When we think of ways to build wealth, we often think of ways to make more money and spend less money. The more you make, and the less you spend, the more you keep.

Over time, that can accumulate into a solid foundation for retirement, and help us to grow net worth.  However, we must also watch out for some financial pitfalls along the way, though proper risk management.  One very basic way to do this is to simply avoid losing money.   It’s basic, yet interesting how the math works: you get excessively punished over the long run when you lose money on an investment or other financial decision.

Here’s what I mean:

Let’s say you start with an investment of $10,000 in a company’s stock. Let’s say that company has some negative developments, and its future looks less rosy by the end of that year. Further, let’s assume that the stock drops 20%.  This means that your $10,000 investment just fell to a value of $8,000.

Okay fine, not the end of the world, right? As we know, the stock market can be volatile, so if it goes down one year it might go up the next, right?  Let’s say it goes back up 20% the following year.  Does that cancel out the 20% loss from the prior year, to make us even?

No.  A 20% increase from $8,000 puts us at $9,600.  To get back to where we started, $10,000, the stock has to go up 25% in that second year.

If you lose money, it takes a larger percentage increase to catch up.  Lose 20%, and you have to gain 25% to break even.

I think this basic concept speaks to the importance of managing financial risks, and making sure to avoid big financial losses.

Keep in mind that I’m not saying that one shouldn’t invest in the stock market. I’m simply using the stock example to illustrate how any investment or decision resulting in a loss can make our money have to work harder to get back to break even.

How can we avoid big losses while managing risks? Here are a few examples:

1. Buy index funds.  You’re still buying stocks, but you’re diversifying risk compared to focusing on just one or a few stocks.
2. Get the right insurance.  Home, car, and other insurance policies can help protect us in the event of disasters.  Problems can and do happen, even if some are less likely than others.
3. Conduct good estate planning.  In the event of an unfortunate passing, nobody wants their money to be given to somebody not deserving! Also, nobody wants to see fighting over an inheritance divided between siblings.  While this is a different type of loss, its one most would want to avoid.
4. Do your homework.  By this, I mean actually think about big purchases analytically and not just emotionally.  For example, buying a home that is a good value versus buying a dream home based on emotion and not much else.
5. Watch out for scams.  There are scams that happen all over the place, and it’s particularly tragic when it happens to unknowing seniors. Even those of us that aren’t of that age often face jokers who try to swindle us.  Have you ever received one of those emails promising a financial windfall?

Bottom line is that once we lose money, it’s harder to get it back based on the math.  Risks are a normal part of life and investing, but we should be sure to remember the downside and protect against it.  We just might end up very thankful we did!

My Questions for You:

Do you ever think about how a certain percentage loss requires an even greater percentage gain just to get back to where you started?

Do you manage risks based on the 5 ways listed?

Are there any other suggestions you have for managing financial risks?

Turning the faucet off can lower your water bill!

Raise your hand if you like paying utility bills!

If we were in a room and I asked the question to the group, nobody would be raising his or her hand.  Paying utility bills is just a necessary maintenance activity that we deal with as a part of life.

Of course, beyond the routine of paying the bills, there’s the reality that they can eat up a decent part of our budget.  Thus, it’s a good idea to try to save on utility costs. One example of such an expense would be water bills.  We can’t live without water, it’s a necessity, but we have to pay for it. Thankfully we don’t have to be pay for air!

