Category Archives for Saving Money & Frugal Living

How Travelers Can Reduce Bank Fees

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Today’s guest post comes to us from Matt. Matt contributes to CreditCardCompare.com.au, an Australian website where Aussies can compare frequent flyer cards from a variety of airlines.

Seasoned travelers use proven banking techniques that avoid unnecessary fees but protect funds from theft. Carrying large amounts of U.S. cash is not a wise decision. But, using credit cards, ATMs, and checks while overseas can incur large fees for each transaction.

Every bank has methods for avoiding these fees and will answer the depositor’s questions when information is sought prior to departure. Informed travelers avoid costly bank fees because they complete research as a major portion of trip preparation and then use recommended methods for access to funds. Described below are some of these methods.

1. Know your bank’s fee schedule – Ninety days prior to departure research the charges that will be assessed for accessing your account from foreign countries. ATMs are available in most countries, but the fees will add up quickly when the foreign bank and the domestic bank charge fees for each transaction. Research the fees associated with all foreign transactions including ATM, credit cards, and wire transfers.
2. Choose a bank with partners – If the primary checking account resides in a locally-owned bank, open another checking account in a major bank with partners in the destination countries. Access to your account is available through partner banks in those countries with reduced fees. Notify the bank that you will be traveling so foreign transactions will not shut down access to the account.
3. Open a second account – As insurance against loss of access to your funds, open another checking account at the same bank so that funds can be accessed if the bank system shuts down your account before you can address the situation. Notify the bank of your strategy so they can help you achieve the correct result.
4. Establish a money market account – Place enough money for travel in each of the two basic checking accounts and move all other funds into a money market account that has online access. If one of the other accounts is breached, only the travel funds will be lost, but you will have access to money to continue travel and get back home. Look for a money market account that will pay interest on your money and allow you to access it easily.
5. Use credit cards for large purchases only – Every credit card transaction will incur fees for currency exchange and use outside the United States. Pay for hotel bills and other major expenses with a credit card, but pay for every other transaction with the local currency.
6. Rarely use an ATM – Unless you have access to an ATM that will not charge a fee, only access the ATM for large withdrawals. Avoid ATMs in airports, hotels, and public places because they charge exorbitant fees that will add up quickly and reduce the balance in the checking account that holds the travel funds.
7. Exchange money – Avoid exchanging money at the airport upon your arrival. When you reach the hotel, ask where the best place to exchange U.S. currency for the local currency is located. The locals know where you will pay the most favourable exchange rates. Visit the exchange for large transactions and avoid small amounts of money. Make certain you are given small bills at the exchange because most merchants cannot change large denomination currency.
8. Monitor exchange rates – Take note every day of the exchange rate between the U.S. dollar and the local currency. If the exchange rate becomes favourable, exchange a larger sum of money to take advantage of the rate. Make local currency last longer if the exchange rate becomes less favourable by postponing unnecessary purchases.
9. Take travelers checks – Most large hotels can cash travelers checks, so purchasing travelers checks prior to departure may be the most favourable way to carry sufficient funds for the entire trip. Record the numbers on the travellers check and make two copies. Leave one copy with a person of trust here at home and take the other copy on the trip, but store them separately. Replacement requires the exact check numbers.
10. Record account numbers – Write down all checking account numbers, credit card numbers, ATM card numbers, and travellers checks numbers prior to departure and make two copies. Leave one copy with a trusted person and carry the other one, but keep it in the hotel safe with your passport.

Travellers must remember that financial practices overseas are not similar to those used at home. Convenient access to money is very costly because of the bank network access that is required to process every transaction. Awareness is the only way to reduce the fees associated with convenient spending tools. Adopt a local mindset when traveling overseas and use similar tools to the people who live and work in the area.

How about you all? Have you ever been traveling and were hit with unexpected bank/ATM fees? How do you avoid paying too much for access to your money when traveling abroad? 


Share your experiences by commenting below!

Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

• The methods expressed in this article are very useful. In my experience traveling abroad, each time you access money using an ATM, you are charged ~$5 USD by the local bank and then ~$3-$5 USD from your domestic bank in the USA.
• Credit card foreign currency transaction fees can be even worse. Generally, the fee that your credit card will charge each time you make a purchase abroad is 3%. So, as discussed above, it is important to only use your credit card for emergencies and for larger purchases when you need to conserve your cash.

***Photo courtesy of http://media.rd.com/rd/images/rdc/slideshows/6-Ways-To-Avoid-Exces-Travel-Fees/6-Ways-To-Avoid-Exces-Travel-Fees-01-sl.jpg

Does Debt Settlement Hinder or Help Your Credit Repair Goals?

