Alan's Two Cents - Extra money?

Some friends of mine and I have been talking about the economy and the recent volatility of the stock market. People are very concerned with the stability of the economy and the market. A lot of people are moving their money around from more riskier stocks/equities to bonds and CD’s, which are more “safe.” My question is…Why? My friends and I were all in agreement that if we had some extra money we would throw it into the market like now, yesterday, last week. Buy low. Sell high. Right? Well now is pretty low! You are getting a lot more bang for your buck right now! So if have some extra cash under your mattress or something…invest it! Don’t just take my word for it…how about Warren Buffett’s?! Read his recent Op-Ed in the NY Times http://www.nytimes.com/2008/10/17/opinion/17buffett.html

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Alan's Two Cents - quick cash

Are you in need of some quick cash? What to know some of the options that are out there and the consequences? I recently ran across this page http://money.cnn.com/galleries/2008/moneymag/0808/gallery.rasie_cash.moneymag/index.html on CNN Money. It has some good ideas and gives you the pros and cons to each scenario. Take a look.

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Alan's Two Cents - Save on Home Improvements

Are you looking to do a minor/major renovation in your home? Perhaps update those old kitchen appliances? Get a new washer and dryer? Put in tile or hard wood floors? I was recently informed of 20% coupons from Home Depot on eBay. These coupons can be purchased on eBay for $10-$20, however they could save you hundreds of dollars. A friend of ours purchased a bundle of like 5 coupons and used them to update their home. So if you are going to spend some serious change at Home Depot, check out these coupons on eBay.

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Alan's Two Cents - Free Entertainment

How much does it cost for dinner and a movie these days? $50? $60? And the babysitter? (I wouldn’t know)…but it all adds up, and really quickly too. Need some entertainment ideas and that cost nothing? I recently came across an article (http://www.phoenixmag.com/lifestyle/things-to-do/200808/get-your-kicks-for-free/) in Phoenix the magazine that listed 15 free things to do in the valley.
One that I’d like to highlight is First Fridays (artlinkphoenix.com). This is basically an art walk in downtown Phoenix. There are many galleries, displays, and tents set up to show off their goods. There is also free transportation to get you to the different “districts.”
Even if you’re not from the Phoenix area, there are plenty of ideas in your own community. Take advantage of the free entertainment that is out there - you'll probably be surprised how much money you might save.

Comment below with any of your own free entertainment ideas. I know we'd appreciate any other suggestions.

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Alan's Pick - Maui Jim Sunglasses

I have owned one pair of sunglasses in my life, called Maui Jim’s. I bought them on our honeymoon in Florida and since we were moving to the Valley of the Sun, I thought I would need a pair. At the time, I thought the price tag was little (perhaps very) steep for a pair of sunglasses. I mean really, how can sunglasses make that much of a difference whether it’s a pair of gas station aviators or a designer brand?!? However, once I put them on…I was sold! I never thought spending $175 on a pair of sunglasses would be justifiable, but it was! Viewing the world through Maui Jim’s will make the world a much more beautiful place! Check them out!

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Alan's Two Cents - Redbox

Do you have an online movie subscription from Netflix or Blockbuster? We did and we took advantage of it too. However, after watching nearly all the movies we cared to and getting caught up on our TV shows (24, Prison Break, and Lost)…there was nothing left for us to watch, so we cancelled the subscription. (The cost is anywhere from $3.99 limited to 2 DVD’s/month to $19.99 3 DVD’s at-a-time and 5 in-store exchanges).

We were recently introduced to Redbox . Redbox is basically a DVD vending machine placed at a variety of locations like McDonald’s, Wal-Mart, and CVS Pharmacy. The DVD rentals are $1 for the night (due the next night at 9:00 pm) and you can return the DVD to any Redbox location too. This is a great way to see new release DVD’s at an affordable cost. $1 - you can't hardly get anything for that anymore.

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Alan's Two Cents - Brown Bag your Lunch

How often do you go out to lunch per week? Most lunch outings can cost between $5-10 each time. That can add up really quickly. We've found that there is a much more affordable and probably healthier way to eat lunch…pack your own lunch.

