How to Recover from a Christmas Spending Spree

A Guide to Overcoming Christmas Bills

Did you get sucked in by the lure of Black Friday Deals? Did your Christmas shopping list grow too long? Were you naughty with your credit cards while trying to be nice to everyone on your list? Here's how to recover and right your financial ship!


An exciting December can make for a boring January, but you have to get your personal finances in order. The first thing to do after an expensive Christmas is take stock of where you are financially. Take a look at your credit card balances and your bank account balances. Take a deep breath. You don't have to assume another identity and move to South America. There are things you can do.

 

Make The Return Quest. If you've recently bought frivolous consumer products for yourself and you don't actually need them and you haven't actually used them, take them back. It may not be fun going from store to store making returns, but it can help your finances. We call that trip "return quest." The credits for returning un-needed items should help lower your credit card balances and offset some of the charges you made. If you have food, clothing, shelter, and transportation, you have what you need. You can do without some of the frivolous things you bought.

 

Do The Balance Transfer Shuffle. Do you have any incoming credit card offers for 0% interest on balance transfers? One of those cards might be a place to park some of that Christmas debt until you can pay it off. Alternatively, you may want to approach your bank or credit union about a consolidation loan before you are late with any payments.


Cut Your Cable Expenses. Football season is over. If you aren't a rabid basketball fan, this might be a good time to call the cable company and cut some of those sports packages and sports channels. You could examine your cable bill and cut back to a less expensive package. If you save $20 to $40 per month on your television expenses, you could easily apply that money to beat down a growing credit card balance.


Eat at Home. After Christmas, the weather is cold and the nights are dark. Winter is not a bad time to stay inside, hunker down, and eat home-cooked food. Cheap meals at home can really help you fit into a tight budget. You can apply the money you save towards your post-Christmas credit card bills. When you do eat out, use every trick in the book to save money at restaurants. It won't be fun, but worrying about bills isn't fun either.


Stop Shopping. Shopping for Christmas was fun. But, you don't have to keep shopping after the holidays. If you have your basic needs met, just chill out and let those credit cards cool. You can beat down those Christmas balances in a couple of months. In the meantime, just don't buy anything that you don't absolutely need.


You'll get your finances back in shape in just a couple of months. In the meantime, don't panic and just make sensible adjustments to lower your spending. Christmas bills will fade away before spring.

A Flat Broke Christmas

We hope you have a Merry Christmas and a Happy New Year!  Sometimes, when finances are tight, you actually get to focus on the reason for the season instead of the material aspects of the holiday.  Christmas is always a tough season financially.  But, this year, we put together a great tree. 

Goodwill Tree and Dollar Tree Ornaments

 We got a 4 or 5-foot tree that is perfect for our apartment.  It has LED lights built in and a golden base.  Best of all, it was only $10.91 from Goodwill.  We decorated it with a star, ornaments, and garlands from Dollar Tree.  We probably have $6.00 in ornaments on the tree and it looks really good!  When the LED lights are turned off it looks like a typical tree, but when the LED lights are on and the room lights are off, the tree really looks magical!

When money is tight, a little ingenuity can provide a lot of fun.  We have enjoyed free military band Christmas concerts, thrift store Christmas music CD's, and free holiday light displays.  Churches also put on live nativity scenes and Christmas pageants.  Cities and towns have tree lighting ceremonies.  Just keep your eyes open and you'll find plenty to do!

How to Save Money by Avoiding Convenience Stores

Being Prepared Can Help You Avoid the High Cost of Road Food

As Americans, we love to get food, snacks, and little necessities at convenience stores.  However, we pay for that convenience in the form of higher prices for many items.   Here's how you can avoid the high cost of convenience stores.

As Americans, we love to get food, snacks, and little necessities at convenience stores. Stores like QuickTrip are open 24 hours a day, 7 days a week, and have everything you need to survive. However, we pay for that convenience in the form of higher prices for many items. A quick look at our bank statement shows that we fritter away quite a bit of money at convenience stores. If you want to save money, you can avoid convenience stores by simply being prepared.


