We have this green chair that sits in our sun-room.  It’s a very comfortable chair and I like to sit in it when I’m studying my Bible or reading a book to the kids.  The fabric is in great shape – but two of the little legs on the bottom of the chair have become unstable.  The holes where the legs attach have become “wallered out” and the legs will no longer hold firmly to the bottom of the couch.  On top of that, one of the little legs is broken and I have no idea where I might be able to purchase another one.

As a side note – I’m pretty sure the legs broke when my kids decided to play “can’t touch the lava” and used the chair (and the couch in the same room) as trampolines / safety zones.  If you are unfamiliar with “can’t touch the lava” – it’s a game kids play where they try to go around an entire room without touching the floor.  It also goes by “snakes on the ground” or “stay out of the water”.  Being a kid rocks!

I’m not much of a carpenter (although I did manage to build a playhouse for the kids), but I do know how to use a skill saw and a hammer.  So, I took all of the legs off of the chair.  I then took a 2 X 4 that I had out back, cut it into 4 pieces, and nailed those to the bottom of the chair.

Take a look -

Yes, that is a pretty rad Thomas the Tank Engine setup that you can see in the pic.  I nailed the first board along the left-hand side of the chair.  I then nailed the second board on top of the first, creating a very solid “leg” that runs the entire side of the chair.  You can’t see it in the picture (because the battery of my ancient digital camera died) but I did the same thing on the right-hand side.

Here’s how the chair looks with the new “legs” -

Notice the power cord trailing out the door?  It’s running to the skill saw.  You can’t see the “legs” – and the chair sits perfectly.  I think I might have another 2 X 4 out in the shed.  If I do, I might add another set of “legs” to the front an back, for even more stability.

There you have it – my free, frugal, simple, easy-as-pie fix for the broken chair.  Sure, if anyone looks under the bottom of the chair they’ll probably burst out laughing, but I can deal.  Rock on.

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My Frugal Fix For The Broken Chair

It’s only twenty dollars…

It’s only three percent…

It’s only for six months…

It’s only – Is there a more powerful, desire-justifying phrase in the English language?  How many times have I blown my budget, because I fell into the It’s only-trap?  Seriously, even those of us who are trying to follow our budgets tend to spend more, in bits and pieces, when we convince ourselves that twenty bucks, spent here or there, is no big deal.  It’s only twenty bucks, right?

Only after we get home, and reconcile our checking accounts or take a look at our wallets, do we recognize the truth – All of those it’s only-purchases have used up our cash, depleted our checking account, and inflated our credit card balance.

Over the next few weeks, I’m going to write a series of articles about breaking bad financial habits – To be sure that you receive each of the articles in this series, sign up for my site feed, via RSS or daily email.

A few days ago, I talked about impulse purchases, those spur-of-the-moment purchases that break our budgets.  The first cousin of the impulse purchase – is the it’s only-purchase.  Remember, it takes just the briefest moment of weakness, the slightest mental hesitation, for a company to convince us to spend money on their products.  And, unfortunately, these companies are aided by our own internal weakness – the it’s only-gene, if you will.

Here’s how I’ve learned to deal with the it’s only-gene.  Think about these techniques, and see if they might work for you.  If you have other techniques or tips, feel free to share them in the comments section.

1.  Recognize that some it’s only-purchases are okay.  Seriously, once in a while, it’s cool to “waste” a little money.  I have three kids.  There are times, when we are at a restaurant or at the store, that’s it’s fun to give them each a dollar, and watch them purchase a bouncy ball or a fake tattoo from one of those little machines.  In our budget, we have a miscellaneous category.  Each month, we allow ourselves – and our kids – to be a little frivolous.  This keeps us sane.

2.  Admit that most it’s only-purchases should be eliminated.  Clearly, it’s cool to have a little fun, but let’s not get carried away.  If we are not careful, one dollar becomes five dollars, and five dollars becomes twenty dollars, and twenty dollars becomes one hundred dollars.  Create a specific amount for miscellaneous spending, and then honor that amount.

