Frugal – Page 5

Save for something that makes you happy

February 1, 2012 by Guest Leave a Comment

This is a guest post from Money Supermarket:

Many people have the goal of saving enough money so that they can enjoy themselves when they retire. This is certainly a worthy goal to have, but it also means that there are a lot of people who are missing out on the joys of life in the here and now.

People often spend their whole lives pinching pennies and saving for the future when that future may not look all that bright. A growing number of people are now realizing that while saving for the future is a good idea, it is certainly just as important to enjoy yourself now while you can. Some are now looking at financial products to help them plan those shorter-term goals that make them happy.

Planning a vacation is a great way for someone to spend enjoyable hours thinking about the upcoming getaway. Going on a holiday allows you to break the monotony of everyday life and come back relaxed and rejuvenated.

Regular vacations add interest and enjoyment to life. It is possible to experience other parts of the world and enjoy the diverse cultures that make up this planet, but what makes one person happy is different from what makes another person happy.

Saving money for goals is all about aiming for something that will bring you joy. There is no point in saving for something that someone else may want for you when you think it’s a waste of money. In order to get value from saving for something, it must truly be something you want. Saving for a new car is great for someone who loves driving and will truly benefit from this, but not so great for someone who only gets a new car to impress his friends.

Enjoyable goals that are worth saving for bring a bounce to the step and a smile to the face. If you do not have a good idea what makes you happy, just think of things you have done in the past that you have really enjoyed. It may be fun to do this again or buy items that allow you to experience the happy experience again.

A good goal is going to be something that you look forward to when it happens and makes you feel excited and alive. Saving for this kind of goal is easy because it involves the pleasure principle. It is far easier to save for something that brings true pleasure than something that is not what you really want.

Filed Under: Frugal Tagged With: personal finance, savings, vacations

Don’t Squander a Balance Transfer

January 26, 2012 by David Leonhardt Leave a Comment

Debt sucks. It’s like a black hole into which is sucked not just your money, but your freedom as well. I would much rather be owed than to owe. When you are beholden to someone, you are at their mercy. They own you.

In the case of credit card debt and credit line debt and other loans, there is a huge financial implication, but the principle is the same as any other debt. You are beholden to the credit card company or loan issuer, and no matter what else you want to do with your money, you better pay them off first.

Being debt-free is one element in increasing happiness, so paying down debt – especially high-interest credit card debt – is a big practical opportunity. But paying down debt is tough, especially when each month the interest is using up so much of the money you would want to use to pay down the debt.

Enter the balance transfer credit cards. This is typically an offer that would read something like this:

Transfer your credit card to us, and for the next six months you will pay no interest.

Or…

Transfer your credit card to our card, and for the next 12 months you will pay just 1.9 percent interest.

This sounds pretty seductive, especially if you are now paying 14 percent or 16 percent or more. Just think of all the things you could do with that extra $300 or $400 or $500 a month that you will save on interest.

STOP!

Don’t think about “all” the things you can do with the money you save on interest. Think about just ONE thing you can do – pay down the debt.

If you are saving $300 per month, that means you have $300 to pay down the debt. At the end of six months, you will have paid off $1800 of debt. Why is this important? Because at the end of six or nine or 12 months, full interest rate will kick in. If you can pay a lot of the debt down while the balance-transfer effect is on, you’ll be much less indebted in the future and you’ll be much better positioned to continue paying down the debt so that you will never be owned by anybody again.

Filed Under: Frugal

Five Animals Teach Us Less-wasteful Dining Habits

December 31, 2010 by David Leonhardt 9 Comments

Feeling frugal? Wondering how to save some money and time, while still eating healthy and helping the environment? Here are five animals showing us ways to eat less wastefully, saving time and money, while helping our health and the environment.

The Fox
Saves: money, environment, health
Lesson: Buy direct from the source

By the time you buy a dozen eggs at the grocery store, they have been through several hands…and at least two weeks of handling, often three. By the time you finish that last egg, it might already be four weeks old. Not very fresh.

The fox goes straight to the source – the henhouse. No middlemen adding extra prices. No back-and-forth-between-between-companies transportation adding extra pollution. No warehouse lay-overs reducing freshness. In many cases, no (or less) chemicals and hormones polluting your meal.

Pretty foxy strategy.

The Giraffe
Saves: money
Lesson: Check for cheaper items

Stores always place in front of your face the items that yield the biggest profits. These are the very things that a frugal-minded person least wants to be coaxed into buying.

The giraffe looks for less-obvious alternatives. His long neck reaches for higher leaves and items tucked out of sight on the top shelves.

Always stretch your neck a little to see if you can find a less-costly option.

