Top Cash Back

For a while I have been using ebates. A site that gives rebates for orders online at most popular merchants. It was nice getting a quarterly check in the mail for things I was going to buy anyway. I averaged about $35 per quarter or $140 per year!

I have now discovered TopCashBack.com where they offer larger (the largest in fact) rebates from the same places. They are quite flexible and I can keep more in my own pocket. Both are wins in my book!

I will continue to use them and add to my savings account!

Maxing out points bonus: Chase Freedom Double Dip!

The bonus categories this quarter ending 6/30/2012 are grocery stores and movie theaters. I don't go to the movies so I am trying to max out the $1,500 spending cap at grocery stores. I don't come anywhere close to that in food!

The good news is that Kroger sells a LOT of different gift cards. To make the deal sweeter they are currently offering, until 6/16/2012, 4x fuel points for branded gift cards (except Kroger, Visa, Master Card, and American Express). I did my best to maximize both without buying cards I don't need. I settled on:

• $500 Kroger gift card (bought before I saw the 4x fuel points deal)
• $500 Visa gift card (I needed flexibility more than fuel points)
• $50 Amazon.com card
• $100 Shell Gas card
• $100 Shell Gas card
• $50 Kroger card #2

As you can see I spent $1300 in gift cards. I had already spent $200 at Kroger normally since 4/1/2012 so I have now reached the limit for the 5x Chase points for the quarter. I am working my way through the Kroger gift cards for food and gas. I just used the Amazon card to order what I was going to buy anyway. I am keeping the Shell cards for future gas needs for myself as well as company travel (reimbursed!). The $500 Visa card cost me an extra $5.95 fee but not bad for the flexibility and extra 2,500 Chase points. I can use it anywhere and spend normally.

 I am selling the second Kroger gift card to a friend for $50 cash. Money he would have spent anyway and I get 250 more points out of it. Being creative is all part of the game!

Looks like I will be giving the credit cards a break for most things until I burn through these gift cards. Carrying them around is a slight hassle but worth it for all the points and benefits I get.

Where spending more makes sense: Technology

I am always trying to find new ways to save a buck yet there are times when spending extra makes sense in the overall big picture. One of the things that I always aim for quality over price is technology. The up front outlay saves me headache, time, and of course more money down the road. My recent experience with the WiFi at my house is a good example.

I currently have a refurbished Cisco wifi router at my house. It works great...most of the time. In the past few months I have had issues with the wifi signal just dropping out. It usually happens about once per day on all of my devices. All I have to do is reset the wifi on the device and it works again. A minor annoyance at first but now I have had enough.

My $40 cheapie router is costing me time and productivity. I did some research online and found a lot of other people with similar issues and they all came to the same conclusion: spend the money for a better product. In my case that is an Apple router which makes sense since all my devices are also Apple.

I am dropping $150 on this but I know it will be solid. It also has some nice other features my current one does not have so I am getting an upgrade out of it too. They have nothing but stellar reviews online and the failure rate is extremely low. On top of that I get a full year warranty instead of 60 days. A win in my book.

Ignore Discounts! Stop Wasting Money!

It is not secret that I get very irritated by marketing. Marketing people are no better than politicians. They use specific wording so that you hear what you want to hear. In the end they are all lies then end up with you spending money (whether it be taxes or buying a product/service).

My biggest pet peeve is when an advertisement says "Save $X dollars!". You are not "saving" anything. You are getting a discount on an already overpriced item. The simple fact is that you are being tricked into thinking it is a good deal. That may or may not be the case!

You only save money when you do not spend it. Buying at item for $5 that was "normally" $10 does not mean you saved $5. It means you spent $5. That "extra $5 saved" doesn't get automatically transferred to a savings account. You just got a lower price. Don't be fooled by advertising!

Rule 1: You only save money when you do not spend it and move it to some sort of savings vehicle like a savings account, CD, investment account, etc.

Rule 2: Discounts are good but shop around first. Just because you "save $5" or the item is 50% off does not mean you are getting a good deal. Do your homework before buying anything.

