Archive for February, 2006

Saving money by considering cash flow

Posted February 27th, 2006 by Sarah · 5 comments
Tagged saving money, shopping, tips

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There are lots of reasons why it’s good to have some short term savings, a kind of cushion, if you will. Chief among them is that you won’t be overdrawing your checking account should your timing be a little off. But there are some other less-obvious advantages that can save you money.

The main one is that by having money in reserve, you can afford to “go without” some money in the short term to save money. A prime example of this is the various tax-free health savings accounts. By considering what your expenses are likely to be, and committing to cover them before they happen, you can save a significant chunk of change, depending on your tax bracket. This is the same idea behind various retirement options, too. Pay now to save later.

In our household, we’ve been using this idea to save money on recreation. One example is the health club. My husband is a semi-serious cyclist and wanted to keep in shape during the cold winter months, so we looked for a health club that offered cycling classes in addition to the weights that we should be using year-round. When we found the club we wanted to join, they quoted several different prices based on the term of the contract and the method of payment. Because we were willing to pay upfront for two years in advance, we are paying about half of the standard cost. Obviously this is only a good idea on something you will definitely use (we’re 6 months in and still going to the gym several times a week).

Here’s one that we’re planning on doing. Every year, our local ski hill sells season passes at an extremely low $199 per pass… but they only sell them at that price for one weekend. We just bought our passes for the 2006/2007 season, but we’re already thinking of 2007/2008. Here’s why: the ski hill runs a “cash card” sale just before they open (usually Novemberish, I think) where they sell these cash cards at 75% of their face value. Basically, get a $100 cash card for $75. These cards are accepted anywhere on the mountain and can be used to pay for lift tickets, lessons, whatever. What we’re focused on is that they can be used to pay for passes.

So come this November, we’re going to figure out what we will be spending in the full next year ($199 pass for me, $199 pass for Daniel, $120 for the lessons I intend to take, plus a little for food on the mountain) and we will buy a cash card with that full amount on it. In the end, we’ll be buying our passes for $150 each, my lessons for $90, and the overpriced food on the mountain for an amount that resembles a fair price. Sure, we have to plunk down $450 upfront, but we save a full $150 just by planning ahead.

The moral of this story? Whether you’re talking health care or retirement or recreation, you can often save a lot by paying upfront—so make it a priority to have the necessary short-term savings available.

Related Link: cash advance quick payday loan applications


Famous frugalites

Posted February 15th, 2006 by Sarah · 1 comment
Tagged articles

I came across an amusing article this morning called “Tips to save a buck from the cheap, famous“. It looks at (real and fictional) frugalites through the ages and asks, “What can we learn from them?”


Carnival of the Capitalists

Posted February 13th, 2006 by Sarah · 18 comments
Tagged carnivals

Welcome to the almost-Valentine’s-Day edition of the Carnival of the Capitalists. This week (okay, every week), we have a wide variety of posts on a wider variety of topics, ranging from freelancing to crime and punishment to investing. With this kind of scope, I found it tricky to come up with categories that were both broad enough to accomodate the posts, and specific enough to make sense—so I stuck with the tried-and-true categories suggested by Gongol. The entries are arranged in a “super secret” order (since it seems that you people read them somewhat randomly anyway) but I’ve added the icons to help you pick out posts of particular interest.

Without further ado, the carnival!