Beverages are one of the main things we buy at convenience stores. It is easy to pop in for a soda, tea, or bottle of water. Staying hydrated is important. But, even when fountain drinks are priced as low as 79 cents, you can still save money by bringing a beverage from home. You can buy bottled water or soda by the case, refrigerate it, and make it a habit to grab a beverage on the way out the door.



Snacks are another easily avoided convenience store temptation. Instead of paying for a small bag of chips at the convenience store, buy a big bulk bag of chips at the grocery store. Then divide your less expensive big bag of chips into small "grab and go" sized lunch baggies. The same principle applies for candy, granola bars, and other snacks. Buy cheap at the grocery, divide into smaller servings, and grab a snack bag for the road. This may also help you avoid the temptations of less nutritious snacks at convenience stores.



If you are committed to avoiding convenience stores, you may want to invest in a couple of items for your car. First, a little cooler can help keep those "grab and go" beverages cold. For longer road trips, you may even want to get a mini fridge for your car. A little mini fridge can run off of your cars cigarette lighter or auxiliary power port. You may also want to buy a seat back organizer bag for storing portable snacks. These items will help you stock up your car before you set off on a drive.



By staying out of convenience stores, you'll avoid that little $5 to $10 drain of a munchie run each time you go for a drive. In the course of a month or a year, those little convenience store runs can be a drag on your family budget. You may even find out that the convenience store was where all your money went.

Are Refurb Computers Any Good?

 If you are like me, you've been intrigued by advertisements for refurbished computers.  If you are looking for a truly affordable PC, it is almost impossible to find a brand new machine for less than $150.  Most entry level machines start at $279.  There seems to be a conspiracy afoot when it comes to PC prices.  The one low price alternative that is still available to common people is the refurbished PC.  Prices for refurbished computers start as low as $99 at common outlets like Sears.com and Microcenter.

Of course refurb machines aren't like brand-name computers.  They often come in plain brown boxes and they have limited warrantees.

I recently took the plunge and bought a refurbished HP desktop machine from Microcenter.com.  

It had a dual core Intel processor, 2GB of RAM, and Windows 7 for only $139.  It was still a lot of money, but we felt we need to get a Windows machine back in our home.

For more information, you can read a complete review of our buying experience and our new refurb PC:

Personal Computer Review:  HP DC7900 Refurbished Desktop Computer from Microcenter.

I would recommend looking for a Windows 7 machine as Windows XP will soon be out of Microsoft support.  Here are some affordable refurb computers offers, check them out:

Money-Saving Alternatives to Starbucks

How to Avoid Starbucks and Save Money Drinking Coffee at Home

Are you addicted to getting coffee at Starbucks?  Do you love the pretzels and cake pops?  You aren't alone.  Here are some helpful ways to avoid spending all your spare cash at America's favorite coffee shop chain.


It started innocently enough. A co-worker wanted to discuss professional issues outside of our cube farm. He suggested Starbucks. I enjoyed a Mocha Frappuccino. Later that week, I decided to take my wife out to Starbucks to do something a little different in the treat department. I had a second mocha and she enjoyed an iced chai tea latte. Soon, our addiction escalated. I went from a tall to a grande to a venti in a short time. She explored cake pops and pretzels. Within weeks we were hooked and had developed a full-blown Starbucks habit. We had long prided ourselves on not paying $5 for a cup of coffee. Now, we were sliding into the faux hipsterism of Starbucks.


It had to stop. Having worked in the financial services industry, I was well aware of the perils of "The Latte Factor." Financial guru David Bach coined the term to describe how Americans fritter away small amounts of money on frivolous things when that wasted money could add up to real wealth over time. Brokers have long advised that clients ditch the expensive coffee servings in favor of savings and investments. We had to think of alternatives to the coffee and tasty treats offered by Starbucks.