Rule 3: Ignore advertising. It's sole purpose is to make you spend more than you plan to. You are almost never getting a good deal. 50% off a price that is 4 times what it should be is still an awful deal. Knowledge is power. Self control is the only way to really save money!

Being on a tight budget really makes you look at the bottom line and not "what's on sale". If your budget is $50 it doesn't matter what the sales are. You are interested in the bottom line price. Bring a calculator and figure it out for yourself if you have too. Using Google to find out if the item is priced better elsewhere--"on sale" or not.

Cutting back on going out is working!

I am finally getting to a point where I am going out a lot less and staying home more. At first boredom was an issue but I am finding ways to fill me time. I am also learning more and earning more points as a result!

That is not to say that I never go out. At this point I am trying to limit my going out to around once per week unless there is some special occasion I must attend. I still have to maintain a social life to be sane.

My budget numbers reflect the success and have certainly slowed the financial bleeding that was taking place for a while. I am cooking more at home and learning a lot more about food which is something I truly enjoy. This frugality paired with raises will lead to more travel opportunities and doing what I truly love to do: see the world!

I am also working on side projects to bring in extra money. Instead of being out spending I will be at home earning. That is a double win! I have to stick to my goal of a 1-year emergency fund if I am ever going to get out of the 9 to 5 rat race. I am moving in the right direction and it feels great.

Points are another form of currency

To this day I still cringe when I see someone using a debit card--or worse cash--to buy things. I am both thankful and appalled that people can't see that they are leaving money on the table each time they do this. I suppose I have different priorities than most but with the wide variety of programs available people should be earning points for everything!

The best example I have are my trips to Asia in First/Business class for around $100-200 out of pocket. People are always in awe when I say it but I am doing nothing complicated. I simply learn the rules of points programs use them to my advantage. Every time I spend money I make sure my points balance increase somewhere. It is simply a state of mind!

Even if you don't want to travel at all you should at least be using some sort of cash back credit card with no annual fee. If you could save 1% of every dollar you spend with no extra work on your part why wouldn't you? You simply spend like normal using the credit card, fill out a form online, and get a check in the mail. Takes you 5 minutes. Amazing how lazy people have become in this country!

While I am appalled I am also happy. Too many people doing this will create inflation. Too many points "printed" will mean that they eventually will lose value and be less worthwhile for me. It is a double edged sword I suppose. It goes back to the old adage that laziness and convenience equate to money lost. There is a reason why we have so many convenience stores that make a profit every year! The wants of now trump the needs/wants of later. This is America after all...

Valentine's Day

Today is one of those "Hallmark" holidays that I particularly dislike. It is definitely an "America Only" holiday which is just an excuse to jack up prices at restaurants, buy expensive candy, flowers, and cards, and just spend too much in general for no real reason at all. I call these types of holidays "corporate marketing" holidays as they are the only real ones who benefit form them.

Rant aside, I have a few tricks up my sleeve to curtail the financial damage from days such as these. Firstly I stay far, far away from the pre fixe menus at restaurants. They are always a horrible deal and the quality is mediocre at best. Second I wait until after Feb. 14th for flowers and candy. They will be 50% or more cheaper and just as nice. Akin to buying wrapping paper after Christmas is over.

I also select my restaurant based on if I would go there normally. This year we went to Planet Bombay which is a great (and reasonably priced) Indian place in Atlanta. As an added bonus they are part of miles for dining where I get extra United miles based on the dollar amount I spend. We had a very good meal with leftovers for lunch the next day. Now that is a frugal-ish holiday!

Holidays in general make me quite grumpy but this year wasn't so bad. I just have to stick to my beliefs and budget and move on.

New Spending Psychology: Focus on what matters to me

I did a quick skim on my spending over the last year and I seemed to have phases. For a while I would eat out a lot. Then spend a fair bit on travel. Then I would buy a few gadgets or things for the house. It was based on whatever "mood" I was in at the time. This, in the end, but a damper on getting closer to my goals.

