"Living Better...For Less"
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"The Dollar Stretcher" does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.
In this issue:
Introduction
Monthly Budget Stretch
by Gary Foreman
Eat Better, Spend Less
Tuna Patties With Sauce
by Julie Davis
Making Spirits Light . . .
by Lisa Reid
Saving Money on Phone Service
by Ron Meldrum
Ask Bob: The Automotive Answer Guy?
'95 Neon With a Drinking Problem
by Bob DeP
Tips, Quips, Quotes & Questions
NEW ON THE WEBSITE THIS WEEK:
Credit Collection Harassment Responses
http://www.stretcher.com/stories/971203a.htm
Inexpensive Christmas Gifts and Ideas
http://www.stretcher.com/stories/971203b.htm
UPCOMING CHATS
http://www.talkcity.com
in the Finance Center at 8:30 to 9:30am U.S. Eastern Time
12/10 - Year End Tax Planning
12/17 - Calculating Your Expenses
12/24 - After Christmas Sales
Hello to all my Frugal Friends!
It's that time of year where both time and money are at a premium! Hope that this week's articles help you to do both!
Got a tip that you might want to pass on to your kids. A friend of ours, Alan Kerr of Surf2Save.com, has created a special Santa letters page http://206.186.176.183/santa.htm. Your kids can enter their gift requests and get a personalized reply from Santa. You don't even need postage. Isn't high-tech wonderful?
All the Best!
Gary
These are just a few of the stories planned
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Dear Gary,
Our problem is that virtually ALL of our fixed expense
bills come due at the beginning of the month. They all need to
be paid at the same time. I'm a new stay at home mom - I worked
full time for years and unfortunately, our family developed a
pretty bad case of Affluenza.
Previously, we had no budget, paid bills when they came in
and spent constantly without thinking about it, because my
second paycheck basically covered all non-essentials. Now, we
do have a budget, of sorts. We know how much our fixed expenses
are and how much is left over. The problem is that we pay all
the fixed items out of the first paycheck of the month and then
have virtually nothing left to live on for two weeks until the
next paycheck. This is really a struggle and we just don't know
what to do about it. Any suggestions?
Thanks,
Lucy in Indiana
That's a good question! I bet that if everyone who has faced this problem raised their hands Lucy would have a lot of company. The problem is not just limited to single income families. A lot of us have out expenses in line with our income. We just don't have the timing right.
The first problem we're faced with is that there's no margin for error in Lucy's budget. Suppose that there's an unexpected expense during the month. Say a doctor's visit or auto repair. That money will need to come from somewhere. Does it come from the last two weeks of the month? Add it to the credit card balance?
The long term (and most correct) solution for Lucy is that every budget should have some money set aside for the unexpected. You'll see recommendations for three months or six months. But let's face it, even a two week cushion is better than nothing.
But, what if you don't have that cushion today? What can Lucy do this month to help solve the problem? There's two ways to attack the problem. Either pull some of the income into the beginning of the month or delay some of the bills to the last half of the month.
First, let's see what we can do about delaying expenses. One strategy would be to use your credit cards to pay those bills. Please follow carefully because it's possible to do this wrong.
If you pay your credit card bill in full each month you have a grace period that can run up to 30 days. That's the time between when you make the charge to when payment is due to the credit card company.
It's possible that you can pay your electric (or other) bill by credit card on the first and not receive the bill from the card company until the fifteenth or twentieth. That would give you enough time to receive your second check of the month. Then that paycheck would be used to pay off the credit card company.
This is important. The strategy will not work if you carry a balance on your card. In that case you will be charged interest from the day you make the charge. If you don't pay the entire bill you may need to get a new card that will only be used for this purpose. You should also note that if you turn these bills into 'minimum monthly amount' payments you've just taken a big step toward trouble later on.
Another possibility is to shift the incoming bills a little. Many bills aren't due exactly on the first of the month. Some may not be due until the tenth. If that's the case don't send the check until the seventh. Then take a look at next month's bank statement and see when the check cleared your bank. It's possible that the money wasn't actually taken from your account until after the fifteenth. If you know that's the case you can really use your next paycheck to cover that bill.
A better option would be to pull the bills in a little. It's not always possible but if you could pay a December 1st bill on your November 15th paycheck it's like a small savings account. You'll have that much left over once the December 1st bills are paid. And the benefit keeps coming. You should have the same amount available at the end of December for the January 1st bill.
One solution that you'll want to avoid is 'overdraft protection'. Some banks are willing to cover a check that would bounce with a loan. But the fees and interest rates can make that very expensive borrowing. It's better to use credit cards if you have to borrow for a short time.