Here are some Starbucks alternatives that will help us fight the addiction:

Mocha Frappuccino. Frappuccino is a trademarked brand name that belongs to
Starbucks. Ironically, the only antidote to Mocha Frappuccino from the Starbucks drive through may be bottled Starbucks Mocha Frappuccino drinks from the grocery store. While a four-pack of bottled mocha coffee drinks at the store is pricy at nearly $5, that is only a quarter of the price of four $4.75 venti Mocha Frappuccinos from the Starbucks drive through! Alternatively, adding chocolate syrup and ice cubes to a regular cup of coffee can be a poor man's substitute to Starbucks signature coffee treat.



Chai Tea. It turns out that Starbucks does not have a monopoly on tea. Apparently, tea comes in a box of small bags that are perfectly sized for brewing at home. In fact, we already had a box of Bigelow Spiced Chai Tea. A box of 20 chai tea bags was less than $5. That is quite a savings over the $3.95 price of a venti Iced Chai Tea Latte at Starbucks.



Hot Chocolate. If it's cold and you want something hot, you can't beat Swiss Miss Instant Hot Chocolate. You don't even need mad barrista skills to makes a decent cup. The secret of making good hot chocolate is to use a bag and a half of the instant mix. Then, add your own fluffy marshmellows. It tastes great. If you don't think so, stand outside for twenty minutes without gloves on a cold winter night, then have some more. Our local Publix had a buy one get one special that gave us twenty individual serving envelopes of Swiss Miss for less than $2.50.

 

Pretzel. If you like a snack with your Starbucks beverage, they have some very good pretzels. Their Asiago and Cheddar pretzel is a sophisticated take on the traditional pretzel. However, your grocer probably carries soft pretzels in the frozen foods section. We like SuperPretzel brand. For about $4, you can get a box of six frozen pretzels. All you do is sprinkle a few drops of water on one and then pop it into your microwave oven for 30 seconds. You can optionally add some pretzel salt from the packet provided or just leave it plain. Either way, it makes a tasty alternative to a fancy $2.25 pretzel from Starbucks.



Coffee. We have a Proctor-Silex 12-cup coffee maker. It makes a pretty good cup of coffee even when we use store brand coffee. If we want to be fancy, we can easily add cream, sugar, hot chocolate or Hershey's syrup to the coffee cup. However, the secret to making really good extra special coffee is headgear. Wear a beret or a bandanna and you are half way to becoming a full-fledged barrista.



Free Internet. Many people visit Starbucks to hang out and use the free internet connection. Consequently, we no longer expect our local Starbucks to be filled with the intelligensia discussing philosophy, art, theatre, ballet, and great books. We find that we can access the internet more securely from home without having to ingest a massive dose of caffeine every few hours. However, our local library offers free internet and lots of literature to discuss. Free internet from our local library is much cheaper than buying a $5 coffee every hour at Starbucks.


We still haven't kicked our Starbucks habit entirely. We still love Starbucks. It still beckons us with a 24-hour drive through and incredible convenience. But, we have started a program to keep at least some of our pocket money and make the ubiquitous coffee shop a less frequent treat.

Sources:
Frappuccino.com
Countless Starbucks Receipts
www.finishrich.com - David Bach website.

How to Save Money at Dining Out

In our convenience driven culture, everyone is on the go.  Families don't often have time to prepare home cooked meals and end up dining out.  Unfortunately, dining out costs money.  Restaurant tabs add up.  However, you can save substantial amounts of money at restaurants by following a few simple savings tips. 

You can do things like -

• Drink water instead of tea or soda - Avoid $2 per person!
• Split Dessert - Divide your dessert cost in two!

For more tips, read my article:

How to Save Money at Restaurants

Don't forget to split dessert!

Saving Money on Gas

If you are running low on cash, a tank of gas can really hit your wallet hard.  It can be worth it to change your driving habits to squeeze every last mile out of a thank of gas.  I often coast down hills and even cut the car off sometimes at long lights.  But, there is a group of people called hyper-milers who really take it to the limit and make dramatic improvements in fuel economy.

