Monthly Archives: November 2010

How to Become More Self-Sufficient

Posted on by  at  5:00 am
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Over the Thanksgiving weekend I was chatting with a friend about mechanics. He was having some work done on his truck and lamenting the upcoming repair bill.

We both agreed that new cars and trucks were harder to work on, but a lot of that was because we haven’t updated our mechanic skills since helping our grandfathers change spark plugs many years ago.

Looking back, it is remarkable how many things people used to do themselves. I remember my grandfather changing his own oil, shingling his house (even into his 60s), insulating his attic, installing new windows, laying tile, carpet, etc.

Now days, very few of us are fit to handle similar tasks (myself included). I’m actually a little bit ashamed of that. While fairly handy, there are several types of jobs I just can’t do.

Because I’ve never been a “car guy,” I wouldn’t consider myself mechanical. I’m terrified of anything electrical, though I did manage to tackle installing a programmable thermostat a couple years ago. I enjoy making sawdust, but wouldn’t have the foggiest clue how to actually build something beyond a very basic construction.

The root problem with all of this lack of hands-on education is that it costs us money. Any time something breaks, or you have an idea to build or replace something, you have to search Angie’s List or the Yellowpages for a reputable contractor or repairman. I’d much rather order a part online and make the fix myself.

How do we learn to become more self-sufficient? Well, since most of us are not born with natural instincts to find our way around an engine, or an attic, it’s probably a good idea to learn from the experts. Here’s a few ideas.

Hover Over the Repairman

My grandfather used to do this and it drove my grandmother crazy! I can hear her now, “Quit hovering over that nice man and let him do his job.” I suppose it was a little annoying to the repairman, but my grandfather was actually watching (and learning) so he could make the repair next time.

Go Back to Shop Class

My high school offered a wood working shop class, which I very much enjoyed. However, they did not offer a course in mechanics, which I very much needed. I can perform basic maintenance and repairs on my truck, but would like to learn more.

Many technical schools offer a course in engine repair, mechanics or similar. This could be a great way to expand your knowledge of mechanics to the point where you can fix your own car or lawn tractor the next time it won’t run properly.

Attend Workshops at Lowes and Home Depot

Most Saturday mornings, Lowes and Home Depot offer home improvement project workshops for anyone interested in attending. Recent workshops have taught customers how to winterize their home, install new countertops and how to inexpensively paint interior rooms.

Bonus: These two stores often offer kids workshops where you can bring your kids in and help them with a child-friendly project such as building a bird house, or a gift for mom closer to Mother’s Day.

Ask a Neighbor for Help

I was not blessed with a green thumb, but I have discovered a passion for growing fruits and vegetables. What started out as a small, square foot garden two years ago, should grow to a much larger, in-ground square foot garden this spring. In fact, in just a couple months I’ll be constructing the boxes and beginning to layout the new garden.

One thing I’ve learned about gardening is there is much to learn about different crops, planting times, harvesting times, watering schedules, etc. Several friends and neighbors have gardens, and this year I’m thinking of asking for a garden “consultation” from people who have had successful gardens for many years. I’ve found most gardeners are happy to share a few secrets with someone genuinely interested in learning.

To do this, you have to first get over the fear of asking for help (men are particularly affected by this). We don’t want to be a bother, or we are just too proud to ask for help, so we go it alone and spend twice as much time, money and energy trying to fix something our neighbor could show us how to fix in twenty minutes.

Hopefully, the end result of acquiring these new skills is that you can begin to do things for yourself, rather than having to rely on someone else. Then, you can begin to pass this knowledge on to children and grandchildren to continue a legacy of self-sufficiency that will serve future generations for many years.

2010 Holiday Tipping Guide

Posted on by  at  5:00 am
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Another holiday tipping season is upon us. People are comparing notes about appropriate tipping guidelines. How should we reward people who have provided high quality services to us throughout the year?