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Today’s guest post comes to us from Ed O’Brien, who specializes in credit repair. His blog, Credit Repair, offers free advice on preparing yourself for a financially responsible future.

There are more options for handling debt matters and repairing credit these days than in years passed. But, with the multitude of options available, consumers often get stuck deciding which resources are the best tools for eliminating debt and getting credit back on track – and rightfully so.

There are a number of pros and cons to each type of debt relief resource that is available, and it is important for the consumer to be clear on how different methods affect credit repair goals.

Debt Settlement: A Popular Option


One of the less complicated methods for eliminating debt is through debt settlement. This option has some serious considerations that go along with it because there are two distinct ways to settle outstanding debts.

Not all consumers understand that within the debt settlement process, there are options for accomplishing the task. This is a very important first consideration because one method involves paying a significant price for the process. For those in debt, every penny needs be accounted for.

Option One – Third Party Assistance


There are many companies legitimately handling debt settlement cases. These agencies have counselors that are skilled in negotiating the settlement of debts to your creditors for less than the balance owed in most cases. Because of their working relationship with a variety of creditors, many are able to secure not only a lowered settlement amount but also reduced interest rates, elimination of late payment fees and stoppage of penalty fees.

The debt counselors often offer additional debt management assistance for the debtor to help get finances back on track once high debts have been paid off. The caveat to debt settlement agency help is the high cost often associated with the help. Usually, a percentage of the debt involved in the settlement program is required for help. Additionally, it is important to note that not all agencies are working on the up-and-up, meaning consumers sign up for help and not only end up paying a high fee, but their debt issues only increase as well.

Option Two – The DIY Method


One of the biggest factors with the do-it-yourself debt settlement method is that consumers rarely realize they have the power to do the same thing as the debt agencies, but they can do it for free. Settling debt is certainly no small task but it is an achievable goal that can be accomplished through effort and regular follow up.

Consumers need to gather the information concerning the debts that may be settled including credit cards, medical bills, and other loans. There are some limitations on what debts can be settled for less than you owe including your mortgage, vehicle loans, etc.

Once the total debt has been tallied, a budget needs to be constructed so the consumer knows where they stand financially and how much money they can offer toward settling the debt. Then a call to the creditor is made to negotiate the debts, the reduction in interest, and the elimination of penalties. Even if consumers are not skilled negotiators, they still have the power to deal directly with creditors. Provided a consumer knows how much they can afford to pay to settle the debt, they have the necessary tools to stick with a negotiation. Most creditors are willing to work with customers struggling through financial hardships and believe that getting some money back is better than getting nothing at all.

How Will It All Affect My Credit?


Debt settlement involves the negotiation of your total outstanding balance. Creditors will allow customers to payback a percentage of their debt under the provisions that the payment will satisfy the debt obligation. This is the good news part of the equation. The bad news is that while you are able to get rid of the legal hold of a debt by settling, your credit can take a significant hit in the short-term. Creditors will typically report back to the credit reporting agencies that a debt was ‘settled for less than owed’ or some similar terminology. To other lenders, this credit report data relates that you did not completely satisfy the terms and conditions of your original agreement and therefore are a risk.

While the short-term ramifications of debt settlement do have a negative consequence on our credit scores and histories, the long-term gain after time has passed is significant. Once debt has been eliminated and you are no longer legally obligated to make additional payments on the debts, money can then be allocated in other financially beneficial ways, such as establishing a savings account, planning better for retirement, and doing better than just living paycheck to paycheck.

Credit scores will drop during the debt settlement process but the goal is really more than just paying off debts. The real achievement is learning from past mistakes and avoiding debt settlement and other issues in the future. By taking the steps on your own or with the help of a qualified debt settlement counselor, you can learn a lot about where you were and where you want to be in your personal financial life.

How about you all? Have you used third party assistance to settle debt? Did they offer services that you felt you couldn’t provide yourself? Do you feel it is a rip-off? Share your experiences by commenting below!

Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

• @The two different methods of debt settlement – I feel that for the majority of people, third party debt settlement assistance is VERY MUCH NOT NEEDED. In fact, I feel that it just further complicates the facts of what needs to be done – they need to get their game plan together to pay off money. Period. The end. Calling around to find a debt settlement agency is only going to take additional time and incur more costs.
• The majority of people looking to reduce their debt I believe fall in to to the category of having debt, and are getting by all right by making the minimum monthly payments, but realize that they are never going to get rid of their debt that way.
• However, if someone is severely in debt, and simply unable to make their minimum payments and put food on the table, then, I believe that credit counseling and third party assistance would be in order.
• @How debt settlement affects your credit score – In my experiences, people who are going through debt elimination/settlement do not particularly care what their credit score is. They simply are looking to stop spending and decrease their debt. In their mind, enough of a hit has been taken to their credit score, that it isn’t of much importance to them.
  

