Monthly Archives: December 2011

A Fruitful Search for a Frugal Computer

Posted on by  at  6:54 pm
33

I’ve been meaning to buy a new laptop for a while now, but I’m as hesitant as anyone else is to throw down thousands of dollars on something that might be outdated in a year or two. I’ve already considered tablets and in my case, only a laptop will do. In my search for the perfect laptop, I arrived at an epiphany: there is no perfect laptop. But there are cost-effective laptops—laptops that will serve a purpose, are devoid of the kind of glitches that attack a lot of the (apparently) most-heralded and innovative technology, and aren’t going to break my bank. In other words, I need to find a computer that will function, here and now, and won’t force me to lose too much money if it does, indeed, become less relevant in the tech world in two or three years. Here’s where Dell comes in.

Dell doesn’t just carry an extensive inventory of laptops and desktop computers. In addition, it provides a wide array of computer software and accessories, the latter of which includes batteries, cameras and laptop bags. When you’re browsing Dell’s website, you can even find a great selection of printers and home theater equipment. If you’re unlike me, and you’ve already found yourself with your ideal laptop, then you can still find a frugal accessory or two to supplement the computer.

To be honest, I don’t need a lot of the extras that I encounter on their site. Instead, I’m leaning toward purchasing the Inspiron 15R. This innovative laptop features 2nd Gen Intel Core processing, and comes replete with a switch lid, which allows you to dress your computer according to mood and style preference. The laptop can be purchased in its 14”, 15” and 17” incarnations, but the 15” seems to be the perfect size for me. It’s also quite helpful to check out Dell computer reviews from resources like consumer reports, amazon, and other shopping sites with helpful advice.

I’ll be purchasing my Inspiron 15R for just $549.99, even though its market price is listed at $837.99. For a product that consistently receives 4 out of 5 stars in its reviews, I consider that a steal. Also, there’s a promotion on the site that promises the first 500 people to buy the Inspiron 15R will get an extra $50 off by utilizing a coupon code. I’m not sure how long that deal will last, but, at the very least, it’s a signature of Dell’s generosity, and it’ll keep me returning to their store in the future.

I can’t tell you what the perfect computer is, and I certainly can’t tell you what’s ideal for you and your family. But I’m not interested in a lot of extra functions being featured on my laptop. I simply want technology that will help me get by without cutting into my budget too deeply. If you’re in the same frugal boat, I suggest checking into Dell and their Inspiron line.

Implementing a Mortgage Sinking Fund

Posted on by  at  3:30 pm
28

Over the years I have addressed the issue of whether or not to pay off your mortgage early numerous times. It seems the decision to do so, not to not do so, is very much like most financial decisions – it’s personal.

Sure, there are a few mathematical advantages to doing it one way or the other. And yes, those advantages may be magnified depending on your current mortgage’s interest rate. However, if you leave math out of the equation (not easy), the decision to put extra money towards a mortgage is largely an emotional decision.

More Cash or a Paid-for Home?

Imagine you had a savings account with the exact balance of your mortgage. The savings account earned 1% interest (I know I said to leave math out of it, but we’ll get to that), and your mortgage rate is 5%. Would you write a check and be mortgage-debt free, and cash poor?

My guess is you would not. I tend to agree. Again, there are mathematical advantages to paying off your morgage early. In our scenario, you are essentially paying 4 more percentage points than you are earning every year for the right to continue to borrow money from the bank to live in your home.

But by writing a check to pay off your mortgage you have essentially wiped out all of your cash. What will you do when the hot water heater breaks, or someone gets sick, or you lose your job (trust me, one of these things will likely happen if you spend 100% of your cash). Yes, there are credit cards and home equity lines (maybe) to finance smaller emergencies, but when this happens you will sure miss that cash reserve.

The Mortgage Sinking Fund Concept

Being the overly conservative person I am, unwilling to take huge risks and being quite content with a healthy emergency fund, I would probably opt to create a sort of mortgage sinking fund.

I would essentially have my mortgage payments withdrawn from that large savings account each month. I would continue to put a little extra towards the principal balance as my monthly cash flow allowed. And I would continue to build savings in other areas – a dedicated emergency fund, investments, retirement, etc.

When my other savings were sufficiently in place to handle emergencies, and my mortgage balance had been whittled down a bit through a few extra payments, then I might be comfortable writing a single check.

The main advantage to this plan is that I get to hang onto my cash reserve for a rainy day (and I mean, really pouring). I think that is a good idea with economic uncertainty becoming the new normal and probably continuing for the foreseeable future.

Tobacco Smokes the World (Infographic)

Posted on by  at  6:43 pm
22

As I’ve mentioned in a number of earlier posts, smoking is a costly habit. Besides being unhealthy, cigarettes can cost a pack-a-day smoker over $2500 a year, and we could all use that money to pay down debt, take a vacation, or just have some insurance money left in the bank.

