Are you losing money on food?

We were shocked a few years ago when we added up 3 months of eating out: $745 in March, $925 in April, and $865 in May. No fancy dinners, no steakhouses, just lunches, mid-level restaurants, and fast food.

There has definitely been a shift going on in this country over the past 10-20 years about how we view eating out. What was once a special treat a few times a week has turned into an almost everyday occurrence.

Today, it’s normal to eat out for lunch 4-5 times a week. It’s normal to take the family out for dinner on Monday, Wednesday, Thursday, and Friday. After all, with such long hours at the office, who has time to cook?

But what is all of that “restaurant money” doing to your budget?

Turn Back the Clock

Instead of buying into the restaurant culture, let’s party like it’s 1989. There’s probably a lot of psychology that goes into our obsession with eating out. We liked it so much when our parents took us out on the town that we have turned it into a normal event without weighing the cost.

One of the best ways to cut food costs is cooking meals at home instead of eating out so much. Not only will you save money on overpriced restaurant food, but eating out will turn into a special occasion when it’s done less frequently.

Don’t Be Intimidated

One of the most common excuses about not cooking at home is that people say they don’t know how to cook. Sure, cooking from scratch might be above your experience level, but there are plenty of options at the grocery store for even the most inexperienced chef to cook like a pro.

Instead of having a bad attitude about cooking in your kitchen, look at it as a fun challenge. How can you get better? What new foods can you discover? How can you get the kids involved?

Before you know it, you’ll be able to rival many restaurant dishes, especially if you take some tips from all of the cooking shows.

Health Considerations

You know why restaurant food tastes to delectable? It’s usually full of butter, sugar, salt, fat, or any number of unhealthy ingredients that taste good but have horrible health consequences. When you cook at home, you not only save money, but you control what goes into your food.

Just a thought.

Photo By Valdiney Pimenta

$6 for a grilled cheese? Seriously?

This changes many things. It changes what he eats, what he likes, and what I’ll share (or won’t share) with him from my plate.

But it also changes how we look at eating out and the prices/value of the kids meal at restaurants. We are lucky to live in a town where many restaurants offer a “kids eat free” night or even a weekly time slot. But this post will focus on those places that only offer a regular priced kids menu.

Fill ‘Em Up, Please

Hopefully I can keep my emotions under control and this post won’t turn into a soap-box rant. We’ll see. But if I were to give any advice to a restaurant manager about the kids menu, I’d make sure that they offer meals that will fill up a regular-sized child.

We went to a wing place recently (with coupons) and got our son Hot Dog bites from the kid’s menu for $5.49, which came with a side of fries or orange slices – we chose the oranges. What we got were 5 of the smallest “hot dog” bites that you’ve ever seen. They were a little larger than those mini marshmallows. Needless to say, he gobbled them down, went through the oranges, and was asking for more.

“There are no more,” we told him. But he didn’t understand why we couldn’t just go to the kitchen and get more. I ended fixing him a peanut butter and jelly sandwich at home.

We had another experience at a burrito place where the kids meal was $4.99 and all we got was a small folded tortilla with american cheese in the middle. Total rip off, and non-filling.

My wife and I only go out to eat once or twice a month. We’ve decided that there is much more value and healthy choices when cooking at home (back like it was in the good old days). But when we do go out, we want value for our money.

The Realization

I think I’m at the point where I realize that the person making up the kids menu isn’t a parent. I’m also at the point where I realize that a better value might be buying a similarly-priced regular entree, letting our son eat half, and then saving the rest for leftovers.

If it’s $5 for a kids meal and $6.50 for an adult-sized chicken sandwich, I’m going with the chicken sandwich.

My Tips

So, I guess my tip on this matter would be to look up the menu online before you’re at the restaurant to get a better idea of where you might want to go and what you will order. After all, any parent will tell you that explaining to a hungry child why we have to wait for food doesn’t go a long way in helping them with patience.

Photo By visualthinker

If you’ve been paying attention to the holiday shopping news, there’s a good chance you’ve heard about Best Buy and their recent problems with online orders.

Apparently, Best Buy had to cancel many orders made on their website when they ran out of merchandise (or because they refused to fill a certain amount of orders at such low prices – no one has actually said why they had to cancel orders). What complicated things in the first place was that they made a hard advertising push to encourage shoppers to find Black Friday deals online.