***Photo courtesy of http://www.infinitecredit.com/wp-content/uploads/2009/03/debt-settlement-300×244.jpg

Festival of Frugality #268 – Cheapskate Jake Edition – February 15th, 2011

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Welcome frugal personal finance students! Thanks for stopping by.

Comcast Tried to Pull A Fast One On Me

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In a recent post on this site, I talked about how Fidelity was up to some of their normal tricks again by 1) trying to lure me away from my current investment house (Vanguard) with a less-than-enticing offer, and 2) spending more money to execute/mail out a failed promotion, thus further proliferating the need for their higher mutual fund fees than Vanguard.

In light of my recent experiences with my high-speed internet account, the same would have to be said for Comcast, my internet provider.

In  my mind, Comcast is somewhat of a necessary evil. Each time that my promotional offer pricing period expires with Comcast, and it is time to renegotiate my price (if you don’t renegotiate and ask for a discount, the price of the same internet service doubles generally), I always investigate options for other internet service provider companies.


Background

After purchasing my condo for graduate school in August of last year, I signed up for a $30 per month special promotion for a “Performance” internet package with Comcast. The time period of the offer was 6 months.

So, when February came around this year, an automatic reminder popped up on my Outlook calendar to call and renegotiate my pricing plan. If I were to continue with the same internet package after the promotional period expired, the pricing would have reverted to the normal $60 per month.

In my mind, paying $60 per month for internet is just unacceptable (a belief which I made sure to express to the Comcast rep upon calling to ask for a discount – see below for more details).

The Call(s)

(This title reminds me of the Backstreet Boys song – see clip below for a little laugh to remember years past! Or maybe these were years that we would rather forget..haha)

Call 1 – 

The automatic reminder on my Outlook calendar popped up during the last week of January. So, the day after it showed up, I called Comcast’s “lovely” customer service department.

Upon calling them and giving the details of my account, I mentioned that my promotional internet pricing period was expiring, and inquired if they had any new promo offers to make available to me.

“YES,” the service rep said enthusiastically. “If you sign up to receive phone, cable TV, and internet service as a bundle, we can offer the internet portion to you for just $20 per month!” “What a deal,” I was thinking to myself. (rolling eyes to back of my head)

I then proceeded to tell the rep that the bundle wouldn’t work because I use Netflix instead of paying for cable TV each month. Naturally, I then asked if there were any promotional offers for internet alone. She said NO.

Upon hearing this, I then said that I would rather discontinue my service and share internet with my neighbors than pay $60 per month. I gave her one last chance to find a way for me to pay less than $60 per month, and then hung up the phone, mentioning that I would be inquiring with their competitors about transferring my service to another company.


Investigating The Competitors


Remember when I said that Comcast is a necessary evil? Well, it really is true. In looking around the internet, I discovered that the only providers in my area for internet (besides Comcast) were 1) NetZero, and 2) CenturyLink.

However, in looking in to these companies’ plans, I found out that both required that I have a land line phone hooked up in my condo. Since I use my cell phone for all of my calling needs, these options would simply not work either.


When I was almost ready to give up my search, I came across a (coincidentally) fairly hard-to-find page on Comcast’s website that listed all of the levels of internet packages available (see link below). And, low and behold – listed on this page was the Economy package for only $40 per month. Now, that is more to my liking as far as price ranges go!!!! 

Comcast Internet Packages


Call 2 – 

To take advantage of this pricing program/internet package, I knew that all I need do is call up Comcast and request to downgrade my account (tip – the calling waiting time to talk to a service rep is 10x shorter if you press the button to “change service on your account” rather than “inquiry about billing”).

So, the next day, I called Comcast, and it went very smoothly getting them to downgrade my plan!

Beware – Brief Rant section 

WHY DID THEY NOT TELL ME ABOUT THE ECONOMY PRICING PLAN WHEN I CALLED UP THE FIRST TIME? WOULDN’T THEY RATHER KEEP ME AS A CUSTOMER AND HAVING ME PAY $40 FOR A LOWER PACKAGE?

I just don’t understand it!!!

Some More Details of My Experiences With Comcast

While I living/working outside of Philadelphia last year, I signed up to get Comcast’s high speed internet service. As expected the installation technician came to my condo, and hooked up my cable modem to Comcast’s system.