3.  Avoid situations that promote it’s only-purchases.  I’m married, with three little kids, and I know how little kids think.  They love to spend quarters on video games, toys, soda, and other assorted junk.  Knowing this, I tend to avoid situations where this assorted junk is available.  If I have a choice between restaurant A or restaurant B, I will tend to favor the restaurant without the massive wall of arcade games.  Depending on your age or station in life, you might need to avoid situations and places where you tend to overspend.  For some, that means skipping a visit or two to the mall.  For others, this might mean no more online shopping.

4.  Learn to substitute.  Instead of rewarding yourself (or you kids) with numerous, small, it’s only-purchases, reward yourself (or your kids) with really awesome free things!  Take your kids to the park.  Go to the library.  Pop some popcorn and watch a move at home.  Find free things to occupy your mind (and their minds).

5.  Do a little math.  If you are unmoved by any of the emotional reasons for avoiding it’s only-purchases, consider the mathematical reasons.  $10 per day, for one year, is $3,650.  If you continue to save, at $10 per day, for the next 50 years, and you get a modest return of 5%, you would have over $790,000.  Seriously.  Those it’s only-purchases really do add up!

Let’s leave the it’s only-purchases in the past.  Instead, let’s have a little fun, stick to our budgets, find alternatives to spending, and remember the long-term financial benefits.  In the end, we will not miss those unnecessary things, and we’ll be glad that we learned to be a bit more responsible.

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Breaking Bad Financial Habits – It’s Only

As you read this, you already know something about yourself, something very important.  You know, without even having to think about it, if you are the kind of person who makes impulse purchases.  You also know, with equal certainty, if this tendency to make impulse purchases is negatively affecting your financial situation.  Over the next few weeks, I’m going to write a series of articles about breaking bad financial habits – and I’m starting with a big one – impulse purchases.  To be sure that you receive each of the articles in this series, sign up for my site feed, via RSS or daily email.

First, it might do us some good to think about why we make impulse purchases.  I, for one, tend to make them when I’m bored.  Others, I’m sure, make them when they’re depressed.  You, on the other hand, might only make them when you are happy – or as a way to reward yourself.  Whatever the reason, it might be a good time to think of other ways to deal with your emotions, besides spending money.  When I get bored, for instance, I’ll head to the gym or go outside for a walk.

It’s also important to think about the situations where we are tempted to overspend.  I tend to spend more when I’m out with my family – especially if I’m at the grocery store, it’s getting late, and the kids are hungry.  Perhaps you spend more when out with certain friends, or away on vacation.  Some might be tempted to overspend when at the mall, or shopping online, or while watching late-night television.  As we think about impulse purchases, keep in mind the situations where / when you struggle, and apply the techniques we are going to talk about to those situations.

Speaking of those techniques, here we go -

1.  Make a commitment to yourself and agree that you will be more responsible with your finances.  Four years ago, I promised myself that I would get out of debt.  That commitment required me to make lots of sacrifices.  Each time I would think about frivolous spending – I would remember my commitment.  It sounds simple, but it really does work.

2.  Learn to love your budget.  Seriously, get over your fear of “the big bad budget”.  We love our budget, because it not only guides us through the month, putting limits on our spending, but it also allows us to plan for little “splurges”.  We use the You Need A Budget software to manage our finances.  YNAB is a long-time sponsor of No Credit Needed and I’m proud to promote their product.  Whatever method you use to plan your spending, honor your plan!

3.  Consider an accountability partner.  You might want to think about sharing your goal – your new commitment – with a close friend, or group of friends.  It really does help to have someone with whom you can talk.

4.  Cultivate friends who respect your financial decisions.  This one can be tough, but I think it’s very important.  If you struggle with overspending, especially overspending as it relates to group outings or activities, you might want to make a few new friends.  This doesn’t mean that you have to rid yourself of your old friends, but it might mean that you need to change the nature of your relationships.

5.  Think about implementing my $100-a-day-rule for preventing impulse buying.  Click to read the post, but here are the details.  If I want to make a major purchase, I have to wait 1 day for every $100 that I want to spend.  A $400 television requires 4 days of waiting – and researching.  This simple, even silly, rule really has helped me.

