frugal underground

Sarah made a great post about using Netflix to replace your cable or satellite provider; and depending on your tv viewing habits that might be the best solution for many.  For the rest, well there’s still cable and satellite.

The important thing is not whether you choose Netflix, cable, satellite or any other entertainment provider, but whether your choice both meets your needs and makes good financial sense.  That’s the key, you need to do both.

We’ve all seen the deals:  Six months of service for this low introductory price, with three months of six movie channels for free and an automatic upgrade to a “free” DVR.  It sounds great.  Everyone wants free and everyone wants a good deal.   It all reminds me of a term from an old Robert A. Heinlein novel: TANSTAAFL.

• There
• Ain’t
• No
• Such
• Thing
• As
• A
• Free
• Lunch.

At this point you’re probably thinking of all the hotels that offer free continental breakfasts and all the other “free” things you’ve received from various companies.  None of it invalidates TANSTAAFL.   Companies give you free stuff for one reason and one reason only:  (answer after the cut).

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Summer never ends; at least that’s how it sometimes feels when you’re a stay-at-home parent.  The kids are out of school, and that means they need time and attention, which can be difficult when you’re supposed to be working from home.

Admittedly, we have two teens at home who can keep the seven-year-old entertained at least some of the time.  But being teens, they tend to disappear for hours at a time, themselves, leaving me to keep an eye on the youngest, as well as working. Luckily, I don’t usually have to put in a full 40 hours every week, so sometimes I can take the day and spend it doing things with my daughter.

One way to maximize that is to take advantage of my partner’s commute.  She works near DC, and we live about two hours away.  That’s just great for a day trip with my daughter.  We just ride in with my partner and while she’s at work I can take our daughter down to the Smithsonian.  We can tour museums all day, and it’s free!

In fact, we’re taking advantage of it tomorrow:  I’m going to take my daughter to the Air and Space Museum.

What’s great about it is that we don’t have to spend a lot of extra money to get there, because the trip to DC is covered by my partner’s commute anyway.  Beyond that it’s just a few dollars for the Metro to get down to the National Mall.  I’m going to pack water and snacks so food won’t be an issue.  The only expense beyond the Metro is going to be tickets to get into the planetarium.  There’s also a free children’s story time that we’re going to attend, too.

We’re getting a day out for less than $25 which isn’t bad when you consider everything.  We could cut that down to under $10 if we weren’t going to the planetarium, and just add another museum or so.

While not everyone has access to museums of this quality, you might be surprised to find what’s available in your area; especially for those who live near major cities.  Most cities have at least a few attractions that are either free or cheap, and it’s worth taking the time to check them out.

If you do decide to try this for yourself, it’s important to remember to pack a few important things.  Water and sunscreen should top the list, followed by snacks like fruit or granola bars.

We’re off tomorrow and it should be a great time.  My daughter loves space and astronomy so this should be right up her alley.

If you have similar ideas, feel free to add them in the comments section.

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10 Interesting Money Facts about the King of Pop and My Thoughts on These

In his death, Michael Jackson, the King of Pop has left legions of fans mourning over one of the greatest pop artists the world has ever known. His legacy of music is one that will live on through the years despite his early demise.

I’ve grownup on Michael Jackson songs and for a time, was obsessed about learning how to “moonwalk” – until I finally just gave up. Being a Jackson fan however has not made me oblivious to the fact that in the later years, his finances, as with his career, were quickly taking a turn for the worse. When you think of the millions that have passed through his hands from being a performer extraordinaire, it’s just bewildering how he left this world reportedly awash in millions of debt as well.

Let’s take a closer look at some of these mind-boggling money facts:

$700 million – For the entire duration of his career, it is said that Michael Jackson earned at least this much in album sales, concert tours, and other business interests.

$115 million - Thriller, his second album released in 1982 which went on to become the best-selling album of all time with over 51 million copies sold (according to the Guinness Book of World Records), was estimated to have earned a whooping $115 million for the King of Pop.

$1.5 million - Was the settlement amount Michael received from Pepsi Co. after pyrotechnics accidentally caused his head to be burned while shooting a Pepsi commercial. He donated the whole amount to the Brotman Medical Center in Culver City, California where he was treated. Brotman later renamed its burn unit to “Michael Jackson Burn Center.”

$5 million - His share of the 1984 Victory Tour headlined by The Jacksons – an amount he later gave to charity.

$47.5 million – Was the amount he paid for a music catalogue of 4,000 songs including about 200 of the Beatles’ best tunes, which he bought from ATV Songs in 1985. This venture is said to have earned him about $300 million in later years.

$17 million - Neverland Ranch was reported to have cost this much way back in 1988 when he acquired it.

$20 to $30 million – Living the life of a music superstar apparently cost a lot. At some point in his life, Michael was reported to overspend in the tens of millions every year.

$4 million - Was how much the upkeep of Neverland cost. Enclosed in the 2,800-acre property were a private zoo, a movie theater, a ferris wheel, and a roller coaster.