I now vow to be more focused.

Overall my major personal interests are travel, food, and finding excellent deals on the first two. I am going to follow this school of thought: spend on what you are passionate about and skimp on everything else. Easier said than done as I learned from last year's spending data. The good news is I am much better than 2010 at it.

My budget has now evolved where I save money for travel specifically. I use that money not only to have while I am on the road but also pay for taxes for award tickets, annual fees for points earning credit cards, and the odd long weekend away on a cheap airfare domestically. This part of my budget will certainly grow with my income. Travel is top priority in my life!

I have a larger than average food budget for a few meals out and so I can cook less boring stuff at home. Cooking is something I am doing a lot more of as of late and intend to continue. It is a skill that is never bad to have and from what others tell me I am pretty good at it! A friend and I are always experimenting and sharing cooking ideas. It works well for me.

Finding deals on travel and food spawned from the first two. The biggest being credit card churning. I sign up for cards with large initial bonuses, use them, and then cancel the cards and repeat. This has gotten me a lot of points and as a result some awesome trips. For food I mostly look for the best price/quality ratio for my cooking ingredients. I also keep an eye out for discount coupons for my favorite places around town. They are rare but do come up now and then!

I find that when I spend on things I truly care about I feel better about it. If I spend $100 on airline taxes for a flight to Bangkok I have no problems. If I spend $100 on a night out with friends I most certainly regret it for the rest of the month and beyond. Breaking the bad habits so I can keep the good ones is my key to success. Now let's see if I can actually pull this off...

New Goal: Be more careful with food/going out spending!

I have been bad with this the past few months. The bottom line is that I have been eating/going out too much and have to cut back. It will be an adjustment for me as a person who really enjoys going out on a regular basis.

I am doing more creative cooking at home to combat this somewhat. Trying new dishes and ideas in the kitchen and learning a useful skill at the same time. I am also utilizing leftovers for work lunches to help prevent waste, save money, and ultimately be healthier than the fast food options in the mall in my building.

I am limiting myself to eating lunch out no more than twice per week (work travel counts as lunch out since I have no choice then). I am also cutting way back on restaurant dinners and nights out with friends to preserve my budget. I am trying to limit it to special occasions and weekends. This should also free up my time for side projects/work where I will hopefully earn more.

This one will be tough to do but I must do it if I want to get ahead on my savings goals. Not blowing my extra money each month on going out will allow more travel and travel to more expensive places. It will also create good habits for when I am not working or working less in the future. I just have to be stubborn about it!

Keeping the grocery costs low: I have a system!

This time of year has me paying extra special attention to my normal expenses. I switch to bare bones grocery shopping and utilize what I have in the pantry already first if I can. It has worked well this month and I am staying under budget.

I am starting to be able to purchase what I need at the lowest price. Splitting my grocery shopping between the farmer's market and grocery store is allowing me the best of both worlds. All of my produce, spices, and juice come from the farmer's market. I tend to get dry products, meat, and packaged items at the grocery store. Add in coupons and sales and I come out well!

I am getting into the habit of having fresh fruits and eating more salads on a regular basis. Not only is this healthier but it tastes better too. I have almost no canned vegetables around unless I have a specific recipe. I do get canned tomatoes and anything that is really good sale for quick needs. Mostly I use fresh these days and have better meals as a result!

Finally I am working on my bulk cooking skills a bit. I currently make my own chicken noodle soup, spaghetti sauce, and sometimes chilli in big batches. I freeze and use them over the next month or two. It takes me 1 weekend afternoon to cook all 3 at once if I need them. I always find they taste great when reheated later and it takes very little time!

I tend to go shopping more often when using fresh ingredients but I am better off money wise even with the extra trips. Both stores are close to my house and the gas cost is negligible. I try to go to both on the same day if possible. Even still sometimes you still just need butter, milk, or bread. Such is life.

Find it for free first!

For the past few months I have been trying my best to spend as little money as possible. It is helping as my savings is increasing over time and I have been able to adjust my budget downward a little.