However, after he left, he marked down that the modem was Comcast’s property, and that I would be charged $5 per month to rent it from them!

Somehow, due to my obliviousness, these rental charges slipped by unnoticed for the 8 months that I lived in Pennsylvania. When I was preparing to make the move to Virginia to start graduate school, Comcast said that I needed to return the rented modem.

I then proceeded to tell them that NO, it is my modem. I bought this from Shentel, my previous internet service provider.

To make a long story short, I actually ended up having to get Shentel and Comcast talking to one another to prove that the modem was mine (Shentel was good enough to have the MAC-ID number in their computer system still, identifying the modem).

So, to recap, there a couple of things (shown below) you all can learn from my experiences from Comcast:

• Know your options for what services your utility/service providers offer.
• Keep track of your promotional pricing offers, and follow up to ask for additional offers and discounts.
• Examine your service statements with a fine-tooth comb, and don’t be afraid to challenge errors that the company makes.

How about you all? Have you had an experience recently when you felt ripped off? Does anyone have any good/bad Comcast experiences they want to share!?


Share your experiences by commenting below!


***Photo courtesy of http://mycabletvsucks.com/wp-content/uploads/2009/07/comcast-sucks.jpg

Cheapskate Jake’s Frugal Ramblin’s # 1 – Announcing A New Staff Writer at My Personal Finance Journey + How To Get a Free Running Race Training Program

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Do you get tired of hearing from the same old person every day on My Personal Finance Journey? If so, then today is your lucky day!

For the past two days, all of you sharp readers out there probably have noticed the “Cheapskate Jake’s Frugal Ramblings” tab that has shown up on the top fixed pages on My Personal Finance Journey. And undoubtedly, you all are owed an explanation for what it is!

All of his tips will be collected in the “Cheapskate Jake’s Frugal Ramblings” tab shown at the top of the page. I’ve also pasted the link below for added convenience.

Cheapskate Jake’s Frugal Ramblings Corner

But, enough from me – I’ll let Jake take over and explain to you what his “ramblings” will entail. And, I just approved (I must be out of my mind!) his first tip for you all. So, that is attached below as well! Enjoy, and try not to get too offended. 🙂
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Greetins’ frugal folks! My name’s Cheapskate Jake. I’m a 45 year old bloke from Frugal Holler (Hollow for all you’s grammatical folk), Arkansas. Frugal Holler is located about 2 hours southwest of the capitol city of Arkansas, Little Rock, smack dab in the center of the Ouachita Mountains. I am married to a lovely lady named Inez, and we have two children – Latisha and Raymond. I love those kids most of the time, but they sure can get on my nerves every once in a while!

How Jacob and I Met

Your frugal (never cheap – that’s my job) and devoted blog organizer, Jacob, and I go way back. We first met during a camping trip that he took back in the Summer of 2006 while still living in Arkansas and attending the University of Arkansas.

I was out on a hunting trip at the same time (finally getting some freedom from the wife and kids), and he was mountain bike riding. Even though he had a bright colored jersey on and those weird skin-tight spandex, I almost couldn’t tell the difference between him and the deer that I was hunting (might have been due to the 8 Milwaukee’s Best brews I was drinkin’, but that’s just water in the crick under the bridge now).

After missing hitting him by only an inch, we started talking about life, family, and enjoyin’ the great outdoors! We found that even though we came from different walks of life, we had a lot in common (not to mention the same name!). One thing that we both love to do is save money!

After the camping trip, we continued to stay in touch. However, Jacob was holdin’ out on telling me that he had started this new fangled website! However, after much negotiation, I finally convinced him to let me contribute to the community!

What Are Cheapskate Jake’s Frugal Ramblin’s?

Jacob was kind enough to let me take over the blog about once per week (or however often I get access to the internet – I have to drive 2 hours away to Little Rock, Arkansas to access a computer with that high speed modem stuff) to bring you the unfiltered, un-cut, methods/tips that I use to save a dime or two in my life!

Even though I’m not one for planning ahead (I only made it through the 5th grade), the topics that will be covered in this series will be how to save money in the following ways:

How To Save Money On:

• Eatin’ and drinkin’
• Entertainment
• Children
• Relationships
• Athletics (including tractor pullin’, my favorite, of course)
• Education
• And maybe several more, maybe….

That tightwad Jacob finally approved my first post, and I’m hootin’ and hollerin’ happy to be bringing it to you today!