6.  Never make a purchase that you ordinarily would not have made, simply because someone is offering you special financing / special rebates / or special discounts.  In other words, never walk into a store, intending to spend $50 on paint, and then walk out with a $800 table saw, simply because the saw was “on sale”.  Sales will come and go.  If you haven’t planned for it – which means budgeted for it – don’t buy it.  (This might mean, that once in a while, you will miss a great deal.  On the whole, however, it will also mean that you have remained under-budget and that you’ve avoided foolish purchases.)

7.  If you are married, talk to your spouse about ways that you can help one another avoid impulse purchases.  It’s funny.  A wife can plan to be frugal – and a husband can plan to be frugal – but then the two of them, when shopping together, can tend to be non-frugal.  It’s like going on a diet.  You might be willing to stick to your plan, but if your wife is having a piece of cake, you might be talked into having a piece of cake.  Instead of working against your family goals, agree to be frugal, together.   Be on the same team.

8.  Make a big deal out of reaching financial goals.  We are emotional creatures.  If we struggle with making impulse purchases, it’s probably because we like the immediate emotional response we get from buying something.  Let’s shift that response away from purchases, and let’s celebrate savings.  Stay connected to the process, and you’ll be less likely to spend money on things you don’t really need.

I hope some of these techniques help, or at least get you to thinking.  If you have any suggestions, for how we can overcome our tendency to make impulse purchases, I’d love to read them.  You can leave a comment, here on the site, and you can also connect with me via Twitter.  Simply follow me, and then shoot me a tweet.

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Breaking Bad Financial Habits – Impulse Purchases

I’m on vacation with my wife and our kids.  The weather is glorious – 85 degrees, sunny, slight breeze.  The beach is beautiful and the kids are really enjoying the pool.

When I’m on vacation, I’m ON vacation.  I try not to check my email or worry about work.  Instead, I focus on hanging out with the kids and enjoying the week off.  The past few months – years really – I have been very, very busy.  (You have probably noticed a drop off in the number of articles here on the blog.)  The truth is, I need this vacation.  The rest of this summer is jam-packed with work, much of it stress-inducing, so this week is a time to relax, unwind, and recharge for the months to come.

This is the only week of the year where I ignore the frugal part of my brain.  Throughout the year, we budget for our vacation, but when we are on vacation, we just enjoy ourselves.  I don’t pinch pennies and I don’t worry (too much) about the high cost of vacation fun.  Instead, I try to just go with the flow.  Put another way – I’m frugal 51 weeks a year so that I can be free not to be frugal 1 week a year.

I hope you all are having a great week.  I’ll check in soon, and let you guys know how the vacation is going.

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Frugal 51 Weeks A Year

I hate face-to-face negotiations.  So, in the past, I’ve paid full price for items that I’m sure I could have gotten for less, simply because I don’t like asking for discounts.  Recently, however, I managed to to make two rather significant purchases, and I negotiated lower prices for both of them.  Here’s how.

Purchase #1 – A new grass trimmer.

I purchased a new grass trimmer from a large retail store.  After deciding on the model that I wanted, I asked to speak to the head of the outdoor power equipment section.  (I’m not sure what his official title is, I just know he works with the outdoor power equipment.)  I told him exactly which model I wanted to purchase, and I told him that I was ready to by, that day, but that I didn’t want to pay full price.  At first, he mentioned that I could get a 10% discount, if I would only apply for a store-branded credit card.  (Click here to read about an interesting conversation I once had with a salesperson about store-branded credit cards.)  I explained to him that I had cash, and that I do not use credit cards.  I then stopped talking and just waited to see what he might say.