Many of these shoppers who found great deals on Best Buy’s website were let down just days before Christmas when they received an email saying that their order had been cancelled. Shoppers were told they would receive refunds and gift cards as compensation; but for the electronics giant who is becoming smaller and smaller, this isn’t a good situation no matter how you look at it.

What To Do

Whether you’re shopping online at Amazon, Barnes and Noble, Buy.com, or even Best Buy, it’s always smart to give them a call before you buy. Call them up, tell them what you’re wanting to buy, check to make sure they have it in stock (no matter what their website says), and make sure you are getting the quoted price.

You can also use this time to see if the representative can give you an even better discount. It doesn’t always work, but it doesn’t hurt to ask.

Making online purchases isn’t some magical process. It involves real people who can make mistakes, miscount, and forget. It’s a good idea to make as much contact as you can with the online company to ensure that what you bought will make it to your doorstep.

Photo By kkennedy

Merry Christmas to all, and to all a good night!

Since today’s blog post will be our last one before Christmas day, I thought we’d have a little fun with a familiar holiday poem – Enjoy!

Twas the night before Christmas, when all through the house, not a creature was stirring, not even a – mouse clicking last-minute gift ideas online.

The stockings were hung by the chimney with care, in hopes that St. Nicholas soon would – make all of our holiday credit card debt disappear.

The children were nestled all snug in their beds, while visions of – iPads, LEGOs, and Let’s Rock Elmos! danced in their heads.

And mamma in her kerchief, and I in my cap, Had just settled down – after an argument over the Christmas budget.

When out on the lawn there arose such a clatter, I – sprang into action thinking a delivery man had tossed our new computer monitor over the fence.

Away to the window I flew like a flash, tore open the shutters and threw up the sash. The moon on the breast of the new-fallen snow gave the lustre of mid-day to – our new luxury car’s GIANT bow.

When what to my wondering eyes should appear, but – the realization that we got suckered into another new-car lease . . . every two years.

With a little old driver so lively and quick, I knew in a moment it must be St. Nick. More rapid than eagles his coursers they came. And he whistled, and shouted, and – he laughed at me by name, when he saw the terms of the agreement.

“Now Dasher! now, Dancer! now, Prancer and Vixen! On, Comet! On, Cupid! on, Donner and Blitzen! To the top of the porch! to the top of the wall! – I hope they got a better deal on their car insurance!”

Let this be a lesson to all who hear, the need for financial planning is perfectly clear. So up to the house-top the coursers they flew, with the sleigh full of Toys, and St. Nicholas too.

And then, in a twinkling, I heard on the roof – they’re tearing up my shingles with each little hoof.

As I drew in my head, and was turning around, down the chimney St. Nicholas came – leaving me his policy information.

He was dressed all in fur, from his head to his foot, and his clothes were all tarnished with ashes and soot. A bundle of Toys he had flung on his back, and he looked like a peddler – trying to sell me something I don’t really need.

His eyes-how they twinkled! His dimples how merry! His cheeks were like roses, his nose like a cherry! His droll little mouth was drawn up like a bow, and the beard of his chin – reminded me that I need to save for retirement before I get too old.

The stump of a pipe he held tight in his teeth, and the smoke it encircled his head like a wreath. He had a broad face and a little round belly, that shook when he laughed – just like the credit card agent laughed when I asked for a credit-line increase.

He was chubby and plump, a right jolly old elf, and I laughed when I saw him, in spite of myself! A wink of his eye and a twist of his head, soon gave me to know – I’ll be paying interest til I’m dead . . . or until I get my spending under control.

He spoke not a word, but went straight to his work, and filled all the stockings, then – called me a jerk for putting my family in such an unstable financial situation.

And laying his finger aside of his nose, and giving a nod, up the chimney he rose!

He sprang to his sleigh, to his team gave a whistle, and away they all flew like the down of a thistle. But I heard him exclaim as he drove out of sight – “If you paid cash for Christmas, you’ll sleep better tonight!“

Photo by brockvicky

Hunting down the best mortgages in 2012 and beyond!