Also, if ya’ll folks have any questions, ya’ll can shoot me an email at cheapskate@mypersonalfinancejourney.com. Jacob didn’t trust me with his email, so he gave me my own account! Mighty fine o’ him!
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Cheapskate Jake’s Frugal Ramblin’s # 1 – Get A Free, Personalized Running Training Program


Personally, I’ve never been one for gettin’ that much exercise. I think the combination of beer, chittlins’, fried chicken, and apple cobbler I eat prevent me from being able to do that much. In fact, I make it a policy so that the only “exercise” I get is walkin’ outside to the pickup truck in the mornin’ to get away from Inez’s complainin’ at me.

However, for those of you youngins’ out there that are in to the same “health-craze” that’s sweepin’ Little Rock at this time, I’ve heard of a new FREE program that may be just for you!

Have you been wanting to get yourself in to peak shape for an upcoming running race, but weren’t ready to shell out the mullaa to pay for an actual coach?

Well, the Smart Coach Training Plan from RunnersWorld.com could be the solution for you! The trainin’ plan offers the following features:

• Personalized training plan
• Training workouts based on previous race time entered in to system
• Customizable based on 1) how many miles you are currently runnin’ per week, 2) desired workout intensity, 3) desired “long run” day, and 4) target race date.

To get your personalized training plan, simply follow the instructions below:

• Click here to sign up for a free account on RunnersWorld.com (click half way down the page).
• Then, click on the following link to login to your account – http://smartcoach.runnersworld.com/.
• Next, fill out the specifications (described above) to personalize your training plan to YOU! 
• And, voila! Click “Create New Plan,” and you’ll be on your way to a new personal best race time!

How about you all? Do you use a training plan for your workouts, or do you plan them out of a day-by-day basis? 


Share your experiences by commenting below!


***Photo courtesy of http://www.packthecat.com/Ethan/pictures/redneckStereotype.jpg

Canceling Credit Cards Detrimental to Credit Repair

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post from Ed O’Brien. His blog, Credit Repair, offers free advice on preparing yourself for a financially responsible future.

When you start your mission to begin repairing your credit, your first step is to get a clear understanding of how much debt you have and make a plan to eliminate a bulk of that debt in the shortest period of time.

Repairing your credit requires that you meet your financial obligations as they are stated in the contract or agreement between you and your creditor. Once you are able to get back on track by making regular, on-time payments and satisfying your debts, you will begin to see your credit score improve.

One potentially bad move during the debt relief process for many consumers who are able to eliminate their credit card debts is the inclination to start canceling all of their paid-off credit card accounts in an effort to reduce temptations of repeating history. However, as part of the credit repair process, canceling credit cards may be the worst move you can make.

Here’s why:

Your credit history is a factor of your three digit credit score. Part of that history involves the timeline from when you first established a credit profile. If one or more of the credit cards you have paid off and wish to close are the first accounts you started to establish credit, closing them can change your whole credit foundation.

For instance, say you opened your first credit card in 1991, and this was in essence the first line of credit you were issued. Fast-forward to 2011 and you have just zeroed out the account balance on that same credit card. According to your credit profile, this card has been a large part of your credit profile for 20 years. Closing the account would then cut short your credit history and part of a credit score calculates how long you have had credit.


Alternative Choices

Credit card temptation can be a tricky situation but ultimately it is up to the consumer to enact a plan that will really keep them on track. By establishing a solid budget and tracking how money is spent, the urge to spend on credit just because it is there can be stopped in its tracks. Just because credit cards are there does not mean you need to use them.

However, keeping open and active credit card accounts is a vital part of maintaining a good credit history and a high score. It is recommended that you occasionally use all of your credit cards somewhat regularly for small purchases during the month and then pay off the full amount due before the end of the billing cycle. Not only will this keep credit card accounts open (creditors do have the right to close accounts they deem inactive), it will also help rebuild your credit score since your payment history has been turned around and balances aren’t being carried over.

If you feel you have entirely too many credit cards and do wish to close a few of the accounts, be absolutely certain you are only closing those accounts you have only recently opened so as not to jeopardize your credit history. It is also imperative that no credit card account be closed when a balance still remains. Doing so can trigger an increase in interest rates, making it more costly to pay off the debts each month.

Try designating credit cards to particular buying habits, such as one for gasoline purchases, one for groceries, and one for online purchases. Not only will you be able to itemize your spending on a monthly basis effortlessly, you can also maximize all of the incentives and rewards you earn from your credit cards.

Credit cards can certainly be the root of a bad credit score to begin with but they are also instrumental in getting back on track with your personal finances. When utilized in the right manner, credit cards can be the chief resource for repairing your credit history and boosting a low credit score in a relatively short period of time.