The grim realities of our sluggish economy, coupled with the fact that so many people are struggling to make ends meet, loom larger during the holiday season. Nevertheless, there is no need to feel stressed. It is possible to navigate this process and not bust your holiday budget.

First of all, remember that holiday tipping is a gesture. It is not just about the money. If I could wave a magic Yuletide wand and ensure my wife’s hairstylist had the happiest of holidays, I am sure she would prefer that to any check or gift card we could hand out. But barring that, our holiday tip is a way to show appreciation to individuals like her who provide services for my wife and my loved ones.

When setting your tipping guidelines, think about everyone who has provided services for you and your level of interaction with them. Avoid framing your decision to give a holiday tip solely because you feel it is expected of you.

Ironically, we often skip over the very people who should get a holiday tip simply because they do not put themselves forward. Here are some scenarios to help you work through the ins and outs of tipping etiquette, circa 2010:

Hairstylist

If your regular hairdresser gets a great tip every time you visit them, you will not violate tipping etiquette if you don’t give them an additional holiday tip unless they are re-arranging their schedule to fit you in to get the special hairstyling that you absolutely must have before your big holiday party.

Suggested holiday tip for that stunning holiday hairdo: 50% over the standard amount that you ordinarily would tip for a hair appointment.

Pet Sitter

If your dog walker or pet sitter did a great job all year, and also showed up at your house during the biggest snowstorm on record and brought your pet their favorite treats when your grocery store was snowed in, now is the time to show that you value their going the extra mile.

Suggested holiday tip for loyal dog walker: Equivalent of what you would pay for 3 visits, plus a new pair of mittens to replace the ones that your dog chewed up.

Tutor/Teacher

Your child’s tutor or school teacher can make excellent use of a gift card to your local book, office supply or arts and crafts store. Rather than presenting them with cash, by giving them something that enhances their ability to do the work they love it is a win/win for everyone.

Suggested holiday tip for fantastic teacher: One or two $25 gift cards.

Housekeeper/Housecleaner

If you have decided to outsource housekeeping to free up more room in your schedule, be sure to acknowledge those who keep your home clean.

Suggested tip: $65-$70 for the average house, or the equivalent of what you’d pay for a week/biweekly cleaning.

Newspaper Carrier

Talk about a thankless job. Up seven days a week in the cold, dark wee-hours of the morning to get a fresh copy of the newspaper to your driveway.

Suggested tip: $20 or so. Come on, you probably leave tips of half that for one meal out at a nice restaurant, and those servers only brought food and drink to your table from a warm, dry kitchen at 6:30 in the evening.

In sum, if you can afford to be generous, this is the time of year where your generosity can have a big impact. If you are financially strapped, that fact of your being a good customer is, in itself, a boon in these difficult times.

In this situation, consider sending someone who has provided services to you a holiday card thoughtfully acknowledging their service. You also can add that you intend to continue being a loyal customer in the future.

Turkey Sandwiches and Football

Posted on by  at  12:01 pm
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That post title should give you a pretty good idea how I’m spending the remainder of the weekend. Seriously, is there anything better than left over turkey sandwiches after a Thanksgiving feast?

Before we get to the roundup, a heads up on what I think is a phenomenal offer.

On Black Friday, HostGator is offering 50%-80% off any web hosting package. HostGator has been my host for nearly three years and I couldn’t be happier. If you’ve ever considered starting your own blog, this is a great time to start!

The sale begins at 12:01am CST on Friday, and I’m told the best deals will be offered between 5.01am and 9.00am CST. Check out the various hosting packages here.

The Frugal Roundup

  • I’ve been off this week, and when on vacation I often ask myself: Can I retire yet? Then I run the numbers and realize I’m still (at least) a couple decades away.
  • Selling a home can be a long, complex process, even if following traditional selling methods. It’s even worse when you have to resort to other methods. Check out this short sale nightmare.
  • The recession has many thinking that a home business might not be a bad idea. It’s not just about escaping the rat race; in some cases, it’s about income diversity. Here are 5 home business ideas with low start-up costs.
  • I’m suffering from car fever, or truck fever to be more specific. My current vehicle is getting up there in miles, and I’d like to have a truck for some upcoming home improvement projects. Timothy shares the best cars under $25,000.