Yet many homebuyers, especially first-timers, do not carefully consider their mortgage loan options even though most of them will take out a loan to purchase their home. Knowing how to pick the right mortgage loan is key to getting the best mortgage rates in 2012 and beyond.

Homebuyers should consider the following factors when they research mortgages to help them get the best rates and save the most money.

Income

A homebuyer’s income is the single biggest factor to consider when examining mortgage loan options. Buyers who are just starting out in their career generally earn a lower salary than those who have been working for decades. At the same time, buyers at the beginning of their careers are all but certain to see their income increase over time.

In order to guarantee the lowest possible mortgage payment, such buyers need to find the lowest possible mortgage rates when they buy. Over time, the mortgage rate and payment can rise because the incomes of these buyers also tend to rise.

Such individuals will likely find the best mortgage rates in an adjustable-rate mortgage that charges an interest rate lower than the fixed-rate average for the first several years of the loan and then increases the interest rate each year thereafter.

On the other hand, those whose income is stable and not likely to increase substantially will likely want a fixed-rate mortgage. The interest rate on this type of loan remains constant for 15 or 30 years, which means that the monthly mortgage payment remains constant as well.

Current Market Conditions

Getting the best mortgage rates also depends on current economic conditions. No matter the year in which they are purchasing, homebuyers should have a good idea of where interest rates are heading based on the news and the actions of the Federal Reserve.

If signs point to mortgage rates remaining steady for several years, it can be wise to choose an adjustable-rate mortgage because rate increases will not likely be very steep when the interest rates on these loans reset. If rates are likely to increase sharply, however, it is better to lock in a fixed rate before average rates go up.

In 2011, the U.S. federal government has generally taken action to keep average mortgage rates at historic lows. Fixed rates may remain low in 2012 because many experts do not expect the housing market to hit bottom before 2012. Nevertheless, low fixed rates cannot last forever, so buyers should look carefully at what the government is doing if they want to get the best deals.

Years in the Home

Obtaining the most beneficial mortgage rates also involves taking into consideration the number of years that one expects to live in a home. Those who are certain to live in a home ten years or more should go with a fixed-rate mortgage because it will save them money over time. Buyers who will probably move within five or ten years may do better with an adjustable-rate mortgage if they are likely to sell the home before their rates rise.

Of course, these are just some of the factors that homebuyers need to consider when looking for the best mortgage rates. Buyers who do their research and take their time in examining their mortgage options should find success when it comes time to close on the loan.

Photo By Jen and a Camera

Don't hate, everyone has their favorite toy.

It could be a post about coupons, or finding a great deal, or simply thinking outside the box.

And if there’s a chance to insert some personal history or humor, I go for it.

Television Commercials

One of the funniest things that I’ve noticed this Christmas are the absurd commercials. They’re funny, but they’re also preposterous. A few of them are, anyway.

What gets me is that they’re pitching products to adults, but their using that toy commercial/monster truck rally approach to excite our inner child.

They hope that if our eyes get glazed over with awe and wonder, we’ll spend without thinking twice.

One of my fondest memories of childhood is toys and toy commercials. I loved playing with toys and I loved being transported to a magical universe for thirty seconds at a time when those wonderful toy commercials would light up the television screen.

Masters of the Universe

I loved He-Man, loved the action figures, loved the cartoons, loved the Halloween costumes, and loved the birthday plates and cakes.

My absolute favorite commercial experience happened when I was 6 years old. It was an ad for a bone-crushing vehicle for Skeletor, He-Man’s arch rival.

That may sound simple emough, but the set built for this commercial had everything a young boy would love. There were trees, rocks, obstacles, bad guys, good guys, a fortress, a dungeon, and tons of action.

But then there was heartbreak.

I actually received this toy for my birthday one year. However, when I played with it, I realized that there was no background, there were no obstacles, no fortress, no rocks, and no expensive set assembled by professional model builders to create a magical atmosphere of He-Man mania.

I know, I know, I could always use my imagination. But I was still let down.

He-Man’s Cordless Drill and Family Sedan

The same marketing tactics are use when retailers try to get us adults to buy a truck, or a power tool, or makeup that promises to transform us into the next supermodel.

No one is going to buy a mid-size pickup truck and take it out to the sand dunes to assist paddle-wheeled dune buggies with their high-flying jumps. And no one is going to take that same pickup and help an airliner land on the runway.

