Articles in the Sun-Sentinel

   Here is an article I found in the Sun-Sentinel about savings, emergency funds and retirement savings. It includes a few studies done lately on Americans and how the economy has made it hard to save. But we must be vigilant!! Every penny counts.
http://www.sun-sentinel.com/business/blogs/money-sense/sfl-not-saving-enough-20120222,0,400135.story

   Here's another link - 6 Ways to Cut Back to Save $4K a Year. Sound familiar? :)
http://www.sun-sentinel.com/business/blogs/money-sense/sfl-6-ways-cut-back-to-save-at-least-3k-a-year-20120109,0,3925213.story

Generic vs. Name Brand

   In my college marketing class, we discussed "brand loyalty", which refers to customers who use a particular brand name product and never vary. I don't recommend this spending lifestyle for anyone trying to save money. Brand name products can be much more expensive than generics. Some are worth the extra money because the quality is better, but some are practically the same thing by ingredient and function.

   I wear contact lenses which cost me a fortune all by themselves. But when you talk about the price of contact solution....for saline water?!? I switched to the Wal-Mart generic "Equate" saline solution several years ago. The price difference is remarkable - $4.94 for a 12 oz. Equate brand combo pack vs. $16.92 for a 10 oz. OptiFree brand combo pack! Crazy. I also use the generic brand for things like sinus/cold medicines. Just make sure to check the active ingredients on the back. It's the same thing! My best friend and pharmacist, Dr. Piper (Marsh) Machamer, will tell you that too. You can save $5+ on a single purchase.  

    Save on other generics like cotton balls, household cleaners, things in the grocery/dairy section such as butter, sour cream, cheeses, etc. All of them have the same exact ingredients. Aside from generics, if you stay flexible on brand names, you can buy whatever is on sale and/or you have a coupon for and save money that way. Try this for toothpaste, soap, shampoo, etc.

   Don't get me wrong - there are some things I will not go generic on because of that quality issue. Or just absolute preference. My skin is very sensitive, so I use Aveeno shaving cream ($3.50/can) and Schick Quatro razors ($10/4 refill blades). Expensive, I know, but those products are the only kind I can use that don't make my skin mad. I also splurge on Bounty paper towels because yes, it is the "quilted quicker picker upper." They don't fall apart and you can rinse, ring them out and use them again. Love them. Toilet paper is something I cannot go generic on. Toilet paper is also one of the products you will see the most quality difference in. Don't skimp!    

Car Problems

   Our last pay day was pretty sweet. Ian was able to nearly double his pay check with lots of commission from boat sales this month. Of course we planned to put all the extra in savings.

   At the same time, I decided to take my car in for a full diagnostic because it's been making an awful noise when I put it in gear. It does sit in the driveway a lot because I have a work vehicle so it doesn't get very much TLC. I love Tires Plus Ocala, across from Sam's Club. They are always really nice, priced fairly, and the store manager, Melissa, always talks to me on "girl level" so I understand what's wrong with my car.

   I took it there Saturday morning. They said the full diagnostic check would run me $40. Eh, not too bad. Well 3 hours later, Melissa called me with a list of items that needed attention including a new motor mount for $250 and an urgent oil leak. And there was a massive rodent nest in my AC filter compartment. Which makes complete sense because 2 months ago, we found a little Gus Gus (mouse) in the cabin of the car. Gross! We took care of the mousy with a trap as soon as we saw him. But we're just now finding his house :o/ 

   So the grand total to get my car back in good shape was about $590. Ouch. So that extra money Ian made will not be going to savings. But the lesson here is....because I have found a trustworthy place to take my car when it does have problems, I know they won't over quote me or tell me I need things done that I dont. Melissa even waived the diagnostic fee and didn't charge me to clean out the mouse house. Tires Plus Ocala will always get my business!

  

Silly Shopping

   The other day, I stopped by Kohls to pick up a gift for a bridal shower. While I was in there, I thought I should browse the sale rack for me. Just to see. Well, I ended up buying a pair of work pants and a sweater top. I mean they were on clearance and only cost me another $20 on top of what I went in there for, right?
   The fact that Target, Kohls, TJ Maxx, Ross, the Paddock Park Mall, Dillards, DSW, Old Navy and Ulta are within 10 minutes of where I work is toxic to my bank account. Confession: Last year, multiple times a week, I would go to one of these stores to "browse" during my lunch hour. I would almost always buy something. Even if it was just a scarf, pair of flats for work, whatever. But all of them were irresponsible purchases!
   This year, I'm really trying to limit my splurge shopping and nonsense trips to retail stores. I know this is one of the reasons our January credit card bill was half of what December was. So, I am making improvements! If I am going to impulse shop...I have to be really selective. Ask yourself these questions before check out: Do I really need this? Will I wear it in the next month? How many times in a year can I wear it? Is it practical for work and play?
  ***Keep receipts until the tags come off and you walk out the door wearing it. If you have buyer's remorse, you can always return it. Happens to me all the time.

Unexpected Money

   As I mentioned in the "Budgeting Basics" post, we have made a commitment to save any money that comes in over and above our regular paychecks. Overtime, commission checks, tax return, etc.   

