9 Ways to Save on Heating

Have you noticed the leaves changing colors? It seems like it happened all of a sudden. There's no doubt, Fall is upon us and Winter is right around the corner. This means higher heating bills are on their way. This puts me in a dilemma. On one hand I can't stand being cold, on the other hand I can't stand paying those outrageous electric bills. So, I have to come up with a compromise. Here are some of the ways I save on heating my house.

1. Reduce Cold Drafts - Caulk around door frames, window frames, and any other seams on the outside of the house to seal them. I've read that drafts can steal as much as 25% of the heat in a house.

2. Insulate Your Bathtub - If you have a built in tub, make sure it's sealed and insulated. This is especially true if you have a mobile home because they are not normally sealed or insulated and can drain your energy in both the summer and winter.

3. Switch Your Ceiling Fan - Most fans are set to pull air up, but you can switch them to push the air down. By switching the way your fan turns you can push the warm air down instead of it resting on your ceiling.

4. Turn Down the Thermostat - The easiest way to save is by turning down the thermostat. Last year we kept ours on 74 during the winter. This year we have it on 72. We've gotten used to it being slightly cooler, and hopefully we'll be enjoying some nice savings as well.

5. Bundle Up - One of the ways of combating the lower thermostat temp is by bundling up when we're at home. If we get cold, instead of turning up the thermostat, we get out a blanket. It's a simple solution.

6. Let the Light In - Open the blinds in the morning to let the sun in. Close them in the evening to provide insulation.

7. Use Rugs - Bare floors can become really cold during the winter months. Use area rugs to keep those feet warm.

8. Use an Electric Blanket - No need to heat the entire house while you're sleeping. An electric blanket is cheap and cozy. Just don't blame me if you don't want to get out of bed in the mornings.

9. Don't Heat Unused Space - If you have rooms in your house you don't use for long periods of time, close the vents to those rooms. No need to heat that spare bedroom if no one ever uses it.

What are some ways you keep warm during the winter, while also keeping the heating bill down?

Five Friday Months

Want to know something special about October? October has 5 Fridays in it. Which means, for those who get paid every Friday, you'll be getting an extra paycheck this month. With 52 weeks in a year, most months will have only 4 Friday's in them, but there's a few that will have 5 Friday's. January, May, and July were also 5 Friday months this year.

Why is this important? Because a lot of people budget for 4 paychecks a month, or 2 paychecks a month if you get paid every other week. This means when 5 Friday months come around there will be extra money left in your budget. What you choose to do with that extra money is very important. Here are a few of my suggestions.

Save It - You never know when something may come up and you'll need a little extra money in your budget to get by. If you don't already have an emergency fund, a 5 Friday month is the perfect time to get one started. If you need help getting one started you can read more about it here.

Pay Debt Down - You will be tempted to go out and spend this extra money, but if you have debt, you'd be crazy not to pay on it. The longer you have debt, the longer you're having to pay interest, and as long as you're paying interest you're losing money. Plus, you'd be surprised at how quickly you can eliminate debt once you start putting your extra money towards it. I recommend using Dave Ramsey's debt snowball method.

Buy Something You Need - Occasionally there are things we need that we haven't budgeted for. For me, it was tires. Both my wife's and my car need new tires. So, this weekend we went and bought tires for my wife's car. We knew we'd have the extra money this month, and we knew we had to have them. For you, it may be a dishwasher, a new dryer, or maybe even furniture.

Buy Something You Want - I only recommend doing this if the first 3 options have already been covered. But, if you have an emergency fund, have paid off your debts, and have everything you need, buy something you want. You deserve it.

What do you recommend doing with your extra money?

My Baby Wants

In case you missed it, I'm having a baby. We are now just 3 months away from our lives being changed forever. It's a scary feeling. I worry about her being healthy. I worry about all the sleep I'll be losing. I worry about our income being cut as my wife goes from full time to part time. And I worry about the sacrifices that will have to be made.

Debts will take longer to pay off. Vacations will become less frequent. New cars will be a thing of the past. At the moment, we're saving every last dime we have and setting it aside until the baby arrives. We're trying to prepare for the unknown, and that's hard to do. We're not sure how much the hospital bills are going to be. We're not sure how much we'll have to dip into savings while my wife is on medical leave. We're not sure whether we'll be having to pay in on our taxes. We have an idea about how much things are going to cost, but there's no guarantees. So, for now we save and we wait.