Do you really think someone is going to use a backup assist camera because they don’t want to turn around in their vehicle for fear of gazing upon the naked hot-air balloonists riding in the backseat? Nope.

And seriously, who is going to take their four-door luxury car out to the race track to reach it’s “highest in-class” top speed nearing 200 mph? Maybe .1% of owners?

It’s definitely not the fastest production car when it’s sitting in traffic 5-6 days out of the week.

Off My Soapbox

I’m not talking about ethics here, I’m just writing a short commentary about defending our wallets and bank accounts against the toy commercial mentality that tries to get us to spend big bucks on stuff by putting those products in amazing (yet non-realistic) situations.

Depicting fantasy situations should not bring us to the point where we’re ready to hand over money.

Let’s all just take a deep breath and try to think about a product’s every-day usefulness before we spend money.

Photo By semihundido

How will you stay warm this winter?

No matter how frigid the winter months become in your neck of the woods, chances are high that you probably like to stay warm when the temperature begins to fall.

And what better way to add a little extra happiness this holiday season than to stay warm and save money at the same time?

It’s such a good feeling as you slip into your warm bed on a cold cold night.

Electric Blankets Work Wonders

My grandmother was always about ten degrees colder than everyone else in the house. Her solution? Crank up the heat and make everyone else sweat. Then we got her an electric blanket for Christmas, and the sauna problem was solved.

Electric blankets are a wonderfully efficient way to add extra warmth around the house – especially if you’re cold-natured. Plus, there’s just no sense in over-heating the whole house when a small and inexpensive electric blanket will do the trick. I wonder if they’ll ever invent an electric snuggie?

Close Off Unused Rooms

How do you live frugally and stay warm at the same time? By closing off air vents to the rooms in your house that go unused for hours at a time.

When you close off a vent, the air pressure increases to your other rooms. Therefore, if you’re running your central heating system, more hot air is pumped into the rooms that you are consistently using instead of being wasted in empty locations.

More heat where you need it translates into a decrease of wasted money.

Don’t Be Afraid of the Light

A common misconception is that a window without a curtain lets in too much cold air. Curtains might be able to muffle a drafty window, but what about well insulated windows without any leakage?

I say pull back the curtains and let the sun shine in. If your windows are well sealed, you’ll let more warmth in from the sun than cold from the glass (especially if you’re rocking double pane glass). Just remember to close the curtains when the sun moves to the other side of the house.

Bundle Up Indoors

The house we rented in college was old, drafty, and poorly heated. My solution was to bundle up, even while sleeping. I looked at it like camping indoors. It was 55 degrees in my room, but it was toasty under the covers.

You probably don’t have those extremes indoors, but adding on layers to your wardrobe will go a long way in keeping you warm and decreasing your heating costs.

Learn to Love the Rug

Hard wood floors have been gaining popularity for years. Can I get a shout out from my fellow “hand scraped” fans? The only problem with high priced bare floors is that they’re super cold in the winter.

Solution – add a few area rugs to keep your toes warm.

Update Your Thermostat

You’d be surprised just how inaccurate an old thermostat can be. Our house had a spring-style thermostat from the 1950s before we had it changed. Once the new device was installed, we were able to precisely set the temperature we wanted throughout the day.

Find the Drafts and Seal Them Up

There’s no point in heating your house if the hot air escapes under the door, through the window, or into the attic. Become a detective and locate where your hot air is leaking out and the cold air is coming in. Once you’ve found the spots, seal them up with towels, caulk, weather stripping, or whatever else necessary.

Photo By Otto Phokus

You must use, but use wisely.

Coupons are a great way to save money on anything from groceries to to electronics to domain names.

But if you’re not careful, coupons can actually have an adverse effect on your budget. How so?

If you rack up the impulse buys while you’re shopping, you’ll defeat the savings purpose of using your coupon.

One of the funniest memories I have of my mom is that she could never go into any store and purchase just one thing. She would always return to the car with her arms full.

My wife, on the other hand, is very savvy when it comes to using coupons. She’s as sturdy as an oak.

$10 Off? You’re Asking for Trouble

We get a JC Penney coupon in the mail about every 2 months. This coupon is good for $10 off any purchase of $10 or more.

