to save money when you are moving?

Please share your experiences by commenting below! 

***Image courtesy of http://upload.wikimedia.org/wikipedia/commons/2/28/Duct-tape_Moving_Van.jpg

5 Money Tips I Wish I Knew Before I Had Kids

The following post is by MPFJ staff writer, Catherine Alford. Cat is a freelance personal finance writer who blogs at www.BudgetBlonde.com. 

I did as much preparing as anyone could for two new babies coming into the world. I saved a huge baby fund, I carefully selected the gear, and I had everything pretty much ready to go when they arrived, even though those sneaky little kids came five weeks too soon.

Even with all the preparation, there were about 5 money tips I wish I knew before I got pregnant and had them. Here they are:

1. Don’t Spend a Lot of Money on Newborn Clothing

I thought I was being really financially savvy by purchasing a big lot of newborn clothes on eBay. When I did this, I paid as little as $1 an outfit. The clothes were very high quality, and some still had the tags on them.

Well, now I realize why. In those early newborn days, my twins pretty much stayed in their pajamas 24/7. They were so small and seemed to be cold all the time. I kept them bundled up in those little footed onesies for weeks. The only time they really put on “real” clothes was to go to their doctor’s appointments. I had about 20 outfits for each one of them for that time frame, and they grew out of many of them before they could even wear them. Going back, I would purchase way more 3-6 and 6-9 month clothes, because that’s the time when you really start to get brave and bring them out and about to the world.

2. Expect to Buy Several Versions of Products

Every baby is different, and so when you sister swears by one type of blanket and your best friend swears by one type of bottle, it might not necessarily apply to your child.

Now, listening to their recommendations is good because at least you have somewhere to start, but don’t be surprised if you baby spits out the pacifier that your aunt said was the only one that ever worked for her kids.

Because of this little phenomenon, you might find yourself buying several versions of products. We were gifted bottles secondhand by a friend and they turned out to be way too hard for us to clean. Then we purchased another type of bottle that worked great until both twins developed severe reflux and then did better with yet a third type.

The same might happen with formula, diapers, wipes, and countless other things. The good news is that by about 3 months you should know many of the things your kids prefer.

3. You Won’t Get To Buy Everything

Unless you are very independently wealthy (and if you are, congrats), you won’t be able to buy your kids everything you want to buy them. It’s actually really hard because you want the best for them. You want them to have everything and more. You want them to have what you perceive to be the safest, healthiest, and best rated everything.

Yet, if you are anything like me, you’re going to have that moment in the store, the time where you just stand there staring at all the prices, and it breaks your heart a little to go with the store brand. You’ll remind yourself that it’s not a big deal. They wont remember it, and God knows what your parents fed you or bought you, but it is a terrible feeling knowing there might be something just a little bit better that’s not exactly within your reach.

I suppose the important thing to add to this is that it’s much better to walk away and not break your budget for these products, whatever they are. It’s far more important for your kids to grow up in a home that’s financially stable than one that is filled with the “best” toys and struggling to pay their bills.

4. Add Them Into Your Budget Ahead of Time

I knew that I was going to have to get used to a new category in my budget, and let me tell you, the “twins” category keeps growing from month to month. Even though I knew it was coming and saved up a big baby fund, the costs still really catch me off guard.

It’s mostly the random, unexpected things like reflux medicine and 8 million packs of wipes that have you wondering how you went through it all so fast. If I would have added a good $100-$300 in my budget ahead of time to get used to the costs and fluctuations, it would have been much easier than just knowing I had the baby fund. There’s just something about the act of having that section in your budget that would have made for an easier adjustment.

5. Strollers are Really Expensive

Have you ever looked at the cost of baby strollers? Well, why would you unless you had a baby on the way, right? Well, those things are expensive. Or, I should say the good ones are expensive.