   Last week, we received two unexpected checks. One was from Ian's boss - a $100 bonus for having such a good month (January) at Gulf to Lake Sales. Ian is a really hard worker and makes a lot of sales. He could sell a boat to an aquaphobe :)

   The second check we received was from Wells Fargo. We overpaid into our escrow account in 2011 and got a rebate check for $175. Yay!

   That is nearly $300 we were not expecting to get at all, and therefore had not planned on using it to pay anything. So into savings it goes. (See savings ticker)

Fluff in Your Bank Account

   Exciting news: By applying all the savings strategies in January that we blogged about - packing your lunch, dining in, the fiscal fast, mani/pedis at home, date night on a dime, traveling cheap - we were able to cut our credit card bill in half! In. Half. Understanding that our December bill was on the high side because of Christmas anyway, we were still able to get it down several hundred dollars from where it is on average. After paying all our January bills yesterday (utilities, cell phone, etc.) and anticipating Ian's truck payment that will be due before our next payday, we have about $300 "fluff" in our checking account.

   What is "fluff"? It is good money management to have a base number for your checking account. A number that you don't ever want to go below, so that you have emergency funds available. Set that number for yourself and make a commitment that you will keep at least $X in your checking account at all times, unless it's an emergency purchase. Shoes on sale do not count as an emergency. Anything over that base number is the "fluff" in your checking account. 

   Today, I'm taking that $300 fluff, and transferring it into the savings account. (See savings ticker).  

Maximizing Your Tax Return

   Tax season can be a great way to get a chunk of money back into your savings account. Some households rely on their tax return to pay off credit card debt, some use it for a nice vacation, some just stash it away for a rainy day. Whatever you look forward to using that money for, here are a few tips to help you maximize your return:

   Save all your receipts: If you buy uniforms or business attire, safety shoes, pay for professional association dues, use your vehicle for work (not including mileage to and from work) - all of these things are a tax write off. If you donate to any charities throughout the year, through payroll deduction or any other way, this is a tax write off. Even if you drop off clothing and other items at Goodwill or shelters, take a note of the value of the items and have someone from the organization sign the note.

   Medical expenses: Any kind of medical expense is tax-deductible. You must spend 7.5% of your income on medical in order for it to be deductible, but keep all your paperwork and receipts anyway. You might hit that percentage. We did. Ian got braces this year so that bumped our medical expenses up a lot. Combined with the cost of my contacts - outrageous by the way - insurance premiums, regular physician check-ups and contraception, we were well over $7,000. You can even write off mileage to and from the doctor's office, which helped us out because Ian has to go back to the orthodontist every 2-3 months for adjustments.

   If you have a side business: We started my little bread baking business this year, Bread Moments. I was selling bread at the farmer's market nearly every Saturday from May until October. Because I kept the receipts for everything - from groceries to mixing bowls, my advertising banner, everything - we calculated that we spent $1,475 on supplies, ingredients, vendor space, etc. to get this "business" off the ground. How much did we make? Hah! After we calculated mileage to and from the market....we were in the hole $304. Which is not too bad for getting a business started, but it's not awesome. Anyway, everything was tax deductible so we got a little back.

   Friday, I met with our tax guy, who is also a good friend of Ian's family and does our taxes in exchange for fresh warm bread :) His fantastic math skills determined we will be getting back roughly $2,800. Which is about $600 more than last year. I'm contributing that to the extra we spent on the bread business, and an increase in Ian's income. The boat industry in Crystal River had a good year :)

   When this money comes in, we are planning to take a few hundred dollars and treat ourselves to the Wizzarding World of Harry Potter at Universal Studios. The rest is going in savings!

No Sale? No Coupon? No purchase.

   One of my personal commitments to saving our household money is to never buy clothes or cosmetics at full price. It might sound impossible at first, but it's very do-able. In addition to shopping the clearance rack only, sign up for e-coupon mailing lists at all your favorite stores. I get $10 coupons regularly from DSW, Ulta, Kohl's, Victoria Secret, Macy's and Old Navy. True story - I wanted a new dress for a fundraiser banquet we were going to with Ian's boss and coworkers. I had a $10 coupon for Kohl's. I went by there on my lunch break and went directly to the sale rack. I found a black, racerback, maxi dress with a ruffle around the neckline. It was on clearance for $8. What am I saying? That I got a brand new dress FOR FREE! I got many compliments on it that night and it is now Ian's favorite "going out" dress that I wear. #win

   Combining sales and coupons: I routinely stock up on coupons for household cleaners, toiletries and cosmetics that I use and wait for them to go on sale. This equals massive savings. 

   This week, I'm running very low on cosmetic face powder and my go-to pink shimmery eye shadow just bit the dust. I noticed in a sale ad for Ulta that Loreal cosmetics were "Buy 2 Get 1 Free". I happen to use Loreal powder and blush and had a bunch of coupons for them. I'm also a big fan of Ulta brand eye shadow and all Ulta cosmetics were "Buy 2 Get 2 Free". So, I picked 2 face powders and a blush (1 of these will be free), and used a $3 off coupon for each powder that I purchased = $14.99 savings with the free blush. I picked out 4 Ulta eye shadows (2 of them were free) = $14 savings. THEN I had an Ulta coupon from the ad, $3 off my entire purchase. So what would have cost $55.97 plus tax really only cost me $24.89. That is cutting my bill by more than half! And it's for stuff I really needed anyway.