You can make big improvements even if you drive what could be considered a gas guzzler, consider John Teach's article on maximizing the fuel economy of his Corvette.

Dr. Hyper-Mile Or:  How I Learned to Stop Worrying and Save Fuel

Even if you don't have a Corvette, you can save gas by easing up on the gas, coasting down hills, and taking 55 mile an hour bi-ways instead of 80 mile an hour highways.

Buying a Stereo When You Are Flat Broke

Being broke doesn't have to stop the music.  You can still put together a pretty awesome stereo even on the tightest of budgets.  All you have to do is set aside fashion, expectations, and marketing hype.  Then, go out, shop super cheap, and get what you need for a kicking sound system.  I recently built a pretty decent system from thrift store stereo component.  The total price of my system was a whopping $40.  Yes, $40!  Here's how I did it:

How I Built a Component Stereo for $40

Technics SU-V76 Amplifier & Technics ST-S76 Receiver

1 of 2 Sharp Compact Stereo Speakers

While I can certainly improve on this system, it sounds pretty darned good.  Now, I have something to build on and expand on in the future.  This whole stereo started on a shoestring budget at a thrift store.

Of course, if you want to go low with all new gear, you could start with a mini stereo amplifier like this one:

How to Use a Magic 8 Ball in Your Job Search

The Classic Toy from Mattel Has the Answers You Need

When you are searching for a job, your world is full of questions. Your family will face a lot of uncertainty and stress. Until a job offer is on the table, there are no answers. You find yourself waiting for decisions by HR and by hiring manages. If you are relocating, there is even more uncertainty in the equation. Fortunately, a classic American toy, the Magic 8 Ball from Mattel, has some of the answers. Those answers can, at least, temporarily relieve you of many job search anxieties.

The Magic 8 Ball is a larger than normal plastic billiard ball containing a 20-sided die immersed in a dark fluid. You look at the 8, ask it a question, and then flip it over to see the answer revealed in a transparent plastic window. The Magic 8 Ball is quick and it's all people had before Yahoo, Google, and Bing. It's a mysterious entity and there are a few guidelines that can help you get the most out of it:

1. Ask Yes/No Questions. When asking a question to the Magic 8 Ball, you must phrase your questions in the form of yes/no questions. Open-ended questions are not really the plastic oracle's strong point.

2. Ask questions that are about intuition, feelings, and actions beyond your control. The Magic 8 Ball seems to get insulted when asked questions that are better answered by online research. If you ask, the Magic 8 Ball if there are rattlesnakes in Austin, it may give you the wrong answer just out of spite. However, if you ask about whether a recruiter will call today or whether you'll get a move package, the Mattel version of the old Syco-Seer does much better.

3. Pay Attention to Your Own Desires. While the Magic 8 Ball reveals simple answers, if you pay attention and are self-aware, you might just learn a little something about yourself. For example, if you ask a question, you may realize that don't like the answer and re-phrase the question or shake twice for for a best two out of three answer. If you find yourself, playing for two out of three or rephrasing questions, it is very revealing of your own desires.

4. Know the Odds. According to Magic8ball.org, the Magic 8 Ball has twenty possible answers. 10 are positive, 5 are negative, and 5 are neutral. So the Magic 8 Ball is a generally positive and supportive entity.

I'm not sure that a Magic 8 Ball is a good replacement for a career coach. It's a random answer generator intended for entertainment purposes only. However, an answer from a Magic 8 Ball sure beats fretting and worrying about something beyond your control. That HR department will eventually call you.

Habits for Success

Everyone has secrets for success.  It's a multi-million dollar industry.  But, success has simple roots.  Success is a product of good habits.  As Aristotle said, "We are what we repeatedly do.  Excellence, then, is not an act but a habit."  If you'd like to be successful, you have to develop a good work ethic and show it through good habits.  I have identified some of these habits here -

Seven Habits for Success in Life

You could pay some late night infomercial guru $29.95 for this information, but I'm giving it away for free.  Everyone in this country can and should succeed in life.  However, if you want to learn more and expand upon the theme, I recommend reading Stephen R. Covey's book, The 7 Habits of Highly Effective People.

