Unclaimed Money

Being content and happy often is a matter of perspective. When you are trying to keep up with Jones’ it is hard to be content. Someone always has something better than you. You will always want more. We rarely need anything else, and should be content with what we have. My oldest son learned a bit of this lesson over the holidays.

He is nine, and until very recently we have owned no game systems of any sort. It isn’t that we find anything particularly wrong about game systems, we just didn’t see owning one as necessary. They are expensive, and it wasn’t in the budget. My son never really cared, until he started playing games belonging to his friends.

Suddenly he was asking for a particular game system over and over. We talked about the cost, and that it wasn’t very likely we would be purchasing one. He kept asking. He did save up some of his own money, and purchased an older, used game system. That stopped the asking for awhile, until Christmas was approaching. Then the new game system popped up again on the Christmas wish list.

It didn’t show up under the tree. A few new (used) games for his system were there though. I really expected him to be disappointed. I feared that he might even throw a fit, but he didn’t. He was happy about the new games, and didn’t even mention the other system.  A few days later he came up and told me that he really didn’t want that other game system anymore, that what he had was really fun.  I couldn’t have been more proud.

I know some will read this and perhaps think we are not very compassionate parents. It is hard to be the kid who doesn’t have the latest and greatest. Yes, we could have squeezed the cost of the new sytem out of the budget, or bought it on credit. He would have been thrilled on Christmas morning,  but what lessons would we have taught him? That you should get everything that your friends have even when it isn’t within your budget? That it is okay to buy something that you really want on credit? No, I am happy with the lesson he did learn; to be satisfied with what he has and what is within the family’s financial means. That lesson will serve him well into adulthood.

The new year is almost upon us, and as tradition holds it is a good time to reflect on the past year, and plan for the coming year. Many of us right down a lengthy list of resolutions to make our lives better. Most of us do not hold to those resolutions through the month of January, and quickly slip back into our old routines.

Reflecting and making goals are valuable tools. Many of us fail to meet keep to our resolutions because our goals are too broad, and there are too many. This year, as you consider your financial life, put an action plan behind those broad goals.

Saving money and creating a small emergency fund is a worthwhile  goal, but how will you get there? Decide how much you would like to save. If you have debt to pay off, many would recommend that your emergency fund stay small; one or two thousand dollars. Set an amount that you feel comfortable with.

How will you get there? Look at your spending. Where could you trim and save money? Could you make your coffee at home? Pack your lunch for work? Eat out less? Carpool? Decide where you are willing to trim the budget,  how much it will save you, and purpose to do it. To be sure that the money gets to the savings account set up an automatic withdrawal from your checking to savings,  or deposit a set amount yourself on payday.

Of course this is only one example, but the point is to put some meat on those New Year’s Goals. If you truly want to make changes in the coming year think carefully about your goals and make a plan that will help you meet them. If you have several changes in your financial life you’d like to make, I suggest implementing the changes one at a time. Making change gradually will help you make them a habit.

Twas almost the night before Christmas and all through the lands people were in a panic for their last minute Christmas gifts.

Time is running out for your Christmas purchases. The traffic is crazy. The stores are packed, and you can see the panic in peoples eyes, “We must find something, and find it now.” If you are feeling sucked in by the panic, stop, take a deep breath, and make a plan.

I personally don’t mind shopping in crowds on days like the day after Thanksgiving, or the day after Christmas, but I avoid the last few days before Christmas like the plague! People are too desperate. It is too crazy. If you don’t mind the craziness, there are deals to be had now. I’ve seen ads for some very popular stores offering 40% off winter clothing items and more. Some are even offering door buster sales this weekend. So, maybe procrastination does pay, and you can finish your shopping and save money.

If you want to avoid the retail craziness there still is online shopping. There is still time for express shipping on many items, but it will cost you; plenty! There are some other options that don’t require shipping. Here are some ideas for last minute gifts:

1. Restaurant.com
Buy gift certificates for restaurants that can be printed from home.

2. Video rental membership
Get a subscription from Netflix or Blockbuster Total Access.

3. Museum or zoo memberships.
Buy the membership online. Print out a nice shot of the museum with a note that the membership card is on the way. Put it in a little box to wrap and put under the tree.

