Milking the Dollar$

If case you haven’t yet noticed, I have a new addition to my blog roll, My Life Finance.  Bradley, a recent addition to our blogger network, is the brains behind this particular site.  Like the rest of us, he focuses on personal finance.

If you get a chance a chance, you should give Brad a visit.  He seems to know his stuff!

To get your finances under control, one of the most crucial steps is to stop wasteful spending.  This is mostly due to the fact that it’s a whole lot easier to save a dollar you already have than earn another.  Unfortunately, in our consumer society, this can sometimes be difficult for all but the most disciplined of us.

I myself once wasted money on a regular basis.  Whether on clothing, banking fees, and/or partying, if I earned it, I spent it.  In fact, like many of my fellow Americans I lived paycheck to paycheck, even taking on some debt. Thankfully, I eventually “got it,” stopped blowing my paychecks, and turned my debt into a net worth.

Below is a list of 20 ways to waste your money, as compiled by Kiplinger.com.  You may notice that I have already addressed many of these.  The ones I haven’t, however, are also very worthy of discussion.

20 Ways to Waste Your Money

1. Buy new instead of used:  Purchasing gently used items in place of new ones can potentially save you thousands (if not millions) over the course of your life. This holds especially true for automobiles, which depreciate by thousands of dollars from simply being driven off the lot. I have found Craigslist, eBay, and even the local paper to be excellent sources for used items.

In addition to buying used, I suggest you look for free items first.  This is what I personally try to do. Over the years, I have found a lot of great stuff that people simply did not want anymore.  Remember, the constant push to get Americans to consume has in turn produced a lot of surplus goods that still have life left in them.

2. Carry a credit card balance:  Credit cards provide some of the worst finance rates available, yet thousands of Americans still carry a balance from month-to-month.  If you are among them, I highly recommend that you start  paying off the entire balance at the end of every month. I have never paid 1 cent in interest to a credit card company.  Alternatively, they regularly send me checks of up $100 from accumulating cashback.

3. Buy on impulse:  This one gets a lot of us.  The article suggests taking a “cool-off” period to resist the urge to buy. I agree and suggest waiting 3 days before making any purchase >$100 that falls into the “want” category, instead of the “need” one.  After thinking about it, you’ll often find yourself having second thoughts about the potential purchase.

4. Pay to use an ATM:  If your bank doesn’t reimburse ATM fees, only use their machines or better yet switch to a bank that does. 

5. Dine out frequently:  This is another big one.  You can usually cook the same foods at home for a fraction of the price you’d pay a restaurant to prepare them for you. 

Thus, if you can’t cook, start learning now!  I did and it has saved me thousands over the years.

6. Let you money wallow:  This one is easy.  If your liquids assets are not earning interest, they are losing you money.

I recommend keeping what you have in a rewards checking account.  In case you are unfamiliar with these accounts, I will post more about them in the future.

7. Pay an upfront fee for a mutual fund: I only invest in no-load mutual funds and suggest you  do the same.

8. Pay too much in taxes on investments:  I know firsthand that capital gains taxes will eat away at your profits. Thus, as the article suggests, max out your Roth 401k/IRA first, if you have one.

9. Buy brand-name instead of generic:  The only brand-name item I regularly purchase is A1 Sauce.  To me, there is no substitute for it, but for everything else, it’s the generic.

10. Waste electricity:  Most of us do this (some much worse than others).  See my previous post on this topic for easy ways to conserve.

11. Pay banking fees:  It boggles my mind why anyone would tolerate their bank “nickeling-and-diming” them.  If your bank does this, switch now.  If it’s your own fault, identify what you are doing wrong and fix it.

12. Buy things you don’t use:  This goes out to the 3-year-old, unused sweater in your closet and that juicer in your cabinet.

13. Own an extra car:  This one will really cost you.  Cars are a major economic drain.  Instead, own a car and a bike.  Try to make the bike your main source of transportation if possible.

14. Ignore the local dollar store:  Sounds like this is starting to become a recurring theme on this blog!  I don’t know why anyone would purposely avoid my favorite store?  Maybe they like needlessly wasting money?

15. Keep unhealthy habits:  Again, already discussed here.  Remember, what kills you can also financially burden you.

16. Be complacent about insurance:  It is easy to shop and compare insurance coverage these days, so why not try it yourself? 

