General | Squirrelers

Big Long-Term Savings By Substituting No-Name or Store Brands for Premium Brands

Apr 152013

We all have our favorite brand names. No matter how value-conscious we might be, each of us – consciously or subconsciously - probably has a few brands that we for whatever reason trust over the alternatives.

In some cases, there’s real merit to it. There are some brand-name items that taste better , and some brand-name products that simply work better. I’ve had my share of both of those. But, I’ve also seen a few examples recently where there was seemingly little difference in the actual items other than the price.

Here are two examples:

Coffee

Yes, we know the notion of doing away with a gourmet coffee drink every day is one of those popular examples used in showing how little daily savings can add up. It’s a good point I agree with, in the case that you want to give up something entirely. Which, of course, makes sense quite often.

If you want to keep what you like, but want to save money, there are ways to save money. I previously shared my extremely frugal coffee savings method, which was of course over the top. However, if you simply want to enjoy a regular coffee each work day, there are legitimate ways to save. Simply buy a less expensive brand.

A great example was at a prior workplace where there two types of coffee offered in the cafeteria: premium, and “no-name” varieties. For a medium cup of premium (with a known brand name), it came out to about $2.40. Not exactly inexpensive! However, the no-name “house” variety went for about $1.30 for the same size. Interestingly, talking to the cashier, there were people that regularly bought the more expensive coffee every day. For me, I could detect little difference between the two, having tried each.

So, if somebody gets coffee every working day, the cost of getting the premium version can really add up. Over the course of a year with 250 working days, that comes out to $275. Just for buying a branded coffee over a house variety, with both being the same otherwise.

First Aid Products

Okay, so this is quite a departure from coffee! Yet, it’s another area where I noticed a difference in prices that made me wonder why people would spend so much more.

I was in the first aid aisle of a local retail/grocery, and came across what I was looking for: a topical anti-biotic ointment. Good to have around, in case of cuts or minor injury. Anyway, I saw a small tube of a premium brand selling for about $4.50. Nearby on the shelf, there was a store brand version for sale for about $2.50.

Now, when it comes to health care, I’d be instinctively more likely to think about a brand name I trust versus something else. However, in looking at the ingredients of the two items, they didn’t seem to be different based on the labeling. In this case, why pay $2 more?

This can all really add up! Well, think about that coffee example. That’s $275 right there. Then go back to the grocery example. If you can save $2 each week by making substitutions on household goods or food, that comes out to another $260 per year. Just those two changes – switching coffee varieties and $2 in grocery savings a week – can add up to $535 annually.

In this example, just imagine if you did this every year for 25 years. It’s $13,000 saved by simply doing a few painless substitutions. Now, if you took those annual savings and invested them along the way and got a decent 8% annual rate of return, that $13,000 could increase by a lot more. As in, to more than $42,000!. Enough to buy you enough to buy you a couple of cars over those 25 years!

All for making a few painless substitutions in terms of brands!

Is This a Good Time to Invest in Real Estate?

General, Real estate 8 Responses »

Feb 072013

Over the last few years – actually, more than that – we’ve seen a lot of people lose a ton of money in their homes. Prices in many parts of the country cratered, and it seems like stories of declining prices were prevalent in most places.

Here in the Chicago area, I’ve seen prices drop measurably over the last 5 or 6 years. There were places that saw homes go off the market very quickly, and have multiple bidders, turn very quiet. As if they were parts of ghost towns, nearly devoid of buyers, with tumbleweeds blowing by. Interesting, because this is an area that has a large corporate and business base, and is quite diversified overall as the center of commerce between the coasts. If it could be like this here, what could things be like elsewhere?

We’ve heard all kinds of stories about houses that could be bought for a massive discount from prices of not too long ago. Places like Miami, Phoenix, and Las Vegas come to mind. Detroit might be the poster child, as there are plenty of homes there that could be purchased on a credit card! Go check real estate listing for that city, on a major site. You’ll find plenty of homes under $1,000. Of course, there’s often a very, very god reason that homes are priced so low.

Anyway, I’ve noticed over here that after some years of falling prices, there appears to be some stability. This isn’t based on a scientific, professional assessment of tons of data, but rather from just a person checking websites here and there and looking at prices within a few different suburban areas. Where there had been steady price declines, there now appears to be a leveling off. In fact, I’ve seen some areas with prices that are surprisingly healthy, given the previous declines.

