Counting Pennies

Saving lots of money or having a huge amount of debt to pay off can be truly overwhelming. If you’ve been working at it for a while, there will come times when you’re more than ready to give up. Learning to find a balance and figuring out how to keep focused is essential. “I think it’s easier if you set short term goals, then allow yourself a small treat when the goal is met,” says Pat, the community facilitator at the Dollar Stretcher Forums. “That sounds like kindergarten psychology, but it works on adults, too.” Finding ways to reward yourself or to have fun without spending money can also help you feel less deprived and help you avoid the spending sprees that come from feeling overwhelmed.

Other ways to keep going while you don’t feel like it:

• Step away. Go for a walk or take a few days off from anything financial. Give your brain a break and allow yourself to do something else that doesn’t involve counting money or worrying about saving and spending.
• Surround yourself with like-minded people with the same goals. It’s easier to save if those you have around are on the same path.
• Keep an eye on the big picture. Remind yourself what you have to gain if you keep saving (or paying off your debt) and how far you will go in life if you don’t allow small distractions to set you stray.
• Allow yourself a small stipend (token money) to spend on whatever you want. $20 is a fair amount. Stretch it as much as possible by spending it at garage sales, dollar stores or discount centers. Force yourself to go somewhere and spend it, though, even if you feel like putting it away. It will help you feel better to know you can reward yourself when you want.
• Read success stories from people who have been there and made it through. Look for them on books, magazines or websites. Remind yourself that if others can do it, you do too.

One of the best ways to save money is to keep track of all your expenses using Quicken Online, Intuit’s newest online offering, which allows users to easily manage their finances from any computer –or iPhone– from anywhere in the world. My favorite features from Quicken Online are the savvy web 2.0 interface, the simple graphs and the daily reminders, which show you where you are spending, what’s due and where and if you’re overspending. It’s not exactly like I’m looking forward to checking my bank account while relaxing at a beach in California, but it’s nice to know that I can keep control of my comings and goings not matter where I am.

With prices rising and the economy in general going through some hard times, I’ve often wondered just how much has our buying power gone down. While I have some nice Dollar Stores around me, I know lots of people don’t, so they have to result to buying all their needs at supermarkets, malls and grocery stores. Even with coupons and special discounts, this can amount to quite a large amount over the period of a week.

With that in mind, I spent the last couple of days scouring the city and trying to see what exactly is the value of a dollar. What does $1 buy in this time and place? Here is a pictorial answer:

Goes to show you never know what you’ll find if you take the time to look around!

Like I promised for every Friday, here are five money-saving tips to end the week:

1. Tired of paying a fortune for bath salts? Make your own. Simply add a few drops of food coloring and essential oils to two cups of Epson salt. Shake well and make sure you store it in an air-tight container. Find some cute containers at the Dollar store and you can use this as presents. They look exactly the same as store-bought salts.
2. “Paying a bill late can be a costly mistake,” says Alicia Rockmore, CEO of Buttoned Up Inc, an organizational company that helps busy women get more done by showing them how to successfully organize less. If you get a late charge and do not do so frequently, call up the company and ask them to reverse the charges this one time.  “If it is not a frequent occurrence, they most likely will.” 
3. If you have children, bring a stack of coupons to the grocery store and let your children find the coupon items at the store.  It will save you time, entertain the kids and teach them about saving money.
4. Use your bank’s online bill paying feature to help organize your finances.  Not only do you eliminate the time it takes to write out a check, you save money on postage. 
5. Water is the ultimate freebie. It’s super-healthy for children and adults, available everywhere and free! Order water with meals at restaurants and fast food places, send it along in packed lunches, drink it at home, and bring a water bottle to fill up when you travel.

The less you plan for a gift, the more likely you are to hit the mall at the last minute and overspend on a gift that may not even be that great. Nothing says

“last minute” like a random gift bought at the pharmacy or the mall without taking into consideration the taste or preferences of the receiver. By planning in advance, not only will you end up spending less, but you’re also more likely to make the receiver happier.

Here are some other tips on spending less and still impressing others:

• Buy theater tickets or movie passes for those people who seem to have it all. Both are often available online at a discount.
• Buy online, especially if you find “free shipping” offers available. This cuts the temptation of buying other items you see at the store and you also the advantage of being able to compare prices, all at the click of a button.
• Tie the wrapping to the gift. If you’re giving kitchen utensils, put them in a large glass container (remove the lid if necessary) or a cookie jar. Put beach-themed items into an inexpensive plastic pail and wrap a cookbook with a nice dishtowel.
• Play sales all year. Ideally, you should be stocking up on gifts every time you find an especially good deal on something. The best items to buy are those that can work for almost anybody, such as candles, bath sets or a nice scarf. For kids, classic games and toys are best, as the ones that are popular today may not be so a month from now.
• Give your time if you truly can’t afford to buy a gift. Shovel snow, mow the grass or offer to cook for a busy mom. If you have a particular skill, donate your time. For example, you could give free piano lessons as a gift, or offer help with the Spanish homework of a friend.