17. Give Uncle Sam an interest free loan:  I am guilty of this one, because every year I get a fat income tax return check.  It would be way more lucrative for me to earn interest on that money instead.

18. Pay for something you can get for free:  I already discussed this above.  The article recommends using the library, and I couldn’t agree more.

19. Don’t use flexible spending account:  I was once guilty of this one for many years.  However, I finally got around to funding my flex plan, and it has saved me a lot on health care costs.

20. Pay for unnecessary services:  I live a pretty a “Spartan” existence myself.  However, I know too many individuals that pay for stuff they don’t use.

In an age when McMansions rule, it’s hard to image Americans downsizing their housing.  However, there are a growing number of individuals who are doing just that – living in houses <400 square feet. 

This volutary reduction in square footage, known as the micro movement, has become increasingly popular in recent years.  Uniquely enough, there is no one single reason why people choose do it.  Simplicity, however, appears to be a  common theme, as some of us are just tired of living with so much “stuff.”

Benefits of micro homes:

You could fill a whole book listing the reasons why living in a small home would be beneficial.  If you could pull it off, it would appear that almost every aspect of your life would be positively affected.  Below are just some of benefits I conjured up while writing this:

• Decreased environmental footprint
• Affordability
• Decreased utility bills
• Low maintenance requirements
• Forced simplicity
• Less vulnerable to housing woes

Micro homes of the web:

Being that I am new to this whole concept, I will direct you to some micro-home resources on the web.  However, I must warn you: the more you read about them the more fascinating the idea will become!

•  Tumbleweed Tiny House Company: This is the best resource I found on the Internet about this topic.  It is run by Jay Schafer who has been living in an 86 square-foot home since 1997.  I recommend you check out his blog and house plans while visiting, because they are both a great read.
• Tiny Texas Houses:  Yet another builder of small homes.  There are a lot of pictures of the different available models here.
• BlueSky MOD:  The modernist approach to tiny homes.  Very cool indeed!
• This Tiny House:  This is a great blog all about living in small homes.  I will definitely be visiting it again when I get time.
• Small House Society:  The name says it all!

My thoughts

I find  the whole small house movement to be one of the most fascinating ideas I have come across in awhile.  Housing is arguably the one area in a person’s life with the greatest potential for saving them money.  The benefits both financial and time-wise would be absolutely life changing if you could manage it!

Personally, I am finding out how easy it is to live with less square footage.  I recently moved into a 395 square-foot apartment.  I thought things would be a little tight, but surprisingly, I have found it to be a perfect fit.  Not only did it motivate me to get rid of more stuff, but maintaining a clean, tidy home has been a snap.  In fact, my experience has been so positive I am now convinced that all I will ever need is a 400-700 square-foot home.

In this day and age, it’s hard for us to image anyone turning a blind eye to society and its financial system.  When we can conjure up this individual, the image is usually of some mentally-ill transient or survivalist/militia type.  No one “normal” could possible live this way, right?

Odd or not, Daniel Suelo is doing  just that.  That’s right, this white, middle-aged college graduate decided that one autumn day in 2000 he had had enough.  Fed up with money’s control of his life, Suelo headed for the outskirts out Moab, Utah 9 years ago and hasn’t turned back.  Instead of living in a house full of manufactured goods, he now calls a cave his home and dines on whatever he can scavenge.

Below I have included some excerpts from Suelo’s story.  Please take the time to read the full article about his life, because this guy’s existence is pretty amazing.  He kinda reminds me of a modern-day Chris McCandless.  Enjoy!

On why he left:

“When I lived with money, I was always lacking.”  “Money represents lack. Money represents things in the past (debt) and things in the future (credit), but money never represents what is present.”

About food:

He sautés the watercress, mustard leaves, and wild onions, mixing in fresh almonds he picked from a friend’s orchard and ghee made from Dumpster-dived butter, and we eat out of his soot-caked pans.

His former life:

HE WASN’T ALWAYS THIS WAY. SUELO graduated from the University of Colorado with a degree in anthropology, he thought about becoming a doctor, he held jobs, he had cash and a bank account. In 1987, after several years as an assistant lab technician in Colorado hospitals, he joined the Peace Corps and was posted to an Ecuadoran village high in the Andes.