With interest rates still very low, and prices leveling off, I wonder if the window to purchase true bargain real estate is closing. Is this a good time to buy real estate?

While my interest is primarily for living purposes at this time, there are others who might see this an opportunie time to invest. If one could take out a super low interest loan, and rent out while ensuring the vacancy rate is kept low, a really solid rate of return might be had in this present environment. Additionally, there is the possibility of future asset value increases as well. Sort of like getting dividends and seeing capital appreciation on a stock.

Real estate can be a component to one’s long-term investment plan. Many people have done very well, and have been able to grow net worth this way. There are plenty of personal finance bloggers that invest in real estate, and operate as landlords!

What Do You Think?

Do you see prices stabilizing where you live?

Do you think the window of opportunity to get a low-priced home is closing, or do you see prices continuing to drop?

Have you considered investing in real estate as a landlord?

If You Enjoy Airline Fees, There is a New One For You!

General, Saving Money 11 Responses »

Jan 242013

In recent days, it has been widely reported that Southwest has now added a new potential fee for customers. Yes, we have another airline fee that jumps out as being kind of interesting!

From what has been reported on various other sites, the fee is regarding early boarding privileges. A passenger can be assured to be one of the first 15 to board, an incredibly grand privilege indeed, for the “bargain” price of just $40. I know, I know….you’re so excited that you simply can’t wait to book a flight and get to be one of the first 15 on board! Just know that it’s reported to be only if space is available, and can be done up to 45 minutes before boarding.

It’s getting comical how these fees are being tacked on for air travelers. Back in the day, it was just a matter of paying your airfare and being done with it, for the most part anyway. Actually, the whole air travel experience was apparently a big deal at one point. People made it a point to dress up a bit, and it was a real special occasion to fly. Meals were served to everyone too!

Now, if you want a real meal, maybe think about flying first class. Or, settle for that snack box for which you’ll be paying more than just a couple of dollars. If you want to watch the in-flight movie or listen to music, you might have to pay up. Actually, depending on the airline, you may have to for such things as bottled water, a blanket, a pillow, or the right to choose your seat. It’s not unheard of to have to pay to be able to store a bag in the overhead compartment.

All of this doesn’t even include the hefty fees now in place for checking bags. This certainly wasn’t that case not too many years ago! I do have to say, I have inadvertently circumvented this once before, and managed to avoid airline baggage fees without even trying or intending to do so!

Anyway, at this point, airline travel is getting quite expensive. I have really, really enjoyed traveling in the past – and flying has been a lot of fun. I’ve traveled more than a bit, as mentioned here a few times. 47 states, plus internationally to Europe, Asia, Caribbean, etc. But as fun as it is has been, all of these fees are adding up to make flying less of a bargain than it might have been in the past. Not that I have time to do much traveling anymore, but even if I did, it’s getting pricey!

Might as well just not worry about it, and instead just get a good laugh at the newest attempts at revenue generation by the various airlines in business today. After the aforementioned trips to Europe, and being faced with paying for water at restaurants and paying to use restrooms, I now keep an open mind to such revenue generation attempts by businesses. At least air travel is optional in life, unlike the things I just mentioned having to pay for!

With all this said, I’m curious of your views on this.

Would you pay $40 in order to be one of the first to board the plane?

What do you think of all of these airline fees that have been added, and which ones are the silliest to you?

Have increased costs impacted the amount of air travel that you do?

500 Posts!

General 15 Responses »

Jan 172013

Hello everyone! I thought I would take a bit of a departure from my usual writing when putting this post together, as I realized that this would be the 500th post here at Squirrelers!

I started this blog back in 2010, and was really thinking at the time that it would be fun way do something I had some interest in: have a website. Beyond that, the appeal of starting a blog revolved around being able to have a platform by which I could share my thoughts on personal finance, which could potentially be interesting to some folks while also getting people think a bit more about their money. Additionally, it occurred to me that it might be an opportunity to learn more about personal finance along the way, and maybe even get to know and interact with other folks who have similar interests in the subject.

Well, it’s been more than I imagined it would be at the time. What started out as simply doing something new and different has turned into something I truly enjoy and am passionate about. Publishing 500 posts is probably some kind of evidence of that, and a cool milestone.

