STOP OVERSPENDING - 10 QUICK FIXES

As things continue to go precipitously downhill, TEAM CHEAPIOSITY reminds you not to overspend. Some ideas are new, some recycled, but we offer this sound advice intended to save you plenty of dosh.

Afternoon snacks. Instead of impulsively spending 2 or 3 bucks on that candy bar, energy bar, or a bag of chips, satisfy that hunger with some pre-planning. Buy your treats in bulk or at the grocery store and bring them along with you. No shame in brownbagging it. Not with the big bad wolf banging at recession's door. And while you're economizing, don't forget healthier (and cheaper) alternatives like an apple, orange, cheese sticks, carrots…..you get the picture. We're not your mother. Nag, nag, nag.

Bottled water. Yes. It’s important to drink a lot of water (and certainly better for you than soda) but buying bottles of water is a colossal waste of your hard-earned money. Not to mention, the news is filled with health concerns about toxic plastics leeching into your system. If your workplace provides you with filtered water, then bring a cup to work and fill it there; if you still want your bottle, you can refill it as long as you periodically and thoroughly wash the reused container. At home, it's worth investing in a water filter system, either built-in or portable (Brita and Pur for example). Bottled water companies are unregulated, and you just may be paying a premium for fancily packaged municipal water right from the tap. Do what the bottled water companies do; filter it yourself. Stay hydrated; don't get soaked.

A caffeine fix. Direct from our Department of Redundancy Department, a reminder to read last year's post on coffee: http://cheapiosity.blogspot.com/2008/05/koffee-talk_01.html. We can't say it any better. We're just that good.

Favorite tunes. Don’t rush out and buy the latest CD; download it from iTunes or other web providers. Downloading music is cheaper, faster and convenient. All this convenience can cost you. Be careful not to make lots of impulse buys you might regret later. And if you're good at bargain hunting, consider buying used CD's at local purveyors or online through eBay or Amazon Marketplace. Make sure to figure in shipping costs and quality assurances before making any purchases.

A night at the movies. Going to the movies has become a mighty expensive proposition. Yes, we know -- nothing quite replaces the big screen experience, but this just might be a time to cut some corners. What with gas, babysitters, skyrocketing admission prices, parking, and overpriced treats, date night at the multiplex can run up quite a tab. Think about joining Netflix or Blockbuster online. Oh sure, you may not feel on top of every hotbutton water cooler conversation, but you can catch all the trailers for free online and stay on top of the zeitgeist. Besides, most films are released on DVD only three months after their bigscreen runs. For considerably less than the cost of going to the movies, you can rent (or even own) the DVD and watch it multiple times with friends and family. If you only see a movie once a month, consider using On Demand from your cable or satellite company; most current features cost $3.99 or less. If you're a teenager, nothing we tell you will make any difference. Go. Spend. Hang out. It's only money, and you're only young once. See Watchmen six times. See what we care.

Fresh flowers. Buying flowers from a florist gets expensive. Try flowering plants that last longer or buy flowers from your grocery store, Trader Joe’s (if you're lucky enough to have one in your area) or your local flower mart. You’d be surprised at the drastic price difference.

Fruits and veggies. Everybody likes the idea and ease of pre-cut fruits and veggies, but the convenience adds a lot onto the cost. Go back to the old fashioned way. Cut them yourself and save money. They taste better too.

Credit-card fees. Every month, your friendly credit card company rips you off with finance charges and fees. Take a long hard look at what your credit is costing you; reevaluate whether or not you are overpaying. Make sure you’re using the card that’s right and cheapest for you. Many websites will do credit card fee comparisions (http://www.creditcards.com/, http://www.creditcardguide.com/, etc.) As we’ve mentioned before, your finance charge percentage is negotiable. Negotiate. Come on. Make the call. Advocate for yourself. Be smart.

ATM fees. Another rip-off from your bank. Be sure to use ‘in network’ ATMs and save those fees. They add up to real money. Use your debit card at grocery stores and get cashback without a fee.