With that goal in mind I still need/want some things from time to time. Clothes have to eventually be replaced, household goods re-bought, and so on. I have a strategy that has evolved from this and the idea is to see if I can find a free option first.

I have several ways to find it for free. I check out websites such as slickdeals.net for free (or nearly free) after rebate deals on what I am looking for. Recently I have gotten 5 quarts of motor oil, 3 oil filters, and a Digiorno pizza all for free after rebate. Not bad!

I am not starting to look into craigslist and freecycle to see if what I am looking for is available for free. I am still trying to find a way to make money from it too! You can find all sorts of things for free such as furniture, clothes, book, movies, and so on. Why but new when these will work just as well?

Before running out to the store or mall see if you can find it for free first! The more we save today the less we have to work tomorrow. Time is the most valuable asset.

Trial Run: Taking lunch to work next week

In my constant battle with food and restaurant spending I am going to experiment with taking my lunch to work. I have mixed thoughts about it since I have the psychological need to get out of the office at least once per day to keep my sanity. Sitting in one place for 8.5 hours is simply not fun.

We shall see how this goes. On one hand it will certainly save me money over the long term which I can use for travel and other goals. On the other hand I am not sure how it will affect my stress level at work. I believe it is a step in the right direction so I can hopefully find a balance of money and sanity in this area. Eating out lunch everyday is simply too much spending for my budget.

I will see how this goes. I am also considering limiting the eating out to 2 times per week as a compromise. We shall see!

No Spend Day!

Today I have reached one of my "back burner" goals of having a day where I spend no money. I finally achieved that today! I have gone a full 24 hours without spending any money of my own. It is nice to see a day go by without dollars coming out of pocket. I hope to have many more days like this.

Even though I did eat out today I use gift certificates to cover the cost. One to get coffee which was a gift from the office and the other is a Quizno's punch card for sandwiches that I picked up a while back. This covered my food needs for the day and I had leftovers for dinner. Using what I already have instead of spending more is the most frugal choice one can make.

I have taken many steps toward making this possible. I have a well stocked fridge and pantry so I can cook several meals without having to go grocery shopping. I always keep some Lean Cuisine to help curb buying takeout since they are very easy. I also make it a point to go out a lot less. My biggest money battle is sticking to the food and entertainment budget. I am seeking out new hobbies to keep me busy. Cooking is a big part of that since I love all kinds of food. That will be my biggest challenge to achieve.

I am taking leftovers to work tomorrow for lunch and also am making a pot roast at home in the slow cooker so I can get at least two meals worth from that as well. Planning ahead with food almost always saves time and money. I am slowly getting into that habit so I don't have to cook everyday. Change in habits takes time and effort!

Making the switch: Star Alliace!

As of today I have decided that I will officially divert my spend from my Delta AMEX card to my Continental Mastercard. See that I have a lot more travel options for the places I like to go abroad it makes the most sense to me. This will result in my earning on Delta coming from flying and bonus offers and the majority of my Star Alliance miles coming from spending.

It is also handy that Mastercard is practically taken everywhere so I don't have to worry about being AMEX centric with my choices. I am also going to consider flying Star Alliance if I can. Most of the time it makes the most sense to go Delta but if I can add a few more miles here and there I will. I will also keep an eye out for really good mileage run fares on Star Alliance to help as well.

I am going to try this out for a while and see if this is the best move. I am somewhat concerned that I will not be able to earn enough miles on Continental with only spending to cover my travel needs. I will see how it goes for now and evaluate again in a few months. Ideally I would like to earn enough to cover at least 1 yearly flight to Asia but that is a lofty goal at this point.

Cash versus Card: Which is best?