Anyway, I also think this is a great time to say thank you for being a part of this! I truly appreciate those of you who have been long-time readers, and of course I am excited to know that there are new readers stopping by as well. Without each of you, whether commenting or visiting, this wouldn’t have become what it is. It’s also been great learning from other personal finance bloggers who are totally passionate about the subject, and has been great to discover so many smart, really nice folks out there.

Along these lines, I’m interested in what you would like to see more of here on Squirrelers. What type of posts here interest you the most, and what other types of subjects would be nice to see discussed? Feel free to email me with any thoughts or feedback if you wish – I can be reached at admin <at> squirrelers <dot> com, or you can use the “Contact Us” form above.

Thanks again!

The High Cost of Getting the Flu

General, Health and Money 13 Responses »

Jan 152013

There has been a lot of talk in recent days about a huge outbreak of the flu. With this reportedly one of the worst outbreaks in recent years, from what has been noted by some news organizations, it’s understandable that this is getting a lot of attention.

I don’t know about you, but I can remember a few past episodes of the flu even though they were years ago. One time, in particular, was marked by 104+ degree fever and missing 3 days of work. When I returned, it was only out of pressure. The whole experience really served as one great example of why it sometimes takes getting sick to really value your health. I haven’t forgotten that time. I would have given anything at that time to end that temporary misery!

This gets me thinking again about health and money, which I periodically discuss here as you might know. Specifically, in this case, the cost of getting the flu for many of us.

Of course, the most important thing is the actual misery that we go through when dealing with a really bad case of the flu, as well as the impact that has on our responsibilities to others. However, secondarily, there is also the impact on our finances.

Missing Work Due to the Flu

As I mentioned above, many years ago I had to miss 3 days with the flu. I was right out of college, and was known to be a huge sports fan. I happened to miss days right at the beginning of March Madness, which got me some teasing over the phone when I called in. Keep in mind, there was no working from home or smartphones then (yeah, I guess I’m dating myself a bit here). Anyway, the teasing was probably good natured, but I knew by the tone of the conversation that there was a hint of pressure to come back. I’ve shared a story about this place in the past, involving an unpaid bonus, so if you’ve read that you may get the idea of why I might have been a bit concerned.

Companies don’t like dealing with people missing work, that’s the bottom line. I have been salaried, but for some people, it could actually mean hourly wages or freelance work lost. That’s no fun!

Also, if you’re burning your time off, it’s valuable time that’s lost. Those days off can be precious!

Losing Time for Personal Projects

Have a list of things that you need to get done in your life? These could be tasks around the house, or other projects. By getting the flu and being home on the sofa, you’re delaying getting your own things done. Hopefully none of the things being put off cost money, but you never know – they might!

Doctor Visits

For most people, a visit to the doctor isn’t free. Even if it’s just a matter of some kind of copay, you’re still paying. If someone doesn’t have insurance, those costs could be much higher. With health care costs a big burden for many people these days, who wants to spend more money on it? Whether it’s $25, $50, $100, or more – such expenses can add up

Medicine

Perhaps you might just be dealing with OTC products. Or, maybe things get bad enough that you end up needing a prescription for something. Either way, you just might be spending some money on things that may give you some comfort in dealing with the illness or maybe even speeding up your recovery. Perhaps this will be $10, maybe $20 – or it could cost even more.

What to do? Well, I’m no doctor (and no, I don’t play one on TV), but I got a flu shot and have been fine so far. Not sure that guarantees anything, but presumably that gives someone a better chance to avoid problems, right? That and washing hands/using hand sanitizer has been my approach. Not too time consuming, but it’s a small price to pay to ourselves what might be a better chance to avoid getting sick. Not to mention avoid the financial aspects of it!

My Questions for You

While of course health is most important, do you ever think of the financial costs of being sick?

Have you ever had to take a few days off work for a bad case of the flu?

What steps do you take to put yourself in better position to avoid getting such an illness?

There is Much to Be Thankful For

General 2 Responses »

Nov 222012

This is the time of year when many of us like to reflect upon how we have much to be thankful for. Sure, we may want to complain about things during other times of the year. Heck, maybe even now too However, this year I’m going to try to give that a rest, and focus on what there is to be thankful for.