It’s also shocking to realize that Big Tobacco – the same industry we thought we got rid of years ago – is quietly raking in some serious profits. A lot of these profits are coming from overseas markets, but Big Tobacco is still advertising here at home. After 40 years of decline, the smoking rate in the US has flat-lined for the last five years.

I’ve heard plenty of feedback this week on my recent spate of infographics, so take what you will from this one. I personally am floored by the lot of the statistics and I think that, like the other infographics I’ve posted, this one should help expose just how large the Tobacco industry is and how much it affects you and your family. Enjoy!

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Tobacco Smoking Infographic

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Top Frugality Blogs of 2011

Posted on by  at  6:55 pm
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It’s been over two years since I published the Top 50 Frugality Blogs that Will Help You Save Money and during that period of time, while the recession hasn’t shown any signs of “being over”, the resources available to help you live a more frugal and financially secure life have grown. I’m still a huge fan of the sites previously listed, but I want to focus on new sites so that you guys have over 75 incredibly useful sites to turn to for both personal and professional development and how to live frugally.

So, in no particular order, I present my 35 favorite personal finance/frugal living sites of this year. If you haven’t already, I highly recommend that you add them to your “to read” list. And because I know all of you are busy, I’ve included an interesting post from each site. I hope that you not only find new gems, but rediscover old favorites.

Feel free to share this list with your family and friends or put the Frugal Dad badge up on your site for your readers to know about the recognition – and of course, let me know what you think in the comments!

1. Dumb Little Man offers a wide array of tips that will help readers save money, become more productive, and enjoy life a little more each day.
Favorite Post: 7 Warning Signs That You’ve Given Up on Your Dreams

2. Get Rich Slowly does what its title implies: it offers personal finance advice and contextualizes the larger financial landscape for those who are unfamiliar with this realm. The site features home and mortgage advice, as well as debt relief info.
Favorite Post: The Road to Wealth is Paved with Goals

3. Zen Habits offers advice on simplicity, health, and inspiration all while promoting frugality and developing a path towards a more zen future.
Favorite Post: 6 Money lessons for My College-Aged Daughter

4. Debt-Proof Living offers its readers a custom-made plan for getting out of debt, alongside a substantial archive of blog posts that lend prime financial insights. You can utilize tools and calculators on-site in order to get started.
Favorite Post: When Wants Become Needs

5. Surviving and Thriving demonstrates, through smart writing and relevant backstories, how frugality is less about denial and more about mindfulness. The site encourages its readers to make the most of what they have, however much that is.
Favorite Post: Think You’re Broke? You Probably Aren’t.

6. The Art of Manliness aims to rediscover the quintessential elements of a healthy and virtuous man. The blog encourages men to reclaim the positive traits that make them a functioning, responsible and proud member of society.
Favorite Post: A Young Man’s Guide to Understanding Retirement Accounts: IRAs

7. Consumerism Commentary is a sobering but informative and encouraging personal finance blog. Many of the posts tap into current events, and reflect an ever-changing financial landscape.
Favorite Post: Is Following Your Passion a Luxury?

8. Generation X Finance caters its financial advice to those born between 1965-1980. The news and suggestions aren’t exclusive, however, and other generations can still learn how to control debt and establish a successful career.
Favorite Post: Top 5 Ways to Become a Millionaire

9. My Dollar Plan explores the difficult-to-navigate world of college savings, retirement planning and tax strategies. On top of finance tips, readers can receive deals and discounts to help them save more money.
Favorite Post: 5 Alternative & Creative Gift Giving Ideas

10. StopBuyingCrap.com isn’t your run-of-the-mill personal finance site. Not only does it offer advice, but its tone is exceptional–the whole site is devoted to making saving fun and excited, instead of tedious and humdrum.
Favorite Post: 10 Simple Ways to Feel Rich Without Materialistic Means

11. The Digerati Life keeps its readers up-to-date on the latest investment studies and financial forecasts. The site is especially tech-savvy.
Favorite Post: 14 Staycation Ideas & Ways to Save Money with Local Travel

12. Afford Anything suggests that time is more important than money. The blog encourages readers to invest wisely, live your wildest dreams, and maximize each moment on their way to a life that is richer in every way.
Favorite Post: Stop Crying That There Are No Jobs. Create One.

13. Enemy of Debt takes an aggressive stance against debt and helps its readers find and then maintain a debt-free lifestyle. Self-reliance is the name of the game – the ultimate goal – on this site.
Favorite Post: Stop Spending Money – It All Depends on Your Definition of STOP!