Law and Regulation Law and Regulation Business General Business Marketing and Sales Marketing and Sales
Computing and the Internet Technology Health Care Health Care and Social Services Entrepreneurship Entrepreneurship
Economics Economics and Finance Education Education
Law and RegulationPaul Krugman and VA Health Care
From the author, Different River: “Paul Krugman extols the VA health care system as a model for how government health care can be better than private health care — but he gets some key facts wrong, and with those facts corrected, his whole argument falls apart.”
Health Care and Social ServicesBrainWare ABC - Alzheimer, Bilingualism, Creativity
From the author, Barry Welford: “Research shows that bilingualism increases the ability to multi-task and encourages creativity and problem-solving. More importantly it can retard the onset and severity of aging cognitive disorders such as Alzheimer Disease and dementia.”
Law and RegulationWhy Is Prostitution Illegal?
Funky Dung seeks to understand why prostitution is illegal from an amoral perspective. “The arguments presented in favor of making it legal touch upon topics related to commerce (and by extension capitalism).” It should be noted that this is an intellectual exercise and the author is not actually interested in legalizing prostitution.
Economics and FinanceJapan’s Retail Sector is Back!
From the author, Steven Towns: “A quick look at the resurging Japanese retail sector and some American companies that stand to benefit.”
TechnologyInnovation is dead: The History of Copycats
noah kagan provides a brief look at tons of internet sites who copied originals.
Marketing and SalesPaco Underhill Series, #3
From the author, cehwiedel: “A well-known bricks-and-mortar marketing book is consulted for ideas to adapt to a website.”
EducationCopyright Tutorial
From the author, Betsy Palmieri: “A nuts-and-bolts look at copyright law and why it matters for your business.”
Economics and FinanceH&R Block Moat Check
George examines whether or not Magic Formula stock H&R Block has a wide moat.
EducationCoach K: In Touch With His Feminine Side
From the author, Mark: “Duke Basketball Coach Mike Krzyzewski has a lucrative second career as a corporate speaker on leadership - does his leadership model actually produce leaders?”
Economics and FinanceInflation Disinformation!
From the author, Mike Landfair: “If we are going to fix the problems after the currency collapses, we need accurate information and we need to recognize that the Federal Reserve and the US Government are ‘in cahoots.’”
Economics and FinanceNew Investment Opportunity? Person to Person Lending
From the author, Jeffrey Strain: “A new site is offering person to person lending opportunities which could lead to some higher investment returns, but also comes with a variety of risks.”
Marketing and SalesFacts Of Life On Buying and Selling “Without an Agent”
Dan Melson explains the role of an agent and the risks of FSBO.
General BusinessManaging Six Sigma Teams
From the author, Junelle Caravana: “A Six Sigma Black Belt is the team leader and the key change agent for the Six Sigma process. The role of the Black Belt is to facilitate the Six Sigma adoption as part of the culture.”
Economics and FinanceA proposal for Iraq
James Hamilton offers some thoughts on how to get the vast oil wealth of Iraq working most quickly and effectively to benefit the Iraqi people.
EducationSell College to Your Kids
From the author, FMF: “The value of a college education — in dollars!”
Marketing and SalesStakeholder Engagement: The next box on your org chart?
From the author, Steven Silvers: “Wal-Mart’s creation of a senior-level Director of Stakeholder Engagement is classic PR strategy to align itself with critical interest groups by adopting the inflated phraseology of the Corporate Social Responsibility movement.”
EducationMortgage Pre-Payments at Slowest Pace Since 2003
From the author, David Porter: “If you plan to stay in your home for more than three years, and have an adjustable mortgage, you better get off the fence!”
TechnologySearch Toolbars (ala Google) are Big Business
From the author, Scott Milener: “Until you’ve researched the numbers, it’s easy to think the toolbar plugin is a minor addition to web apps. But search toolbars are a major revenue driver for the search players.”
Economics and FinanceRecession Threat Growing
From the author, Michael Cale: “The probability of a recession in the next 12-18 months has hit a new high, according to one model. It currently shows a 27% chance of recession, up from 19% a month ago.”
Law and RegulationU of O President Dave Frohnmayer has some explaining to do
From the author, Gullyborg: “Lots of photos, commentary, and links exposing the ‘carousel of information’ to help illegal aliens get government benefits in Oregon”
General BusinessCapitalism, Culture and Google
Jack Yoest examines how different cultures interact in business.
General BusinessReplying to Bruce Kesler and Tom Smith re Corporate Management and Social Responsibility
From the author, Steve Bainbridge: “There are basically two ways for a democratic capitalist society to regulating corporate behavior. First, you can do so directly by taxing or regulating corporate behavior you don’t like. Second, you can authorize corporate managers to be ’socially responsible.’”