When there's no money in the bank, it's been easy for me not to spend. It's a lot harder when the money is in the bank. I get these emails from cruise companies, advertising their lowest prices of the season. Cruise for as low as $35 a day. I visit Slickdeals and see that you can buy a Playstation 3 now for $250, with a game and extra controller. All my other friends have next generation consoles, why not me?

But these are merely wants, and right now our wants aren't important. I have a feeling when the baby arrives, my wants will go out the window anyways. Might as well get used to it. Besides all I really want, is a healthy little baby. And I can't wait for her to get here.

Slickdeals.Net

Christmas is just around the corner and if you want to find the best deals you'd be crazy not to visit slickdeals.net. In my opinion, it is the best website of its kind. Not only does it show tons of great deals, it also has a place for freebies, surveys, coupons, and various other resources. I make sure to pay a visit to Slickdeals each day.

Carnivals I participated in this week:

199th Festival of Frugality hosted by I am Cheap.

86th Money Hacks Carnival hosted by Credit Card Offers IQ.

Make sure not to sign up for any credit cards while you're there. Have a good weekend everyone.

401(k) Debit Card - Pros and Cons

In my last post, I introduced us to 401(k) debit cards. While most of what I had to share was negative, there are some positives to these cards. Today, we take a look at the pros and cons of the 401(k) debit card.

PROS

You can use the funds for any purpose and you don't have to explain why you need it, or how you intend to spend it. You can't do this with a regular loan.

You may be able to borrow at a lower rate from your 401(k) plan than you could from a bank.

Since you're borrowing your own money, there's no credit check, and you don't have to worry about creditors coming after you if you fail to repay it.

Part of the interest you pay goes back into your 401(k) account, rather than all of it going to a 3rd party lender.

CONS

If you lose your job some employers may require you to pay the outstanding balance within a certain time frame. Others may let you continue making monthly payments as before. You should check with your employer to find out their policy on this before you sign up for a 401(k) debit card.

Repayments to your loans are made with after-tax dollars. This means you will get double-taxed, which wouldn't happen with a conventional loan.

The fees you pay on a 401(k) loan could be higher than a conventional loan, especially after transaction and maintenance fees.

The interest is never deductible.

Those who opt for the card to meet a cash crunch may have a hard time repaying the loan, and still contributing to their 401(k). This means no company match, and your retirement savings growing much more slowly.

My Conclusion

Make this your last resort. It should only be done in emergency situations. Also make sure you realize the consequences of doing this. You could be looking at a much smaller nest egg, or a potential loan default. Remember, that each time you choose to use the 401(k) debit card, your retirement savings dwindle.

A Different Kind of Debit

If you've been reading my blog for very long you know that I've never had a credit card, and don't plan on getting one. However, I absolutely love my debit card. How did we ever get by without them? A debit card allows you to make purchases with the card, and the money is automatically deducted from your bank account. It's just like writing a check, only a lot less hassle. Now, they've come out with the 401(k) debit card. It allows you to borrow from your retirement savings, and more and more companies are offering it.

Don't be fooled by the name. While it's called the 401(k) debit card, it actually works like a credit card and debit card rolled into one. It works like a debit card because it lets you access and spend your own money. It works like a credit card because you repay the money over time with added interest and fees. So, lets see you're basically paying someone else interest for borrowing your own money. This isn't sounding very good.

When you use a 401(k) debit card, you are borrowing from your 401(k) account. The amount you borrow has to be approved by your employer. Then, once it's approved, the money is put into a separate money market account which earns dividends. This sounds pretty good, you're earning money on the money you borrow. However, not as much as you'd be earning if you're money had remained in the 401(k). Over the last 80 years or so, the stock market earned on average around 10%, while money market funds earned less than 4%.

You are billed each month for what you've spent, plus interest and fees. Interest rates are generally tied to the "prime rate" as with traditional credit cards. The 401(k) debit card also carries an additional charge based on the amount of money you borrow, that is paid to the debit card vendor. This just keeps getting better. A minimum payment is due each billing cycle and finance charges are accrued until the entire amount is paid back. If you fail to make a payment for three consecutive months, your loan will be in default and considered a 401(k) distribution. This means, unless your 59 1/2 or older, you'll have to pay taxes on your loan balance, plus a 10% penalty.

Despite all of this, there are some advantages of a 401(k) debit card. We'll look at the pros and cons in my next post.

A little link love

Happy Friday everyone! Instead of writing my own article today, I want to encourage you to read this post over at BibleMoneyMatters. It's called 10 Attributes of the Perpetually Broke and it's one of the best posts I've ever read. If you want to know why you're broke, just spend 10 minutes reading the article. Even if you're not broke, read the article. It's that good. Have a good weekend everyone.