Anyway, with respect to water bills, there are ways that we can reduce our monthly payment.  This came to mind when listening to my father share with me how high his water bills have been in recent months.  Here are 10 ways to lower your water bill and reduce expenses:

1. Use a low flow shower head.  This by itself can reduce water usage and ultimately water costs, possibly over $100 annually for a family.
2. Consolidate laundry.  By this, I mean avoiding doing many separate loads of laundry. Rather, where possible, try to consolidate to do fewer loads.
3. Take a shorter shower.  Yes, you can get just as clean if you cut a minute or two off your shower time. Be mindful of time!
4. Water your lawn less often.  Of course, if you don’t have a lawn this won’t apply. But if you do, water it a little less often.  If your grass isn’t 100% green and the best looking showpiece in the neighborhood, who cares?
5. Run the dishwasher when full.  Now, by this I don’t mean overflowing so that everything doesn’t get fully clean. Rather, I mean make sure to run it when more than just half full.  The less you run the dishes, the more you save on water.
6. Install aerators.  Putting these on faucets can reduce water flow and save a little bit of money.
7. Repair leaky faucets.  This is one of those nagging things on a to-do list that we get around to when we can , but over time this can result in money dripping out of your account!
8. Properly insulate pipes.  If you can get your hot water faster, that means water wasted while waiting.
9. Wash your car less often.  If you take your car to a car wash, this applies too. After all, the more you wash your car there, the more you spend! If you rinse off your car in your driveway, you’re using water there too – lots of it, potentially.  Just rinse it off a little bit less, and save a little bit of money.
10. Teach kids to turn off faucets.  This has probably spanned generations, as kids sometimes just keep the water running more than they should, and at any random occasion. For example, turning on the water to brush teeth, then walking away before coming back a few minutes later. We were all kids once, so we know that logic isn’t always there. Teaching them good habits will save them some money in the future and you in the present.

The best thing about saving money on water is that these methods don’t really inconvenience us, as they’re a part of day to day life anyway. It’s just a matter of making a few adjustments.

Also, aside from money, let’s not lose sight of the other more important benefit of water conservation: helping the Earth.

My Questions for You:

Do you use any of these approaches to save money on water?

Can you think of any more to add to the list? I’m sure there are many more approaches that people take which can be included.

Go Ahead and Pinch that Penny!

What does the cartoon SpongeBob Squarepants have to do with personal finance?

Probably not much, unless you have kids who occasionally watch the show.  Anyway, a comment related to this show, made by my school-age daughter, got me thinking a little bit about how I might come across to on occasion when it comes to money. In other words, my financial image.

She and I were in the car on the way home recently, at which point I was reminded that I had previously mentioned that we would go get ice cream. Okay, I said, let’s go. So we went to a local place that has a drive up window for ice cream. Low Fat Vanilla, here we come!

After we ordered through the speaker, I pulled up to the window. At that point, while paying, I opened the car door a bit and looked to the ground. It was almost instinctive, and some of you might remember by experiment a year ago on picking up coins at the drive-thru. Clearly, I had found that you can usually find coins sitting right there, that people have dropped and nobody bothered to pick up.

Well, as I said, it was just natural for me to take a few seconds to open the door and look for change under the window. I didn’t even think about it much, and don’t know if I was more than minimally consciously aware I was doing it. At that point, my daughter asked me the following question:

“Daddy, why did you open the door?”

At that point, I stopped and practically froze. It hit me in an instant that I had been looking for loose change without even thinking about it.   I was kind of embarrassed, and just stammered something about how “Daddy does that sometimes”.

Then she paused as if to collect her thoughts, and said “Daddy, sometimes – not all the time – but sometimes, you can be like Mr. Krabs!”

Ha! Mr. Krabs is a character from Sponge Bob Square Pants, which I’ve picked up by my daughter watching this show.  This crab is supposed to be the owner of a fast food restaurant, while being obsessed with money and pinching pennies.  That is, to the point of being cartoonish – which makes sense, since the show is a cartoon.

It occurred to me that how I might be presenting myself, and how I might be perceived when it comes to money, have the potential to escape me.

In other words, sometimes we aren’t aware of how our money habits appear to others.  We of course want to be authentic to ourselves and who we are, but we want to consider what’s socially appropriate and how our actions impact others. There are some things we might want to consider.