You’ve heard this before: pay yourself before you pay anybody else. But do you actually do it? Not sometimes and not when you have a cash windfall, but every month (or every time your salary comes in), on a regular basis. “Treat savings as self-billing and it’ll be done easily,” says consumer finance expert Ethan Ewing, president of Bills.com. “In a short period of time, most people get used to it and don’t even realize they are saving.” If you have trouble putting money away, ask your bank or financial institution if they offer automatic withdrawal. The system allows you to designate a quantity that gets automatically taken from each deposit you make and put away into a separate savings account.

When it comes to saving, some of us have a hard time accepting the concept of putting money aside when there are bills to pay and food to be bought. The secret is to record the savings as one more expense or bill. “If necessary, start with a small amount like $25 or $50 per month and increase it whenever possible,” says Ewing.  

The secret to saving money is on paying yourself even if you think you can’t afford to (or maybe especially if you can’t afford to). As time goes by, the concept of putting yourself first will make it clear how important your financial security is and you will be more likely to avoid overspending.

I’ve been thinking a lot about barters this past month. I’ve been successful with them in the past and I’ve always thought they were a lost art. Just imagine how much you could get if you could learn to do it right. Want examples? In the past, I’ve bartered for tax filing, furniture, Broadway tickets, a cowboy hat (I needed to complete a Halloween costume) and movies.

So what constitutes a fair barter? I doubt there’s a clear-cut answer to that. What’s fair is whatever makes the two parties happy. As long as you come out with what you wanted and needed, I doubt the actual price of the item is important.

Since face-to-face barter may be a little overwhelming, especially when you’re just getting started, consider using Craigslist or similar websites to get you going.

Here are some examples of things being bartered on Craigslist right now:

• A saxophone for Apple products
• 26’ cabin cruiser (boat) for a car
• Professional photography for electronics or gift cards
• Laptop repair for cooking lessons
• Professional massages
• 1989 Mitsubishi Montero
• 8-foot pool table
• All types of furniture
• Personal training
• Free gym membership in exchange for answering their phones 6 hrs a week (one day)

We don’t have a lot of garage sales in NYC, but we have some huge flea markets that are a shopper’s paradise. If you’re ever find yourself in the Big Apple (and have a car and a friend with you), make it a point to stop by some of these markets for some great prices and some truly awesome finds.

In order of importance (and size), here are the main flea markets in the city:

• Annex Antique Fair & Flea Market, 24th to 27th St on 6^th Ave, Saturday and Sunday until sunset, $1.00 entrance fee
• The Garage (just a few steps away from the Annex) 112 West 25th Street, btw. 6th and 7th Ave, Saturday and Sunday, until 5pm
• Greenflea, Columbus Ave. between 76^th & 77^th Streets, Sundays, 10am-6pm
• Noho Market, West 4^th St and Broadway, Seven days a week, sunrise to sunset.

And here are some photos taken during a visit last year:

I know some people who swear they can get pretty much anything they want and need at yard/garage sales. I have to confess I haven’t done enough of it to be able to say the same but I can at least vouch for some great finds over the years. Whether you shop for second-hand deals at markets, garage sales or community bazaars, here’s a quick Do’s and Don’ts list to help you make it right:

DO

• Bargain. People expect it.
• Brings lots of $1 bills rather than hoping for change.
• Go to sales on rainy days. They’re often less crowded and sellers are more likely to reduce prices.
• Stop by at the last minute for the lowest possible prices.
• Buy boxed items that can be used as gift items later on.
• Find out in advance what things cost new so you can have a better idea of how much you can bargain.
• Dress comfortably so you can walk around without having to worry about blisters in your feet. Sunglasses are also a must in summer.

DON’T

• Stop by at the last minute if you have your heart set on a particular item. Popular items usually sell within the first couple of hours.
• Buy large pieces of furniture unless you have transportation arranged. Moving fees can end up costing you more than buying the piece new.
• Buy anything that seems to be stained or smells “funny.”
• Spend too much time at a single sale. Instead, make up a list of places you can visit and then make it a point to drive to several yard sales in a single afternoon.

You always read about saving up money when planning kids’ parties, but have you ever made the math regarding your own party? Or a friend’s or your partner’s? If you’re in a budget or if you simply want to make the most of the day with as little money as possible, here are some tips:

Skip the party. Unless you have a set tradition or have your heart set out in celebrating your birthday in a very specific way, consider canceling the party itself. Rather than inviting people over and spending money on food, drinks and entertainment, choose a few friends and head to a restaurant, a drive out of the city or a weekend away. Or make it a video night or a girls-only night, where you can play spa and share late-night secrets (or the sport equivalent, if you’re a guy).

Skip the decorations. Aren’t you a little old for banners, centerpieces and color-coordinated tableware? If you want to create a particular mood, host the party at night, lower the lights and use candles. Or head somewhere where the ambiance has already been provided by somebody else.

Take a “field trip.” Invite a few friends to join you and head out of the city for a night of antique-hunting, hiking or window shopping. Go skiing, take a camping trip or rent a room at a bed and breakfast and then have lunch the day after. Even spending a night at a favorite spot in your own city (a museum, a café, the botanical garden) is a great way to reduce expenses, since you would only be paying for the entrance fee and maybe a drink or quick appetizer.

Make it a potluck. If you feel “iffy” about asking people to bring over a dish, ask for drinks or desserts, or host a picnic and tell everybody to bring a dish to share.

Make it about spending time with the people you truly love, rather than about the party and you will not only spend less, but also enjoy the day more.