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The following tips were given during an electrical audit of my house. If you haven't already called your local electric company, call them. They will come out and go through your house for free and show you where you can save money. Ours provided materials such as a blanket for the hot water heater, caulking, and weather strips for the windows & doors. Keep a record of your utility bills. You must know how much energy you use and how you use it in order to save. Save your bill stubs and record the cost and consumption amounts on the bill.

Defrost refrigerators regularly. Don't let more than 1/4 inch of frost build up. Frost acts as an insulator, making the refrigerator use more energy to maintain temperature levels. Keep the refrigerator and/or freezer as full as possible (without overloading). Set the refrigerator to cool to about 36-40 degrees F and the freezer to 0 degrees F. Clean the condenser coils of the refrigerator when dirty. Coils need cleaning at least once a year. Refer to the refrigerator's user's guide for proper cleaning methods. Check the refrigerator gaskets for a tight seal. Close the door on a dollar bill. If you can pull the bill through easily, cold air is escaping from the r refrigerator. Have the seals replaced.

Utilize your automatic dishwasher when you have a full load. Proper loading is required for efficient dishwasher operation. Place articles as recommended by the manufacturer so water can circulate freely. Consider the use of the "air dry" or "energy saver" cycle of the automatic dishwasher. On many models this saves approximately 20 minutes of heat-on time.

When using the oven, bake several items at the same time. Preheat for only 5 minutes, and turn off the oven 10 minutes ahead of time. Toaster ovens, microwave ovens and slow cookers use less energy than the oven. Wash full loads. Wash clothes in cold water as much as possible. Clean dryer lint screen after each load.

Turn off lights in a room when it is no longer in use. Consider installing timers or photocells to control exterior lighting. Incandescent bulbs can be replaced with screw-in compact fluorescent lamps which use at least 1/3 the energy and can last 10 times as long. A thermostat setting of 78-80 degrees Fahrenheit will save energy during the cooling season. When away from home for extended periods,turn the thermostat up to save energy. Usually, the smaller your home is or the longer you are away, the greater the savings are.

A thermostat setting of 68-70 degrees F will save energy during the heating season. When away from home for extended periods, turn the thermostat down to save energy. Consider installing a clock thermostat. Seal air leakage in duct connections and/or around plenum area.

Your heating and cooling systems require annual checkups to maintain peak efficiency. Research has shown that if your refrigerant level is just 10% less than what it should be, your system's efficiency can be decreased by up to 50%. Consider obtaining a service agreement with a licensed air conditioning contractor or dealer to assure regular maintenance is performed. Filters should be checked every two weeks during cooling season and once a month during heating season. Dirty filters should be cleaned or replaced. Ventilation through windows and doors or by ceiling fans, portable fans or whole-house fans provide comfort and reduces the need for air conditioning.

Your hot water temperature should be 140 degrees F if you have an automatic dishwasher and 120 degrees if you do not. Water conservation will save energy. Consider using the lowest water temperature possible, flow restrictors, a timer to shut off electric water heaters at night or when no one is home. Turn the water heater off during extended absences. Insulate your water heater tank and all of the exposed water distribution lines from the tank. Please look for any warning label on the hot water tank before installing the jacket.

Attic ventilation allows moisture and hot air to escape from the attic during the summer months. During the winter months good ventilation will prevent moisture build-up in the attic area. During the summer, close drapes or blinds on the sunny sides of the home or apartment. In the winter, open shades and curtains to let in the warmth of the sun; close them when the sun goes down or doesn't shine. Try to preserve trees or other landscaping elements that shade the sunny sides of the home. Exterior window shading helps prevent heat gain in the summer. Tinted or reflective glass can reduce solar heat gain, but also reduces solar heating in the winter. Repair or replace weather-stripping when needed. Be sure that outside door thresholds are tight. Exterior window and door frame caulking should be maintained in good condition. Caulk where frame meets wall. The outdoor portion of your air conditioner should be kept clear of debris. Keep a 2' clearance to allow for proper air circulation.

Fireplaces can waste energy. Make sure that the damper is tight and kept closed when the fireplace is not in use. Cover the front of the fireplace with a glass enclosure that has an adjustable damper or duct outside air for combustion directly into the fireplace.

The Frugal Life. Learn how to utilize your current assets without spending more of your hard earned money at www.thefrugallife.com Subscribe to our free newsletter at skenn@mail.iamerica.net

Dear Dollar Stretcher,
I work with single moms who are often strapped for cash. They are sometimes suckered into "Rent To Own" where the interest is enormous. Is there any readily available, easily understood information out there to help me to teach them understand how expensive these loans are?
How do I show them the true interest rate, or is there a mathematical formula to figure those interest rates?
I know that these are sucker loans, but how do I show them in real dollars what they are in for?
Thanks for any help you can give me.
Jan

Jan has asked about a type of business that, unfortunately, is growing and taking advantage of more people every day. And, as more of us struggle financially, you can expect to hear more about "rent to own" stores.