Wow, sounds like free money doesn’t it? But they know that 99% of the population using that coupon will spend more than $10.

This is an amazing coupon if you can control your spending. But if you have trouble putting a limit on yourself when you’re out shopping, then coupons like these present a dangerous threat to your otherwise healthy budget.

If a retail store can get you to walk through their doors, then they’ve won half of the battle.

Retail stores issue coupons because they want to give you a reason to shop with them. They are betting that you are going to spend more than just what the coupon offers.

My wife amazes me with these coupons. She can stroll into JC Penney, pick out something we need for $10, and walk out without paying a cent (ok, maybe some tax, but that’s it).

Although they offer savings, coupons are similar to cash back credit cards because the issuing company is betting that you’ll spend more money than what they are offering in return.

Stay Away From Unnecessary Purchases

Even if you’ve somehow found a coupon for it, an unnecessary purchase is still an unnecessary purchase.

I watched about 5 minutes of an extreme couponing show before I had to change the channel. It was too frustrating watching these ladies use 40 coupons for 40 jars of mustard. Sure, they saved 90% off of their total bill, but about 90% of their purchases were unnecessary items.

[Soapbox Moment: And now grocery stores are cancelling their double and triple coupon programs because of these extreme couponers. Why can't they just put a limit on the number of coupons you can use per item? It's like the wild kid in class is ruining recess for all of us all over again.]

Whether at the grocery store or the gadget store, purchasing unnecessary items, even when using a coupon, should always be considered overspending. And we all know what overspending leads to . . . a financial nightmare.

Use coupons for what you need or what you already have budgeted for, but stay away from unnecessary purchases just because a coupon shows up in your mailbox.

It’s Time to Turn the Tables

Control the coupons, and don’t let the coupons control you.

Instead of going crazy with a $10 coupon, walk out of the store with your head held high and your free merchandise.

When Bed Bath and Beyond offers 20% off of one item, leave the store with one item.

Instead of being controlled by excess, stick to your budget, save money with a wise coupon strategy, and stay in control of your financial universe.

Photo By Lomo-Cam

Love it or hate it, Black Friday is upon us.

The only thing better than finding that perfect gift to give for Christmas is to save money in the process.

Yes we know it’s not Friday yet. But for today’s post, we decided to offer a pre-Friday Frugal Friday look at how to save money on Christmas. (Is that enough Friday’s for you?)

The idea of saving money on Christmas might put your head into a tailspin, but it’s not as far fetched as it seems. We’ve put together a list of easy-to-follow tips in an effort to help you avoid financial tragedy this Christmas.

#1 – Decide Who To Buy For and How Much To Spend

If you plan on throwing elbows in the electronics store the Friday after Thanksgiving, you might want to complete a Christmas budget and shopping list before you leave the house.

You need to know how much you can spend this Christmas and who you’re buying gifts for.

One of the worst things you can do when shopping for Christmas is to hit the stores with ZERO idea about how much you intend to spend. This lack of strategy almost always results in overspending.

The “who” question will differ based on your family traditions. Some families only buy for immediate relatives, while others shop for the entire clan.

When money was short, my family used the “pick a name in a hat” approach. Despite the fewer gift exchanges, this tactic was unbelievably exciting and suspenseful, but it also allowed for everyone to spend a little less.

#2 – Leave the Credit Cards at Home

Keep the credit cards locked up at an undisclosed location that only a trusted friend knows about and pay cash for Christmas this year.

If you’ve followed tip #1, then you know how much you can spend for everyone on your Christmas list. If you know how much you have to spend, then using cash should be a breeze.

Using credit cards makes it too easy to buy more than you intended in the first place. Using cash helps you avoid the mob mentality that occurs during the Christmas shopping season.

If you leave the credit cards at home, then there’s absolutely no way you can over spend.

#3 – Bring a Financial Accountability Partner

This might sound ridiculous, but it just might save your life . . . or at least save your credit score.

When you’re out Christmas shopping, it’s a great idea to bring along a friend or family member who can help you stay within your pre-determined Christmas budget.

Obviously, you need to have a close and trusting relationship with this person for the accountability to work. The trick to spending wisely while shopping for Christmas is to avoid the temptations and stick to your budget.