This year, I had a family member go through some very serious health issues. Additionally, I had another family member hospitalized for a while with some issues as well. Needless to say, this wasn’t the way I wanted things to go.

However, the reality is that stuff happens in life. We don’t know how things will go, and we can’t predict everything.

Well, things could have gone in any direction. They ended up going more positively than other alternatives, and those two individuals are doing much better. For that, I’m very thankful.

When you really take a look at what’s most important, it’s not whether or not we earned a made ton of money, took a lavish vacation, bought a luxury car. It’s not our progression toward obtaining material things. Rather, it’s aspects such as:

Important people in our lives
Having a roof over our heads
Having health
Enough food to survive

You know, the things that we often take for granted. Which, in reality, we often don’t appreciate until we realize that we may not have them anymore. These are also things that some people simply don’t have!

Okay, not to get preachy, but those are things important to me anyway. Thinking about how those things are currently present, I feel very fortunate indeed! That’s a pretty cool feeling.

Happy Thanksgiving everyone

My Question for You

What are you thankful for at this time?

Pay With Cash and Reach Your Goals With Planned Savings

General 7 Responses »

Jul 182012

The following is a guest post by Kurt Fischer of Money Counselor

So much is written about building an emergency fund you likely know very well (even if you don’t yet have a fund) how important this shock absorbing stash of cash is to your family’s stability. But say you’ve socked away an emergency fund large enough to carry you through the consequences of the next meltdown and you’re making hefty contributions to tax-advantaged retirement and college accounts. First: Way to go! And second: Thanks to your money diligence, now is the time to add another layer of financial security to your family’s money defenses and help assure your family reaches its goals by setting Planned Savings targets.

What Are Planned Savings?

In simple terms, Planned Savings is cash set aside at a regular, pre-set rate to meet a specific purpose.

The purpose of a Planned Savings fund is either a large periodic expense—an annual insurance premium, holiday spending, or a big tax bill, for example—or a family goal like a camping trailer, a vacation, or a remodeled bathroom.

Without Planned Savings, you’d either have to dip into your family’s Emergency Fund or borrow money to meet periodic expenses. (To my way of thinking, an “emergency” is something unexpected. Anything you can foresee and plan for is not an emergency; aim to preserve your emergency fund for genuine shocks to your family’s finances.) And all families have goals, but meeting goals that cost money won’t happen without a plan (or that lucky lottery ticket on which many seem to be counting!).

Setting Up a Planned Savings System

Here are a couple of examples of setting up Planned Savings.

Say you pay your auto insurance annually. The premium is $1,200, and it’s due May 15^th. To avoid borrowing some or all of the $1,200 or cannibalizing your Emergency Fund, start setting aside $100 per month targeted for auto insurance. If your first set-aside is made in July, to assure you’ve got $1,200 on May 15, try to jumpstart your auto insurance Planned Savings with a $200. Then by adding $100 each month August 2012 through May 2013, you’ll have $1,200 saved in May. (If you don’t have the extra $100 to jumpstart the fund in July, then set aside $110 instead of $100 each month.) Then start over in June 2013, setting aside $100 each month.

Has your family been aching to take a two-week tour of the Rockies? Say you figure a budget—gas, lodging, food, and fun—of $2,500. And you’re aiming to take this trip in August of 2014 when your kids are old enough to help you dispense bear spray and extinguish tent fires effectively. If you start saving in July 2012, you’ll have 25 months to save the $2,500. So set aside $100 cash each month in your Rocky Mountain Planned Savings fund, and you’ll enjoy your trip a lot more knowing you won’t be paying for it over many years to come through high-interest credit card debt.

A Family Budget Helps

For discretionary family goals like the Rocky Mountain vacation, a family budget helps a lot. If you know your expenses and where your money is going, it’s easier to identify where you can cut back and juggle priorities to free up money for the vacation fund, if that’s what’s really important to your family. If you save by throwing loose change and “extra” money into a vacation fund whenever there seems to be extra money, that vacation may never happen, except on credit, which could easily double its cost.

The Mechanics: Where to Keep Planned Savings

Setting up a separate bank account for each Planned Savings goal is overkill, but a single, separate account designated Planned Savings is a good idea. Then just keep a simple ledger or spreadsheet with line items for each periodic expense or family goal down the left side and the months across the top. Add up the monthly contributions for each line item and deposit that total into your Planned Savings each month.