What his future holds:

Suelo is 48, and he doesn’t exactly have a 401(k). “I’ll do what creatures have been doing for millions of years for retirement,” he says. “Why is it sad that I die in the canyon and not in the geriatric ward well-insured? I have great faith in the power of natural selection. And one day, I will be selected out.” Until then, think of him like the raven, cleaning up the carcasses the rest of us leave behind. 

I have noticed that both Target and Wal-Mart are currently selling a “Colgate Value-Pack.”  For $4.99, you get three tubes of Colgate Cavity Protection toothpaste. 

This is one smoking deal, so stock up if you feel the urge!  I believe toothpaste lasts a few years, but I’m not positive?

And yes, I do realize that this breaks my previously discussed $1-per-tube rule.  However, with this deal, you actually get three 8.2 ounce tubes, which equals just a little over four of the 6 ounce tubes of my usual brands.  Thus, I would be only slightly breaking it:)

I am constantly searching for new ways to lower my utility bills. It’s almost like a never-ending quest, because no matter how far I whittle them down, I never quite feel satisfied. The one I’ve really struggled with lately has been my electric bill.

My electric bill varies a lot depending on the season.  It was running almost $200/month this winter, but is now closer to $60.  This is mainly due to me living in Montana while renting a poorly-insulated house.

Unfortunately, the fact that I am indeed a renter puts me at a disadvantage when it comes to lowering this bill.  Renting usually precludes more drastic energy-saving measures such as insulating and remodeling.  A home owner, on the other hand, can do as he or she pleases in an effort to save some dough.

Although burdened, I have slowly (but surely) discovered little ways to reduce my electricity use.  Fortunately, most of these have been simple enough that I haven’t needed to purchase a sledgehammer and new dry wall!

Below is a list I found of 23 ways to reduce your electric bill compiled by Mary Hunt of Women’s Day.  All of her suggestions have been categorized as either pertaining to the air conditioning, the dishwasher, the clothes dryer, the electric stove, electronics, the house in general, or as “other.”

If you have time, I suggest you follow the link back to the original article.  Although it may appear brief, I found it to be packed full of useful information.

23 ways to save on your electric bill

Air Conditioning:

1. Install a programmable thermostat

2. Raise the temperature

3. Use fans

4. Replace or clean filters

Refrigerator/Freezer:

5. Vacuum the coils

6. Tighten the seals

7. Defrost often

8. Keep it stocked (sometimes)

Dishwasher:

9. Fill it up

10. Air dry

Clothes Dryer:

11. Load it properly

12. Hang your clothes

Electric Stove:

13. Use flat bottom pots with tight lids

14. Use Smaller Appliances

Household Electronics:

15. Turn off TV when not in use

16. Unplug the computer

The House:

17. Inquire about a home energy audit

18. Do your own audit online

19. Seek professional help

20. Inquire about discounts

21. Sign up for voluntary time-of-use

22. Opt for a summer cycling plan

23. Look into available specialized services

Again, I urge everyone to refer to the original article because some of these might be confusing without an explanation.  You will probably be surprised by a few of them (as I was).  Personally, I found 6, 7, 13, 21, and 22 to be very interesting ideas.

List expanded:

I really like this list; however, I feel that it’s missing a few things.  Therefore, as always, I have taken the liberty to expand upon it:

• Replace your incandescent bulbs with compact fluorescents ones: I couldn’t believe this one was left out.  According to EnergyStar.com, each CFL you install will save you $30 over its entire lifetime.

Now think about how many sockets you have around your house.  Do you realize the money saving potential now?.

• Insulate your hot water heater: According to the U.S. Department of Energy, if your tank does not have a highly-rated R value, adding insulation can reduce standby heat losses by 25-45%.  If you are not sure about your tank’s rating, they recommend touching it.  If it’s hot to the touch, it needs insulation.

• Maximize available natural lighting: As a design student, I have read many times about the financial benefits associated with natural lighting.  However, not only can natural lighting save money, but it also has also been shown to improve one’s mood.

• Install window awnings: Window awnings ward off solar radiation from entering your home on hot, sunny days.  However, before running off to buy awnings, consider cheaper options.  A quick Google search should lead you to blueprints on how to build your own for less.

