Money-Saving Tips – Around the Home

Home Entertainment

Enjoy programs and movies for little or nothing -  By now we assume that everyone is aware that if you enjoy movies Netflix is the way to go.  For just $8.00 a month they stream movies into your home TV.  If you’d like to watch old television programs or current ones without the commercials, try hulu.com, TVLand.com, or TVClassicshows.com

For free music try some of the internet radio stations such as nutsle.com, stereomood.com and jingo.com.

Phone services

The best bargain in phone service is Skype.com.  You can video call anywhere in the world for – FREE.  Your only out-of-pocket expense might be a video cam to connect to your computer.  These cams are available at Radio Shack and elsewhere for $20-$40.  Install the software from Skype and call worldwide for free.

If you don’t want to spend the money for a video cam, you can call overseas for free through Freephone2phone.com.  In exchange for listening to some short ads you get 10 minutes of free time to landlines in over 55 countries.

Local Bargains

Most are now familiar with the coupon site groupon.com.  Here’s another for bargains and coupons available to people 50 and over in your area, sciddy.com.  Select what service you are interested in (restaurants, travel, home & garden, sports, shopping etc.) and your location and they provide discounts and specials for seniors.

Free land, homes for $500.00

Many rural areas of the country (i.e. Colorado, Iowa, Kansas, Minnesota, and Nebraska) are facing severe economic problems and are offering free land (and tax breaks) to those willing to build a home and live there.  Do a web search for “free land” or go to cfra.org for details.

For more information on where and how to buy a home for $500.00, check our blog for the article titled: “Homeowners escape Property Taxes – Buy Property Back at Fractions of a Cent on the Dollar”.

Homeowner’s Insurance

One of the most common expensive claims on homeowner’s insurance is from a break in the water hose to your washing machine. Water damage from such a break can be extensive and expensive. Many insurers will reduce their insurance premium by as much as 10% if you take just one simple inexpensive step: replace the rubber hose with a stainless steel burst-proof hose. Stainless steel hoses are available at hardware stores for about $20.00.  Installing one will save you far more than the cost in reduced insurance premium and potential damage.

Additional money-saving tips on cutting housing expenses, including ways to live for free, are in our guide to cheap living, Retire on Social Security – A Guide to Living Well on a Budget of $1,000 a Month, available on this site.

If this or any of our other free money-saving tips or news we have provided saved you money, a donation will help assure that this site continues to provide information useful to your life.

Grocery Prices Rise

Ninety-three percent of adults report paying more for groceries now than they did a year ago, the highest finding to date. Only four percent say they’re not paying more for groceries now compared to a year ago. Prior to the latest results, the number that said they are paying more for groceries ranged from low of 75% in April 2010 to a high of 91% in May of this year.  (That’s no surprise to readers of this site, we were warning about rising grocery prices nearly a year ago.)

Seventy-nine percent (79%) of adults now expect the amount of money they spend on groceries to be higher a year from now, up five points from last month and just a point below the highest level measured. This number stayed in the low to mid-60s throughout 2009 and 2010.  Only three percent (3%) think they’ll be spending less on groceries in a year’s time, while 15% expect to pay about the same amount.  (Maybe they should invest in our book, “Couponing Secrets of Real Power Couponers”, available on the left column of our home page.)

For the third straight month, 79% of adults are at least somewhat concerned about inflation, including 49% who are Very Concerned. Only 19% aren’t as concerned about inflation, with just four percent (4%) who aren’t concerned at all.  (If you’re
concerned about inflation and you have money in the bank at ZERO interest – Wake UP!  Take some of that non-earning
money and stock up on your food needs for the future! You do plan to eat thisyear and next – don’t you?)

Read the full article:  http://www.rasmussenreports.com

Today’s video:  http://www.youtube.com/watch?v=FlY2eMCkdb0

Thank you Lisa M. $10.00 donation!

You’re Busted!  The Cyber Mafia Has Hacked You!