As a general rule, the sooner you expect to spend a Planned Savings fund, the less risk you should take with it. For the examples above, I’d keep the money in a money market or bank account. No, you won’t get much interest these days, but you’ll know the money is there when you need it. If you are saving for a goal that’s a decade in the future, you could take more risk with your fund, if doing so doesn’t disturb your sleep.

For help in determining how much you should save each month to reach a savings goal at a specific time in the future, try this calculator.

How Do You Save?

Would this system work for your family? Do you have a technique for assuring you can pay periodic expenses and fund discretionary goals with cash instead of costly credit?

The Potential Value of Giving Something Away For Free

General 14 Responses »

Jun 152012

Who says there’s no such thing as a free lunch?

Well, now that I think of it, I did in a previous post on a PR promotional event that literally involved food, where I had the takeaway that there’s no such thing as a free lunch. The idea is that when you get something that is seemingly free, it often comes with strings attached that offer benefits for both the giver and the recipient.

It’s important to remember that we rarely get something for nothing, and it’s often important to take a closer look at the exchange. This matters on both sides, if you are getting or if you’re giving.

I was involved in two such free giveaways in the last week, and I think they serve as good examples of how effective and “free” they really are:

Example 1

I was walking down the street in the past week, and saw a few people in front of me that were clearly giving something away. I could see them engage passersby with a few quick words, before either something was exchanged, or the person walked on by. As I got closer, I could see that red Frisbees were being given away.

My first instinctive thought, I have to admit, is to think “FREE STUFF!” when I see something like this. Aside from that, My second thought in this case was more practical: my kids might like to play with a Frisbee. It’s something we can do outdoors, thus promoting being active. So, I stopped to get the Frisbee.

What the person asked me was (if I recall correctly) “Would you like to do more?”. Then, I looked at the Frisbee and it had the name About.com on it, with a tagline “Do More”. Okay, so the message was connected from the person to the Frisbee, and the company name was there. Therefore , I was able to remember it.

This means that we both got something out of it.

It got me thinking about – well, About.com and got me to check it out.
Additionally, I’m writing about it here.

Thus, not only did the recipient get value, but the giver actually got value too.

Example 2

Again, during the same week, I came across another giveaway. This time there were blue hats being given away at a table. There was somebody there, but the person was not actively engaged with people coming by. The hat itself was nice, and had some logo on it that I had never seen before. I picked it up, and looked find out more about the company. It wasn’t evident, so I just shrugged my shoulders and walked on. Clearly, others were doing the same.

I had that same initial excitement about getting something free, and follow up thought about how the item could be useful. But I got no additional information about the giver.

They didn’t talk, the table had no name/sign that was obvious to someone just taking a quick glance, and the logo didn’t make clear what the business really did.

In this case, I actually got value, but the giver probably didn’t get as much as they could have.

Takeaways

This situation where I had obtained 2 free items during the week led me to a few conclusions about “free” things and exchange of value.

Look closely at what is value is being exchanged in any transaction
If you’re getting something seemingly free, you might still be giving value back without actually realizing it
If you want to give something – and this could include your time or services – getting something back is not guaranteed, and it’s up to you to think things through in order to make that happen

My Questions for You

Have you ever experienced a situation where “free” really wasn’t so free?

Do you think that strings are usually attached in cases where something free is offered to you?

What do you think are the best ways, on the side of the giver, to ensure that by “giving” something away, you end up getting value back in return?

Driving vs Public Transportation

General 21 Responses »

Apr 062012

Commuting to work by car can be a breeze for some folks, and a long drawn out process for others. Nobody I know likes to spend a lot of time commuting, as it’s time you could be spending doing other things. It’s not easy or safe to multitask while driving anyway! Additionally, it the financial costs of commuting can add up too.

When looking at it from a financial perspective, it’s great to have a short commute to work. If you take public transportation, the time factor might still be there but there are other ways you’ll be saving. Let’s take a look at my commute lately, and see how this might come into play.

First off, this latest assignment I’m working on has me commuting to Downtown Chicago, from the suburbs. Being the 3^rd largest city and metropolitan area in the country, and the primary business hub between the coasts, it can get hectic getting to downtown during rush hour. Thus, I take the train.