At first, he didn’t say anything, and then he decided to speak to his manager.  I assured him that I would wait for him to return, and he headed off to have a conversation.  A few minutes later, he returned, and offered me a 10% discount, no credit application necessary.   At this point, I almost went forward with the purchase, but I really wanted to test my negotiation skills.  So, I simply asked, “Is that the very best you can do?”  (This is an old negotiating tip, and one that many others have been using for years.  For me, this was a first.  Seriously, I do not like face-to-face negotiations.)  He found his manager again, returned, and told me that the absolute best he could do would be a 15% discount.  Not wanting to push things further, I accepted his offer, made my purchase, and now I’m  enjoying my new grass trimmer.

Now, I’m sure that some of you out there are much better at negotiating discounts than I am.  I’ll freely admit, I’m usually a pushover.  So, the 15% discount, while nothing spectacular, was pretty major for a guy like me, who usually avoids the negotiation process all together.

Purchase #2 – The Vacation

This one happened just a few minutes ago.  Last year, we found a really awesome, affordable place for our annual family vacation.  It’s on the beach, it’s secluded, and it’s perfect for our young kids.  This year, while booking our stay, I decided to see if I could get a discount.  I emailed the property manager, mentioned how much we loved our stay last year, and asked for the lowest rate she could give us for an eight-night stay.  A few hours later, she emailed back, with a total that was 10% less than what the property’s website was stating.  Again, instead of jumping on the first offer, I emailed back, and mentioned that we really loved the site, but that we wanted to be sure that we were getting the best possible rate.  A few minutes later, she emailed back, and gave us a 25% discount on the cost of renting the condo.  Not bad, I’d say, for a few clicks on the old keyboard!

There you go.  Two tales of negotiating success.   What about you?  Do you like to negotiate?  (I know lots of guys who do.  I know guys who will negotiate the price of anything!  Me?  I think I’ll save it for major purchases.)  Would you like to become a better negotiator?  With the current economic climate, do you think we’ll see more people negotiating prices?

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The Negotiator

I’ve just returned from the grocery store – and I may have done irreparable harm to my frugal cred.

First – We were out of everything.

Second – I only had thirty minutes to buy everything that we needed.

Third – I forgot my grocery list.

Fourth – I forgot my grocery price book – and, frankly, even if I had remembered to bring it, I would never have had enough time to consult it.

Fifth – I went shopping on an empty, starving stomach.

Sixth – I entered the store right at 5:oo pm – quite literally the busiest time of the day.

I’ve never zipped through a grocery store so fast in my life.  I honestly have no idea what I purchased.  I feel like I spent twice as much as I should have, and I really do not have the heart to look at my receipt.  In this case, ignorance will be bliss.

Remember that really cheesy television game show… What was it…  Here, let me ask my wife… Oh, yeah… Supermarket Sweep!

Yeah, that was me.  I was just up and and down the aisles, piling things into the cart.  Paying for my haul took ten minutes, and I think I heard my debit card scream in pain as I swiped it though the little card reader.

To all of my frugal pals, please forgive me.  I promise, the next time I go to the store, I’ll be better prepared and I’ll give myself more time to shop!

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Epic Grocery Shopping Fail

According to ShopperTrak - the world’s foremost provider of shopper traffic counting information, technology and decision support software for businesses in the retail, gaming, hospitality and entertainment industries – Black Friday sales were up 3 percent this year over 2007.

That’s right.  With all of the news coverage about bailouts, mortgage failures, bankruptcy filings, and financial devastation – Americans spent 3 percent more this year than they did last year.

Here’s the full press release from ShopperTrack -

CHICAGO – November 29, 2008 – Despite a lagging economy that has left the retail industry collectively holding its breath, ShopperTrak RCT today reported the holiday shopping season got off to a healthy start as GAFO retail sales increased 3.0 percent over 2007 – a day which increased more than 8.0 percent from Black Friday 2006. Preliminary sales estimated at a daily rate for Black Friday totaled $10.6 billion or $10,606 million.

While ShopperTrak warns that Black Friday isn’t always the best indicator for holiday season performance, retailers should be cautiously optimistic as deep discounts drove consumers en masse to various retail locations to spend – despite myriad economic pressures seen over the last two months.

