Counting Pennies

Come February, I’m moving to Vietnam. That’s right. Vietnam. For a year. With my fiancé. Besides all the obvious things that implies, I also need to think about saving as much money as possible during the next two months so I don’t arrive in a new country with just pocket change.

So starting today, I’m on a major (and I do mean MAJOR) savings mission. No spending on anything that’s not strictly life-sustaining. And even then, I’m choosing the cheapest option, trying to do without or extending its life for as long as possible. And I’ll make sure I report about it on a daily basis.

I do have some “extravagant” expenses that I’ve already committed to, such as the Christmas swaps, so I’ll do my best to keep costs to a minimum and then make sure I don’t get into anything new.

This is going to be interesting.

With winter just around the corner, it’s likely that you will spend more days indoors. If that’s the case, the Internet can be a life saver when it comes to free entertainment. You don’t want to spend the whole day in front of the computer, but if you are stuck in a snowstorm or in need of something to do, logging in can be a lifesaver.

Things you can do online for free:

1. Watch movies. Lots of websites such as Momomesh.com or Watch-movies.net offer a wide variety of shows, documentaries and films for all ages. There’s no membership required and no strings attached. Just stop by and enjoy (you do need high speed Internet in order to watch the movies with no stops)

2. Play games. Just head over to Yahoo for tons of previews (most games offer you a few levels for free, enough to keep you busy for 30 minutes or so; once those minutes are up, you can always switch to a different game) or use exclusive websites such as FreeOnlineGames.com or DailyGames.com

3. Research. Sites like eHow.com or Wikipedia offer tons of interesting facts about almost every subject you can possibly imagine. Whether for school, work or fun, these are great sites to spend some time on.

4. Download a copy of Quicken (Quicken Light is available for free online) and get your finances in order. Not the most fun thing to do on a weekend, but still free and very much useful.

5. Find a friend. Or a lover. Places like OkCupid.com or Interpals.net will put you in touch with lots of people from almost every corner in the world.

Since the shopping season starts tomorrow, I thought I would use this chance to share some tips on how to stretch your dollars this holiday:

• Don’t go crazy. There’s a month left until Christmas, so you don’t have to buy EVERYTHING tomorrow. Scan the newspaper for coupons and settle on a couple of things.
• Don’t wait until the last minute either. You’re more than likely to pay more for things just because you don’t have time to look for a cheaper option.
  
• Avoid impulse buys. This is where stores make a profit. They’re counting on you grabbing not only the discounted computer, but also picking up a regular-priced scanner or printer along the way.
• Shop with a list. You’ll be less likely to overspend or buy duplicates.
• Shop consciously. Whatever you buy now will have an impact on your financial future. Is it really worth it to spend $100 on something you will barely use but will take you months to pay? 

Dr. Douglas Brum, DVM was kind enough to answer some very important questions on how to save money on pet care, from the everyday expenses to the major ones.

1. How can spaying and neutering a pet can save owners money in the long run?

Decrease incidence of mammary/testicular cancer, decrease roaming (potential to be HBC, bitten, other wounds) and some behavior problems that can be costly to treat.

2. Is pet insurance a good deal for owners thinking about their pets AND their wallets?

Potentially but values by plan (is routine care covered, etc), If purchased early while pet is healthy then typically fairly inexpensive and in event that pet has even just one major health issue then can be of dramatic assistance.

3. Keeping pets indoors seems like the smart decision for the animal’s sake, but can it also help owners save money? How?

Outdoor pets are exposed to more potential hazards; vehicles, other animals, infectious disease, parasites, etc. that can be costly to treat and are easily prevented by keeping them indoors.

4. What about extras? Any additional tips on saving on medications, toys, food, etc?

Purchasing medications directly from your vet’s office ensures that the medication/dose is appropriate and safe for your pet, however some medications can be purchased from sources outside your vet’s office, but you MUST ensure that the appropriate (identical) item is being offered – and should be leery of sources that don’t require prescriptions from your vet for prescription products.

5. What things should owners NOT try to save money on?

As in human medicine, prevention or routine care can save money in the long run. Buy good quality food (does not have to be the most expensive) and provide regular vet exams to keep a pet healthy.

Can you believe is almost December?! As the end of the year draws closer, I always start thinking about taxes. I know most people don’t worry about this until April, but I work as a freelancer, so my taxes are higher (and more complicated), so I always start early. Even if you’re not there yet, here are some tips from Sally Herigstad, CPA, a certified public accountant and the author of “Help! I Can’t Pay My Bills” (St. Martin’s Griffin, 2006).

• Millions of dollars available through the Earned Income Tax Credit go unclaimed every year – about 25% of the amount people are entitled to. People don’t claim the credit because they don’t file a return, they think they don’t qualify if they don’t have children, or they can’t quite believe that the federal government wants to give them back more money than they had withheld from their taxes. This credit was created as a way to refund payroll taxes to lower-income working taxpayers.

• Many people don’t claim their children for the Earned Income Tax Credit because their ex-spouse is taking a dependency exemption for the kids. The EITC is much more generous if you claim your children, and it doesn’t matter if your ex takes the dependency exemption — as long as the kids lived with you. I know people who lost thousands of dollars in credits because they didn’t know this!