Economics and FinancePoverty is Stupid
Gavriel Raanan takes on poverty statistics and shows why he thinks they are meaningless.
Economics and FinanceThe Economics of Super Bowl Ads
nickle questions the wisdom of GoDaddy’s Super Bowl expenditures. I have to say that I’m with him on this one.
Education30 boxes your schedule
Junelle Caravana walks us through using 30 Boxes, a new social calendar that can work well for freelancers.
TechnologyLeaving a Trillion on the Table
From the author, David Foster: “Why did Europe fail to take advantage of the semiconductor revolution? What lessons can be drawn about the limitations of centralized planning?”
General BusinessVirtually Saving the Day
From the author, Rosanna Tussey: “This article tells one way that small business owners and other professionals can learn to use their time more effectively through delegation of administrative tasks that don’t require their specialized knowledge.”
Economics and FinanceAsleep at the Wheel
From the author, Nina Smith: “The real estate market hits home for most people.”
TechnologyWould an E-Mail Surcharge Help Deter Spam?
From the author, Brian Gongol: “Some reasons why the AOL/Yahoo spam-surcharge proposal may or may not actually deter spammers from sending unsolicited e-mail.”
EducationWorld’s Worst Savers: Guess Who?
Amanda reflects on some recent surveys indicating America to be the least likely developed nation to save: why did this happen and what is being done to change this?
Health Care and Social ServicesListing Ineffective Government Programs
Ironman runs some numbers related to ‘ineffective government programs.’
Marketing and SalesKeeping up the PACE
From the author, Henry Stern, LUTCF: “Part 2 of an exclusive look at a new way for small companies to use the same tools as large corporations to save money on health insurance costs.”
EducationA Thesis for Re-Invigorating the News Business
From the author, Ed: “My prediction: 2006 will see important steps by news companies to turn the tide, re-invigorate their businesses and grow readership, and a few will find a new formula to succeed at this for the long haul. Here’s how.”
General BusinessWhat lee scott didn’t say
From the author, David Gerstman: “Maryland’s General Assembly seems to have killed the goose.”
TechnologyMost Demanded Technology Consulting Jobs
jim lists the top tech jobs and wages.
General BusinessThe Hardest Part of the Job
From the author, Skip Angel: “Letting a person go from your organization is the hardest part of the job (at least for this manager).”
Economics and FinanceIs Sweden Moving From Socialism to Capitalism?
From the author, Jeff Cornwall: “It now appears that the Swedish government may be moving ahead of the US in recognition of the global shift to a new entrepreneurial economy.”
TechnologyThe New Gatekeepers
From the author, Tristan Louis: “In this entry, I contend that we have created new gatekeepers in the blogosphere.”
TechnologyReturn to Sender
From the author, Big Picture Guy: “If junk is anything you no longer use, what then would you call e-mails that were not useful in the first place? A sardonic look at e-mails running rampant in The Small Office.”
EducationEffective Interest
From the author, Jose Anes: “How to calculate the effective interest of an investment, after taking into account taxes and inflation, and which avenues we have to invest safely while avoiding the effects of these maladies.”
General BusinessNatural Gas Prices
From the author, The Real Returns: “Has natural gas already peaked?”
Economics and FinanceThe good news and the bad news about the budget deficit
From the author, Jim Glass: “Following the lead of the departing head of the Congressional Budget Office, Douglas Holtz-Eakin, this post looks at what matters regarding the US national budget — and finds a whole lot of people are sweating the small stuff, while ignoring the big stuff.”
Economics and FinanceInvestment Risk & Indexing
EarlyRiser explores Index Investing and some new ideas about risk and return.
General BusinessOverworked? Try too productive
From the author, Retireat30: “Despite the constant complaints, leisure in america has actually been increasing over the past 30 years.”
EntrepreneurshipMaking Money over the Internet
From the author, Anita Campbell: “Denise O’Berry joins us for a broadcast of Small Business Trends Radio on the subject of making money from passive Internet income. As an added bonus, she also includes a link to a 22-page download called Passive Income Guide, that she created specifically in honor of the show.”
Economics and FinanceWhat’s The Expected Value Of A Snowball’s Chance X $865,235,387?
From the author, Joe Kristan: “Chrysler litigates a seemingly hopeless tax position dating back to 1984. Were they using the IRS as a lender of last resort?”
EducationBusiness problems: Seek them out
From the author, Wayne Hurlbert: “Become a seeker of problems. They are precious gifts representing golden keys to your future business success.”
EducationIt Usually Begins With…
From the author, Kenneth R. Gregg: “2/8 is Jules Verne’s birthday. Verne was the originator of “hard” science fiction and the premier author of the “enterprising spirit” of the 19th century.”
Economics and FinanceSummit County
boringmadedull looks at a proposed building project in Summit County and questions the benefits.