Many of you have probably never heard of "rent to own," so we'll start with a brief explanation. "Rent to own" is really pretty simple. You'll find a storefront, just like any other retailer. One company in our area has 19 locations spread over a two-county area. They even have an insert in the Sunday paper. You'll find electronics, appliances and furniture, but you can also find jewelry and some other items. The merchandise is typically new.

Sometimes people want something now, but can't afford to pay for it until later. That's nothing new. Virtually every mortgage ever issued depended on that. Same thing for car loans. What's different with "rent to own" is that the people loaning the money are charging very high interest rates. Here's the deal. Customers "rent" an item at a weekly rate. If they rent it for a set number of weeks, they will own the item. The trick is that the total of the weekly rental fees is much, much more than the customer would pay if they bought the same item in a regular store. Even if a customer used a credit card with a very high interest rate, he would pay less than a rent-to-own arrangement.

Let's look at a couple of examples. We compared items using inserts from the Sunday paper. We'll start with a common item: the Sony PlayStation. For simplicity's sake, let's call our "rent to own" merchant "R2O." They're offering the PlayStation for $13.99 a week. If you rent it for 52 weeks, it's yours for only $727.48. Seem a little expensive? Yes, when you consider that a national chain advertises the same PlayStation for $129.99.

That's outrageous! But is it possible to calculate the interest rate? If you want an exact rate, you'll need a financial function calculator. But we can come up with a reasonable estimate just using a simple calculator. The first step is to subtract the normal price from the R2O price. In this case that's $597.49 ($727.48 minus $129.99). So we're paying nearly $600 more at R2O. We'll consider that the interest charged.

Now the simple (but incorrect) way to calculate interest would be to divide the interest charged ($597.49) by the amount borrowed ($129.99). That works out to a 459% interest rate for the one-year loan! The correct way would show that it's actually higher, because we didn't borrow the whole $129.99 for all 52 weeks-- part of it was paid down each week as the year went on. The actual rate is about 557%.

How about another one? This time we'll compare a Sharp video camera. Looks like a nice one, too. Has a 4" screen and even a remote control. The flyer from R2O offers it for "only $21.99 a week." If you rent it for 91 weeks it's yours for only $2,001.09. Or, if you prefer to pay cash, you can have it for $1,100.60. What about the competitors? A national catalog-type showroom is offering the same camera for $449.99.

If we follow our formula we'll find that the interest charges are $1,551.10 ($2,001.09 minus $449.99). This time we'll need to adjust the charges to an annual amount. The "rental" period runs 91 weeks. That's 1.75 years (91 weeks divided by 52 weeks). So we'll divide the interest charges by 1.75 to get the annual interest paid ($886.34). Now we can divide the annual interest charged by the retail price of $449.99 to get an estimated interest rate of 197%. Again, remember this is a method that's designed to be simple but only estimates the interest rate. The actual rate is 250%.

How can you convince people to avoid "rent to own?" Perhaps by showing them the total price they'll pay versus the price at a regular retail outlet. The two items we highlighted here are typical of what you'll find. Perhaps keeping sale flyers for comparison would be a good idea.

Is there a solution for the consumer? Sure! We're not talking about being unable to afford an item. It's a question of being willing to wait a short time. Take the PlayStation. If the customer will take the $13.99 they were willing to pay in rental fees and save that for ten weeks, they can go into any store and pay cash for a PlayStation. And if they keep making weekly "rental payments" of $13.99 to themselves they'll end up with nearly $600 at the end of the year.

The lesson is one that needs to be learned by anyone who wants to accumulate savings. When you have to have something right now it's going to cost you. One of the most important keys to money management is patience. We hope that Jan is able to demonstrate that to the people she advises.

Bookmenders
How to Mend Torn Pages
By Tom Bellino
Tbellino@nwa.quik.com

The mending of torn pages is both quick and easy and stops further damage The only materials needed are one roll of 3M 3/4 inch wide "Magic Tape," Several small jars of water or sand to acts weights and a small spoon. Caution: Don't use other brands of tape, as they will become brittle and leave a horrible brown stain.

Carefully align the torn sections, using the weights to keep them in place. Cut a piece of "Magic Tape" slightly longer than the tear and press into place. Gently rub the tape with the back of the spoon and watch it almost disappear! If a section of the page is completely missing, place a sheet of wax paper under the page and fill the void with strips of "Magic Tape". Carefully remove the page from the wax paper, turn it over and completely cover the exposed adhesive with strips of tape.