FAX and mail services. If you don't have internet, you're not reading this so we don't have to hold your hand. Instead of paying your local mailbox store $1.49 to FAX a page, sign up to send free FAXes from an online provider such as faxZero or K7.net or http://www.j2.com/.
If you don't have access to a FAX machine, you can always scan and attach your documents to an email.
As far as sending mail or packages, the US Postal Service is still the cheapest way to send a letter. However, when it comes to packages, it’s a slightly different story. If you use a USPS Priority Mail flat rate container and the contents are heavy, then that’s your next best buy. After that, think ground as in FedEx or UPS. We have found that FedEx usually beats out UPS price-wise. Ground service takes about 5 business days for the farthest location and much less if your destination is closer. If your package is traveling within your State, ground service can take 1 day to arrive without paying expensive overnight rate. All carriers will give you price and transit time estimates, so shop around.

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HOW TO DEAL WITH CREDITORS

This is not fun. Debt is no laughing matter, and procrastion and positive thinking won't make it go away no matter how hard you try both approaches. TEAM CHEAPIOSITY has some important practical advice to share with you. Let's get serious.

Don't wait for your creditors to call you about unpaid bills. Instead, contact them to explain your situation, suggests University of Illinois Extension consumer and family economics educator Lois Smith. "Rather than begin expensive collection procedures, most creditors would prefer to receive smaller payments on a regular basis," Smith said. She noted that creditors will be more cooperative if you've paid your bills on time in the past. To begin, do your homework before calling or writing. "Know who you owe, how much you owe, and how you plan to pay them. Make sure you'll be able to follow through on your agreement and that your repayment plan is acceptable both to you and your creditor," she explained. To help you with this process, read the factsheets on which bills to pay first and establishing a spending plan at U of I Extension's http://www.toughtimes.illinois.edu/. Once you know how much money you can afford to repay, contact each creditor, explain your family's situation, and ask their assistance in working out a solution.

Be prepared to explain: - The reason you can't pay - Your current income and prospects for future income - Other obligations (bills) that you have - Your plans to bring this debt up-to-date and keep it current, including the amount you'll be able to pay each month

"If possible, visit local creditors in person--the loan officer at your bank or credit union, the credit manager of local stores, and the budget counselor at the utility company," Smith said. "Contact out-of-town creditors by phone or letter, writing down the name and title of the person you talked to. Follow the conversation with a letter summarizing the agreement and keep copies of your correspondence as well as any reply." Smith advises using the sample letter to creditors at www.toughtimes.illinois.edu as an outline when talking to creditors. At the website, first click on "Managing Your Finances," then "Talking with Creditors," she said. "As you negotiate with each of your creditors, don't agree to any plan simply to get off the hook," she said.

Here are some alternatives to consider when you are negotiating: - Reduce the monthly payment. - Refinance the loan. - Defer a payment for a short time if you expect your income to increase soon. - Pay only interest on the loan until you can resume making monthly payments. - Voluntarily surrender or give back an item purchased on credit. - Sell the item and use the cash to pay, or partially pay, the debt (you are still responsible for any remaining balance).

Tell your creditors about any changes that may affect your payment agreement. If you fail to follow the plan, they'll be less willing to work with you in the future and you'll hurt your chances of getting future credit. "But if you owe a large amount of money, and your creditors won't accept reduced payments, you may have to consider more extreme alternatives, such as filing bankruptcy," Smith explained. If you miss a payment, eventually your bills may be turned over to a collection agency. The Fair Debt Collections Practices Act prohibits collection agency callers from using abusive language, they can't call you at unusual hours or threaten criminal prosecution, and they can't discuss your financial situation with others, she said. If you receive a call from a creditor or collection agency: - Ask the caller's name. Get the name of the creditor and the name, address, and telephone number of the collection agency. Note the exact amount they say is due. And write down the date and time of each call. - Stay calm. Explain your financial situation and how much of the bill you are able to pay, according to your repayment plan. - Dispute debts in writing. If you believe you don't owe the amount claimed or otherwise disagree, make your reasons known promptly in writing to both the creditor and the collection agency. -Request a written statement of your account and always keep copies of your correspondence for future reference.