For example:

• The way we model our behavior to kids
• The consideration we show to family and friends
• The impression we make on coworkers

We certainly want to behave in a way that positively influences others, and puts ourselves in a positive light.  Again, we also want to balance that with the need to be genuine and who we truly are.

My Questions for You

Do you ever think of how you appear to others in terms of the way you handle money?

What kind of impression do you think your money habits make on others – if any?

Have you ever drawn conclusions about anyone based on how you have seen them handle money?

Save money on gas

With gas prices getting out of hand lately, the cost of driving can’t be overlooked.  Whether commuting to work, going shopping, or taking a leisurely Sunday drive, it’s not going to be cheap to drive with gas prices this high! Thus, it might be time to revisit some ways to save money on gas.

Here are 15 ways to save money on gas:

1. Find the lowest prices.  This one is so simple yet people often look to other methods first. However, why not just pay less for gas as a first step? Use an app, or just keep an eye out for low priced gas.
2. Forget brand loyalty.  Who cares where you buy gas from, in terms of the branding of the station? A few months back, I saw two gas stations, on opposite corners from one another, with a difference of $0.24 per gallon. Yet, there were cars at the more expensive station. Why? Could it have been brand loyalty? I would rather go with the lower cost gas.
3. Carpool.  If you know someone who works or goes to school with you, and lives pretty much on the way to your mutual destination, why not consider carpooling? Taking turns driving – say alternate weeks – can result in commuting costs cut in half. Of course, you have to enjoy or at least tolerate that person’s company. Think dollar signs, and that can become easier in some cases J
4. Don’t speed. I have a friend who simply never drove the speed limit when younger. He was also really frugal. I’ll bet he never factored in the decrease in efficiency when speeding. Going past highway speed limits, mileage efficiency might be reduced quite quickly.  Best to avoid speeding, which is also smart since it’s safe and we aren’t supposed to be doing it anyway!
5. Use public transportation.  Yes, this might not be possible for you. However, for some people it is a possibility, and one that should be considered.  With my current work assignment, I’m probably looking at $10 in gas round trip, based on the approximately $4.30 per gallon local prices. By taking the train, my per-day cost comes out to about $7.50. An added bonus is less wear and tear on the car, and a less stressful commute!
6. Bike or walk.  Again, not possible for many. However, if you have a short distance to work, school, the gym, or wherever it is you want to go – why not work in some exercise? It’s good for your health, and saves gas. Even doing this occasionally can have incremental money and health benefits that could add up.
7. Get a tune-up.  If your car gets a regular tune-up and is running well, it can be more efficient in its use of gas.
8. Avoid unnecessary starting/stopping and braking.  By this, we’re talking about taking clear paths to places rather than dealing with stop and go traffic. Also, while you drive open roads, if you are constantly tapping on the brake out of habit, you may be able to let up on the accelerator instead.  This could help save money ultimately.
9. Clear out your car trunk.  If your car trunk is weighed down by unnecessary items, it can lower efficiency. To save a little money in the long run, get out of the habit of thinking of your car as a secondary storage unit.
10. Check your tires.  Tires that are low on air can impact the mileage you get.
11. Use lower octane fuel.  Going with premium fuel, when it isn’t truly necessary, can really add up over time.  Go with the lower octane variety.
12. Use coupons.  Yes, I have actually seen coupons for gas! One offered a $0.05 per gallon discount if you redeemed the coupon. Not bad!
13. Check your air filter.  Keep a clean car air filter, if totally in need of replacement it could impact your mileage.
14. Plan your trips.  If you take the time in advance to spend a few minutes planning your driving for a day, if you’re running errands as an example, you might be saving more than time. Consolidating stops and choosing locations to visit, resulting in a shorter and more efficient trip, can lead to gas savings.
15. Pinch pennies.  Here’s a way to really be a Squirreler by using the take a penny, leave a penny dish.  This one’s just for fun, I don’t really recommend it J

My Questions for You

• Have you given extra thought to saving money on gas lately?
• Do you use any of these strategies?
• Do you have any more to add?