Large, organized crime syndicates have been launching sophisticated attacks against individuals and major corporations for decades. They’re organized, smart, and loaded with time and resources.  The result of their efforts is the theft of billions of dollars every year, and a large, ongoing presence in many of our most sensitive computer systems.

Organized cybercrime is a truly international affair, but the most advanced attacks tend to stem from Russia.  The Russian mob is incredibly talented for a reason: After the Iron Curtain lifted in the 1990s, a number of ex-KGB cyberspies realized they could use their expert skills and training to make money off of the hacked information they had previously been retrieving for government espionage purposes.

“It’s not like the Mafia, it is a Mafia running these operations,” said Karim Hijazi, CEO of Botnet monitoring company Unveillance. “The Russian Mafia are the most prolific cybercriminals in the world.”

Unlike their more boisterous hacktivist peers, organized crime groups don’t want their victims to know they’ve been attacked. They design their presence in their victims’ systems to be completely silent.   Once a hacker in an organized crime unit has gained entry to a targeted system and reached the limit of his expertise, he’ll send the hack up the chain to a more expert attacker. That continues until it reaches an organization’s top hacker, who will often steal whatever information the organization wants and cover the previous hackers’ trails.

“They could go after thousands of credit cards or one very, very sensitive document,” said Larry Ponemon, chairman of the Ponemon Institute research center for cybersecurity. “The technologies that they’re using are beyond the capabilities of most security systems. We’re defenseless against those attacks; it’s a big problem and it’s only getting worse.”

Read the full article:  http://money.cnn.com/2011/07/27/technology/organized_cybercrime/

Today’s video:  http://www.youtube.com/watch?v=0xa7yGQnnGM&feature=related

Frugal Living – How Tto Retire on Social Security

Man Buys $330,000 Home for $16

Kenneth Robinson found a loophole in the law that let him pay 16 dollars to own a $330,000 house.  It’s a little known law called “adverse possession”.

Robinson spent months searching for the perfect combination of events that enable him to swoop up the $330,000 home for a mere $16.  First, the house was foreclosed.  Second, the original owner abandoned his mortgage.  And third, the mortgage company went out of business.  Robinson filed adverse possession paperwork at the courthouse and claimed ownership of the property.  The cost – 16 bucks.

Under the law, if someone moves into such an abandoned home, they would have exclusive negotiating rights for the property with the original owner.  But, if the original owner wanted the “squatter” out, he would have to pay off his mortgage and the bank would have to file a lawsuit against the squatter to get him evicted.  If that doesn’t happen, Robinson believes that under Texas occupancy laws, the house will become his after he stays there for three years.

Watch the video:  http://www.youtube.com/watch?v=356kiqllkU8

Read the full article:  http://gizmodo.com/5823573/man-used-a-loophole-in-the-law-to-pay-16-bucks-for-a-330000-house

Frugal Living – How to Retire on Social Security

Ten Big Money Wasting Mistakes

CNN Money News has compiled a list of the top ten ways people waste their money:

1. ATM Fees – Using the closest ATM, rather than the one at your own bank will typically costs you about $5. Your bank charges a fee for going out of network, and the ATM you use also charges a fee. Your bank’s ATM probably won’t cost you a cent.
2. Lottery Tickets – They say you have a better chance of being struck by lightning than winning the lottery. But that doesn’t stop people from trying. Consumers bought more than $70 billion worth of lottery tickets last year, according to the North American Association of State and Provincial Lotteries. About $38 billion was awarded in prizes.
3. Gourmet Coffee – Spending a few bucks a day at the local coffee bar may seem cheap. But imagine all the money you could save if you simply brewed your own coffee at home. Americans spend an average of $8.43 each time they stop at a coffee shop, according to data compiled by Mint.com. With caffeine fiends filling up an average of 46 times last year, this adds up to a total annual bill of $385.97.
4. Cigarettes – Not only are they bad for your health, cigarettes are also a cancer on your budget. Americans spend $80 billion on cigarettes per year, according to the U.S. Centers for Disease Control and Prevention.
5. Infomercial Purchases – Only $19.95! Call now and we’ll double your order! Such promises have lured in many unsuspecting consumers to what they thought was a great deal. The infomercial industry brings in about $400 billion a year, according to the Electronic Retailing Association. But it’s no secret that many impulse purchases go unused
6. Brand-name Groceries – Food products from popular brands may come in prettier packages, but that doesn’t mean they’re superior to their generic counterparts. While a 9-ounce box of Rice Krispies costs $4.79 at one New York City grocery store, its 12-ounce generic brethren costs only $1.99, with an identical list of ingredients.  And a $2 or $3 price difference can add up.
7. Eating Out – Eating out is one of the most expensive habits you can have.  Consumers spent an average of $28.47 on each restaurant meal in 2010 and averaged 82 restaurant visits during the year — adding up to $2,341, according to Mint.com.  Bars and alcohol are another money sucker, with people paying even more per transaction for alcohol than they did for dining out last year. On average, people spent $42.27 each time they went bar-hopping.
8. Unused Gym Memberships – Automatic monthly fees are one of the easiest ways to waste money. And it’s not easy to cancel a gym membership when next week is always the week you’ll finally begin that New Year’s resolution fitness routine.  But gym no-shows are throwing away hundreds of dollars a year (maybe even a month, for some upscale gyms).
9. Daily Internet “Deals” – Those pole dancing lessons may sound like a great idea when an email entices you with 50% off for a limited time.  And of course, with daily deals, you’ll need to purchase the offer now, but cash in on it later. But lots of those vouchers never get redeemed. Lifesta, a site that will buy back your unused deals, estimates that 20% of all daily deals go unused. That’s a whopping $532 million wasted, based on the Local Offer Network’s estimate that the daily deal industry will grow 138% to $2.66 billion in 2011.
10. Bundled Cable or Phone Services – Bundled packages aren’t always a deal, if you’re not using the extra services you’re paying for. Consumers are often lured into bundled cable, Internet or phone packages because of the reduced rates offered during the first year or a limited period of time. But paying for 500 channels that you’re not watching, or unlimited text messages or airtime that you’re not using, is just a waste of money.

Read the full report: http://money.cnn.com/galleries/2011/pf/1105/gallery.money_wasters/index.html

Today’s Video: http://www.youtube.com/watch?v=I42c6RP04xU

Frugal Living – How to Retire on Social Security

Driving Down the Cost of Transportation

AAA recently released their annual cost of driving report.  According to their findings, the cost of driving an average sedan rose 3.4% last year to $8,776.00 with gas costs of $.585 per mile.  A minivan costs $9,489 with gas costs of $.633 per mile.  The most expensive was an SUV, costing $11,329 a year with gas costs of $.749 per mile.

What do you think is the biggest expense of driving?  Gasoline?

Nope.  The total cost of gasoline is a variable expense: it depends on how many miles you drive.  If you drive 10,000 miles per year your approximate fuel cost will be about $1,234 (about $.1234 per mile).

What about insurance? 

Nope.  Again, this figure is variable based upon many factors but a representative cost is about $1,300 a year.

So, what is the biggest cost of driving?  It’s depreciation.  The average vehicle looses $3,728 a year in value!  That’s 42% of the total cost to drive!  The average new car looses 40% of its value in the first three years!

So, if you want to cut your cost of transportation, substantially, buy a three or four year- old car.  Note: the lower-cost vehicle will also reduce your insurance costs.

Additionally, do not borrow money to finance a depreciating asset.  The average car owner pays $823 a year in interest costs.  Cut that cost to zero – pay cash!

In our guidebook (right column) we show how to slash your transportation costs to just $1,500 a year.

Frugal Living – How to Retire on Social Security

Sale on Long-Term Food Supplies

It’s rare (like almost never) that we mention a “sale” of any product in our commentary but we feel this merits an exception.  Please check our earlier post on the cost of Long-term food supplies surging 94% at Costco.  Costco now offers a six-month food supply for $579.99 ($1,160 for a year).  By comparison, Emergency Essentials has a special offering for a one-year package at $899.95.   They also have available packets of 14 potassium iodide tablets (think Fukushima) for $10.95.   Click the ad on the left column for their site.

