frugal underground

Ideally, every book you want to read would be available at the library and you could get them all for free. Reality hits, though, and sometimes the book isn’t available, and sometimes you want to have a book to keep.

Enter PaperBackSwap. Clearly it won’t solve all your book woes, but if you’re looking for paperbacks, you should definitely check it out. Here’s how it works: you list your paperbacks (the ones you’re willing to share!) and when someone wants one, you ship it to them. You pay the shipping, but when you request a book from someone else, they cover shipping. You get one “get a book” credit for each book you send out, plus three credits when you join and list nine books (you’ll get credits for each of the nine books, too). Send your books via media mail and you’ll be paying on average between $1 and $2 for each book. You might be able to find “a paperback” cheaper than that locally, but probably not “that paperback,” so use it when you want something specific.

Does anybody know of something similar to this online? I’m wondering if this is being done for other things, too.

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I expect that many of you already know about this, but for those who don’t: Kraft food&family is a free magazine distributed by Kraft (shocking, huh?).

Not surprisingly, it does contain quite a few ads for Kraft products, but it also contains a whole bunch of good, practical, normal-people recipes that are presented in attractive full color photos.

This magazine is clearly geared towards families (again, the title is pretty self-evident) and as a result, the recipes are mostly quick ones that will appeal to the whole family (excellent for me, since I’m as picky as most kids!).

As a bonus for us frugalites, not only is the magazine free but it usually contains coupons for Kraft products (as always, only a bargain if they’re cheaper with the coupon than the store brand, but around here, they often are).

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One of my favorite song lines is from Sheryl Crow’s “Soak Up The Sun”:

It’s not having what you want, it’s wanting what you’ve got

And it’s true. Gratefulness for the things (and people and experiences) we have can actually stave off the “I’ll be happy when I have…” syndrome. That will save us money and help us enjoy ourselves more.

Here’s a quick way to remember to be grateful… In Hanriette Anne Klauser’s excellent book, “Write It Down, Make It Happen“, she writes about a very simple reminder:

For many years now I have written the word “Thanks!” on the memo line in the bottom left corner whenever I write out a check. Although I have been doing it for years, I don’t do it automatically, but deliberately. It is a way to say thanks for the money that will come back to me, thanks that I have the money to spend, and, most especially, thanks to the person or company to whom I am writing out the check.

Writing “Thanks!” on the memo line is a reminder of all the people who make my life easier.

It is a way of taking a moment to think about the service the check is for and the people behind the purchase. It makes me stop and think, Thank you for providing my groceries, for keeping my house warm, for picking up my garbage, and giving me a recycling can. Thank you for equipping the phone lines so I can run my business and stay in touch with people I love.

When I write “Thanks!” on the memo line, I can sit down to pay my bills with a grateful heart.

I had never considered anything like this before reading that passage. Most of the time, I grumble about bills, just like everyone else. I didn’t occur to me to be grateful that I have the opportunity to have the service or product, and therefore the bill, let alone be grateful that I once again have the means to pay it.

I don’t write very many checks, though, so I’m trying to think of ways to integrate “grateful moments” like this into my life. Your thoughts are welcome!

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Gas prices are going up and as a result, many people are sharing their tips for cutting fuel costs. Why am I bothering to add another post on the topic? Well, I’ve yet to see all of these tips in the same post. I’m going to attempt to compile a list of the best ideas—including a few I hadn’t heard before.

Anyone can do these

• Turn the gas pump handle to get every last drop. jeffery of SavingAdvice.com reports that turning the pump handle 180° after it has shut off will deposit up to a half cup of fuel in your tank—fuel you’ve already payed for. If you’re lucky, the person who used the pump before you doesn’t know this trick, and you can get his half cup, too, at no cost to you. It would have been nice, but anecdotal evidence is suggesting this doesn’t work (see the comments).
• Keep it cool (your gas, that is). jeffery says, “gas becomes denser in cooler temperatures. Since gas pumps only measure the volume of fuel – not its density – you’ll get better overall gas mileage for your money by purchasing fuel when it’s cool outside rather than in the heat of the day.” My husband points out that gas is stored in underground tanks, so the temperature of the fuel may not vary all that much, but it’s something to keep in mind.
• Shop around. Use a service like GasBuddy.com to find the best deals. Keep in mind that it’s probably not cost effective to drive far out of your way for a few-cent difference, but if you’re like me, you pass a few different stations on your way to work, church, grocery shopping, and regular errands. Pick the best of these and you’ll get savings with relatively little effort.
• Pick the right gear. Driving at high speeds in a too-low gear can reduce fuel efficiency by up to 40%.
• Keep your tires properly inflated. Under inflated tires reduce fuel efficiency by 2% for every pound they are under inflated. You should check the pressure monthly with a good quality dial-type gauge; do it when the tires are cool, not right after driving. Make sure you’re going by the number in your manual, not the general guidelines on the tire itself.
• Don’t clog your filter. Try to avoid buying gas from a station that has just had a truck fill the station’s underground tanks. Filling stirs up particles from the bottom of the tank which can clog your fuel filter and make your car run less efficiently.
• Keep your gas from evaporating. Don’t “top off” (it’s more expensive, to boot), keep your gas cap good and tight, and try to park in the shade when you can.