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Black Friday Deals: A Savvy Consumer’s Guide

Posted on by  at  5:00 am
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It’s almost here: Black Friday 2010, the busiest shopping day of the year. Love it or hate it, Black Friday is a day that is synonymous with bargain-hunting, door buster specials, long lines and frenzied consumerism.

Black Friday Shopping by djLicious on Flickr

Online retailers as well as brick-and-mortar stores are rolling out special Black Friday deals to attract customers and beat out the competition. Given the current economic climate, many 2010 holiday shoppers are more focused than ever on taking advantage of the special deals and deep discounts that businesses offer to lure customers into their establishments.

Create a Plan of Attack

Savvy shoppers can make the most of Black Friday by researching promotions ahead of time and then creating a plan of attack. Preparation is the key to maximizing savings. Businesses advertise their Black Friday offerings in newspaper circulars, online, and in direct mailings.

Compare these Black Friday ads to identify the best deals. Major retailers such as Walmart, Target, and Best Buy will go head to head with promotions of similar items.

Veteran Black Friday shoppers know that many of the most prominently advertised items are “loss-leaders,” or items steeply discounted or even sold at a loss in order to get customers in the door. These deals will often have the caveat “while supplies last” somewhere in the fine print. Some stores print the number of items available, such as “minimum 5 per store.”

If a store is only going to stock a few items at the sale price, it is probably best to avoid frustration and disappointment and seek another retailer.

Rainchecks: Beware the Fine Print

Another item buried in the fine print is the raincheck policy. Many sale items are advertised as “no rainchecks.” If the policy is not explicitly stated in the advertisement, and a sale item sells out, ask a manager for a raincheck that will enable you to buy the item at the stated sales price when restocked. The manager may decline to give the raincheck, but it is worthwhile to ask.

When to Shop, and When to Sleep

Arriving early is a Black Friday tradition, and many stores take advantage of shoppers’ enthusiasm by offering special sale hours. Some stores open at 3, 4, or 5 a.m., while others begin Black Friday sales at midnight or earlier on Thanksgiving night. Early bird or insomniac shoppers may find thinner crowds and shorter lines during the late night or early morning hours.

Check advertisements and store websites for notices of special sale hours. Always be very wary of crowds that gather at a store’s entrance at opening time. Injuries and even deaths have resulted from crowds pushing to enter a store in hopes of grabbing a door buster deal.

Never remain in a crowd that becomes rowdy or agitated. Personal safety should always take precedence over Black Friday deals.

Consider Shopping Online and Avoiding the Crowds

Remember that you don’t necessarily have to elbow through a crowded shopping center to make the most of Black Friday deals. Online merchants, including cyber-giant Amazon, are attempting to take a bite out of the traditional mega-stores’ bottom line by offering Black Friday deals all week long.

With free shipping as an incentive, many holiday shoppers find it is more cost-effective to shop online and forego the frenzy at the mall.

Electronic goods are always a hot commodity on Black Friday. When shopping for deals in electronics beware of similar models with fewer features. These items, called “derivatives,” are from the same manufacturer, and may look nearly identical, but are different in subtle ways.

Cameras, televisions, and laptops are all electronic items that should be carefully compared to the “standard” model to make sure that an item with fewer features or lower quality is not purchased by accident.

Create a Shopping List

Frugal consumers should always approach Black Friday sales with a list in hand. The list should have the desired items, model numbers, and the regular prices to enable a quick evaluation of a sale item’s value. Stores count on the fact that many shoppers will succumb to impulse purchases once inside.

Don’t become caught up in the emotion of Black Friday and come home with items that were not on your list. The list should also be prioritized so that you focus on acquiring the most expensive items first and save the lower-priced items for last—thus maximizing savings.