• If you get the EITC every year, you should be getting part of this year’s EITC in your paycheck every month. Almost no one does this, but they should. If you ask your employer, they can set it up for you. You need the money now, not next year!

Pets are expensive. I have a dog and a cat, so I should know. Not only do you have the day-to-day expenses of food and care, but there’s always the chance of an emergency creeping in and costing you hundreds of dollars. So what do you do? You establish a budget to make sure you have adequate income to support your future pet.

“Just like any other member of the family, your pet’s needs must be considered and included in the family’s budget,” says Mechel Glass, Director of Education, Consumer Credit Counseling Service of Greater Atlanta, Inc. “This includes weekly, monthly and annual costs.” If you decide to take a vacation, who will take care of your pet when you are out of town? Will you need to board your pet? Will your pet need additional training classes to curb some bad behaviors? Will your pet require other needs that may not cost money but will require additional time out of your day? For example, if you live in an apartment or a high-rise building and do not have immediate access to a grassy area, you may need to walk your pet longer distances several times a day to get to a public park for play and exercise time. This may not cost you any money, but it will require additional time out of your day to care for your pet’s needs.

I’m participating in three Christmas swaps this year. It’s my way of bringing a little Holiday cheer into my life (since I’ll be spending Christmas alone on the other side of the world, I think I deserve at least that). Some of the swaps have a price limit ($10, $25), while the other has a list of suggested items but no price tag on it. My challenge (and entertainment) will be to see how much I can stretch that money to come up with an awesome package. I traveled quite a bit over the past year and brought home some awesome souvenirs that will go into the package. I also have lots of unused journals or household items that will become part of the loot. I still need to shop for some things, as the common topic is Christmas and I really have no Christmas anything around the apartment, but I think the packages will turn out awesome just because I have lots of great little things around.

While you may not be participating in a Christmas swap, this could also work when you’re putting together your Christmas stockings. Before you head out to shop for trinkets, look around to see if you have items saved up from previous shopping adventures, including stuff you received, got for free or bought but never used. You could end up savings tons of money.

Over the past four weeks, I’ve spent a total of $2760 to move. That includes covering my last two weeks in the old place plus new apartment and real estate fee. That’s huge! However, it’s a good indication of how much money I’m able to pull off out of seemingly nowhere if I really have to. I mean, if you ask me, I couldn’t tell you how I made so much in just 4 weeks –And yes, that’s all cash and that’s all on top of my regular expenses. On one hand, it’s really encouraging (I may be able to save this much a month!); on the other hand, it’s depressing (have I earned this much before and if yes, what happened to the money?!). In any case, my goal for December is to earn at least $3000 freelancing. I have some big things to cover, all related to me moving out of the country next February, and $3000 would get me on my way.

Still, I’m amazed at what I was able to pull off just because I had to.

Makes you wonder.

Aside from that, I wanted to report that I’ve been doing extremely well in the spending department. It’s been at least a few weeks since I’ve spent money on something I don’t need. That was my main goal for November: no frivolous expenses. Ok, I did spend a couple of dollars here and there. For example, I bought myself an ice cream the other day for the grand total of 70 cents (I had a coupon), but I’m pretty sure that’s ok.

If you think cheaper is always better when it comes to savings, think again. Experts believe there are some things that you are worth the extra money, including:

Health. Pay for health insurance if you can, even if it means giving up other things. If you can’t afford it no matter what, look for alternatives, such as free clinics, medical trials (which can provide you with free medication) or discount cards. In all cases, it pays to get a checkup often, as it’s a lot cheaper to treat a problem in the early stages.

Safety. Whatever your budget is, it should always allow for small things like smoke and carbon-monoxide detectors, safe windows and escape ladders.

Mattress. Surprised? Don’t be. We spend up to third of our lives in bed. A bad night sleep can lead to headaches, backaches, trouble concentrating and added stress. You don’t need to spend $2,000 for a luxury brand, but buy something that offers good support and that will last you at least a few years.

Car maintenance. This is another area where tackling things early will end up saving you thousands. Keep your tires well inflated, change the oil often and don’t overload the trunk to make the most of your car and mileage. Leaks or sounds that seem out of place should also be checked immediately.

Computer. In this time and age, it just makes no sense to have a slow computer. If you can’t afford to buy a new one with a large memory, consider upgrading the one you have. It will make surfing the Internet easier and it will save you a lot of aggravation and time.

My previous post made me think about prices even earlier on. The 1940s have always fascinated me, so I figured it would be fun to take a look at what things cost back then. The price you see next to the words is the original 1940s price. The prices between parenthesis is what the same thing would cost today, inflation adjusted. I find it fascinating that most thing would cost about the same, including cars, stamps, and milk, but the cost of a house was incredibly lower. I mean, there’s no way you could buy a house for $72,000 anywhere in the country, right?

Average cost of new house: $4,920 ($72014)
Average wages per year: $1,725 ($25248)

Minimum wage: 30 cents per hour ($4.39)
Cost of a gallon of gas: 16 cents ($2.34)
Average cost for house rent: $30 per month ($439)
Average price for a new car: $850 ($12441)
Bread: 8 cents/loaf ($1.17)
Milk: 34 cents/gallon ($4.98)
Postage stamp: 3 cents ($0.44)