An ongoing debate in the personal finance world is whether it is best to use cash or card for all of your purchases. Cash folks believe it is best because you cannot spend what you don't have. Card folks argue that you are missing out in interest, bonus points, etc. Personally I side with the card people. Here's why:

• If a card is lost it can be replaced. Cash cannot.
• I earn bonus miles for every purchase
• I have automatic electronic tracking of my spending via mint.com
• I am not wasting time and gas going to an ATM frequently
• I earn interest on my "spent" money until the credit card bill comes
• I am very aware of my finances and spending habits. I have self control

I use a credit card but the majority of the above can be achieved with a rewards debit card too. You only miss a little interest earned since the money is taken immediately.

I do use cash but rarely. I always have less than $20 on me at any given time unless I have a specific purpose. I would rather earn the bonus points and interest than have a wallet full of notes. I also find that I simply do not track my spending with cash either. All of this made me decide to use cards instead.

What do I use cash for?

• Highway tolls. In most cases you have no choice
• Small transactions where the merchant balks at my card
• Yard/Garage/Estate Sales
• Establishments that only accept cash.
• Travel abroad

Cards and cash both have their uses. Here in the USA cards work out way better for me. When I am traveling overseas they are accepted a lot less and usually involve and addon fee. I simply use cash there and withdraw my daily budget (I get ATM fees refunded).

Do what works for you! This is my stance on the debate.

When it pays to outsource chores and tasks

Being frugal is about saving money. Most people associate it the being cheap. The true spirit of being frugal is being selective on what you spend your money on while getting the most out of what you do buy. Everyone has a point where time becomes more valuable than the money saved. I am a fan of "spend on what you are passionate about and skimp on the rest."

Personally I choose to outsource oil changes since I can find coupons that make the total cost of the service less than buying my own oil alone. I get to not get dirty working on my car and it is also cheaper. Now that is a frugal choice! I had to get my home pressure washed for insurance purposes. I priced out renting the equipment and found that for $20 more I could pay a company to do it. It was worth $20 to me to not have to get on a 20' ladder and save me hours of work.

On the other hand I do a lot of other home maintenance myself. Changing air filters, cleaning, etc. are all more financially savvy to spend time on. I have done some minor repairs and air sealing to help reduce my monthly utility costs. Having done the remodel on my house myself (with my Dad's help) has taught me a lot and saves me money in the long run.

Everyone's situation will be different. We all have different skill sets where it is more cost effective to outsource a particular chore versus doing it yourself. The best way to decide is to run the numbers and see if it makes sense to you and your budget.

Tracking every dime you spend: Mint.com

I have been using Mint.com for nearly a year now and have found it to be a very good tool for keeping track of my budget and in part my goals. I admit it is not a perfect fit but neither was quicken (classic) or quicken online. I currently use a mix of Excel and Mint.com to do my budgeting and tracking and that works for me.

Manually entering transactions into quicken was too mundane for me. I had a grasp on where my money went but would lose receipts, forget to ask for them, etc. It was too sporadic. Downloading transactions via newer versions of quicken classic worked but was still sketchy for my accounts. Once I tried quicken online (defunct) and now mint.com (owned by the makers of quicken) I was finally using a tool that fit my style for the most part.

I now log into Mint everyday Monday to Friday. Most institutions don't update over the weekend so I take time off from staring at my accounts on Saturday and Sunday. I have mint.com pretty well "trained" on how to categorize my transactions. It is usually 80% right on "guessing" the category a transaction belongs too. I still have to watch it as some get misplaced but looking daily not only keeps it's budget categories straight but also keeps me in tune with my spending. I can see where I need to pare back and where I have more room.

The issue with tools like mint.com is that it is difficult to budget for every dime you spend (and earn). They do a pretty decent job with the "Everything Else" category and tells you if you are living within your means or not. I have a budget for my salary but not my side income. I have to mark all of my business travel expenses as "reimbursable" so it doesn't throw my budget out of sorts. No big deal as I like to be sure my reimbursements are correct anyway!

Other than that my "real" budget is in excel. It accounts for my salary income versus my budget limits for all of my expenses. I can easily play with the numbers and see my bottom line and then make adjustments to mint.com if need be. Any time I have an item that is not in my budget I track it against my "leftover" unallocated money each month. As a safety net I have a $100 misc. category to cover some incidentals but I still have leftover income each month (on purpose). I track this portion in excel and whatever money is left by the 1st of the next month is then added to savings/investments how I see fit.