We cook at home quite frequently and we usually have plenty left over. We pack the leftovers as we are cleaning up into Tupperware containers, that way there is no preparation in the morning. I simply grab my packed lunch on my way out the door.

This is a very resourceful and economical way to eat lunch. And you will save yourself some dough along the way.

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Alan's 2 Cents - Coffee

I love coffee. However, unlike a lot of American's, I do not go to Starbucks or Caribou Coffee on a daily or weekly basis by any means. There is person in my immediate family (I won't name names) that might go once a week to indulge herself in a $4 - $5 foo foo drink, and I am sure she would love to go more frequently. Although, as the economy slows a bit and people have less expendable income, going out for coffee might not come as often.
I recently came across this website (http://www.finishrich.com/free_resources/fr_lattefactor.php) that goes into detail how much money you can save over a 40 year period. Although it might be a little extreme, you will get the point. Check it out…
The Latte Factor® is based on the simple idea that all you need to do to finish rich is to look at the small things you spend your money on every day and see whether you could redirect that spending to yourself. Putting aside as little as a few dollars a day for your future rather than spending it on little purchases such as lattes, fancy coffees, bottled water, fast food, cigarettes, magazines and so on, can really make a difference between accumulating wealth and living paycheck to paycheck.
We don't even realize how much we're actually spending on these little purchases. If we did think about it and change our habits just a little, we could actually change our destiny.
Still not convinced? Consider this:
$5 per day (the average cost of a latte and a muffin) x 7 days = $35 per week
$35/week = $150/month
$150 per month invested at a rate of 10% annual return =
1 year = $1,885
2 years = $3,967
5 years =$11,616
10 years = $30,727
15 years = $62,171
30 years = $339,073
40 years = $948,611

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Alan's 2 cents - the Library

Steph and I have been reading quite a bit over the past few years. We initially bought some books, however, we recently starting checking out all of our books from the library. Our library has made it so easy that we are able to reserve books online and when they are in, we get an email. You can also renew books online. Easy as that!

We love our local public library. Most libraries contain a wide variety of books, magazines, CD’s, DVD’s, and other reference material available to you. The library is an excellent place, which is funded by you, the tax payer. Therefore, you should take advantage of it. So, instead of buying that new Vince Flynn novel you really want (if you have not read him yet you need to)…check it out at the library!

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Alan's Two Cents - Consumer Reports

I don’t subscribe to that many magazines…actually only 2, which include Sports Illustrated (imagine that) and Consumer Reports. Regarding the later subscription, if I am going to make a significant purchase or even a small one for that matter, I am going to consult Consumer Reports. Why? Because I value their unbiased expertise and the intensive testing they perform.

Consumer Reports is, according to their website (www.consumerreports.org), “an expert, independent nonprofit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves. To achieve this mission, we test, inform, and protect. To maintain our independence and impartiality, CU (Consumers Union) accepts no outside advertising, no free test samples, and has no agenda other than the interests of consumers.”

Consumer Reports provides a great platform for you, the consumer, to be very well educated. I encourage you the next time you are going to make a significant purchase (big or small) to do research and learn about the different products. In doing so, you might just save a few extra bucks!

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Alan's Two Cents - Auto & Home Insurance

Insurance can be a major expense for most families. It certainly is for mine. Personally I have used the same auto insurance company since I turned 16. So I don’t really know anything different. I have heard that you should change insurance companies every so often but have never put that into practice…until now. Recently my work offered us a group auto and home insurance rate. I thought I'd at least check it out so I called up one of the three companies to obtain a quote and by the end of our conversation I had switched. Steph and I are saving $400+ per year for an auto (two cars) and a home owner’s policy.

The company offered many discounts and because they are online and don’t have the high overhead costs that your neighborhood insurance agency has, they can offer lower rates to begin with. Another way to save with insurance companies is to raise your deductible (to at least $500). This will make your premium payments lower.

So, look in to changing auto/home insurance companies...you might be surprised at just how much money you can save.