Creditors can take several kinds of legal action against you. They may file a complaint, initiating a lawsuit, in which case you'll receive a summons. The case may be settled in small claims court, depending how much is owed. If you don't respond or lose the case, the court will issue a judgment against you for the amount you owe plus court costs and attorney fees. Other actions creditors can take against you include: - Acceleration--the entire debt is payable at once if you miss a payment. The courts can force you to pay by seizing your property and selling it. - Repossession--the creditor can seize the item you bought or the property you used as collateral for the loan. If its sale brings less than you owe, you must pay the difference. - Wage garnishment--a court order requires your employer to withhold part of your wages and pay your creditor. - Foreclosure--If you fail to make your mortgage payment, the taxes or insurance on your house or other property, the lender can force the sale of your home/business to pay off the loan. You are responsible for the legal fees of foreclosure and the difference between the selling price and the amount owed on the loan. "Be proactive to head off these drastic measures by communicating with your creditors at the first sign of a problem," Smith advised.

One last item. Take a look at this article from Smart Money regarding Debt Settlement firms and reasons why not to use them. As always, we're all about saving you money by doing it yourself: http://www.smartmoney.com/Spending/Rip-offs/Reasons-Hiring-a-Debt-Settlement-Firm-Is-not-Always-Worth-It/

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LIFE INSURANCE SHOPPING

Yeah. We know. Puppies have nothing to do with Life Insurance. Puppies are cute and cuddly, and people love them.

Life insurance….yuck. Just the words send people scurrying for cover. Everyone hates talking about Life Insurance. Except Insurance agents. They probably even find it interesting. After all, they chose it as a career. Takes all kinds. Can't all be ballerinas and firefighters, we suppose.

Life insurance is one of those boring adult responsibilities. Like repaying college loans and paying taxes. (We're talking to you, Mr. Daschle.) If you have dependents, you probably want to leave them with a little nest egg to remember you by. Face it. Life insurance is a necessary evil unless you’re very rich and your portfolio is still worth something. If, say, you never heard the name Bernie Madoff before he hit the news. Sigh.

As with anything else you purchase, shopping around can yield significant savings. We know. Shopping around for life insurance probably sounds like a trip to the second circle of Dante's Inferno. But face some facts: Life insurance is a commodity product -- there is not much difference between one policy and the next. It's not like you can buy the nicer policy made of silk and leave the cheaper nylon one on the rack. If you are healthy and want to be insured for $500,000, it would seem reasonable to expect that comparable policies from any of the hundreds of companies willing to insure healthy people, should be priced similarly. So how do you begin?

Start by shopping online. One site we looked at was: http://www.efinancial.com/. Unfortunately, even though they say they’ll give you a quote at the end of the questionnaire, you are being solicited by an Insurance Agent. You will get some quotes online, but be ready for a call from a pushy person. They will try to sell you more than what you want. Be firm. Explain that you’ve done your research and you know what you want and you want a comparison quote….THAT’S IT. They’ll give it to you, reluctantly.

Independent Agents are usually a better choice to talk to (as opposed to company-based agents who only sell products from their particular insurance company). The highest quotes will probably come from large financial companies who don't specialize in life insurance. From the independent brokers, you will likely hear the same numbers again and again. The independent brokers are the easiest to work with; they don't tend to ask as many invasive questions as company-affiliated brokers, and for the most part they don’t use hard-sell techniques. One helpful broker might point out that different companies have different weight cut-offs for the lowest premiums. So, for example, if you could lose a manageable three pounds, you would fall into a better health category and save a few dollars on your annual premium. In our experience, independent brokers also seem to know the business very well.

Shopping around does make a difference though; premiums can vary. After you get several quotes and they’re in the same ballpark, you then know you’re paying what you should be.

(By the way, the same holds true for car insurance. Shop around every few years; you’ll be surprised how much you can save. We suggest http://www.insurance.com/default.aspx is a good place to start.)

Also make sure the company is highly rated (http://www.ambest.com/) and ask about customer service if you need to use it.