To get to the train, I have to drive about 15 minutes. The train ride is about 45 minutes. Then, I walk another 15 minutes when I get downtown. So, by a combination of car, train, and walking – it takes 75 minutes to get to work.

The other alternative is driving straight there. A few people have mentioned to me, sounds a lot better – especially after I talk about how I have to do some walking! Well, I get what they’re saying, as it might sound like a tough grind to many people, especially those in smaller cities. Admittedly, it is a grind! But, this is the deal, and we have to find the best solution for our present circumstances, right?

Along those lines, I’ll go with the public transportation route. Here are 5 reasons to choose public transportation instead of driving:

Multitasking. When driving, you have to focus on the road. No texting, no tweeting, or anything of the like. Just drive and pay attention to the traffic around you, for your safety and that of others. When on the train for those 45 minutes, I can multitask. If I have work to do, this is a good time to get a few things done. Or, I can catch up on some reading, email, or other activities. It’s a better return on investment when it comes to time.
Reliability. Public transportation generally follows fairly reliable schedules and timings, at least with commuter trains around here. While there’s no flexibility up front if you’re in a hurry (they don’t wait for you!), you have some predictability around when you’ll reach your destination. With driving, you don’t have that. Time is money
Saving on Gas. We talked about this recently here, how there are ways to save money on gas for your car. One way is to drive less! In my case, it would probably cost $10 round trip to get to work, based on today’s prices. When stopping to fill gas at the station so frequently, your credit cards get a good workout with all the money that’s being spent. Conversely, taking the train comes out to $7.50 per day, plus some gas to get to the station (which I didn’t consider before). Overall, I still think it’s probably cheaper to take the train.
Insurance Costs. If you have a long commute to work or do a lot of daily driving, you could be paying more for insurance. You might be able to save on car insurance by taking public transportation and driving significantly less. If you consider your driving “commute” to be taking your car to public transportation, this could mean a ton less driving.
Wear and Tear. When driving, those miles can add up. Cars don’t run forever, and at a certain mileage level they need to have things worked on. For example, periodic oil changes. Additionally, at some point, the car has an estimated useful life – just like many other machines. By driving, we’re accelerating spending on maintenance as well as the end of our car’s useful life. This means spending more money. While daily spending might be incremental, it can add up over the long haul! Plus, there is wear and tear on us mentally and physically when driving, even if not perceptible. After all, we are really making life or death decisions all the time when driving!

My Questions for You

If public transportation is an option for you, do you take it? Why or why not?

If it isn’t an option, would you prefer that it was?

Can you think of any other reasons as to why public transportation is a good choice?

Crazy Keywords #4

General 15 Responses »

Mar 022012

You sometimes wonder, when it comes to owning a personal finance blog, how some people manage to find their way here. It’s time to take another look at “Crazy Keywords”, which is what I call the strange search terms that have somehow brought people to this site.

I’ve looked at this before, and have seen all kinds of crazy terms, and it seemed like it was about time to take another look through the analytics to find out what’s brought people here lately.

Here are some the latest terms from the first 2 months of 2012, along with my comments.

“grandmas who do too much” – I applaud those grandmas, but I don’t know if we talk about them much here!

“pumpkin patch strategic issues” – Sounds like someone might be taking the tradition of looking for a pumpkin very, very seriously:)

“wild posts” – You might find a few such blog posts here

“2nd wife get nothing” – Tell us how you really feel!

“am I a loser if I’ve never been to vegas” – Well, the main thing you might have lost if you went there is money – unless you’re a cheapskate visiting Vegas

“best job search stragedy” – Improve those spelling skills

“caffeine-free squirrels” – Can you imagine a highly caffeinated squirrel?

“cheep gone willde” – are we talking about frugality, or birds?

“daylight bandit squirrel video” – that’s one risk-taking squirrel

“his kids are his priority” – well, they should be!

“if you leave your daughter a dollar in your will, can she contest it?” – how generous!

“is working 18 hours a day bad?”- I think so

“lady gator animal run wild” – watch out!

“lottery squirrel tax on 50 million” – okay, I see a squirrel theme here:)

“private wild” – that’s none of my business!

My Question for You - If you own a blog, have you seen any interesting search terms that have brought visitors in lately?

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