I hope you’ve enjoyed your visit to the carnival. The Stalwart is hosting next week, so read the rules and send in your post!


More carnival craziness

Posted February 6th, 2006 by Sarah · Comment on this
Tagged carnivals

It’s true, friends. Just a week after hosting the fabulous Festival of Frugality here at frugal underground, today marks the beginning of a new week of Carnival of the Capitalists submissions, all of which I’ll be pouring over lovingly. That’s right—the Carnival is coming here next week. Read the rules and submit your favorite post of the Capitalist persuasion.


Wedding planning ideas

Posted February 2nd, 2006 by Sarah · 4 comments
Tagged articles, saving money, tips, weddings

CiN Weekly has a short article on “Frugal & fresh” weddings. Frankly, I think they have a different idea of frugal than I do (they highlight a dress by a “lesser-known designer” for $875 retail; that’s a large chunk of the entire cost of my wedding). But they have some ideas that might be helpful, especially those who think that a wedding has to be expensive. I think the best aspect of the article is that it will hopefully inspire some creative, out-of-the-box kind of thinking—the kind of thinking that can save a bundle.


Blingo, the search engine that pays you back?

Posted February 1st, 2006 by Sarah · 2 comments
Tagged internet, making money

I just signed up for Blingo on the recommendation of a friend. It is an interesting idea. Basically, it’s a search engine built on top of Google (it provides Google results) that gives away prizes (hence the “Bling” part of their brilliant name). I’m assuming that they use Google to supply the results but put their own ads in there, which is how they make money and can afford to give some away. Doesn’t much matter to me if I see Google’s ads or Blingo’s ads.

The prizes vary somewhat but my friend has won a gift card to the iTunes store, which sounds good to me. Blingo’s made it even easier for me by letting me use the search feature that’s already built into Firefox, so I don’t even have to go to their site to use them. On top of that, if someone you refer to the site wins a prize, so do you (so use my referral link, hint hint!).

In case you can’t tell, I think this is a cool gimmick. I don’t really see a downside: quality search results; ease of use; free stuff. I like it.


More interesting reading

Posted February 1st, 2006 by Sarah · 1 comment
Tagged articles

Yesterday the Detroit Free Press published a column called “Super fun, frugal lessons” by Rochelle Riley. The article is mostly about how a couple of NFL football players worked did a financial seminar for high-school students:

San Diego Chargers star and Central High School graduate Antonio Gates skipped hosting a Super Bowl party, and instead invited 34 city high school students to talk about something he himself learned the hard way: managing money.

I think this is great, and hopefully we’ll see more role models in the area of money management. The column also made some useful observations about financial literacy in America:

Shirley Stancato, president and CEO of New Detroit Inc., said that financial literacy “is the most important thing” in the battle for equal civil rights in America.

“Literacy and financial literacy are vital. If you’re not financially literate, you cannot have the kind of life this country says you can have.”

I find that “most important thing” statement very interesting. It makes sense, but I’ve never heard anyone come out and say it before. Usually the focus is on affirmative action, or other forms of symptom-management, but I think it it far more realistic to talk about financial literacy as well as a good general education.

Do you agree with Ms. Stancato’s assessment?