Now there are a few things you can do. If you’re not picky about the brand or the style, you can really scour Craigslist and consignment stores for what you want. I had to find a double stroller, and the ones I found on Craigslist just weren’t exactly what I wanted, which was one with really big, sturdy wheels that made it easy to push around. With two babies who are growing like weeds, I’m so glad I stuck to my guns. Confession: My stroller was $600. Luckily, my parents gifted it to us. It really isn’t that expensive normally, but we had to get several extra twin attachments for the other baby! Yep, twins come with all sorts of extra costs too, but I’ll save all that for another post on another day.

How about you all? What were some of your unexpected baby costs?

Share your experiences by commenting below! 

***Photo courtesy of http://upload.wikimedia.org/wikipedia/commons/b/b9/Baby_on_Back.jpg

Buy Only the Best Deals

The following is a post by MPFJ staff writer, Derek Sall. Derek is the owner of the blog, LifeAndMyFinances.com, where he teaches people how to get out of debt, save money, and become wealthy.

Have you ever heard of the phrase, “Buy low, sell high?”

Typically, people only speak this phrase when they are referring to the stock market. Pretty much everyone knows that if you are going to buy shares of stock, you want to make your purchase when the shares are selling for a deal. Then, a few years later, you can eventually sell those shares at a much higher price and therefore earn a hefty profit from your investment.

“Buy low, sell high” only makes sense, so why not live out this phrase in every category of your financial life?

Buy Low Sell High Outside of the Stock Market

People absolutely love buying new things.

One of the most desired of all new things is a new car. For some, buying a new car is the epitome of the American dream. If they are able to drive that fresh smelling, absolutely mint vehicle from the car lot, then they believe that they have truly made it in life. However, from a financial perspective, they have just bought high and will eventually sell low.

Before they drive their new car off the lot, its value might be something like $30,000. Once you drive it off that lot, the value tanks immediately down to $26,000 or so (because it is now used). And, after approximately 4 years, you might be able to sell this car for $15,000. By purchasing this brand new car, you have just lost $15,000 (not to mention the steep cost of insurance on that sparkly new ride) in a short span of four years.

Now, I understand that it isn’t easy to earn money with a car, but I have made it my common practice to buy low and sell high with my vehicles. About 2 years ago, I purchased a car for $5,500 and sold it about a year later for $7,000. At that point, I purchased a truck for $4,500 and sold it 3 or 4 months later for $6,300. Rather than losing $15,000 over the course of four years, I have actually earned $3,300 over the last two years. I have been able to do this by keeping up with the values of a few different models of cars. When I see a deal, I am not shy to buy the vehicle (because I like to buy low), drive it for a short while, and then put it up for sale again. This way, I am able to buy low, sell high, and continue to add to my net worth.

This is obviously true with home purchases as well. Find homes that need a little fixing up and buy them for a deal. Put a little elbow grease into them and watch the value of your investment grow!

Think Outside the Box

By having a buy low sell high mentality, you tend to think outside the box a little.

Earlier this spring, I was thinking about what I might need to do to improve the value of my house. Two things came to mind: painting the exterior and landscaping. Rather than just heading out and hiring a painter and landscaper to do all the work, I have trained myself to buy low. Painting isn’t really all that difficult. It will take me about a week and will only cost about $500 vs. the $4,000 that the local painter would charge me. As for the landscape, I obviously don’t need a landscaper, but I actually don’t even need to buy any shrubs, flowers, or trees either. My girlfriend has a very large property and can easily find sprouts of different shrubs and flowers from her open field. My yard is going to look excellent (which will of course improve the value of my house) and my purchase price to do it is practically nothing.

Think “buy low, sell high” in all of your purchases. You won’t be sorry.

How about you all? Have you had a buy low, sell high experience lately?

Share your experiences by commenting below! 

***Photo courtesy of http://pixabay.com/p-256312/?no_redirect

Don’t Forget About Liquidity

The following post is by MPFJ staff writer, Grayson Bell. Grayson, who runs the finance blog Debt Roundup, is a fan of personal finance, brewing beer, and working on cars.