4 Ways to Lower Your Grocery Bill

For most of us, groceries are one of our largest expenses each month. Food prices have soared over the last several years rising over 10%. Here are four ways to cut your grocery bill, without spending hours cutting coupons.

1. Check the Ads - Most stores will offer big sales in order to get you into their store. Identify the sale items you need, and take advantage. Just don't get tricked into buying something you don't need.

2. Make a List - Taking 10 minutes to write out a list before you go to a store can save you tons of money. How many times have you bought items that you already had at home? Or how many times have you been enticed by an item that you really didn't need? Making a list ensures you buy only what you need, and nothing more. This also saves you from making multiple trips to the store to pick up things your forgot.

3. Buy Local Produce - It may be too late in the year for this now, but during the spring and summer take advantage of your local farmers. They often will have fresher produce, at cheaper prices. Or you could consider doing it yourself. Grow your own garden, and sell or give away what you're not able to keep.

4. Buy in Bulk - If there's non-perishable items on your list that you're buying every week, consider buying that item in bulk. By buying in bulk you'll save money that would otherwise be spent on packaging and advertising. Some of the items to consider buying in bulk might be peanut butter, canned goods, and ketchup.

What are some ways you try to cut down on your grocery bill?

Saving for College

I've said many times before that I don't plan on paying for my children's college expenses. I had to pay for my own through student loans, and there's a good chance if my children want to go to college they'll have to pay for their own. That doesn't mean I won't try to help them if I can. I want the best for my children, and I'll try to help them along the way. But, I will let them know up front the importance of studying hard and getting good grades, so they can get scholarships and other financial aid. With tuition costs rising at an alarming rate it's estimated that a 4 year degree from a public institution will set you back $114,694 in the year 2016. My daughter will be 6 years old. Can you imagine the cost of college in 2028? I'd rather not.

As parents here are a couple things I think we need to understand.

1. If we choose to help our children with college expenses, we need to let them know up front that it's a shared responsibility. Let them know early on how much you will be willing to pay. Some parents may only be able to pay for books and food, others may pay for housing as well. Look at your financial situation and plan accordingly. Once you've let your children know what you will be paying for, it's up to them to figure out how to pay for the rest. This could mean a summer job, working during school, or working hard through school to earn a scholarship.

2. Get started as early as possible. Take advantage of compound interest that comes from savings accounts, cd's, bonds, and other types of investment accounts. Encourage your family to give your son or daughter money for their birthday and other holidays. Chances are they already have more toys and clothes than they know what to do with.

I'm curious as to how many parents pay for their kids to go to college. I've placed a poll in the right side bar, so you can tell how you either have already or plan to pay for your kids college.

Are you a material girl or guy?

Did you know material things are supposed to make our lives easier and more comfortable? Yet, over the years material things tend to take control of us, rather than our controlling them. The things that were meant to be a blessing, sometimes turn into a curse. 20 or 30 years ago the average work week was 48 hours, and the husband was the primary wage earner. Today, more than 70 percent of American families need two incomes to pay for a materialist lifestyle.

This is especially alarming for Christians, because God warns us that we can not serve two masters. We can not serve both God and wealth. That doesn't mean God doesn't want us to own things. He just doesn't want us to get so caught up in them that we forget our primary purpose, which is to serve Him. As Christians, there are 5 things that we need to watch out for when it comes to material wealth.

1. Feeling that a lifestyle of indulgence is normal - This means when we can't afford to buy that new car, we go into debt for it because that's what normal people do. God hasn't called us to be like everyone else.

2. Focusing on worldly success - Often times we look at how much money a person makes to determine how successful they are. When we start focusing on material success instead of spiritual maturity we are on a slippery slope.

3. Diminishing God's direction - It's hard to be a missionary in Mexico, if you're in debt up to your eyeballs in Ohio. Nothing prohibits Christians from obeying God more than the tug of material comforts.

4. Gaining a superior attitude - If God has given you material wealth be careful not to look down on others. God wants us to be humble and help those around us.

5. Being indifferent to those in need - Because of our culture it's easy to believe that everyone has material wealth. We become blinded to what's really going on around us. God commands us to give to the poor, supply shelter and food to the homeless, and provide for the needy. Yet, this is a primary area of lack in today's Christians.

God wants us to have a balance when it comes to material possessions. He doesn't want us to be controlled and used by them, and all too often this is what happens. In order to prevent it, we must establish that we serve Christ first and foremost and everything else comes after that.