These require some flexibility

• Shift your commute. According to jeffery, driving in stop-and-go traffic can cost you $800 a year. If your company allows flex time, try shifting your workday forward by an hour and you’ll pay less at the pump.
• Car pooling. My local carpool advocate says that three people is about the ideal number to get both savings and convenience. Many local organizations will help match people with similar schedules and locations, so this might not be as big a hassle as you’ve always thought.
• Don’t be in such a hurry. The difference between going 55 miles per hour and 70 m.p.h. will cost you about 20% more fuel. Sure, sometimes time is of the essence, but this one tip can make a huge difference if you apply it as often as you can.

Standard advice

This is the stuff that gets repeated a whole lot, so I’m not going to go into detail. Take a look at the sources if you want a detailed explanation.

• Drive gently (no sudden stops or starts).
• Keep your car tuned up.
• Unless your car objects, use 87 octane (the cheap-ish grade).
• Keep your car light by not carrying a lot of stuff.
• Avoid using the air conditioner, and keep the windows rolled up at high speeds.

So what are your best tips? Share in the comments.

Sources:
Gas – Saving Money Tips
Uncommon Ways To Save Money On Gas
5 Tips: How you can get most out of every gallon of ever-more expensive gas
Paying $800 A Year To Sit In Traffic
Saving Money on Gas

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I’m not asking about what a budget is or why one should have a budget (I’d hope we all know that). What I’m curious about is the actual mechanics of your system. Here’s why.

In our house, we have a few fixed or mostly-fixed categories: mortgage, water, sewer, electric, gas, car payment, etc. But most of our other categories offer some flexibility, so we do those based on percentages: tithe, offering, my “fun money”, his “fun money”, travel, entertainment, etc.

Recently we’ve been looking at different personal finance software packages in hopes of replacing our somewhat innefficent home-grown program. We really only want a couple of specific features, and those are:

• The ability to import our 5000+ transactions in .qif format, with categories (MS Money imports everything but the categories, and the idea of either losing the relevance of the data or adding the categories by hand to each transaction is… uh, unappealing)
• The ability to budget using percentages and fixed numbers
• Well, that’s mostly it. Just those two things, though we wouldn’t mind being able to sync with our bank and credit card accounts automatically.

Those seem like simple requirements to me, but I haven’t found anything that actually has both of those features. In fact, I’ve yet to see anything that allows percentage-based budgeting at all. This seems a little weird, considering that most financial expert-types recommend putting xx% of your income into savings or investments or whatever. I did a search on Google for percentage-based budget and found nothing helpful. I can’t imagine we’re the only people doing this, or at least talking about it, but I’m really starting to wonder.

Which brings me to the question in the title of this post: do you use percentages? fixed numbers? flexible numbers? some combination? something else entirely? Please leave a comment if you have 45 seconds and enlighten me!

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Dana Blankenhorn’s article Dating the Next Recession is a good wake up call. If you have a chance, read the article, but here’s a summary:

• October 17 is the day the new bankruptcy law takes effect. As part of the law, most credit card minimum payments will double. Borrowers will also be forced to repay credit card loans, even if they file bankruptcy.
• Because they are financially overextended, many people will likely lose their homes to foreclosures or have to sell. This will drive the economy down.

Mr. Blankenhorn is predicting a recession. His advice?

Get into cash, into hard assets, into foreign currencies. You have two months. If I’m wrong you can always re-adjust the portfolio next year.