The Bear
Saves: money, time, environment
Lesson: Buy in bulk

Many people buy the same items week after week. This makes sense for milk and eggs; they would spoil if you buy them months in advance. But for many things, it makes no sense to make hundreds of trips to buy the same thing.

The bear shops bulk. He doesn’t flit from flower to flower to collect honey; he waits for the bees to gather the nectar and churn out huge quantity of honey. This way, the bear needs go only once to collect a huge amount of honey all at once. When we do this, the item usually costs less, and we save time, money and pollution by reducing transportation.

Yeah – let someone else do the work.

The Spider
Saves: money, time, environment, health
Lesson: Eat in

People seem to be eating out more and more. But restaurant food is usually much more fat-laden, sugar-stuffed and salt-infused than food made at home. It also costs much more. And it often takes longer to eat, when you consider transportation time, preparation and the inevitable waiting-for-the-bill ritual.

The spider never eats out. He waits for food to come to him, prepares it and devours it on the spot. He saves time, money and the risk of getting squished by a boot.

Eat in and enjoy the privacy and the savings.

The Squirrel
Saves: money, time
Lesson:Buy when there’s a surplus

We buy things all year ’round, even things that could last quite a while. Apples and squashes are plentiful and cheap in the Fall, but keep well in a cool corner of the basement or garage for months. Some items are overstocked after Christmas. These are the times to buy.

The squirrel does most of his shopping when the nuts are plentiful, then stores them away to eat over the course of the winter. This saves a lot of time that otherwise would be spent running around looking for food.

Why run from store to store, when the store can be right at home?

Filed Under: Frugal Tagged With: animals, Frugal, thrifty

Money, Greed and Happiness

January 30, 2009 by David Leonhardt 5 Comments

I want to share with you the message that was sent out today to subscribers of A Daily Dose of Happiness. This is particularly timely because of the credit crunch that is making everyone suffer, but if you are a sensitive sort, you might not want to read any further; I am about to rain on most people’s parade.

The credit crunch is a product of – let’s not mince words – greed. All of our greed. We wanted more, more, more (SFX: maniacal laughter in background). Well, we got more, more, more than we could ever hope to throw away without even opening the excess packaging. Sooner or later we have to pay for it. Sooner or later has arrived.

Today’s Daily Dose of Happiness Message

You know that whole debate about money buying happiness. It gets overly simplified, like far too many things.

I recall attending a Zig Ziglar seminar a few years ago. He said, “Money is not the most important thing in life, but it comes reasonably close to oxygen.”

His point is well taken, but how much oxygen do you need? There is a point at which more oxygen can be a life-saver. There is also a point where more oxygen becomes overkill.

Likewise with money. The first dollar you make this year will be very, very important for your happiness. At some point, when your basic needs are secured, the value of money starts falling dramatically. The 100,000th dollar you make this year will likely bring some extra momentary pleasure, but is unlikely to actually make you happier.

The key is to find the point at which money stops making you happier. Any investment of additional time to earn more money will actually reduce your happiness (more money that does not add to your happiness, less time that would have).

Any further compromise of values or principles required to earn more money will likewise reduce your happiness (more money that does not add to your happiness, less integrity that would have).

Instead of accepting that we have to pay for all the excess of the past couple decades, we want the government (that’s us, remember?) to buy us even more excess. Yes, we in the Western world really are embarassingly spoiled rich kids. The problem, as any credit counselor can tell you, is that you cannot spend your way out of debt. And as we dig our way into even greater debt, I just cannot see how that creates more happiness. I fear we are collectively handing over the keys to what I call “The Merchants of Misery” in my book, Climb Your Stairway to Heaven.

Filed Under: Frugal Tagged With: economy, greed, money

Support War Child

January 22, 2009 by David Leonhardt 1 Comment

I mentioned a while ago that we are supporting the 12 for 12K Challenge, a charitable campaign launched through social media. Each month in 2009, a new charity will be selected, and we are asking you to consider a small donation ($10, but feel free to give more if the spirit moves you).

The first charity, for January 2009, is War Child. Why? There is a good piece where Danny Brown puts the value of $10 in perspective.

Here is a quick overview of the War Child Charity:

…and below is a video of Little Lady and Little Sister protesting against poverty. In truth, they did this 100% spontaneously the first time, but I did not have a camera handy then. So this is actually a “re-enactment” video. Note that the banner reading “PlYSE” is supposed to read “Please” (not bad for a 7-year old learning to write in French), as in PlYSE support the 12 for 12K Challenge.

YouTube is not embedding this correctly, so here is the direct link to the video: http://ca.youtube.com/watch?v=ajimCKvI6-E

I’ve just sent my $10 donation; why not send yours now?