$30 million – The amount reportedly spent already by AEG Live, the organizer for Jackson’s series of 50 concerts set to start supposedly on July 13, 2009. An estimated 800,000 people have already bought their tickets.

$236 million – The King of Pop’s estimated net worth as of 2007.

Looking at these figures, here are perhaps some of the lessons we can pick up from them:

Give as much as you receive.

Maybe Michael did lead too lavish a lifestyle. But he was also known for his philanthropic work that span across countries around the world. Hungry children, the poor in Africa, hospitals, and the HIV/AIDS research were only a few of those who benefited from his largesse.

Invest in worthwhile ventures.

Before all the trappings of the superstar life got to him, Michael Jackson was also a savvy businessman. Proof of this is his going into the music cataloguing business, which proved to be his one lifeline when the going got tough.

Spend less than what you earn.

Whether we earn by the tens or the millions, the basic principle of not spending more than you earn applies obviously applies to all walks of life.

Have a care for the future.

It’s sad to see that for all the people surrounding him, he was really financially ill-advised. And because most of us will never have the chance to make even a tenth of what Michael Jackson earned in a year, it makes it even more important for us to keep our own goals and security in mind.

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I’m a reader.  In fact, I’m a voracious reader.

I’m also more than a little of a gadget fiend.  I love technology, but I can’t always justify spending the money on a new gadget.   As regular readers may know, last week I went and bought a new Sony Reader at Borders.  I got a good deal on it, I had a coupon so it was $199 rather than $299, but that’s still a lot of money.

So, why was it worth it?

I could go on about the experience of reading on the Sony Reader:  it uses the same technology as the Kindle so it’s much more like reading a book than staring at a screen.  I could talk about the convenience of having 99 books in a device that fits in a cargo pocket on my shorts.

But this being the Frugal Underground I think I’ll focus on the financial justification for buying the device.

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Photo by NURR

You should always have a plan when you are going to spend money. Consider just three areas where we regularly save by planning.

Groceries. Planning the meals to cover a week or two weeks will help you stick to a budget. Instead of buying food on impulse, you can plan each meal ahead and get the necessary ingredients. You should also make sure that you check the levels of household cleaners and toiletries. Avoiding an extra trip to the store will bring down the chances of an impulse purchase.

Entertainment. Everyone likes to get out and have fun. If you really need to get out once in a while, plan an inexpensive night out. Set the amount you will spend and stick to it. If you use cash only, you will be more inclined to stick to budget.

Major purchases. You can save a fortune if you explore your options. When looking for a car, furniture or major appliances, there is much room for error. Think about quality. It might not be the best choice to buy the cheapest thing out there, because it may not last as long. Check the consumer ratings on the brands you are considering. You don’t have to pay top dollar, but cheap isn’t the way to go with certain things.

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Quality time with family is so important. When money is tight, it is sometimes difficult to figure out how to make a worthwhile vacation on a budget. Here’s how you can get the most out of a family vacation without spending all of your savings.

Photo by elephantsgerald

Take short trips. You can visit amusement parks, local carnivals, local fairs, museums, aquariums and zoos for very little money. Small children will appreciate getting out of the house, and are easily entertained with animals and rides. Site seeing is also a nice change of pace, and you can have a family picnic.

If you want a real get away, drive. Saving money on flight costs will allow some flex in the budget for admissions and food. Also, if you have your own car, you won’t have to rent one. You may also want to find out how much the public transportation in the area is between the hotel and the attraction.

A three night stay in a hotel is just long enough to relax and enjoy a break. If you plan a shorter trip, always budget for the cost of an extra night, just in case. Shortening the stay will save some money, and if you save enough for a longer stay, you can use the extra money for special dinners or souvenirs.

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Instead of spending money on games that other people have created, you can create your own. Here’s how.

First, choose a theme or subject. If your family has watched a lot of movies together, for example, you can make a game about movies, or about a single movie.

Photo by Camille Panzera

Second, decide what the object of the game should be. For example, in the movie game, the object can be naming the movie a certain line is from or naming as many movies as you can with a certain letter of the alphabet.

Next, decide on the rules. For the movie game, the rules could be that only the team captain can speak, television films don’t count, or points off for talking out of turn. Write the rules down so that you can address them later if there is a conflict.

Now decide how you will keep score. You can use points, candy, or pennies to tally up who is winning. Will you be playing by teams, or individually?

You can also choose a reward for the winning person, or team, but that’s optional. Be creative! You might find that you have as much fun creating your game as you do playing it!

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Orville Redenbacher is bribing you to sign up for their new newsletter: sign up and get a “rent one, get one free” coupon at Blockbuster. Not that great of a deal, but handy if you’re already in the habit of renting movies at Blockbuster.

Do note, though, that this is very ambiguously labeled “And for a limited time, if you are one of the first to sign up…” If you try it and don’t get your coupon at the end of the process, leave a comment here and I’ll update the post.

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