Now let's look at pulling our income forward. A couple of things may help. First, use direct deposit on your pay if it's available. That will eliminate the couple of days that the bank uses to clear your paycheck before your money is available.
Another possibility involves overtime. If you work overtime on a regular basis, try to work more so that it's paid in the first paycheck of the month.
Ultimately, the best solution is to have a few months savings available. That's not easy when you're trying to make a go on one income or have credit card balances. But if you can manage to save just a little you'll have solved this problem and also provided insurance for when the unexpected expense happens. Perhaps you get an extra check each quarter or a bonus at the end of the year. Use it to fund your savings.
Thanks to Lucy for a great question!
If you have a suggestion for a future column please email gary@stretcher.com. Our best ideas come from our readers!
Keep tuna, condensed soup and bread crumbs in the pantry and you will always have the makings for a quick, nutritious meal.
Mix 1/3 cup of the milk and 1/3 cup of the cream of mushroom and the eggs until well blended. Add bread crumbs and tuna and stir well. Using a scant cup of mixture per patty, form four patties. Cook in a skillet on medium-high heat using nonstick spray. Cook until warmed through and set, about 4 minutes on each side.
Make a sauce in small sauce pan using 1/3 cup milk and remaining cream of mushroom soup. Stir in thyme and heat thoroughly. Serve each patty with a small amount of sauce.
Total price of recipe is $2.50. The price is calculated based on prices in Southwest Washington at a "bag your own groceries" type supermarket. Prices will vary regionally.
Suggestions:
Omit sauce and serve as sandwich on bread with lettuce and
tomato.
Double batch and cook extras to use as sandwiches for lunch.
Try a different condensed cream soup every time you make this
dish for variety.
Use the new low fat condensed soups to reduce fat.
Many Dollar Stretcher readers have e-mailed me asking for recipes that were printed in previous issues. I am therefore considering creating a pamphlet of recipes that have appeared in The Dollar Stretcher. The pamphlet would include all these recipes, many with improvements, as well as several new ones. There would be about 30 recipes total. The cost to order one from me would be about $2.50-$3.00.
I would like to get your feedback to see how many of you would be interested in purchasing this recipe collection. If you are interested, please e-mail me at inudog@pacifier.com . I look forward to your input.
Julie
What is your favorite holiday memory? How much did it cost to create it? These are the questions I have been asking the people in my life to see if there is any correlation between large amounts of money spent and memorable holiday experiences.
What I have found is just the opposite - childhood memories of Christmas and Hanukkah almost always centered on a family gathering. Adults very rarely remembered more than one or two gifts they had received as children and it was never the first thing they talked about.
From my observation, people spend too much money at the holidays for two reasons: they are worried that they will appear Scrooge-like or unloving if they don't (the "what will others think of me" reason) or they want to express love and celebrate the season and believe spending money is the best or only way to do this (the "I don't want my family to feel deprived" reason).
Yet, spending too much money is not without its consequences. The average monthly household balance on MasterCard is $2,421 and much of that is accumulated during December. When we spend beyond our limits, we feel anxious, we feel guilty, we feel at odds with the goals we have set for ourselves. These feelings are a heavy load to add to the stress of the holiday season.
And do we really get much for all that money with the anxiety and guilt attached? According to my little survey, not really.
Stress is not fun. After experiencing a stressful holiday, getting to have a non-stressful one is wonderful and luxurious. Give yourself that luxury.
Fortunately, there are many ways to give gifts and have wonderful celebrations without spending a lot of money. I collect ideas that are quick, easy, and cheap throughout the year to use with my family and to publish so that other families can use them (more info, below).
Even before gathering ideas, however, see what can be pared away. For instance, limit gifts for kids to the number that they can open before their eyes glaze over. I have frequently ended up in the past with many more Christmas gifts for my children than were needed, and then felt harried and slightly out of control during the Christmas rush. How much better it would have been for me during those years to have taken the personal resources that I spent on extra unnecessary gifts and put them into handling the rush. And my children would have benefited from that choice, too, since they would have had a more peaceful home.
Recognize your family's limits and try to set your goals for a little less than the limit. How many events can you attend comfortably? If you say four, make plans to attend only the top three on your list. How much time will you really have in December to make gifts? Don't plan 16 hours of gift-making if you'll only have eight hours of time available. (My personal weakness!)
Eat simply at home this month. It takes less time and money and will be balanced by the abundance of rich foods that come with holiday parties.