Bookmenders
17007 White Oak Lane
Bentonville, AR
l-800-538-0821

bookmenders@bcg.net
www.bookmenders.com

Bring a large pot of salted water to a boil. Add spaghetti; bring to boil again and cook for 11 minutes. Add peas and cook until pasta is al dente. Drain pasta, reserving 1/3 cup pasta water. In same pot combine pasta water, sour cream and cheese. Mix well. Return pasta and peas to pot, along with tomatoes. Toss well. Serves four.

The Eat Better...Spend Less recipe pamphlet is available to Dollar Stretcher subscribers for $3.00, regularly $3.50. To order send a check or money order to:
Smart People Publishing
3101 NE 150th Ave.
Vancouver, WA 98682.

Dear Bob,
My husband owns a 1987 Ford Ranger and for the past couple of weeks when the heat is on smoke comes out. The smell is an oily smell and the windows get coated with a greasy film; we can't even see out them. Any ideas?
Thanks for your column in Dollar Stretcher.
Michelle L

Michelle,
You have a cracked heater core and that oily film is antifreeze!

Good Luck! Drive Safely! Bob The Auto Answer Man

If you have a question for Bob email it to him at AskBob@stretcher.com. He tries to answer many of them personally.

I have been looking for the ingredients list to make the solid-type water softner that hangs in the dishwasher. I have several of the little baskets from the store-bought product. It is very expensive and doesn't last very long in our VERY HARD water.
Thank you.
Sharon R.

Please send your answers to: gary@stretcher.com with "Hard Water" as the subject. We'll include the best solutions in future issues.

I'm looking for some good baby shower games. I noticed the wedding shower ones, but I can't make a lot of them work for wedding showers. Could you see if anyone knows any good games? I have two showers I have to throw in May.
Thanks,
-- KCB

Please send your answers to: gary@stretcher.com with "Baby Shower" as the subject. We'll include the best solutions in future issues.

Does anyone know of ways to consolidate school loans? I have three separate loans and they have all come due. It totals a sizable amount of my income and I cannot afford to pay loans and rent and have food on the table in the current job that I have. Please help me so that I can make smaller payments. I appreciate all the education that I have received. I just need to know how to manage better.
Thanks again,
Nikki

Please send your answers to: gary@stretcher.com with "School Loans" as the subject. We'll include the best solutions in future issues.

I just moved into my first apartment after finishing college. I moved all the way from Michigan to DC in a tiny U-Haul (i.e. I didn't bring a ton). First, I would recommend living in a rather large complex close to where you work with conveniences nearby. The savings are threefold: you can buy used items dirt cheap from the many residents moving in/out, the trash bins (if you have the stomach for such things) are gold mines (I found a working VCR), and finally you don't need a car to go everywhere. Where I live, rent for a car space is $100/mo. I ride my bike everywhere and save on expensive gym costs too. Invest in renter's insurance too, it's worth it. Somebody swiped my bike and if I had purchased renter's insurance, it would have been covered.
-- Andy M.

I have had great luck furnishing apartments for little or no cost just by telling people what I need. I ask if they have any stuff they are not using (do you know of anybody who doesn't?!) and tell them I will move it myself. So far in my 13-year marriage, we have received four couches, two dining room sets, two bedroom sets, an upright grand piano, and a ton of dishes. All items were in good, usable condition. I also helped my sister set up her new apartment just by asking my friends for anything extra they had around the house. She ended up with a couch, chair, brass bed, dresser, desk, table and chairs, TV, an old stereo system, dishes, a microwave and coffee maker. The eclectic look is in vogue right now, so non-matching furniture is perfect for that look. And the stories you will have to tell are worth all the sweat of moving the stuff yourself. Remember one man's trash is another man's TREASURE!
Carole N. from MA

Editor's note: you'll find more First Apartment Decorating Ideas at http://www.stretcher.com/stories/990215a.htm

I work in a company that hires, and I have myself hired, contract writers and editors. Here are some hints:
1. Work on an hourly basis. Some companies like to get the contractor to estimate cost and then submit a fixed-price bid. UNLESS you know EXACTLY how many hours might be required (which might be so in the case of Sue who is going back to a company she worked for before), you will undoubtedly work more than your bid and not be able to renegotiate your bid. Therefore, you'll be working on the project for FREE to do that extra work required to finish the project.
Even if you work on an hourly fee basis you will need to estimate the work and submit a plan for the number of hours/$$ you think are required. IF you find that the project is larger in scope than you were told, contact the company immediately and seek to renegotiate your estimate.
2. Set up a company for yourself. It's easy to set up a sole proprietorship to which you can charge expenses such as travel, meals, and office supplies.
3. ALWAYS have some sort of WRITTEN contract including the scope of work and the cost.
4. Remember that you are a contractor and therefore get no health or insurance benefits. This is your "overhead" as a contract worker. Research, as best you can, the going hourly rate for contractors doing the same sort of work in your area, and then add on about 25-30% to cover your "benefits" costs. DO NOT SELL YOURSELF SHORT.
Once you do this with a company, they will dig in their heels if you need to raise your rate because of your overhead. Unless your hourly rate is totally outrageous and not in line with contract rates in your area, the company will gladly pay it.
(In Sue's case her ramp-up time will be considerably shorter than that of any other contractor because she knows the company and the policies and the procedures. Her company will really get a good "deal" because of this.)
Nancy