How about you all? Have you ever canceled/closed credit card accounts? How did it affect your credit score? What techniques do you use to make sure to not spend excessively? 


Share your experiences by commenting below!


Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

• Personally, I have many credit cards (~8) because I like to take advantage of the little free money promotional offers they throw at me. I always make sure that the cards are “no annual fee” credit cards, of course.
• After I receive the money from the promotion, I am very cognizant NOT to cancel the account due to this very concept discussed in this article.
• Instead, I set up an automatic payment each month from the credit card so that it keeps a running credit history. I make sure to always pay off the balance in full each month.
  • Examples of small payments that could be set up with non-principal credit cards would include Netflix monthly subscriptions, cable internet payments, journal subscriptions, etc…
• For the bulk of my spending, however, I use my favorite cash-back credit card, The Chase Freedom, which gives 3% cash back in rotation categories throughout the year! Very nice!

Winner Crowned in BP $10 Gift Card Giveaway Contest!

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Good evening everyone!

It is my pleasure to announce the winner of My Personal Finance Journey’s first ever free giveaway (a $10 BP giftcard).

The winner was Lethea (commenting name, Luvdaylilies)! Everyone, please join me in congratulating her for taking home the “big” prize!

Thanks so much to all of you for participating and/or promoting this giveaway in order to make it a great success.

Overall, we had 40 entries over the 2 weeks that the giveaway took place! And, Lethea was the big winner with a total of 7 points! You can read all about the details of the giveaway in the original announcement post at the link below.

$10 BP Giftcard Giveaway Announcement


I very much enjoyed doing this giveaway because it enabled me to interact with my readers and also share the love of some of the promotional offers I hear that companies are giving out!

The next giveaway on My Personal Finance Journey will be a $25 Amazon giftcard, and will be sponsored by my friend, Barbara Friedberg. Barbara runs one of my favorite investing blogs, Barbara Friedberg Personal Finance. Keep an eye out for that, on the way shortly!!!

***Photo courtesy of http://apocalypsecakes.files.wordpress.com/2009/06/winner.jpg

Cut the Drug-Store Bill – Check What’s Growing in Your Garden

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This article is a guest post from Adana Lima, a stay at home mom with 3 cute kids (Jamie, Pablo, and Guerrero) who writes on the topic of dumbbells set. Enjoy!

Some of the things that you have to do, when money is tight, are a real drag. It’s all about cutting back on life’s little luxuries, or having to work that little bit harder to get things done.

But, some ways of living frugally actually open up doors and let you look at the world in a very different way. That can definitely be the case when presented with the weekly medicine bill. If you put on your ‘money saving hat’ to find ways to cut it, you will find that the answer is literally on your doorstep!

Almost on reflex, when it comes to life’s minor ailments, we turn to the drugs from the corner pharmacy. That’s because the doctors tell us to do so – as do the thousand-and-one television ads selling the latest advances in medical science.

Of course, they are right – the pharmacy industry spends vast sums developing and testing drugs for your illnesses and complaints. And, they wouldn’t ask you to spend your scarce cash on them if they didn’t work. But what if there were some ailments that didn’t require you to cough up dollars at all – because you could just reach out the window and pull up a cure.

That’s the potential offered by that square of green in your backyard. Because many of the pharmacy drug compounds, so carefully isolated and purified for us, come from plants we could all grow there, at little or no extra cost. And if you delve a little into the history of medicine, behind all of the pill boxes, blister packs and medicine bottles, is the ancient tradition of herbalism – one that has helped cure people for thousands of years.

Now obviously, a lot of the herbal remedies, dating to a time of superstition and lore, were pretty wacky and misguided. But, the modern science of herbalism is based around the solid chemical analysis of the active components of plants – and on the known effect of those ingredients on the human body. Much of the ancient herbal lore has been backed up by all of this modern research. The plants in the wild really can be a help- especially to those looking put a little less of their earnings into the pockets of big pharma.

Of course, you need to be careful here. If you want to start growing your own remedies, you need to do a lot of research on what plants you might need – and to check out some serious literature on herbalism. A good plan is to back that up by a little more research in the alternative health section of the drugstore. See which herbal remedies they are selling, for what problems- and see which plant extracts they are derived from. You will then need to learn about the various ways to extract and prepare such remedies for yourself.

Armed with that info, you can start planning your own garden pharmacy. Some common plants that are definitely known to be of use, and unlikely to be dangerous include :

• Peppermint: excellent in soothing the symptoms of irritable bowel syndrome, upset stomachs and flatulence.

• Sage: not just good in cooking, this herb is great for many infections of the gum, mouth and skin- and can aid the healing of insect bites.