Financial Diet: Spending Until 80% Full

Fitness has been one of my goals for this year (as it probably is for many people, in a lot of years), but this time I’ve put forth more effort into it. Aside from the most important part – taking action – I’ve done a little more reading on ways to improve health.

Of course, as I say here periodically, health and money are interrelated. Improve one, and you can help the other.  Now in this case, I thought I’d actually do something a bit different. Here,  I thought of applying a health-related principle to money. That concept: Hara Hachi Bu.

From what I’ve learned, Hara Hachi Bu is an Okinawan approach to regulating eating. The idea is that one should eat until reaching the point of being 80% full. The result? People eat less, don’t gain unnecessary weight, and have better health. It’s been said that Okinawa has an exceptionally high percentage of centenarians compared to the rest of the world. Eating fewer calories, when paired with an active lifestyle, might really help longevity and the ability to live a healthy life to 100.

It got me thinking – why not apply the 80% concept to our spending?

If calorie restriction and eating until 80% full might play a role in longevity, maybe spending 80% of what we think we need can play a role in longevity of our savings as well. If we spend less, we can increase our income minus expense gap. This increased savings, with time, proper investing, and the power of compounding, can result in a substantially increased net worth and financial security. This extended life of our savings can help us live a higher quality of life for a longer period of time.

Now, I don’t think this is just a matter of taking a high level of spending and bringing it down by 20%. Rather, I’m talking about taking what would be a reasonable budget made by financially responsible people, and living on 80% of it.

This could entail spending (and living on) less as follows:

• Housing – moving to a less expensive area or living in a smaller home
• Cars – driving an older used car, or for a family getting rid of a second car
• Food – cutting out dining outside, and going the extra mile to make frugal dining choices

It’s almost like thinking about what you need to live comfortably, and then spending at 80% of that level. Maybe we can get used to that, just like the body gets used to living on less calories when stopping at 80% full.

Update: Just so everyone knows what I mean by 80%, I’m referring to 80% of current expenses. I’m not referring to spending 80% of income and saving 20%. Rather, I mean take whatever your expense level is and multiply it by 0.8. For example, if a family earns $100,000 and spends $80,000, they’re saving $20,000. By applying this Hara Hachi Bu concept, the family would take the $80,000 expenses, multiply by 80%, and spend the resulting amount instead: $64,000. In this case, savings as a percentage of incomes goes up from 20% to 36%!

My Questions for You

What do you think of the idea of living on 80% of an otherwise reasonable expense level?

Do you think that doing this could extend the life of your savings and substantially grow your net worth?

Much like the Hara Hachi Bu rule, do you think that this approach is one that would require a higher level of discipline than many of us are accustomed to?

Can you cut expenses with these?

It’s nice to find ways to cut out expenses, and operate a bit leaner financially. That is, as long as the changes don’t impact your day-to-day life too much:) Then, it’s a matter of viewing them as trade-offs.

A recent article in on Yahoo! Finance discussed 12 things that people can choose to stop spending on in the new year. Now, I often think that it’s worthwhile to consider how much time one spends on trying to save money, as it’s necessary to make money first before we can save it.  That being said, if we’re going to spend some time focusing on saving on consumer purchases, we might as well do it with some type of framework.

Recall that I recently posted on the topic of trying to spend wisely, where I suggested that we ask ourselves the following questions before purchasing:

1. Do we truly need the item?
2. Can we easily find a lower cost alternative?

Keeping that in mind, I’m going to go through the list of what to cut from our budgets (from the aforementioned article), and will answer those two questions for each one. Then, I’ll describe what I’ll actually do in practice.