The holidays can be so fun and lift our spirits up. The best in our neighbors, friends and in ourselves is elicited by focusing on what the season means to us. My goals for my family are three: 1) to take some time to remember how blessed we are and to share that with others through gifts and charity, 2) to celebrate the spiritual foundation of the season and 3) to enjoy our family traditions. When I look at my stated goals, it is clear that money (even saving money) is not the first thing that I want us to be aware of. But the way we choose to handle our money and time can support or hinder our primary goals.
So with that in mind, I wish you the best holiday season ever!
Excerpted from PurseStrings thrift newsletter for families. Lisa Reid is the author of Raising Kids With Just a Little Cash. E-Mail: ThriftyLiving@compuserve.com
A lot has changed since 1984 when Ma Bell lost her monopoloy on the telephone communications industry. There was a time when you leased your phone from Ma Bell, you did business with Ma Bell or no one, and you paid Ma Bell's rates, or else.
No more. The stately mistress is still alive, but she has given birth to dozens of sons and daughters -- little "Bells" are still springing up all across our land. This has one important ramification for Americans: choice.
But not all of Ma's kids were created equal. The old capitalist slogan "buyer beware!" applies as much to the telephone communications industry today as it has to any other.
The safe thing to do is to stick with Ma. Old faithful AT&T is still going strong, though she no longer monopolizes the market. Two others have earned the nation's respect and grown large enough that folks now speak of the "Big Three." It's "safe" to stick with the "Big Three."
However, it's also expensive. The "Big Three" are where they are not so much as a result of the services they provide but because of the millions of marketing dollars that have lead them along. Television, print, and radio advertising have built these companies' images and earned for them the respect and trust of the American public.
But those millions in advertising dollars come from somewhere. No federal or humanitarian grant pays for the "Big Three" public relations machines. That money comes straight out of the telephone service rates they charge.
This fact gives another meaning to the term the "Big Three." Not only are they the three largest, but they are the three most expensive.
For instance, one of these companies charges you 33 cents per minute every time you use their calling card. Plus, they charge you an additional 85 cents just for connecting the call. If you shop around, you'll find cards for less than half the rate with no surcharge. That's why Money Magazine said, in its September 3, 1995, edition, "If you're using a calling card from any of the big three you're being ripped off!"
"But what about the quality of the network?" Someone objects. "Aren't fiberoptics important?"
"Yes," is the answer. However, the "Big Three" lease the same networks as any little "new kid on the block" long-distance company. The "Big Three" don't all run their own separate cables to every house in America. In fact, there are some long- distance service companies these days that don't own a single inch of cable anywhere -- they just lease large chunks of network capacity at low prices and resell that calling time to their customers at substantially lower rates, sometimes without even requiring that the customer change his or her long-distance carrier!
I became particularly interested in long-distance companies when I was introduced to a low-priced calling card. I sat down with my phone bill from the previous month and discovered that my local phone company was charging me 32 cents a minute for direct-dialed in-state long-distance, plus a 20-cent per call surcharge! If I had made all of those calls on the calling card, I would have saved $40 that one month. That's almost $500 in a year! This sparked my interest in long-distance companies.
Then what's the difference between companies? Looking beyond the size of their marketing budgets, there are three main characteristics to consider when choosing a long-distance company:
1. Customer Service. Customer service for the "Big Three" is good -- real good. You pay top dollar for top service. However, many of the smaller "bells" have great customer service, too. When considering a long-distance service, make sure you have a customer service phone number you can call. If you know of other folks who are customers of the company, ask them how good their service is. MLM suppliers often suffer here.
2. Longevity and Stability. How long has the company been in business? Are they financially stable? Are they reputable? The "Big Three" excel here. MLM companies often suffer here.
3. Rates. This is where the smaller companies have the greatest advantage over the "Big Three." Smaller companies with smaller marketing budgets and fewer highly-paid executives and less- expensive sales methods. MLM long-distance companies often do well here, but I've shied away from them for the two reasons above.
When evaluating rates, don't neglect to include surcharges and monthly fees. When I wanted a personal 1-800/888 number so that kids from my Sunday School bus route could call me toll-free, I narrowed my prospects down to two companies. I actually chose one that charged 2 cents-per-minute more, which sounds crazy. However, the lower-priced company charged a monthly service fee, and when I figured out how many hours of calls I'd have to have to make up for the 2 cents-per-minute difference, my choice was clear!
Also pay attention to billing units. The "Big Three" all charge in one-minute increments, rounding your call UP to the nearest minute. However, there are many other services available that bill in six-second increments, which can amount to significant money over the course of a month.
Shop around -- it'll be worth every minute you put into it. Lower phone rates can save you a substantial amount of money. Don't be afraid to experiment a little by using one company for a couple months, then switching to another and comparing your bills, their rates, and their service.