For more information, we recommend you take a look at this article: http://www.walletpop.com/insurance/10-tips-no-one-else-will-tell-you..

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LOW TECH FIXES FOR HIGH TECH PROBLEMS

Here's a helpful article from the NY Times to do some fixes and save you bucks:


http://www.nytimes.com/2009/02/19/technology/personaltech/19basics.html?_r=1&partner=rss&emc=rss&pagewanted=all

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MOBILE PHONES, CHEAP DEALS

Let's talk cellphones. What is 3G and why is it a network? What is a G anyway and do we need 3 of them? What if we only want 1G? Wait. Isn't that the name of the Google phone?


Confused yet? Welcome to the club. As technology gets more sophisticated, it gets more confusing. Are we spending more money than we need to on nifty features that we really don't need? Do we need to have access to the worldwide web every second of every day? How about this idea? Pay only for the services you really need and saving some bucks.


Prepaid cellphones are becoming increasingly popular in these tough economic times. Prices are very reasonable, and you don't have to sign up for a year or multi-year plan. Take a look at this article from the SF Gate to illustrate our point: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/02/18/financial/f102402S54.DTL&feed=rss.business.


Then take this quiz: http://cellphones.about.com/library/bl_pt_q1.htm?q=UPT-TAKEAGAIN


Not satisfied with your quiz results? Check out this nifty comparison chart: http://www.cellguru.net/prepaid_compare.htm


Don't get us wrong. We're not recommending everyone switch over to prepaid cellphones. Subscription plans with 1 or 2 year contracts can be moneysavers too. HOWEVER, make sure you're buying what you NEED, not what's cute or new or hip or whatever. We got along just fine without cellphones for years. Just because something new is available doesn't mean you have to have it. Remember landline phones? Remember letters? If you travel extensively and need to be in contact with your office, then of course you'll need a plan with email and data. Hopefully your company will pay for it too. If you have a family and want to keep in touch, then of course a family plan makes sense. But do the kids need to run up your bill with constant texting? We don't think so.

As we always say, shop wisely, save money.

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IN LIKE A LION...MARCH BARGAINS

Spring arrives in three weeks; that's cold comfort for our East Coast colleagues as they slog through squalls and ice and snow. You know the CHEAPIOSITY drill by now. Take advantage of the lousy winter weather by buying warm weather items nobody wants now but everyone will need later. Demand is low and discounts abound on: air conditioners, cooling systems, ceiling fans, and air purifiers.


Cookware generally goes up during graduation and wedding season, so shop now for discounts and beat the rush.


After Valentine's Day in February and before Mother's Day in May, jewelers aren't all that busy. Good news for you. You'll find great deals on jewelry if you shop in that calendar sweet spot.



New bedding models arrive in the spring, which makes March a good month to buy that new mattress you've been dreaming about. Retailers look to eliminate older stock for newer models, and you can find some deals.


Spring is the time when most think about home improvement; we humbly suggest you think DIY earlier and buy tools before prices go up.


New vacuum cleaner models come out in June; start looking now for sales.


Look for wedding related items now before the wedding season begins. Filene's Basement, for example, has their famous wedding dress sale at this time of year.


Small electronics tend to be discounted now in anticipation of summer use and the arrival of new models.

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CHEAP GROCERIES

Looking for more ways to save? Let's look at groceries. The Wall St. Journal recently published an article that says not only are consumers cutting back on eating out -- they are also cutting back on buying groceries: http://online.wsj.com/article_email/SB123448606475780133.html.

Enter salvage grocery stores. They work pretty much the same as Lomans, Filene's Basement, Marshalls, Ross4Less, etc. They sell discontinued groceries, overstock, dented or blemished packaging or groceries that are about to expire, but haven't expired yet.

Where do you find them? Of course well tell you.....that's what we're here for:

http://gnivas.com/food/salvage-and-bulk-food-stores-savings-havens/

http://www.frugalvillage.com/forums/showthread.php?t=97055

http://www.andersonscountrymarket.net/directory

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