I’m taking this seriously. I’ve already been hearing some scary stuff about the kinds of loans many new homeowners are taking out (ARMs and interest-only). That alone has me worried that as soon as interest rates rise, many people won’t be able to afford their house payments.

What do you think? Is this too pessimistic? What action (if any) will you take?

[ via Gary North's REALITY CHECK]

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You probably won’t be surprised to know that I generally discourage eating meals out. Most all frugal folks avoid it whenever possible, just because it can eat up (ha ha) so much money so quickly. That said, though, only the most faithful of the frugal never give in. After all, eating out is a treat (especially when you hardly ever do it) and sometimes the convenience makes it worth it the money.

For those times, coupons can really be a good thing to have. My two favorite sources of these are Restaurant.com and the Entertainment Book. Both of these provide an excellent value for your money.

Restaurant.com

This business doesn’t sell coupons, actually, as much as they sell gift certificates. The money-saving part is that they sell the gift certificates at a fraction of face value. Most of their $25 gift certificates go for $10. That’s a pretty nice savings right there! But it gets even better. At the time of this writing, and for the last couple of years, Restaurant.com has done most of their own promotions by offering discounts off of purchases. It’s not at all uncommon to find a “coupon code” for 50% or even 60% off—and remember, that’s off the already way discounted price. Just search Google for “restaurant.com discount” (without the quotes).

When I went to Colorado last month, I knew that I’d be eating out a fair amount, so I researched the restaurants online (Restaurant.com offers a great feature where you can browse the menu; that helps immensely with deciding if the food suites your tastes and your budget). I found a couple that sounded promising, and in the end, I bought $60 worth of gift certificates for under $10.

A couple of caveats:

• There are many places where there are no participating restaurants. In Boise, Idaho, there are exactly none. However, that doesn’t keep me from using them while traveling or giving them as gifts to those who do have local participating restaurants.
• Read the fine print. Many gift certificates require a minimum purchase or a specific type of purchase. Usually, I find myself meeting the requirements already (e.g. ordering two entrees; I rarely dine alone), but it’s definitely something to check first.

Entertainment Book

It’s a little gimmicky, yes, but most of the coupons in this good-sized book are buy-one-get-one, which can save you some cash. I usually buy one for my hometown, and I’ve seen the suggestion several times that it’s worth buying one for any town in which you’ll eat more than one meal out (while traveling, etc.).

The downside to this one is that having the coupons already there and purchased sometimes encourages me to eat out when I might not have done so otherwise (of course, that’s the premise that the advertisers are counting on to make them money). You’ll find these books sold at different prices, depending on the season or whom you buy it from; these are frequently used for fundraising, and that’s how I typically buy them. The fundraising price is less than what’s on the website and it benefits someone locally.

Consider splitting the cost (or just sharing generously) with another family. Technically, you’re supposed to have the physical book when you redeem a coupon, but most of the lower-end advertisers (read: not fine dining) don’t care. Even if they do, it’s worth it to pass the book back and forth, since no one family (especially a frugal one) will use all of the coupons. I’ve shared my book with my sister, who lives with me, and it has been a good cost saver for both of us (and our significant others!).

[inspired by Live Better than a Billionaire on $5 Extra a Day]

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Sony’s been providing some great incentives lately, encouraging people to sign up for their credit card. The current one is a free $100 credit applied to your account after you make a purchase. I signed up under this deal a month or so ago, and last week made a purchase for $3.98 on the card—that’s the only out-of-pocket purchase I will ever make with the card. Next, I’ll pay off the $3.98 and wait until they give me my $100, and use that at Wal-Mart for groceries. (Or maybe for Christmas presents; I haven’t decided. In any case it will be for something I’d buy anyway.)

If you’re thinking about taking advantage of this offer, keep the following in mind:

• If you ever give them money for any reason (interest, fees, etc.), then you’re the one being had. They wouldn’t be offering this deal if it didn’t make them money most of the time.
• Recordkeeping is essential. You need to make sure that you follow the requirements to the letter (make your purchase by the specified date) and make sure they hold up their end of the bargain.
• If you know you won’t remember to close the account, pass this one by. The goal is not to end up with more credit cards, but to make money off of the folks that delight in predatorially making money off of you.
• Don’t play with credit if you’re looking to get a bank loan in the near future. Playing these games can affect your credit score, temporarily, so it’s probably not worth it if you might need your absolute best credit score in the next year or so.
• If you don’t have good credit already, it would probably make more sense to get a card you intend to keep and build your score back up rather than do this kind of thing.