“Retailers truly experienced what we’ve dubbed the ‘perfect storm’ over the last few weeks, with the financial markets melting down, the presidential election which typically slows retail traffic and relatively high gasoline prices – all of which slowed both retail traffic and spending,” said Bill Martin, co-founder of ShopperTrak. “Under these circumstances, to start off the season in this fashion is truly amazing and is a testament to the resiliency of the American consumer, and undeniably proves a willingness to spend.”

Retail traffic was heavy throughout the country as shoppers responded to early openings and numerous door buster specials and sales promotions. Regionally, the South lead the way with a 3.4 percent rise over 2007, with the Midwest (+3.0 percent), West (+2.7 percent) and Northeast (+2.6 percent) closely following.

“While this is an encouraging start for retailers, there’s no guarantee these deep discounts will continue after Black Friday weekend, which could slow spending,” said Mr. Martin. “Additionally, consumers have just 27 days to shop this year as opposed to 32 in 2007, which may catch some procrastinating consumers off guard, leading to lower sales levels.” Martin continued: “Needless to say, retailers will be closely watching this trend and most likely adjust as needed heading into the annually strong Saturday before Christmas, or Super Saturday.

Information supplied by the National Retail Sales Estimate (NRSE), Retail Traffic Index (SRTI) and ShopperTrak RCT Corporation.

Here’s the part of this article that bothers me, just a bit -

“Retailers truly experienced what we’ve dubbed the ‘perfect storm’ over the last few weeks, with the financial markets melting down, the presidential election which typically slows retail traffic and relatively high gasoline prices – all of which slowed both retail traffic and spending,” said Bill Martin, co-founder of ShopperTrak. “Under these circumstances, to start off the season in this fashion is truly amazing and is a testament to the resiliency of the American consumer, and undeniably proves a willingness to spend.”

I have to tell you, this reports bothers me, just a bit.  Sure, I’m happy that the economy (might) be in a little better shape than we have been led to believe, but if people are struggling, shouldn’t we all be spending less and not more?

What do you think?  Is this a good thing and a sign of a recovery?  Or, do you think that people flooded the stores, bought as much as they could for as little as possible, and the rest of the holiday shopping numbers will be down?  Or, are people simply ignoring the current financial crisis and choosing to shop, shop, shop?  What about you and yours?  Are you cutting back?  Are you buying less?  Are you buying more?

Personally, I’d love to see people adopt lifestyles that were a bit more frugal.  I realize that moving towards a more frugal society will hurt in the short-term, but imagine the long-term benefits.  My wife and I, wanting to add a bit more to our non-retirement savings, have decided to reduce Christmas spending by about 25%.

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The Financial Sky Is / Is Not Falling

As I mentioned in a related post, over at No. Calories Needed, about weight loss and resolutions, Thanksgiving will be here in 21 days – and Christmas is just 49 days away.  2008 has just flown by, and 2009 will be here very soon.

Let me urge you – Please don’t wait until January 1st to get your financial house in order.  You do not need, especially in these strange economic times, to rack up a mountain of credit card debt, just to buy gifts!  Please, don’t limp through Christmas, without a budget, promising yourself that you’ll “fix it all come January.”  Instead, make your resolution today!

November is less than a week old.  You still have time to create a budget for this month.  List your income, list your expenses, and see where you are.  Take your time and be realistic.  I’ve written several articles about budgeting, including -

• 10 Ideas For A Better Budget
• Budgeting If You Have Irregular Income
• Creating A Simple Budget

If you have credit card debt, don’t add to it during December!  Instead, consider a No Credit Christmas and check out my ideas for inexpensive, awesome Christmas presents.  I know that you want to give nice gifts to your friends and family members, but if you can’t afford them, you just can’t afford them.  Do not go into debt in order to “keep up”.  Remember, we are working to change our futures, and this means that, from time to time, we must make sacrifices.  Plus, imagine how much better January will be if you don’t have to pay for December (or November, September, August…)

Today is your day.  You are in charge of you – and your destiny.  Don’t wait one more second to take care of yourself, and your family.  That’s what focusing on my weight loss and health is teaching me.  At first, I felt selfish about going to the gym and missing some time with my wife and kids.  Now, however, I realize that I HAVE to focus, on me, for a while, so that, in the long run, I can be a BETTER father and husband.  The same holds true when it comes to financial management.  Unless you take the time to focus on YOUR situation, you’ll never be able to focus, completely, on helping others.