Once you find just the right company for you, you can enjoy premium service while stretching those dollars as far as they'll go!
Ron Meldrum works full-time doing web site development for a private liberal arts college, plus works from his home in Greene, Maine, doing web site development and hosting and selling discount commercial and residential telecommunications services. Royal River WebWorks and Telecommunications http://www.royalriver.net/telecom/
I own a 1995 Neon -- current mileage 47200. I started having a problem with about 15000 miles and still under warranty and my dealer could not find the cause.
When I drive in the rain -- it still happens now -- sporadically, my car sounds as if it's sucking water -- literally! My engine rumbles, I lose some power to accelerate, and I can actually feel the vibration of the engine through the floor. It stops when I stop the car or slow down or I just keep driving and eventually (the longest I ever drove was about 7-8 miles with the rumbling and does stop.
I took it to them at least 4 times and they' told me unless the could replicate the problem and causes, or I took it in as it was happening, there was nothing they could do.
Now that I am out of the warranty, I started to develop an oil leak. I took it to the dealer yesterday and from that, the determined that I have a cracked head gasket and to get it fixed, I will be out $600+.
Finally, the question. Do you think that my problem that I have
been having is related to my head gasket, perhaps it had just
slipped and now has cracked? Could it have been fixed before it
cracked? Could the mechanics have overlooked the rain problem
and basically caused this by doing nothing?
--Andrea C.
Dear Andrea,
No, I don't think that your initial situation was related to the
head gasket. To me, it sounds like your initial problem might
have been caused my too much moisture in the air. One way to
see if that is the case, is when it is happening stop the car
and remove the air filter. I want you to look and see if there
is any water inside the filter box or in the hose on the way to
the engine.... If your car has a mass air flow sensor, and a
drop of water gets on it, the problem that you are experiencing
would be a possible outcome. As for your headgasket problem,
you might want to shop that price around a little. It seems a
little on the high side.
Good Luck!
Drive Safely!
Bob
The Auto Answer Guy?
Bob answers your auto questions. If you have a question for Bob just send it to him at: AskBob@stretcher.com.
NB needs to get to the local consumer credit counseling service (CCCS) office as soon as she/he can. If what is described is actually occurring, NB has a number of legal tools under the Fair Credit Act. NB has rights but MUST TAKE THEM. So long as the creditors get a 'positive' response from their actions - their actions will continue.
NB might consider a pocket tape recorder to record the calls she/he receives at work. They might prove interesting to the legal-types if things escalate. And I wouldn't say anything about making the recording - it's just for your 'records'...
NB's responses to the creditors need to be by registered mail - something they HAVE to sign for. Stay off the phone with these people. Depending on the job, NB might ask that only messages be taken from callers outside the business/clients (of course this may not be possible).
CCCS can make arrangements for repayment. I suspect that once creditors see that CCCS is involved, they will change their tune. Those web debt agents are okay for advice but sitting down with someone will make this happen.
BTW, CCCS is a United Way agency (at least in my town). When I visited CCCS and went through the paperwork, they looked up each creditor on a list. The list showed the creditor's 'new' interest rate and repayment amounts. All that's been required of me is contacting the creditors to let them know I am a CCCS client and that their payments will be coming from CCCS in the future. Also in this process was a request to change the payment date later in the month - which, so far, has been accepted. I contacted them by mail. CCCS costs $35 to start, then just $5 per month.
If NB wants more personal empowerment, I would recommend 'Financial Peace' by Dave Ramsey. Wait until you read this man's saga...
NB shouldn't give up - I've got $15K to repay...
--JW
With the express caveat that the following should not be considered legal advice and the recipient should not rely on it as such, but should verify this information for himself.
YES! You definitely do have rights, they are spelled out in the Fair Debt Collection Practices Act a Federal Statute. A consumer agency in your area should be able to provide you with a brochure that details its protections.
Once you request that a creditor no longer call you at your place of employment, he cannot under FDCP. The first call is ok, but the one after you tell them never to call at work is a violation of FDCP.
You have no obligation to provide your personal account information to anyone, you are right to protect it.
I recommend you contact Consumer Credit Counseling, it is listed
in your local white pages and they will do the negotiating for
you. It sounds as if you are to frazzled and frustrated to do
it yourself and they will help you set a budget to get out of
debt.
--Amber W, Esq.
Milwaukee, WI
Based on the Fair Credit Collection Act, the Debt Collector may not contact you at your place of employment if the debt collector knows or has reason to know that the your employer prohibits the you from receiving such communication.