4. Subscriptions to online or print magazines.

5. Home baked goods.
Whip up a batch of cookies or a loaf or bread.

6. DIY Gift Certificates
Make your own certificates for services you’re will to provide. You could offer babysitting, cleaning, cooking, car washes, or anything else you think the recipient would appreciate.

You don’t have to get sucked into the panic. Get done what you need to, and then enjoy your holiday with family and friends.

Merry Christmas!

Less than two weeks before Christmas! How are you doing? Hopefully the shopping is complete, and you are putting the finishing touches on your last minute preparations. While you are finishing up and have all your Christmas wrapping supplies out, it a good time to start thinking about the week after Christmas.

Shopping for seasonal items is always cheaper if you shop at the end of the season. Christmas is no exception. The day after Christmas you can find your supplies for next year at 50% off or more. This is the time to buy next year’s Christmas cards, wrapping paper, or gift bags. It is also a wonderful time to add to your decoration collection. Want to change over to LED lights, replace the tree topper, or need a stocking for the new baby? Buying these this year, after Christmas, will save you money.

But the savings doesn’t end there. All those prepackaged gift sets will be marked at least 1/2 off too. I like to pick these up for my gift closest, for upcoming birthdays, or just for things we need. If the packaging is overtly Christmas, simply take it apart and repackage using a gift bag or basket. Many of the packages are suitable to use for other occasions.

You may be surprised at what you find marked down. Just about everything that a store stocks with their Christmas decorations will be marked down. You can find many things that you will use for other seasons, like tape or white tissue paper. You can find things your family needs like underwear, children’s toothbrushes and paste, hair brushes and accessories, and even many clothing items significantly marked down after Christmas simply because they were packaged for Christmas.

So while you are wrapping your presents, keep a pen and paper handy. Make note of any wrapping supplies you may be running low on. Jot down any Christmas decorations you’ve been thinking of replacing, or adding to your collection. List upcoming birthdays or other occasions that you may need a present for.

Then sometime the week after Christmas (the selection will be best the day after) take your list, and head to the store. Remember to stick to your list, and to your budget as you’re shopping. Even the most drastically reduced item is not a good deal if you won’t use it, or don’t have the money for it.

The weather has turned to winter. It has been cold, and there is snow on the ground where I live. The kids have been building snowmen and sled riding. All this cold weather has made hot drinks very attractive. Teas, coffees, and cocoa are delicious ways to take off that winter chill.

Buying those mixes though can be a drain on the grocery budget. Making your own really is very easy, and will save you money. My favorite cocoa recipe is not a mix, but just cocoa made from scratch

2 tsp cocoa
2 scant teaspoons sugar
1 C boiling water
1 C milk
1/2 tsp vanilla

Put cocoa, sugar and boiling water into a saucepan. Boil 1 minute, add milk and heat. Do not boil.

Though the above recipe is my favorite for taste, sometimes you just want a mix so all you have to do is boil water. The Hillbilly Housewife has a wide range of tea, coffee, and cocoa mix recipes. My favorite is the hot cocoa mix.

4 C instant nonfat dry milk
1 1/2 - 2 C sugar
1 C powdered non-dairy creamer
2/3 C unsweetened cocoa
1 package instant chocolate or vanilla pudding mix

Put it all in the food processor and process until blended. Add boiling water to 1/3 C of the mix.

I like to make the Rich Vanilla Coffee for myself.
1/3 C instant coffee
1 C instant dry milk
1/2 C powdered coffee creamer
1/3 C sugar
1/4 C instant vanilla pudding

Process in the blender or food processor. Use 1/4 C of mix and add hot water to your cup. Stir and enjoy.

Check out all the other recipes she has on the site. Any of these mixes make great gifts. Put the mix in an airtight container or jar. Make a card with instructions. I like to include the hot cocoa mix in gift baskets at Christmas. I also include some chocolate covered marshmallows in Christmas colors. It make for a very pretty gift.

Enjoy playing in the snow. Then come inside and warm up with a hot drink you made yourself. It will be delicious, and save you some money.