Refurbishing Your Laptop for a Longer Life

We have another laptop that is near death.  The hard-drive has failed and we are running from time to time with a Linux LiveCD that runs everything from the CD-ROM drive.  It works, but it is cumbersome.  We are going to have to repair it.

Here are some basic steps that we are going to take in order to refurbish our old laptop computer on our own.

How to Refurbish Your Old Laptop

Stretching Your Laptop's Life with a Make Over!

It would be nice if we could just drop everything and rush out to buy a new PC.  But, sometimes, it can be difficult to come up with $300 or $400 for even a basic new PC.  Refurbish units beckon, but even they cost about $150 for a capable machine.  So, instead, we are stretching the last bit of life out of our old computer.

One way we can do that is with a laptop computer make-over.  We are transforming our old laptop into more of a desktop machine.  Here's how --

How to Give Your Laptop Computer a Makeover

Save Money by Carrying Out Your Pizza

If you are looking to save a little money, you can call or just pop into your local Pizza and order a pizza for carry out instead of for delivery! 

This Pizza Not From Domino's - Does Wikimedia Commons deliver?

Our local Domino's sells a large 14-inch pizza as a carry-out special for only $8.40.  You can't beat that and you can easily skip all the high calorie extras like cinna-sticks and lava cakes.  Instead of paying $20 to $30 for a pizza with extras and a tip for the delivery driver, we can eat for less than $10.  It's an awesome deal!

Bring Your Own Beverage to Save Money

Want to cut your fast food bill?  B.Y.O.B.  When you go out for a drive or to get a fast food lunch, bring your own bottle of water.  Instead of paying $1.59, $1.79, or more for a beverage, you'll be paying 15 to 20 cents for bottle water at the grocery store.  If you want to save even more, fill your own bottle from the tap!  We've saved a ton of money by taking water with us when we leave the house!

By Jm51 at en.wikipedia (Transferred from en.wikipedia) [GFDL (www.gnu.org/copyleft/fdl.html) or CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/)], from Wikimedia Commons

Cheap Stereos from the Thrift Store

Even if you are broke, you can still enjoy music.  The key is to be a little behind the times in your stereo system and your media selection.  For example, you can get music on cassette at your local thrift store for about 99 cents.

By Ulli1105 (Own work) [CC-BY-3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons

 You can get CD's there for 2 or 3 dollars.  You can get a compact stereo system there for $30 or less.  You can get a full-sized stereo receiver for $50.  You don't have to go the trendy route; you can follow your own path and adopt technologies at price points that work for you!

Here's how --

How to Buy a Stereo at the Thrift Store

A Cheap Chocolate Fix

If you want to save money and crave the taste of chocolate, skip the candy aisle and hit the bakery aisle.  You can buy bags of chocolate chips in the bakery aisle.  At Publix, you can get a bag of store-brand semi-sweet or milk chocolate chips for only $2.29 a bag.  If you eat them one at a time and let them melt in your mouth, they will last for a very long time!

By Editor at Large (Own work) [CC-BY-SA-2.5 (http://creativecommons.org/licenses/by-sa/2.5)], via Wikimedia Commons

Preparing for an Emergency with Dollar Store Items

It's a crazy world we live in.  People are worried about everything from an economic collapse to a zombie apocalypse.  Some emergencies are far-fetched, but other disasters happen all the time.  Every family--even families on dollar store budgets--should be prepared for an emergency.   Tornadoes, hurricanes, super storms, and earthquakes happen.  Even on a tight budget, you can be prepared, here's how -

How to Make an Emergency Kit from Dollar Store Items

Fabric Softener Sheets from Dollar Tree

My wife and I have been using the fabric softeners from Dollar Tree on our laundry. The sheets are comparable to Bounce or Snuggle. The brand name we use most often is called Breezy. However, they have more scents available with a brand called Sauvitel. These Dollar Tree products are great because you can use 'em and no one will ever know.