Editor's note: more suggestions for Contract Employees at http://www.stretcher.com/stories/990215b.htm

On multiple occasions, I have successfully washed down-filled clothing (the kind with nylon shells) using Woolite and warm to cold water. Fill the washer and add the Woolite. It's hard to get a down coat completely wet, as the air pockets in the down make it keep popping up. Keep working at it to get it as wet as you can. Run it partway through the cycle and then turn the machine off to let it soak awhile. Later, complete the cycle. It might be a good idea when it's done to run it through again without any detergent at all to make sure it's rinsed very well. Place in a dryer on the AIR setting. You don't want any heat here. Place a clean tennis shoe, or 1-2 clean tennis balls, in with the coat and turn it on. My dryer had a time setting for the AIR cycle, so I'd set it for an hour, check the coat, do another hour, check, etc. until it was dry. The shoe/balls are essential for fluffing the down.

I have done this only with coats. I have a down comforter and was advised by the company that supplied the fabric (I made it from a kit) that washing it would remove the down-proof treatment on the fabric, so although the fabric appeared to be washable judging by the fiber content, it was not. They said to definitely dry-clean comforters. But I've never noticed an increase in the loss of feathers from machine-washed down jackets.
Diane
Middletown, VA

In washing down-filled items. wash on the gentle cycle, but when it comes to drying remember that it takes a very long time! I bought LLBean jackets for my children.......after going through the normal dryer cycle, I thought they were dry, they appeared dry. The down had settled at the bottom of the jackets though, so I thought the jackets were useless and I called LLBean for advice. They told me to dry the jackets on low heat all day long. The down needs to dry out well, and *then* it will be evenly distributed throughout the jacket. I did as I was told, and it worked! LLBean did say that using a commercial dryer would work better.
-- L.

Editor's note: more suggestions on washing down-filled clothes, including comments about special detergents, at http://www.stretcher.com/stories/990215c.htm

I thought the baby wipe suggestion was great. I do have one suggestion that I would like to make that I think would improve upon this idea. In preparations for my sixth baby (present children range in age from 17 to almost 6) I bought baby towels at yard sales for 25 and 50 cents each. I cut these into baby washcloths and used my sewing machine to zig zag around the edges. Each towel will make at least nine washcloths depending on the size.
These wash cloths would have a little more texture than hankies for messy clean-up jobs.
Washcloths from baby towels can be made larger and are handy for camping trips because they dry quickly.
-- Carisa S.

While I sometimes do enter online sweeps (for free), I would question the advice of setting up a budget and spending money on sweepstakes. It seems to me that this is about a half step away from saying "since you don't have much money, save up some and start a lottery budget. It's a great way to win money for things you can't afford." I enjoy your newsletter and welcome all advice for saving and stretching my dollars, I just don't believe that gambling ($20 a month for sweepstakes or for the lottery) is a reasonable tactic.
John
Virginia

Editor's reply: John does make an interesting point. While you'll never find me playing the lottery (if legislators were honest they'd call it a tax on stupidity), I see that sweepstakes can be fun if the money used is allocated for entertainment and the reason for playing is for fun. As soon as someone thinks that they'll strike it rich, they've turned an entertaining game into gambling and will probably find themselves spending more than they should.

This is in response to the reader whose best bargain was the purebred German Shepherd. He sounds like a wonderful dog, and I congratulate the family on their new addition!
I wanted to let your readers know, however, that if they are searching for a purebred animal, their first stop should be their local animal shelter. Nationwide, about 25% of the adoptable animals in shelters are purebred. This statistic surprises a lot of people. In actuality, most animals end up in shelters for some of the same reasons your reader listed - a divorce or other life change makes it impossible to keep the pet. Often the owner is moving and can't or doesn't want to take the pet - that's the number one reason for giving up animals at the shelter in my community, the Humane Society of Boulder Valley (CO). Generally, these animals are well-behaved and either already trained or else quite trainable.
Most shelters have an adoption fee of about $50, which often includes first vaccinations and/or neutering. That's a great bargain if I ever heard of one!
Shelters are full of wonderful, lovable, beautiful dogs, cats, rabbits, and other animals searching for a home. If you're in the market for a pet - even if you have your heart set on a purebred - go over and take a look at your local shelter. You may be surprised what you find.
Your best friend may be waiting for you right now!
-Cindi F

Editor's note: we're out of space, but you'll find more readers' tips at http://www.stretcher.com/stories/990215t.htm

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