1. Coffee Shop Visits
• I don’t truly need to do this, though I enjoy it
• A lower cost alternative is available, such as home brewing
• What will I do?: I will keep visiting. I suppose it might seem like I’m going against the system I devised, but I look at the visits as more than coffee. Which, by the way, is simply black coffee and not one of the more expensive drinks. I view it as renting space where I can get some work or writing done while enjoying a drink. The combination works for me in terms of productivity, so I’m going to keep doing it occasionally.
2. Incandescent Light Bulbs
• I don’t really need to buy these exact type
• Not sure a lower cost alternative is available, unless you operate on sunlight:) Well, longer-term the energy-efficient ones are supposed to be cheaper anyway.
• What will I do?: Buy the energy-efficient ones, and save money in the long run. Besides, the others are effectively being phased out.
3. Disposable Water Bottles
• I don’t need to buy these bottles
• Lower cost alternatives are available, such as carrying a reusable bottle or using a water fountain. Remember when that was the norm? If not, maybe it’s just people that aren’t super young anymore:)
• What will I do?: Use reusable bottles. I’ve bought a few, and will use them regularly. The disposable bottles I have bought were purchased in bulk for maybe 10 to 15 cents each – as opposed to the $1 or more rip off for single bottles many places. But still, once you get past the initial investment in a reusable container, it eventually represents the cheaper choice.
4. Baggage Fees
• Usually, for shorter trips, I don’t need to check a bag
• A lower cost alternative is available: packing lightly, and carrying on
• What will I do? Going forward, on personal travel I will be sure to pack lightly and avoid such fees. Of course, I had previously discovered an alternative way to avoid checked bag fees that I won’t try on purpose, but thought I’d share anyway:)
5. Subscriptions You Don’t Use
• We don’t need to spend on things we don’t use!
• A lower cost alternative might be available if you choose to read - going online is one way
• What will I do? Continue to go subscription-free. One can go online for much information, or go to the local library and read hard-copy periodicals in many cases
6. Baby Food
• I’m a parent, but past the baby days. But if you have a baby, store bought baby food technically isn’t a need
• A lower cost alternative could be making it at home, so yes – one is likely available
• What would I do? In that case, being in the position of being a parent of a baby, I would still buy some pre-made baby food. Now, I do think that it seems like a good idea to mix in some homemade food. However, with the demands of daily life for many working parents, time is valuable. Speaking from experience, I think buying at least some baby food is worth it for working parents.
7. Credit Score Fees
• I think checking one’s credit score is very important, probably a need
• Apparently, free options are available
• What will I do? I like the option of getting something for free.
8. Cable
• I don’t truly need cable
• Yes, there are plenty of lower cost alternatives for watching shows and movies.  Hulu and Netflix were a few mentioned.
• What will I do? Good question. Cable right now offers some things kids really enjoy, which has tipped the scales in its favor. But wow, it’s not cheap. I’m contemplating ending it, with other options filling in the gaps.  It’s not a need.
9. Landline Phone
• I don’t need a landline phone
• There are lower cost options, and alternatives that are arguably more necessary
• What will I do? I don’t have a landline phone, and haven’t had one for a while.
10. Cleaning Supplies
• I think they’re needed
• There might be lower cost options, in terms of homemade concoctions
• What will I do? I think there’s room for swapping out chemicals for more natural options for certain things, but I don’t have the time to devote to making my own cleaning supplies at this time. I’m sticking to primarily store bought items.
11. ATM Fees
• ATMs are useful, but their fees are not necessary
• There are lower cost options, such as finding an institution that doesn’t charge you fees along those lines
• What will I do? What I currently do, which is limit ATM usage to my own bank, where I don’t pay any such fees
12. Home Repairs
• It’s necessary to do home repairs, but only sometimes necessary to pay someone to do them
• There is a lower cost option: DIY
• What will I do? My past history has been to do repairs for the basics, but then call a professional for something that’s bigger and time consuming. I’m fine with paying when needed for such things, where it makes sense of course. No reason to stubbornly avoid paying other people or having a false sense of bravado when it comes to fixing things.