• Use a Kill-A-Watt to find the worst offenders: A Kill-A-Watt can be purchased online for around $20, if you shop around.  If you’ve never used one, they are really cool!  By plugging an appliance into the Kill-A-Watt first before inserting it into an outlet, you can monitor the amount of juice it’s using at any given moment.

Final thoughts

In all, both Mary and I have barely scratched the surface on ways to save electricity around the home.  For fun, try searching for “ways to save electricity” in the search engine of your choice.

Thank you for reading!  I hope this post saves you some money!

I would like to extend a warm welcome to the newest member of the blog network, Ben! 

Like me, Ben is a personal finance blogger who operates the site Banker, Saver.  You can visit his blog by clicking on the link in my blogroll.

With Ben, our network has grown to 5 members strong!  Thank you everyone for your continued support of Milking the Dollar$ and its affiliate blogs!

Protecting your computer is crucial if you regularly surf the web.  That’s because the Internet is full of viruses, worms, spyware, and other “nasties” that can wreck havoc on your machine.  I myself have had the misfortune of contracting a few of these over the years, including a recent bout of the dreaded XP Antivirus 2008. 

Fortunately, decent protection and support can be obtained online for free!  Below is a list of useful software and services that can will cost you nothing.  For simplicity, I have catorgized everything into three subheadings: anti-virus software, anti-spyware, and support services.  When you’ve finished reading, I suggest you do some downloading, if you’re not already adequately protected.

Free anti-virus software

Anti-virus software is one of the basic components of PC protection.  These 3 are the most popular free versions obtainable online:

1. Avast:  I have run Avast on my desktop for years, and it works great!  The interface may look a little rough, but the protection is superb.  Features include scanning on demand and adjustable sensitivity levels.  To download Avast for free, click here.
2. AVG:  AVG is what I run on my laptop.  I have found it to be more user-friendly and a bit more polished than Avast.  It is available in an upgraded version for a price, but for most of us, the free version is just fine.  Click here to get AVG.
3. Avira:  I must admit that I have no experience with Avira.  However, it is highly-rated and recommended by those who do use it.  In addition, it’s considered to be amongst the easiest to use.  You can find Avira here.

Free anti-spyware/malware

There are a lot more choices when it comes to free anti-spy/malware programs.  I have listed the ones I have found to be the most useful:

1. Malwarebytes:  If you don’t already have this installed on your computer, do so right now!  This is one of the fastest, most effective anti-malware applications on the market.  To get Malwarebytes (and I really think you should), click here and follow the directions.
2. Spybot – Search & Destroy:  I have this on my work computer.  To me, it does a good job and has generally received good reviews.  It is available for download here.
3. Adaware:  Adaware is yet another highly-regarded anti-malware application, brought to you by Lavasoft.  I have no experience with it, but have only heard good things.  If you want it, click here and download the free version.

Free help/support

I would guess everyone gets something they don’t want on their computer eventually.  Most of the time, the above-mentioned programs can get rid of it for you.   However, in case it won’t go away,  the following is a list of free online sources for help:

1. Bleeping Computer
2. Geeks to Go
3. Cyber Help Tech

I myself used Bleeping Computer when I got an infected rootkit that was beyond the scope of my “nerd skills.”   I can’t recommend them enough, as they walked me through the whole cleansing process from start to finish.

Things to know about free PC protection

There are a few thing to consider before you get all download happy.  Hopefully, these suggestions will make the process a little easier and ensure the greatest amount of protection:

• Never run more than one anti-virus application on your machine at any given time: It is as simple as that.  Multiple anti-virus application running at the same time can cause major problems.  Thus, uninstall any that you may already have, including those free trial offers, before installing any new anti-virus software.  However, the same does not hold true with anti-spy/malware, so download as many as you want.
• Remember to update your applications: New viruses and other goodies appear on the Internet daily.  Thus, it is important to constantly update your definitions, so that each program will recognize new threats when they come across them. 
• Make sure your firewall is turned on:  A firewall is your first line of defense against hackers, so make your you keep it on as much as possible.
• Update your browser:  New vulnerabilities seem to be discovered on a regular basis.  Thus, it’s always important to update your browser, especially if you are using Internet Explorer.

Final thoughts

If you are one of those individuals who leaves his or her computer unprotected, download something now.  There is no excuse given the wide availability of free applications.  Trust me, if you leave your computer unprotected for long, a day will come when you regret neglecting it.