When I was paying off my debt, I was worried about getting it down to zero.

I was focused on my debt-to-income ratio and working to toward the optimal number. What I wasn’t focused on was my net worth. That has since changed since I paid off my last credit card.

I see many people talking about their net worth and how they have grown. They speak about their investments and their properties. All of their assets which go toward their net worth. The one issue I have found with some is they forget about one thing. Liquidity.

What is Liquidity

There are two forms of liquidity. There is what is used in accounting and what is used in economics. I am going to describe both, but for the purpose of this article, I will focus on accounting liquidity as it relates to your personal finances.

• Accounting Liquidity – This is simply the measure of ones ability to pay their debts when they are due. Basically, the ability to pay short-term obligations.
• Market Liquidity – This is a market’s ability to convert an asset to cash quickly. If in the market, it can be dealing with converting an asset to cash without affecting the price.

Based on these definitions, the most liquid asset is cash. It can be used to get goods and services quickly without affecting the value. When you have money socked away in bank accounts or savings accounts, then you have maximum liquidity. You can use that money quickly to get what you need, especially when paying bills.

Liquidity and Your Net Worth

When talking with people about their net worth, I get feedback about having property, cars, investments, and so on. What I don’t hear too often is money in their bank accounts or savings accounts. When you have net worth tied up in real estate, it means you don’t have much liquidity. You can’t convert your property into cash very quickly. If you needed to pay a bill in two days, you couldn’t get cash from your house in that timeframe.

Tangible assets are harder to sell when money is needed. This means they are less liquid. They can’t be easily converted to cash on the go. If you have investments, then you could have some liquidity to work with. Some investments, like retirement accounts, are harder to pull money out. While you can do it, it will cost you fees and sometimes taxes. This is especially true with 401(k), 403(b), and traditional IRA accounts.

I will always recommend people have some of their money locked up in investments. I think it is a great way to grow your net worth, but be cognizant of how liquid your money is. If you have an individual investor account, the understand how quick you can sell your assets and get cash. Are there any fees? How long does the money transfer take? The same can go with a Roth IRA account. While it is an investment account, you can take out contributions at any time without penalty. You cannot do that with the earnings though.

Maintain Some Liquid Assets

The main take away with regard to your net worth and how liquidity is to make sure you have some money available at all times for emergencies. You can call it your emergency fund, rainy day fund, or whatever you wish. No matter what you call it, just make sure you have some way to get cash out from your assets in order to deal with emergencies.

While growing your net worth is a great goal, remember to understand how diversity plays a part. You need to make sure to diversify your assets and have a mixture in cash, investments, real estate, and any other forms. The concept of liquidity is not hard to understand, but people often forget about it. If you want a well-rounded financial picture, then look at how liquid your assets are.

How about you all? Do you feel you have enough liquid, easily-accessible assets/cash if you needed it in a hurry?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/vox_efx/3577733056/sizes/m/

Costco Member Benefits You Didn’t Know About

The following post is by MPFJ staff writer Travis.  Travis is a customer blogger for Care One Debt Relief Services, and also appears weekly at Enemy of Debt.  Travis candidly shares his personal journey to pay off $109,000 of credit card debt and the tips he’s learned along the way. As a father and husband he provides a unique perspective on balancing debt, finances, and family.

Almost every time I sign up for a new service, I get an arm-ful of documentation.

Whether it be a new cable package,  an appliance protection plan, or even an upgraded auto insurance policy I seem to go home with a folder full of information I’ll never read.  The same applies even to renewing our Costco membership and upgrading it to the executive membership.  I knew that I would get 2% cash back on all my Costco purchases, I wasn’t aware of the additional benefits that are offered to members until a reader mentioned some of them in a comment to a different post.