• Garlic: again a great tasting foodstuff that doubles up as a helpful herb. Garlic is reputed to aid the relief of cold symptoms of the throat, nose and chest- and is quite toxic to intestinal parasites.

These may already be in your garden. But before you go ahead in trying any herbal remedy, especially from non-foodstuffs, make sure you’ve consulted with your doctor. And double check the identification of the plant, and its active ingredients, with a reputable guide book. You want to save money, but to do so safely. However, as long as you are careful, turning your garden into a herbal haven will bring you plenty of other benefits- fresh air, exercise, and a hobby that slashes your drug-bill.

How about you all? Have you ever used any herbal remedies to help cure your colds/ailments? Did they work?


Share your experiences by commenting below!


Jacob’s Thoughts – Listed below are some of my random thoughts while reading this unique article on personal finance!

• Being a former engineer in the pharma industry and knowing all of the science and testing that goes in to making not only prescription, but also OTC drugs, I admit that I have my doubts about whether or not herbal remedies will be as potent at stopping pain, relieving sinus pressure, etc, as active pharmaceutical ingredients.
• Having said that, I think that herbal remedies can be used as a supplement whenever the need isn’t dire to have medicine. For example, maybe you just have a slight headache. Instead of popping a name brand Advil, you might find an herbal remedy that you could take! 

***Photo courtesy of http://www.examiner.com/images/blog/wysiwyg/image/herbal-medicine.jpg

13 Tips for Running a Profitable Garage Sale

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest article written by David Boyd, an Australian personal finance writer. David works at Money Choices, where he has been giving home buyers and investors information on choosing a home loan that best fits their needs. Enjoy!

A yard sale by any other name is a garage sale, a barn sale, a moving sale, or a tag sale. The motives are the same no matter what you call it–a clutter-free home and cold, hard cash. To make a profit, try these tips!

#1. Plan it Out Thoroughly in Advance: A poorly-planned yard sale is like waiting to do holiday shopping until the last minute. It can be done, but it usually isn’t done well. Yard sales are not spontaneous events, so take a month to get yourself prepared and ready for the day.

#2. Uncover the Treasure: Yard sale inventory is in your home’s most-ignored places – the attic, the basement, the garage, or the shed. If something has gone unused for a year, it qualifies to be sold. Make it sales-worthy by washing, shining or fixing it. If it’s broken, dangerous or under government recall, throw it out. Don’t risk your reputation and relationship with others over shoddy goods.

#3. Go Undercover: Scoping out the yard sale competition can give you useful pointers and help avoid mistakes. Ask friends and neighbours to share their yard sale experiences and think about what you could do better. Drop by a few yard sales to get a feel for how bargain hunters respond. Check out the set up and watch the seller operate. Take special notice of what sells and how much things cost. Use what you learn when you price your own goods.

#4. Get on the Right Side of the Law: The last thing you want is a local authority shutting down your yard sale just as the profits start to roll in. Don’t ignore your homeowners’ association rules or local laws! Get a permit, if you need one, and adhere to any local restrictions on yard sale days and times.

#5. Have a Back-Up Plan: Decide well before yard sale day whether your event will be rain-or-shine. If you plan to sell in any weather, be realistic and make sure it is physically possible, at the last minute, to move your for-sale items to a dry, covered location. If not, schedule a rain delay.

#6. Pick the Big Day: Unless you’re having a whole-house sale, keep it simple. A one-day sale is usually more than enough time to make a good profit. Prime times are Friday or Saturday. Set a reasonable yard sale time that won’t have early bird bargain hunters at your home before dawn.

#7. Price it Right: This is a step you may want to skip if you feel confident that you can haggle over every spoon and baby toy, but most successful yard sales have price-tagged merchandise. Negotiating is recommended. Use stickers and be fair. This is stuff you don’t want that someone else might. Cutting the retail price in half will make your things sell. Remember, if it won’t sell, it won’t disappear by itself.

#8. Let Everybody Know: Call around for special advertising rates in the local papers, especially the community papers. Advertise two days in advance with short, to-the-point copy hitting the highlights–date, address, hours and special items along with general categories. Put up flyers on bulletin boards. Announce your sale online in social networks and Craigslist.

#9. Pick Up the Drive-by Sale: Having big, easy-to-read signs directing traffic to your yard sale will get you extra traffic. Create signs using heavy cardboard and dark lettering, with minimal information and large directional arrows. Then, hit the streets with a staple gun and start spreading the news.