You may also notify a debt collector in writing that the you as
the consumer refuses to pay a debt or that the consumer wishes
the debt collector to cease further communication with the
consumer, the debt collector shall not communicate further with
the consumer with respect to such debt, except -
(1) to advise the consumer that the debt collector's further
efforts are being terminated;
(2) to notify the consumer that the debt collector or creditor
may invoke specified remedies which are ordinarily invoked by
such debt collector or creditor; or
(3) where applicable, to notify the consumer that the debt
collector or creditor intends to invoke a specified remedy. If
such notice from the consumer is made by mail, notification
shall be complete upon receipt.
You can find this information at
http://www.law.cornell.edu/uscode/15/ch41.html. This site
should provide everything you need to know about your rights
pertaining to the your situation.
Regards,
--E G
Editor's note: There were many very good responses to this question. Many were too detailed to be included here. A large sampling is available at http://www.stretcher.com/stories/971203a.htm. Unfortunately, I deleted email addresses before I could thank those who participated. So let me give everyone a big THANKS here.
As a struggling University student a few years ago I had to find a way to give Christmas gifts to my entire family and I only had $50. Well $50 doesn't buy anything of quality for 10 family members so I came up with a plan. I had some scraps of fabric (my mother is a quilter and just throws them out) and some glue, bristol board and embroidery thread. I went to a local craft shop and bought baskets, tissue paper, candles and some wire cone frames. This cost about $25. And I spent the last $5 on Christmasy candle holders from a dollar store. Then I went to the grocery and bought some chocolate making supplies (basically butter, choc. pieces, creams and flavourings) and that cost about $20. Then I went on a trek through the woods and gathered acorns, twigs and pine cones galore. My final product was a Christmas basket for each person (couples had to share one) filled with 20 handmade Christmas ornaments, truffles and candies, a candle holder and candles. Included in the baskets were Christmas mice (little Christmas bread loaves made in a slightly oval shape with almond slivers for ears, and string for tails and currants). Along with this I gave a Christmas tree that was about 20" high made with pinecones glued to a wire frame and embellished with bits and pieces of fabric made into bows. I also used bits of baby breath saved from flowers that were sent to me.
Now, several years later, I asked for a Christmas list from my family. I think that they were actually appalled at the fact that I wanted to buy something instead of making it. And after much complaining on their part I am once again making Christmas baskets even though it is no longer a financial necessity.
It just goes to show that it is not the price that counts but
truly the thought and time taken to convey the spirit of
Christmas.
--Laurie M
I traveled a lot for work this year(one week- 7 airports- 6 days) and I looked at some of the food items sold in airports as gifts. A number of companies across the country put a cup or two of beans and a packet of herbs and spices in a mason jar, calico bag or soda type bottle(like old coke bottle shape) , add a recipe to the outside and sell it for $8 -15 dollars. You could give someone several different soup mixes very inexpensively. Use jars you have or ask friends before recycling day each week. you can buy beans in bulk at the health food store or just buy the beans packaged by the pound(Goya has some different kinds).The beans look really nice layered(but pack full or it will shift) or if you are using a colorful bean mixture, it doesn't need layers. Make up the packets of spices and herbs(get them in bulk at a health food or ethnic food store) and put into saran wrap and tape. You can put rounds of fabric and ribbon over the lid. You can write out the recipe on a little card or print it out on the computer and tie it to the jar. You'll have a provided a useful, healthy gift that will be great through the winter(and it won't have MSG, too much salt or those unpronounceable preservatives).
Happy Holidays
Andrea K
We have made potpourri pies for gifts. We use the small metal
pans you get when you buy pot pies, and make a dough that is 2
cups flour, 1 cup salt, 1 cup water. You roll out the dough and
cut it into strips (I have a cutting wheel that cuts a wavy
line) turn the pan upside down and weave the strips three in one
direction and three in the opposite direction over it. Cut one
strip wider and longer so you can place it around the pan, press
the dough together wherever it meets other strips of dough.
Brush with egg white (to make it shiny) and bake in the oven at
325 degrees until it is browned to your liking. Remove from oven
and when cool, gently pry the crust from the pan, turn pan over,
fill with potpourri, place crust on top and tie crust to the pan
with pretty ribbon. Looks very pretty, smells wonderful and
looks harder to make than it actually is.
--Julie M
Portraits to the rescue! My mother-in-law is very difficult to
buy for. One year my husband, daughter and I went to Penny's
and had a portrait taken. We framed one 8X10 of the three of us
and one of our daughter alone. When she opened it she had tears
in her eyes. Other siblings saw how much she loved it and she
now has a wall full of portraits.
--JJ
Editor's note: Many more great ideas at http://www.stretcher.com/stories/971203b.htm. Keep them coming. We'll add more as the season progresses!
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