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Alan's Two Cents - Oil Change

I got an oil change the other day from an auto shop that I normally do not go to. It is more of a car wash/gas station/oil change “one stop shop” type of place. I normally do not go to these types of places, but I was having a hard time getting in to my usual shop. Needless to say, I now realize why I will not go back to said “one stop shop.”

After waiting 10 minutes or so, a mechanic called my name. I am thinking “that was fast.” So the mechanic proceeds to tell me that my transmission fluid looks like this and it should look like this. Both were the same color but one was darker “dirtier” than the other. He also did this for my brake fluid as well. I am thinking “these people are just trying to talk me into something I don’t really need.” I passed on the transmission and brake flushes. Then he pulls out “my” air filter and tells me it is dirty and should be replaced. I pass on that too.

Now, I consider myself to be somewhat handy…I know where my air filter is and if I had a driveway/garage I would probably do my own oil changes. When I got home I popped the hood and found my air filter. When I took it out it was a completely different air filter than what the guy had showed me and it was totally clean. I was a little peeved.

So the moral of the story is…don’t get ripped of by your local auto shop. I would recommend keeping a log book of what service has been done on your car.

If your are interested I recently found this site http://www.consumerjungle.org/content/view/491/1200

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Alan's Two Cents - Cell Phone Usage

Cell phone bills can be a large expense in your budget. I know ours is! Because of this it's important to familiarize yourself with your cell phone plan and billing statements. Below you'll find just a few things to consider.

To make sure that you have the right plan, review the last three months of your cell phone bill. You should know and understand peak and off-peak usage, text message and picture rates, area coverage, roaming charges, per minute fees for going over your allotted minutes, and termination fees. Knowing these factors will greatly help you.

Make sure you are using most of your minutes in your specific package. If you are consistently going over and getting charged for it…you might want to consider upgrading your plan. Otherwise, try and make your phone calls primarily during off-peak times. On the contrary, if you have an excessive amount of minutes each month…your specific need might be better suited for the next plan down.

Know the in’s and out’s of your specific plan. Don’t try to stimulate the economy by using your cell phone! And on a personal note: join Verizon - that way we can all talk for "free"!

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Alan's Two Cents - Go Green

Ways to save water without spending a dime

1. Turn the water off while brushing your teeth
2. Fill a milk jug with water/sand/rocks and place it your toilet tank to displace water
3. Set a timer for your shower
4. Turn off the water while you shave
5. Fix toilet and faucet leaks immediately
6. If you want to spend some money, buy a water-saver showerhead that has a rate of 1.6 gallons per minute (gpm). (A high gpm is 2.5) It will save you money in the long run.

For some other tips go to http://www.thegreenguide.com/green_home/

Other ways to save money in your house

1. Efficient use of appliances
2. Clean your lint trap in your dryer, which is the most costly household appliance, every six months
3. Replace your air filter for your A/C or heating system every 3 months
4. Turn off the lights when you leave a room
5. Unplug appliances when you are done using them like a phone charger, toaster, hair dryer etc.
6. Use a programmable thermostat
7. Replace your existing light bulbs with an energy saver bulb like florescent bulbs
8. Talk with your electric company to see if they offer a plan for peak and non-peak usage. For an example, we have a peak time of 9am - 9pm, therefore we limit our electricity use during that time frame.

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Alan's Two Cents

Are you tired of being surprised at how fast your grocery bill adds up? If you are, I have some good news for you. I recently read an article in Consumer Reports (CR) that outlined some ways to slash your grocery bill. Here they are:
- Make a list. You will find that you are not buying any (or as many) extras that you don’t need anyway…in other words, follow your list! CR also mentions to not shop while you are hungry…makes sense.
- Pre packaged and pre-cut foods are going to cost more. Again…that makes sense
- Compare the unit prices of products. You might be prone to think that the larger item is less expensive; however, that is not always the case. Check the label of the product, where the unit price will be posted.
- Impulsive buys….don’t get suckered into buying the products at the checkout. Have a little self control! If you can’t resist, go to the candy aisle and buy a whole box….at least that way the unit price will be cheaper!
- Endcaps, which are the displays at the end of the aisle, are often not on sale says CR. Endcaps can also contain products that are about to expire, so make sure the product is good.

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