14. I Will Teach You to Be Rich takes a hard-nosed approach to ensuring that its readers’ financial lives are advanced and enriched. Strategies are shared through books and other media, and the exploration of psychology is a huge component to the site’s success.
Favorite Post: 7 Lies We Tell Ourselves About Money

15. The Diary of a Frugal Family is devoted to sharing recipes, thoughts, and tips on parenting. The tone is friendly and conversational – a perfect site to ease your way into the world that is frugal literature.
Favorite Post: Homemade Nutella Cookies

16. Bad Money Advice is home to the often bitter but entertaining and informative rants of a Boston resident. Frank shares his financial thoughts with readers “because mainstream personal advice is not what it should be.”
Favorite Post: A Tax on People Who Can’t Do Math

17. Pick The Brain is a web site that aims to motivate readers on toward a more productive, healthy and better-educated lifestyle. Self-improvement is the name of the game here, meaning psychology and philosophy are prominent features.
Favorite Post: Time is All We Have: 3 Ways to Increase ROI

18. Clever Dude is a smart blog that offers advice on family, marriage and finances. Any and all advice stems from the very mistakes “Clever Dude” has made himself – his family has reduced their debt by at least $200k over a 4-year period; it’s this first-hand experience with debt that makes this site such a great resource.
Favorite Post: Frugal Lunch by Clever Dudette

19. Kiplinger doesn’t just give exceptional personal finance advice. Going a step further, the site features business forecasts, and helps readers anticipate and therefore secure their financial future.
Favorite Post: The Most Overlooked Tax Deductions

20. Five Cent Nickel is a forum in which money matters, and the proper management of it matters more. The site discusses credit card usage, savings and CD rates, as well as mortgages and insurance policies.
Favorite Post: How Much Life Insurance Do You Need?

21. Man Versus Debt is an encouraging website that advices its readers to sell unnecessary belongings (remove the barriers), pay off debt (remove the chains) and then live the adventurous lives they dream of.
Favorite Post: Tyler Durden’s Guide to Personal Finance

22. Shoestring is devoted to encouraging and maintaining a healthy, cheap and environmentally sound lifestyle. The site offers money-saving tips, as well as a collection of advise on vintage/thrift shopping and swapping.
Favorite Post: Homemade Condiments: Just Like Grandma Made

23. Suddenly Frugal is a warm, inspiring and humane site that offers coupons and savings advice to mothers and families. Leah has years of experience, having been raised from childhood that being frugal is a lifestyle, not a whim.
Favorite Post: 4 Tips for Charitable Contributions at the Holidays

24. On the Financial Samurai, personal finances are explored and discussed in-depth. Possibilities for a more secure future are provided to the readers, and are done so with a tone that’s informal/safe yet informative.
Favorite Post: Don’t Have Children if You Can’t Take Care of Yourself

25. Budgeting in the Fun Stuff provides readers with a savvy lineup of personal financing advice. The owner posts her monthly budget and leads the way to a more frugal life by example.
Favorite Post: Tipping After a Bad Experience

26. 20 Something Finance provides advice on reducing clutter, casting debt away, and finding the career that’s most suitable for you. This site is particularly geared towards those in their twenties, as the title suggest. As their tagline states, “Get a Head Start on Your Freedom” – great advice.
Favorite Post: The US is the Most Overworked Developed Nation in the World – When Do We Draw the Line?

27. Love Money keeps their readers abreast with an ever current roll of articles, blogs, and news from pertinent media outlets. Love Money focuses primarily on a British population, but the financial tips and psychology is transferrable.
Favorite Post: The UK’s Cheapest Ever Meal

28. Sweating The Big Stuff is unique in that it is operated by a recent college grad. He wants to help others spend wisely as he goes through his own fiscal maturation.
Favorite Post: The Different Types of Student Loans

29. The Budget Fashionista embarks on the mission to find quality yet affordable clothing and apparel. She enthusiastically invites all of her readers to join in on the process.
Favorite Post: How to Sell Your Gift Cards

30. The Frugal Cook is a compelling food blog, replete with astounding recipes and ideas for affordable but tasty meals and beverages. Fancy, difficult sounding recipes become a possibility – both in the kitchen and on your wallet.
Favorite Post: How to Entertain on a Budget

31. Frugal-RV-Travel is a fun, unique site that encourages readers to see life as an adventure. The bloggers document their affordable RV travels, and offer advice on how to follow suit.
Favorite Post: 17 Tips to Find Free Overnight RV Parking Anywhere

32. Million Dollar Journey offers an empirical glimpse at today’s financial situation. The writer lives through and manages the same issues we all do, and most of the the advice given comes from personal experience. There are also a lot of educational articles written on mature investments.
Favorite Post: How Investing Taxes Work; Part 1

33. Doughroller is a site about making, saving, giving and spending money. The site regularly posts advice on real estate investing, on gaining and using insurance, and on the mastery of credit card debt.
Favorite Post: 55 Painless Money Saving Tips

34. Entrepreneur.com is a community forum in which today’s top technological and financial developments are discussed. A special focus is placed on what it takes to establish a startup, franchise, or other business.
Favorite Post: Scrambling to Build a Business on a Viral Trend

35. Smart Spending combines the best monetary advice from MSN Money and other blogs/sites. Retirement, loans, and taxes are heavily featured. Articles are posted quite frequently and are great for those testing out the financial waters.
Favorite Post: Should You Raid Your 401k?

Check out these other great sites that made the previous best frugal living list.

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