You are more likely to stick to your Christmas budget when you have someone who can hold you and your spending accountable.

Avoid bringing the friend who doesn’t make you feel bad when you leverage your child’s college future for the sake of one more purchase.

#4 – Find the Best Deals

Search the ad pages, shop online, and hunt for deals and coupons before you buy.

Don’t assume the only deals are on Black Friday (where the amazingly low priced doorbusters are usually gone within minutes).

Instead of relying on one day out of the year, research the items on your list, compare online discounts vs. in-store sale prices (remember to add in shipping costs where applicable), go to the ends of the earth looking for coupons and online discount codes, and never stop until you’re convinced that you’ve found the absolutely lowest price out there.

Other Money-Saving Christmas Ideas

• Promise you won’t buy anything for yourself after Halloween.
• Say No to the “sign up for our in-store credit card to get 10% off” sales pitch.
• Quality over quantity; give a meaningful gift instead of multiple useless items.
• Give homemade gifts (my family still talks about the homemade steak rub we gave last year).
• Volunteer or give to the needy instead of exchanging gifts.
• Don’t try to out-buy someone just to be labeled as “best gift giver”.
• Make your own Christmas ornaments with the kids.
• Find things to do with your family during the holidays other than shopping.

And if you’re spending time with family and friends this Thanksgiving weekend, be sure to take a moment and shake a hand, give a hug, spend some time, and let your loved ones know that they are truly loved.

Happy Thanksgiving!

Photo By lululemon athletica

Planning for Car Maintenance?

Those are your choices.

No this isn’t some gimmick, and no I don’t have a secret link to a treasure trove of free tires.

What I do have is some overlooked yet solid advice about how to decrease your tire and overall car maintenance costs.

I hate buying new tires. I hate the smell of them, I hate looking into the mechanics eyes knowing that he knows that I know nothing about my car. And I definitely hate paying for two or four times at a time.

But what can you do, right? Everyone’s tires wear down. And as far as I know, no one has invented the Everlasting Gobstopper of tires.

Well, that’s precisely why I decided to include this article in the Frugal Friday Tips.

Free Tires Are Advertised Every Week

That’s right, a quick browse of the newspaper or a quick internet search will produce a plethera of new tire sales.

Most of the time tires are discounted when you by two or four at a time. I’ve never needed just one tire unless I get a flat, so the math works out fine (and Discount Tire will fix flats for free, I love those guys).

The trick to finding free tires is to shop around. Don’t let your entrance to a tire shop (or heaven forbid, the dealership) be the first time that you’ve priced new tires.

Instead of showing up uneducated, hit the newsprint or the virtual pavement and sniff out the deals. Really, it’s like hunting for Easter eggs when you’re a toddler and your parents just lay them out there.

And not only do manufacturers have a multitude of ads giving away a free tire with the purchase of one or three additional tires, but discount shops and websites have deals with the same manufacturers that heavily discount their products.

I know, I know, you hate buying new tires and it’s just too hard to get motivated to shop around for something that evokes so much anger. But the more you look, the more money you will keep in your bank account.

Prepare, Plan, and Act

The best way to avoid a major hit to your wallet is to budget for things that you know you will eventually have to spend money on.

Tires and car maintenance is one of those areas that get’s overlooked. After all, saving for tires doesn’t sound as important as saving for college, saving for retirement, or paying down your debt.

But if you don’t have the cash for minor car maintenance and new tires, then it all goes on the credit card. And all of that debt snowball work you’ve been doing takes a major hit when you have to slide that little piece of plastic.

Sure, some of you might be thinking emergency fund right about now. But I don’t consider new tires to be an emergency. If you know that a certain cost is coming, then by definition it can’t be an emergency.

So what to do? Create a budget and save for tires each month. Simple.

Even as little as $25 a month will add up pretty quick. And when you use your tire budget to pay for tires, you won’t take a hit to your normal monthly budget (which sort of feels like getting tires too)

Sure, if you wear out one set of tires in a year, you might need to save more. But the point is slowly save up what you expect to pay for.

Whatever your driving habits, saving for minor car maintenance is a great way to avoid a major credit card purchase. And that’s got to feel good!

Photo By mikecogh