[via the excellent savvy saver]

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There are some things that it’s better not to buy. For instance, my church has needed a “lift” twice in the last year to change the lighting hanging from the 40 foot ceiling. I have no idea how much a lift costs to buy, but I’d be willing to bet it’s a whole lot more than the $160 or so we spent to rent one twice.

Mary Hunt had a similiar experience (though unfortunately, it was the opposite: she bought instead of renting) with a chipper shredder. She relates that “hard lesson” in one of her Everyday Cheapskate newsletters. She concludes:

If it’s bigger than a breadbox, does not bring incredible beauty to your life, and will not be used and enjoyed on a regular basis, rent it! Let someone else buy it, maintain it and store it. I’d rather pay a few bucks to use it.

But here’s some great news: coming very soon (I think August 31) is BorrowMe.com. The point of this site is to facilitate neighborhood and perhaps city-wide and regional borrowing of things when it makes sense.

I’ve often thought that it would make much more sense to share a lawn mower with our closest two or three neighbors (because really, how often do we all mow at the same time? In three years of living here, that would be exactly never). It probably says something about the state of American neighborhoods today (or me) that this hasn’t happened. But BorrowMe.com is following up on the success of ideas like Freecycle and other similiar “breakthroughs” and I have very high hopes that it will make its participants’ lives better.

Have a look at it. Do you think you’ll use it? Why or why not?

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It might seem a little early to be thinking Christmas thoughts, but this is one of those things where thinking about it early could save you a bundle.

Christmas gifts are usually the biggest expense of the season, but you’re far more likely to find a good deal if you’ve got your eyes peeled for it for four months than if you need to find it in one week. SavingAdvice.com’s Christmas Saving Guide has some good tips that you might find helpful.

What are your best tips for keeping the holiday costs down?

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Here’s an interesting point from the excellent “How to Survive Without a Salary“: you may not need as much auto insurance as you are paying for. The author, Charles Long, makes an argument a page and a half long on the topic, which I’ll basically summarize this way: you should absolutely have liability insurance, but other kinds might require a long, hard look at the value of your vehicle as well as the cost of insurance. That’s not really anything new, but I liked this paragraph immensely; he’s addressing those who are skeptical about partially self-insuring.

Still in doubt? Look at it this way. Insurance companies profit by the statistical certainty that the average driver, in his lifetime, will pay more in premiums than he will collect through claims. If you are an average driver with an average car, you can put the equivalent of the insurance premium into a bank account or private investment. You can have an average number of accidents, pay for them yourself, and still be a head by the margin of the insurance company’s prfit. With a cheaper car and better than average safety habits, you can make even more than the company. In fact, you are an insurance company—with a single client. By all means insure against the total calamity of a big liability claim, but the rest you can do yourself.

I’m going to ponder this some more. I think the fact that we’re making payments on a car means we have to insure that vehicle pretty thoroughly, but our second car could be replaced for a fairly minimal amount, so it may make more sense to self-insure.

Action step: consider your own vehicle. Would partial self-insuring make sense for you?

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I’ve had a subscription (free, of course!) to Budget Living Magazine for about a year now. There are parts of this magazine I love, particularly the “Making It” section—there are some great DIY projects there.

Flipping through this month’s issue, though, I was overwhelmed by the costs of their “bargains.” In a section on kids’ back-to-school deals, they featured a $40 GapKids blazer, a $48 poncho, and a $59 pair of cargo pants. And this for kids, who will outgrow it all in a couple of months.

Or perhaps what you really need is a purse to carry your little dog around… good news! The ones in BL start at just $46! A hip flask? They’ve got you covered. There’s a lovely doughnut flask (doughnut?!?) for $50 (a thought: maybe if you feel the compulsion to carry alcoholic beverages on your person, there are other areas where you might be able to trim some costs).

It goes on and on and on… their fashion article features in one outfit:

• $225 shirt
• $185 cutoff jean shorts
• $200 boots
• $25 earrings

That’s some outfit! Good thing it’s “budget”!

A quick aside: the Budget Living forums are actually pretty good.

What’s the point of this post? Well, it’s mostly rant, but it does bring me to a question for you. What do you read? I don’t think that I’m in the minority for thinking those figures are ridiculous, but if that’s what passes as “budget,” what do real penny-pinchers read? Leave a comment and tell me what you think.

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