My Questions for You

Are there any of these expenses that you are fine taking on, as I am? If so, which ones?

Or, do you actively try to avoid expenses even if it means extra time and effort?

Can you think any other similar items that can be included on a list of expenses to stop paying?

Four days have passed, and no money has been spent.

As I write this, the day before publication, I have started the new year by spending no money in the first 4 days of the year. Zero, zilch, nada. Absolutely nothing. Hooray! Of course I’ll inevitably spend on different things soon, but my resolution to spend less money on discretionary items has started out the way I wanted it to. It’s always nice to get some early momentum on working toward a goal, no matter what it happens to be!

Really, what I’m trying to do is lower expenses in order to help efforts to grow net worth. Now, I generally think that most of us should spend more of our time and energy on the income growth side of things, and maybe even investing a bit of time in risk management. So, let’s not get carried away or become stingy. Dwelling on saving money can only get us so far. After all, as I say periodically here, we do need to make money before we can save money, right?

With that in mind, rather than going too far by getting obsessed with expense-lowering strategies, I’m trying to make it a habit to very quickly assess whether or not to I need to make a particular purchase at any point in time.  This expense assessment strategy basically involves asking the following questions when I’m making a purchase.

1. Do I need this? Yep, the old wants versus needs question comes back again! However, just because something is a want, it doesn’t mean it can’t be purchased. Life would be too boring if we only did what we need to do and ignored what we would really want to do.  However, needs are just that – needs – while wants can be addressed sometimes when the time is right.  So aside from exceptions, if it’s not needed, question whether or not it will be purchased.
2. Is there a lower cost option easily available?  OK, so we’ve very quickly decided “Yes” to question #1. We need to make the purchase, whether it’s food, clothing, gas, or whatever. But can we spend less? For example: if you’re at work, you’ll typically take some time in the middle of the day to eat lunch. Maybe that means going to the company cafeteria, or running out to pick up a sandwich or salad. Sure, you could do that, but what about bringing something from home? You could save some money that way if it doesn’t take much extra time to prepare and pack a lunch. Even a few dollars a day can add up to a lot annually.

It’s a very simple, yet very effective concept. Do you need it, and if so – could you get it for less elsewhere, without spending much extra time. Keeping it simple allows us to avoid overanalyze saving money, and think about other things too:)

My Questions for You

Do you ever stop yourself when making purchases, to decide whether or not you need to spend?

What approaches do you use to make sure you’re spending your money wisely?

If you’re driving, you need auto insurance. If you’re like most people, lowering auto insurance costs sounds like a great idea. After all, who wants to spend more money than necessary?

Personally, I’m trying to take a closer look at reducing regular expenses, and the costs of driving a car can really add up. Along those lines, the insurance part of it is an area that I’m revisiting.  Since we have to get car insurance, and those costs aren’t insignificant, we might as well look for ways to reduce those expenses.

Here are 10 ways to to lower auto insurance costs:

1. Actively shop for the best rates.  The quotes that you might get for auto insurance can actually vary depending on who you talk to, and where you’re looking. Take the time to do your homework, and show a little persistence in looking for the best possible rates. A little bit of money saved with each payment can add up to a pretty decent amount over the course of time.
2. Raise your deductibles. A deductible is the amount of money that you will be responsible to pay, out of your own pocket, before the insurer responsibility kicks in. If you raise the deductible threshold amount, your payments will decrease as well.  If you end up driving without accidents, this will save you money. Just be careful, as with an accident you would have to pay more out of pocket with a higher deductible.
3. Drive a low-premium vehicle. Some cars can better than others for premiums. You might pay more if you drive a sports car, a luxury car, a large SUV, a very small car, or others. It really depends on how your car can handle damage, how expensive it might be to repair, and how much damage it could inflict on other cars.
4. Utilize multi-car discounts.  Do you have multiple cars in your household? You might be able to save money with a multi-car discount, covering those cars with the same insurer.
5. Drive safely. This was already noted in #2 above with respect to raising deductibles, but accidents can also raise your rates. Drive safely, and you can keep your rates low.
6. Shorten your commute.  The distance you drive back and forth to work each day can matter in determining your rates.  You might be able to get lower rates if you have a short commute to work. I know someone who’s had a 2 mile commute to work for some years now (must be nice!), who’s talked this up. Hard to choose a job based on lowering insurance costs, of course, but it’s still something to keep in mind in terms of your mileage.
7. Take advantage of multi-line discounts.  Bundling auto insurance with home or renter’s insurance is another potential way to save money.
8. Take a defensive or safe driving course. Such a driver improvement type of class might lower your insurance premiums. It’s worth inquiring about such potential savings before making the investment in a class.
9. Consider dropping collision coverage on older cars. If you believe in car longevity, and drive a car until it has a sky high mileage number, you may be in a position to consider dropping collision coverage.  It’s good to take a step back and determine exactly what coverage you’ll really need.
10. Invest in an approved anti-theft device.  Sometimes, depending on the device, you might be able to obtain extra savings by installing an alarm system/anti-theft device. Protect your car and potentially save money in the process!

My Questions for You

Do you take advantage of any of these measures?

Do you have any additional tips to share?

What do you think is the best advice to give someone trying to successfully reduce car insurance costs?

Different times of the year provide different reasons to spend money, be it holidays or weather-related.  With respect to the latter, the winter months provide a unique set of conditions that can affect our expenses in different ways.

With that in mind – and the reality that we’re in for a prolonged few months of cold weather where I’m at – I thought I’d put together a list of winter savings tips, including 10 ways to save money during the winter months. Here goes, in no particular order and top of mind:

1. Open curtains on sunny days. The sunlight coming in can actually make some rooms bit warmer than they would be with windows partially covered. Let the light in, and feel the warmth. More importantly, let the sun do the work – instead of turning up the temperature in your home. South-facing windows can really help.
2. Check windows and doors for drafts. This is often of particular importance in homes that are older, but can apply to most homes in general. Sometimes, we can have our expensive heating efforts somewhat negated by small leaks that bring in cold air. Weatherstripping and caulking can help take care of these efforts. Just spend a few bucks at a home improvement store, and a little bit of time, and you can solve such problems quickly.
3. Lower the heat when you’re not home. When not home during the day, why not lower the thermostat by a few degrees? An empty house doesn’t care whether it’s 70 degrees or 65 degrees! Little amounts that are saved each day can add up to something measurable over longer periods of time, which can be reflected in your monthly bill.  This concept of lowering the heat can also be applied overnight, as temperatures can be lower while everyone sleeps.
4. Lock Santa out of the Fireplace. OK, I like good ole Santa just as much as anybody else. However, on those other time aside from Christmas Night, keep the fireplace damper shut. This is a source of heat loss for many homes. Of course you want to be careful when doing this (as in, not when a fire is going), and not everyone has a fireplace anyway. But if you do, just keep in mind that the damper can be closed, since the jolly man in the red suit won’t be appearing every day. Talk to a professional for details.
5. Consider an insulation jacket for your water heater.  These don’t cost much, maybe $20 or so, but can save you a small percentage of your heating costs by preventing heat loss. Like many other things, these costs can add up over the year.
6. Wear layers. A great example: wearing a sweatshirt! Instead of cranking up the heat even a few degrees, throw on something warmer – maybe a sweatshirt or a heavier pair of socks. Don’t ever go to the point of being uncomfortable though. Personally, I think it’s entirely silly to suffer just to save a few bucks. But for a couple of degrees, which seems more than manageable, layering can work well.
7. Be prepared for snow.  Depending on where you live, you might be dealing with snow in the winter. In some places – such as where I live (Midwest) - the snow can be significant.  Make sure your snow blower is working, snow shovel is handy, and that you can be ready to go if needed. Otherwise, you could waste time and money trying to get someone to do it for you. Not that outsourcing is a bad option – it can be great for many people – but do it if you want to, not if you’re forced into it due to being unprepared.
8. Pay attention to insurance.  Winter brings on it’s own challenges in terms of weather, and some of this is related to snow. Though we can remove it, as discussed above, we might not be able to remove all risks associated with it. Snow insurance might be a good thing to consider, depending on where you live.
9. Prepare your car for winter weather. This includes checking things such as antifreeze, tire tread, wiper blades, etc. Also, keep an emergency kit in your car. More than money costs, we’re thinking of safety in this case!
10. Dress for the elements. I’ve seen enough people wear light jackets or no outerwear at all in temperatures as low as the 40′s. That’s a great way to get sick, one would think! Protect yourself against the weather, and stay healthy. Besides the obvious positives of good health, you might save yourself health care costs, and also be able to get to work and be productive!