Mint.com is the best tool I have found for my financial situation. I have realized that in my financial life there are too many variables and it is impossible to account for every dime spent ahead of time. I cannot predict house repairs, car repairs, funeral travel, etc. 100% of the time. The emergency fund exists to offset those but I cannot say for sure what it will cost me this year (or ever!). For some this may seem like too much work but it is the only way I can stay on track to reach my dream of not working as much and traveling a lot more!

Getting control of your finances: You have to be willing to put in the effort!

I have a few friends, who will remain nameless, who always say things like:

• "I wish I could save more money"
• "I spend too much on ________"
• "I need to open a savings account"

And many more similar items I hear. They all have one thing in common: These are empty statements that they never do anything about. They are always running out of money before the next paycheck and are probably behind on their bills.

The source of the problem: They do not track their money in any way. Most of them spend without thought and just log into online banking once in a while so see if they are overdrawn. I cringe every time I hear about when they are overdrawn or have 47 cents left with 10 days until payday.

The issue is that either they don't care enough to track their money or lazy or simply do not know how. I am not sure which is the case with my friends but frankly it doesn't matter. It bothers me to see them like this as I cannot even fathom being like that myself. I am a very conscious spender and know where I stand at all times.

The bottom line is that in order to get ahead you have to put in time and effort to actively track your spending. Every day. No exceptions. You have to budget your money and know when to stop. Some of my friends were laid off, fell way behind, and still struggle even with new jobs. They easily make twice what I make and have nothing to show for it. I have tried to convince them to change their ways but it falls on deaf ears.

This is partly the fault of our education system. I personally believe that everyone should have a mandatory personal finance class in high school and/or college. I did it as an elective and learned a lot more than I imagined!

5 ways to lower your grocery cost

One of the most expensive things we consume is food. With so many convenience foods out there the cost can rise quickly. It's no secret that $100 worth of groceries today is not as much food as it was 10 or even 5 years ago. Here are 5 steps to take to keep your food costs down:

1. Make a list and stick too it. Impulse buys increase your food cost and are usually not healthy choices. Make a list before leaving home and stick to it at the store
2. Check the weekly specials handout. Look only for items on your list. If they are on sale and don't perish quickly stock up. Sale shopping, done correctly, saves you money in the long run.
3. Use coupons. Look online, in junk mail, and newspapers for coupons for items you normally buy. Compare after coupon price to generic brand versions also.
4. Plan your meals. Make a list of meals for the week to help create your shopping lists. Always check for near-end dated meat on sale if you can use it quickly. They are marked down a LOT!
5. Don't go hungry. EAT before you go grocery shopping. Even if you have to get a burger at McDonald's you will save way more than the $1 it costs at the store. Going hungry makes you buy bigger and more prone to impulse buys.

I have been guilty of doing or not doing the above and have always spent more as a result. The above 5 steps are easy enough to do and laziness is not an excuse! Don't waste money on food so you can save for other more fun stuff!

Are you spending too much on groceries?

The personal cash flow chart

In a past job I was working at a financial planning firm. We did a complete financial plan for our clients and I had a hand in the process. One of the items we created was a cash flow chart. It made it very easy for them to see how the money flows and where it goes. They are a good idea to create for yourself to give you a "big picture" of where your money goes every month. Here is an example:



In this scenario the person is funding a SIMPLE IRA and Emergency Savings directly from their payroll. They also have an automatic transfer from primary checking to "Bills Escrow" Savings to cover irregular bills such as insurance. Their investment accounts are also listed with no cash flowing currently.

This particular chart was created in Microsoft Word for ease of editing. You don't have to be as fancy and can simply draw one on paper. The point is to see where your money is going, understand why it is going there, and decide if any adjustments need to be made. It is useful in helping you meet your financial goals and understand how your money is saved and spent.

Do you have a cash flow chart?