For more frugal tips go to Frugal Fridays.

Whether you go all out for Christmas, or try to keep it simple, chances are you will be shopping during this season. Even if you don’t celebrate Christmas at all, you still have to shop. We all need to buy things; to part with our hard earned money. There are ways to part with less of it, or to at least get some of it back.

Shopping online has several advantages. You can do it from home, at any hour of the day. Price comparison is easier with sites like Wize. There often is no tax. Merchants often offer free shipping incentives too. There also are many sites out there that offer you rebates or other rewards when you shop through their site.

The site I use the most for online shopping is Ebates. This lists coupons and specials for over 800 merchants. You also accumulate cash in the form of rebates when you shop at a merchant by clicking through the Ebates site. The rebate percentage varies from merchant to merchant, but can be up to 25%. You receive your rebate check quarterly.

Another popular rewards program is MyPoints. With MyPoints you are given points when you shop at a merchant by clicking through the My Points site. You can also earn points for taking surveys, and for playing games. When you’ve accumulated enough points, they can be cashed in for gift certificates for 100’s of merchants. Other reward sites include Bigcrumbs and FatWallet.

Of course when shopping online you can add to your rewards by picking a credit or debit card that also offers points or cash back rewards. Do be careful though. If you are going to use credit, be sure that you do not spend more than you can pay off. If you do not pay off the balance in full, the interest charges will negate all the rewards you’ve just earned. If you are trying to pay off credit cards, you may be better off just sticking with the debit card.

There is shopping that must be done for Christmas or other times. Get the most for you hard earned money. When shopping online or at a store, stick to your budget, and shop for the best deals. If you shop online, use sites that reward you for shopping with them. Use your savings to pay off debt, save, or to treat yourself.

Are you hosting the Thanksgiving dinner? The family Christmas party?  A New Years party for friends? Or maybe just having a few friends over during the holiday?  There are so many preparations to make, but the one that seems just hover over you like  a cloud (of dust that is) is cleaning the house.

Few of us actually enjoy cleaning, and the cost of all those cleaning products just adds insult to injury. I am here to to tell you don’t do it! No, not the cleaning, that needs to be done, but don’t spend a fortune on a bunch of different products for every task.  A few basic, and cheap, ingredients are all you need to make the house shine before your friends and family arrive.

White Vinegar - Vinegar is an extremely versatile and powerful cleaning agent. A cup of vinegar in a gallon of water is a wonderful floor cleaner. It is also great for washing down walls and other painted surfaces. Vinegar also takes care of mineral deposits from water. It can be used to clean the coffee pot, the bathroom, and the dishwasher. Use it on your windows. Use it as a substitute for fabric softener in the laundry. Wipe down the bathroom surfaces, and even clean the toilet with vinegar. Its uses for cleaning are almost with out limit. Find more ideas at Vinegar: (Almost) the Only Cleaner You’ll Ever Need.

Baking Soda - A paste of baking soda and water is good for scrubbing your counters,  stove top and  sinks. If you need a little more muscle to it add some salt. The salt will act as a mild abrasive. It can also be used to clean floor, but you will have to rinse after mopping. Baking soda can get the black scuff marks off the floor, and  remove coffee and tea stains from surfaces.

Borax - This a great alternative to bleach. Use it for cleaning and deodorizing. Use it in the laundry. Bleach itself is cheap, but can be harsh. If you want the power of bleach, but not the chemical and the smell, Borax is wonderful. And it will not bleach out your colors.

If you are hosting any holiday gatherings this season, a thorough cleaning of the house is probably something that you want to do. Spending a lot on cleaning products is not something you have to do. Use basic and natural cleaning products to make the house shine, and spend your money on more interesting things, like the food and wine.

The leaves are turned, and quickly falling. The air is crisp, yet the temperatures are still enjoyable. The day of ghosts and goblins has passed, and it will soon be time for turkey. These first few weeks of November are a nice time to reflect, plan, and prepare before the rush of the holidays begins.