My Questions for You

Since this was list of ten, I’m sure there are other tips that could be added. Do you have any to share?

What are your favorite ways to save money during the winter months?

Holiday gifts are nice, no matter what you might be celebrating. For those of us who celebrate Christmas, it’s a lot of fun to look under the tree and see a nicely wrapped gift with a bow, along with your name on it.  Of course it’s much more exciting for kids in most cases, but it can be a lot of fun for grownups as well.

So yes, receiving gifts can be fun. Personally, I don’t really need anything in particular, and prefer to give gifts to those closest to me.  Giving is more enjoyable to me during the season.

Gifts given to me sometimes make me feel a bit guilty that the person spent hard-earned money on me.  If it’s my money being spent, then I might feel less guilty. If it’s brand new car that’s bought for me, I’d feel something other than guilty: outraged!

I bring this up because it’s this frugal mindset I have when I see television commercials that involve a person receiving a brand new car as a holiday gift. You know, the ones where a car is outside in the driveway, with a big red bow on top. The ones where the person getting the gift (usually the wife, from the husband – but I’ve seen it reversed) has that “Oh my GOSH!!” look on her face when she sees the car. There’s usually some kind of subtle hint to the recipient initially, then she looks outside and the jaw drops and eyes light up with wonder and excitement. The message seems to be that she’s thinking “Wow, a brand new car, for ME!! This proves that he (or she) loves me so much!!”

Oh, please.

If you’re wealthy, perhaps it won’t matter. But for the rest of us – the so-called 99%, let’s say – a car purchase is a big deal. This isn’t like buying a nice cashmere sweater you got on sale, tickets to a live musical, or even a TV. This is a vehicle. One that probably cost $20,000 or more – sometimes much, much more.

So, let’s see here. If your spouse loves me, she (or he) is then supposed to buy me a brand new car, out of the blue, burning $20,000 in savings? Or, for most people, take out a big loan which might take a few years to pay off?

It’s almost like saying, “Happy Holidays, Honey! I love you so much, and wanted you to be happy, that I signed you up for 4 years of debt payments that we’ll have to work extra hard for. You’re the best, you deserve it!”

Right.

You can see what I think of those car commercials. The ones that I’ve seen lately have been these types of commercials, though there might be others this year for all I know.  Most commercials in general don’t bother me, and some are quite funny and/or clever in some way. However, these commercials kind of bother me, but mostly amuse me because I think it’s mind-boggling how stupid the premise of a brand new car as a gift is for most people.

Like I said,  I don’t need any gifts, though whatever I do get will be appreciated. Just save some zeroes, and stay around $20 instead of $20,000

My Questions for You

What do you think of these car ads on TV around the holidays? Do you see it the way I do?

Are there any other ads around the holiday season that have made you roll your eyes, or amuse you in some way?

Do you ever think about money being spent on you (as I do), or do you avoid thinking of money in these terms when it comes to the holidays and gifts?