The next time I was in the store, I stopped by the customer service desk and asked if they had any documentation that listed all the benefits offered to members.  They happily handed me a small magazine mentioning that I should have received one when we signed up for our membership.  I spent some time looking through the list and picked a few of the benefits that I could potentially take advantage of, comparing to my current service when applicable.

Personal Checks:

I don’t write a lot of checks these days, but I do find myself in a situation a couple of times a month where a check is the most convenient form of payment.  Costco offers a deep discount on check printing to their members:

My Bank:

• Checks: 120
• Cost (including tax, shipping, and handling) : $18

Cost: $0.15 per check

Costco:

• Checks: 500
• Cost (including tax, shipping, and handling) : $20.55

Cost: $0.04 per check!!

Automobile Insurance:

Costco and Ameriprise have teamed up to provide discounted car insurance to Costco members.  I went through the process to get an online quote through the link on the Costco website. Then, I went and got an online quote for the exact same insurance through the public Ameriprise website.  Those two quotes, along with my current insurance through State Farm are listed below:

• Current State Farm:  $120 per month
• Ameriprise through Costco:  $108 per month
• Ameriprise through public website: $123 per month

The quote through Costco was discounted $15 a month from the public Ameriprise offering, and comes in at $12 a month less than my current insurance!

Homeowner’s Insurance:

Homeowner’s insurance is also provided through Ameriprise, and a quote can be obtained online.  I filled in the information, and got a ridiculously high yearly quote:

• Ameriprise through Costco:  $2815
• Current State Farm Policy:   $1485

Investigating further, I could see that even though I was asked to input my estimated home’s value, the tool had filled in an amount that was over double what I specified.  Even though it appeared the tool would let me alter the field, it gave me an error when I tried to do so.  At this point, I lost interest in getting a quote, as would many potential customers.  Hey, Ameriprise, fix your tool or you’ll continue to lose potential customers.

But, for those of you that have more dedication to comparing prices, you can call and talk to a representative and  get a more accurate quote to compare with your current insurance policy.

Prescription Drug Discount:

You don’t have to be a member to purchase prescription drugs from the Costco Pharmacy, but members do receive a discounted price on prescription drugs through the Costco Member Prescription Program. The interesting thing here is that this program is a great option for those that do not have prescription drug coverage  AND people that currently do have insurance.  You can join the program and get discounts on prescription drugs that are not covered by your insurance as well as if you would receive no insurance benefit while you fulfill your deductible.

Auto Repair Discount Program:

A list of participating service centers near you can be found by plugging your zip code into this website. After selecting one, you are displayed (as well as emailed the link to) a coupon for 15% off new or factory remanufactured parts, services and accessories up to a maximum value of $500.   I didn’t see any limitation on the number of coupons you could obtain or use.  I need to keep this in mind the next time I need my radiator flushed, or any repairs done to one my vehicles as 15% could be a substantial savings!

Identity Protection:

Security breaches compromising personal customer data seems to be occurring more often these days.  Target had one last holiday season, then we had the Heartbleed bug, and just recently I read that AT&T had customer information stolen as well.  If you’re concerned about identity theft, you may be in the market for a credit monitoring service.  One such service, Identity Guard, will cost you $19.99 a month if you go to their website.  However, Costco members get it for $9.99 a month, a cool 50% off.  Users get the following as part of their service:

• Monitoring of all 3 major credit reporting bureaus.
• Three Credit Scores
• Quarterly Credit Updates
• $1 Million Identity Theft Insurance
• Internet Surveillance

These were the top benefits that I found in the magazine I obtained from the service counter, but there are many more as well including:

• Personal Health Insurance (limited to certain states)
• Dental Plans (limited to certain states)
• Travel Insurance
• Home Mortgage and Refinancing

If you’re a Costco member, or are thinking about becoming one, make sure you take a good look through the member services magazine.  You just might find other ways to save money with your membership.

How about you readers, are you a Costco member?  Have you looked at, and taken advantage of the additional discounts offered to members?

Share your experiences by commenting below!