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Do Not Wait Until January 1st To Make Your Financial Resolutions

I love to play golf.  I also love to save money.  Here’s how to save a few bucks when hitting the links.

• Avoid weekend/holiday rates.  Most public courses offer discounted rates when you play on a weekday.
• Share a bucket of range balls with your playing partner.  Spend a few extra minutes on the putting green instead of the range and your scores will improve.
• Bring your own snacks / bottled water / sodas / etc.  You’ll pay far less than you will if you purchase these items at the course.
• Check out state owned and operated golf courses.  Many of these courses offer summer or winter discount packages and proceeds from many of these courses fund education.
• When buying clubs (and other equipment) be sure to check sites like eBay and Craigslist.  If you are a beginner, this is a fun way to experiment with different clubs without breaking the bank.  I purchase practice golf balls in lots of 100 for much cheaper than I could buy them at the local sporting goods store.
• Pay for a few lessons.  Eight years ago for Christmas, my wife arranged for me to have a series of lessons with a local professional.  Those lessons cost a very minimal amount, but they radically improved my game.  I went from scores in the 100’s to scores in the 80’s.  It might cost a few bucks up front, but you’ll more than recover your money in fewer lost balls, fewer headaches, and fewer moments of shear frustration.
• Skip the gimmicks.  Don’t pay for the latest and greatest gadgets.  Simply spend time hitting golf balls, working on your stance, finding a good putting stroke, and your game will improve.
• Walk the course.  Golf can be a frustrating game, or, it can be relaxing.  The next time you go play, especially if you play by yourself, ditch the cart and walk 18 (or 9).  Enjoy every step.  You’ll save a few bucks, get some exercise, and have time to think about your next shot.
• Avoid the course all together.  I recently purchased a set of junior-sized clubs or my four year old.  He loves just hitting golf balls in the yard.  I’ll grab a pitching wedge, and while he’s pounding massive 25 yard drives with his 3-wood, I’ll practice chipping.
• Play late in the evening.  Many courses offer twilight, all-you-can-play-after-a-certain-time golf.  I’ve finished many a round in the almost-dark.  It’s cool to hit the golf ball, wonder where it went, and then find it pin high.

I usually play at our local municipal course or I’ll play with a buddy of mine at a course near his house.  Golf can get very expensive, very quickly, and it’s also a bit addictive.  But, over the past three years, I’ve learned to put it into perspective, enjoy the game, improve my play, and do so in ways that don’t break the bank.

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10 Ways To Save Money On The Golf Course

I’ve been working my way through the archives of No Credit Needed, looking for dead links and consolidating a few categories.  Well, tonight, I stumbled upon this post – written more than two years ago – labeled “Psycho Shopper“.

If you read the post, you’ll find out that I purchased 14 boxes of fabric softener sheets.  You’ll even see a pretty picture of those boxes, stacked neatly on the dryer.

No big deal, right?  It’s Just another post about saving money and stocking up on a particular, albeit strange, grocery store item.  Right?

Well, not quite.  You see, if you read the post, you’ll see the following -

If we wash 2 loads of clothing, per day, and use 1 dryer sheet per load, then we will need 365 X 2 = 730 dryer sheets per YEAR. Well, I have 1680 dryer sheets, so, I should be good for, hmmm, let’s see…2 YEARS AND 3 MONTHS. So, the next time I will have to buy dryer sheets will be… June of 2008! HAHAHA! That is insane.

Here’s the kicker.  It’s June of 2008 – and yesterday – we ran out of these dryer sheets!  How about that?  I nailed it.

Side Note:  As I take a look at my grocery store price book – the price of dryer sheets has gone up more than 20% over the last two years.  Inflation, especially at the consumer level, is for real.

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Should This Post Have Been Labeled PSYCHIC Shopper?