#10. Save Time with Setup: If you can do it ahead of time, get it done. Borrow and set up tables, chairs and clothes-hanging areas. Cover up anything immovable that’s not for sale. Keep batteries, tools, a tape measure and extension cords ready for sizing and testing merchandise. Assign duties to helpers. Stock up on newspapers and boxes for packing sold items and make a trip to the bank for at least $20 in change.

#11. Yard Sale Day: Grab your coffee and put on an extra pot on for early birds. Set up the checkout area with the money box and and wrapping materials. It’s time! Actively engage your customers, but give them lots of time and room to browse. Re-stack sale items to keep them organised. Stay open until the end and consider cutting prices in half in the last hours.

#12. What You Can’t Sell, Give Away: Make a solemn commitment now that whatever goes unsold still goes. Call a charity to arrange a pickup anything that’s left behind. The only thing you want to have left is the money.

#13. After-Sale Clean Up: Once the sale is over, return everything you borrowed and thank your helpers. Don’t forget to make sure to send out a party to take down all the street signs. Count your profits. You’ve earned every single penny.

How about you all? Have you ever ran a garage sale? Was it successful? How much money did you make? What techniques did you use to make sure it went well?


Share your experiences by commenting below!


Jacob’s Thoughts – Listed below are some of my random thoughts as I was reading this great piece!

• Another good alternative for getting rid of unused household items is to sell them on eBay! You can make some pretty good money on things that otherwise would just be sitting around!
• A key thing with this is to make sure that you check the “completed listings” on eBay to make sure that you can sell your item and make a modest return.

***Photo courtesy of http://4.bp.blogspot.com/_Cex7gUC2DII/TMv__w52heI/AAAAAAAAAuc/o5p36JcsOAw/s1600/garage-sale.png

5 Financial Tips to Keep Not-Doing In Order To Stay Broke

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Today’s guest post comes to us from Brian Lillard.

Picture it: All those big, shiny numbers from a fresh direct deposit hitting the bank account.

“I’ve earned it,” we think.

“And I’d better enjoy it!”

So here come the mental images of everything luxurious or delicious longed for over recent weeks! They fight for a place at the front of the line, but that’s really the point where we can stop and reconsider rationally.

Tip 1 of 5 invaluable tips to come: Subtract all known expenses as soon as paycheck is received.

This seems like an obvious thing to do, but the voices in the head are loud, and they sound just like us. So, when we’re saying, “Time to pay the phone bill,” another voice may say, “AT&T has a 2-week grace period. Get the shoes! Get the shoes!”

By taking out a piece of paper and writing down the money which is actually left over, it physically removes the fuel of that second voice. The second voice will no doubt find this humiliating and go off to find another victim.

This brings me to Tip 2: Make lists.

Don’t even be afraid to make them into charts and calendars. Present yourself with a visual representation of that which your money is being made for. This organizes you to know when money is coming in vs. when something is due. Lists help prevent us from arguing with reality — it’s here: Barefaced, unquestionable and on paper.

An oldie, a goodie and also Tip 3: Stick it to the Internal Revenue Service.


It only took me 8 years of spent money and anxiety for me to start using Turbo Tax, claiming deductions and when I can remember to, saving receipts for purchases over $75.00. The IRS website contains a handy lowdown on the stuff you can tell them to pay you back for.

It’s possible to be surprised by what can count as a deduction.

Tip 4: Stop paying full price.

Whether you’re shopping for clothes, cars or cattle, someone somewhere has a better deal for what you’re looking for. Shop below 50% of retail value on whatever you can as often as possible. You can get anything awesome for an awesome price if you look around and be mindful of timing. Clearance, clearance, clearance.

Finally, Tip 5: Get two (2) savings accounts.

Being relatively competitive, I’ve discovered the possibility of competitiveness against even myself! We all operate primarily through duality (Coke/Pepsi, Democrat/Republican… even Noah was hip to this theory) and with some healthy internal competition mixed with the rest of these tips, you just may find your pennies collecting in a jar, instead of spread out on the countertop at the gas station.

How about you all? What strategies do you use to save money and budget for expenses and pleasurable spending each month? 


Share your experiences by commenting below!


Jacob’s Thoughts – Listed below are my random thoughts as I was reading this great post!

• @Tip 1 – Subtracting all of my known expenses for each month before I get paid is a crucial way for me to keep ahead on my finances. The way I do this is by keeping a Google Docs Spreadsheet going with my budgeted items for each month. My normal subtractions are shown below:
• Condo Insurance
• Condo real estate tax savings
• Roth IRA contributions
• Charitable contributions
• Cable internet, HOA, and utility bill payments
• Home maintenance savings
• Microloan contributions
• And dream and life values savings accounts