Frugal Living – How to Retire on Social Security

This Mistake Could Cost You, or Your Parents, Their Medicaid Benefits for a Nursing Home

There have been changes in entitlements for Medicaid benefits.  Time was that when a nursing home patient ran out of money, Medicaid stepped in to cover the bills.  Well, like any benefit, a lot of people milked the system.  Children of elderly parents would put mom/dad into a nursing home then transfer all their parents’ assets into their names.  This left mom/dad destitute and Medicaid would step in and cover the nursing home bills.

This abuse was stopped by recent changes in Medicaid entitlements.  The new rules allow the government to look back five years into the patient’s financial history for any transfers of assets (or payments or gifts or loans) out of the nursing home patient’s name. Any such disbursements will delay or result in the denial of Medicaid benefits.

If you are responsible for the financial affairs of an elderly parent or a nursing home patient, be extra cautious not to violate these provisions.  If you are in, or may be in a nursing home, be extra cautious about giving/transfering/loaning money to others. You could be placing your benefits at risk.

Frugal Living – How to Retire on Social Security

Long-Term Food Supplies Prices Surge 94%!

Back in October of 2010 Costco offered a year’s supply of dehydrated and freeze dried food.  The full package included 5,011 servings and sold for $799.99.

If you recall, back then (click the January tab on lower right column then scroll to October 26 and before)  we had been sounding the alarm bells about rising food prices back then and urging people to stock up on provisions. We said in no uncertain terms:

“Are you getting the message here?  Possible food crisis ahead! If you have money in the bank earning zero interest maybe investing in the food that you will need to survive on for the next year just might be a better place to put that money.  We strongly suggest that you build a food bank to meet your personal needs for at least the next six months.  We have bought our long-term supplies from Emergency Essentials and recommend them. Click on their ad on the left margin on the home page of our site.”

We think our advice was both clear and logical.

Well, here we are not quite six months later and guess what?  First, Costco no longer offers the one-year package.  They now offer a six-month package with 2,470 total servings for $579.99.  That’s a 45% price increase in six months!  The annualized rate of price inflation is 90%!  But it’s actually a little worse that that.  Remember the one-year supply had 5,011 servings?  Well, two six-month packages will only contain 4,940 servings – 71 fewer servings.  You get 14% less and pay 45% more!  Adjusting for the decrease in servings gives you a 47% increase in prices for six months which translates to a 94% annual inflation rate!

So, did you earn a 94% annualized return on your money in the bank? 

Do you think food price inflation is – over? 

Can you afford to speculate that prices will not rise (Perhaps you plan to give up eating.)? 

We continue to urge readers to build a personal food bank and recommend viewers read our posts from last September/May/April.  We still recommend Emergency Essentials – see ad on the left margin of our site.

Frugal Living – How to Retire on Social Security

Money-Saving Tips for Pumping Your Gas

I don’t know what you may be paying for gasoline but we are paying $3.75 to $4.10 a gallon.  At these prices filling up is more than a few dollars, so, here are some tricks to get more for your money:

• Buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline. A one-degree rise in temperature is a big deal. When gasoline gets warmer it expands.  Buying in the afternoon or in the evening, after the ground has warmed up, means – your gallon is not exactly a gallon.
• When you’re filling up do not set the trigger of the nozzle to a fast setting.  Most triggers have three  settings: low, middle, and high.  You should pump on low mode, thereby minimizing the amount of vapors that are created while you are pumping. If you pump on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you’re getting less worth for your money.
• One of the most important tips is to fill your gas tank when it is HALF FULL. The reason for this is the more gas you have in your tank the less air is occupying its empty space. Gasoline evaporates faster than you can imagine!
• Also, if there is a gasoline truck pumping into the storage tanks, DO NOT fill up; most likely the gasoline is being stirred up as the gas is being delivered and you might pump in some of the dirt that normally settles on the bottom.