Of course, you can save 100% on everything in the store and simply sleep in. While I’ve taken advantage of Black Friday deals in years past, the last couple years I’ve done just about all my Christmas shopping online.

I don’t particularly like crowds, and I especially don’t like crowded shopping, early in the morning with lots of pressure to score a deal. I’d rather take my time, read through Consumer Reports ahead of time, and make a quality purchase intentionally.

For more hearty shoppers, stay safe and be frugal!

10 Ways to Invest $1,000 Dollars, Without Putting a Dime in the Stock Market

Posted on by  at  5:00 am
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Until late 2008, most adults were more than happy to dump their investment cash into the stock market. However, financial upheaval ripped the rose-colored glasses off most investors. It’s not that the stock market can’t make money when times are tight; it’s that most people just don’t understand enough about stocks to ride the tumultuous waves all the way to clearer skies.

Luckily, if you have a spare $1,000 to invest, here are ten ways to make a strong return without putting a dime in the stock market.

1. Win the Grocery Game

As of fall 2010, financial experts are extremely concerned about significant inflation. While you can easily cut back on incidental expenses, you still have to eat. Putting your $1,000 into long-term food storage could be one smart move if things keep going downhill. Focus on big ticket staples like butter, milk, meat, canned goods and dry goods. Buying a side of beef and a freezer big enough to hold it will easily pay off if food prices go through the roof.

2. Give Social Lending a Try

My small, but growing, portfolio of hand-picked investments at Lending Club is currently averaging a 10.92% net annualized return. Not too shabby, considering “high-yield” cash accounts are averaging about 1.30%, and even 30-year treasuries are only offering 4.25%. Be sure to check out my recent Lending Club review for a few secrets to success.

3. Seal the Holes

After food, housing and utilities are going to eat up a huge chunk of your monthly budget. If you need creative ways to spend $1,000, plug the leaky gaps around windows and doors, which is one of several ways to prepare your home for winter. Upgrading windows and doors should be your first step if you don’t already have double-pane energy efficient models already in your home.

4. Beat the Bad Job Market

Nobody is secure in their employment these day, it would seem. However, you’ll have a much tighter handle on your cash flow if you are in the driver’s seat. Start a side hustle with low overhead and invest that $1,000 to get it off the ground. Having a second income is great for supplementing your income, and a nice hedge against periods of unemployment.

5. Solar Solutions

You won’t be able to change our your whole house’s electrical system and live off the grid with $1, 000 . However, you can add some solar components that will give you lighting absolutely free. Start with your outdoor lighting, as that’s the easiest to upgrade to solar. You can also add components like a solar attic vent.

6. Get Self Sufficient

When times are tight, those who can rely on themselves will have dozens more options. Investing in self sufficiency is a smart move. Buy chickens and build a coop with your $1,000 and you’ll benefit from almost free eggs and meat. Start a square foot garden; dig a well; install a root cellar; buy a milk cow.

7. Educate Yourself

It’s not rocket science that people with degrees make more on average than those who don’t have credentials. These discrepancies are going to get even more obvious. Spend your $1,000 on some classes that can give you the leg up on the competition.

8. Appliance Appeal

Swapping older appliances for newer models can be a great way to invest that $1,000 . New appliances can cost as much as 40-50% less to run than models that were sold just seven to ten years ago. If you swap out several appliances, the savings can really add up over time.

9. Maid to Order

Spending cash for household help might seem a bit over-the-top. However, if you use the time savings to focus on other money-making goals, it can really pay off. A few hours that you don’t have to spend scrubbing floors can be turned into a part-time venture or money-making hobby that yields way more than the maid’s wage.

10. Invest in Their Future

Charitable ventures aren’t necessarily direct money-makers, but who’s to say what priorities your money should be spent on? Choose charities that truly provide a leg up. Buying a goat for a poor African family can give them a long-term way to get ahead.

You also might to consider investing in a micro-lending program such as Kiva.org that gives loans to overseas small business owners; the default rate for this truly leg-up investment is astronomically low, and imagine the lives you could change.