While life is relatively quiet these weeks, take some time to reflect on the things we do have; the things we are thankful for. Take this time to list the things that are most important in your life. Prioritize them and  keep them in mind. You may even want to write them down and keep them somewhere you will see them daily like on the bathroom mirror or the refrigerator. Focusing on these things will help put the craziness of the holidays in perspective.

Use this time to plan for the upcoming busyness. Make a list of the things that have to be done between now and the first of the year. Make a list of things you’d like to do, but aren’t musts. Keep your lists realistic. Prioritize these lists and make a plan of action. Write it on your calendar, “Make pies for Thanksgiving,” and “Get Christmas cards in the mail,” and “Take the kids to see Christmas lights.”  There can be flexibility in those dates, but writing them down helps to keep the plan in mind and to track the progress

During these weeks you are less likely to have social commitments and other things vying for your time. Now, its the time to get a jump start on the holiday preparations. If you do a lot of baking and cooking for the holidays, start buying your ingredients now. The sales on basic ingredients like flour and sugar have begun. Don’t forget about fantastic deals on turkey and ham now too; worth buying extra to stock the freezer. Many items like rolls, cookies, pies, and other holiday favorites can be made now and kept in the freezer for the big day. If you are hand making any of your Christmas gifts, it is also good to work on these now, before the pressure of a looming deadline sets in.

Reflecting, planning and preparing now is not only good for your mental state, it is good for your finances. The stress and pressure of busy schedules, long to do lists, and fast approaching deadlines greatly increase the odds of impulse buying and excess spending.  Entering the holidays with a focus on what is important, a plan to get things done, and a jump start on those tasks  will allow you to be truly thankful this Thanksgiving and enjoy a less stressful holiday season.

Have you ever known people who seems to be broke no matter what? In college they are broke, because after all, they are just students, there is not much income. Then after graduation, they are working, hopefully in their field, and still broke because now they have all those student loans to pay off.

You meet up with them a few years later, they have landed the promotion, and the big raise to go with it. Perhaps they are married and their spouse is also working a good job. They have a big beautiful home, furnished with all the bells and whistles. They are driving new cars, and are dressed to impress. Yet, they still complain of being broke, and just how expensive things are these days. They are broke, no matter how much they make.

The story above is not about any particular person. Parts of it do resemble my financial history, and I’m guessing many of yours. We all have a tendency to spend to, or even beyond, our income level. When our income is small, there aren’t many frills, and we still have trouble making ends meet. When our incomes are comparably larger, there may be more nicer things around our home, but many of us still feel the same stress and pressure of living paycheck to paycheck. The pressure of being broke. How can that be?

It is because we have never learned to live below our means, or to be content with what we have, no matter what our income level. Living below our means takes a great deal of discipline, but it can be done. First commit to not incurring more debt. Don’t use the credit cards, unless you are one of those rare people disciplined enough to get the rewards with out running up the balance. Then to guarantee you are living below your means, siphon off a portion of your income before you start spending it. You can do this as you deposit your check, or set up an automatic withdrawal from your checking. Put the extra money in savings, and/or donate it to charity. If you do get a raise, dedicate most of it to your savings. Of course if you are carrying debt, it would be wise to put that money toward your debt. You will pay off that debt faster, and still be teaching yourself to live below your income.

Contentment is a little harder to develop. It involves a change of thinking and of attitude. If we were truly content, it would be easy to use the next raise for our savings or debt, but for most of us it is not. We see a friend’s new flat screen T.V. and suddenly our model seems inadequate. We are bombarded daily with information designed to create a feeling of need for a 100’s of products. It is hard to stay content with what we have. A couple things that may help put it in perspective; think about the payment that goes along with that item, and the number of hours you would have to work to pay for the item.

We must learn to live below our means, and to be content there. If we don’t, we will stay in debt. We will accumulate stuff, but never the security that comes with accumulating wealth. We will be broke, no matter what our income level is.

For most of us buying a vehicle is a task we must tackle at some time. If you are currently in the market for a vehicle, soon will be or, just would like to gather ideas for the future, find basic ideas for purchasing a car, and for those in the U.S., Buying a Car in the USA, at our home page, BeNaif.