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╒════════════════════════════╕ │ │ │ More for Le$$ │ │ │ │ ╔════════════╗ │ │ ║ GUARANTEED ║ │ │ ╚════════════╝ │ ╘════════════════════════════╛ A NEWSLETTER DEDICATED TO THE PURSUIT OF BETTER LIVING ISSN: 1069-4501 (C) Copyright 1993 by Innovative Publishing. All rights reserved. Material may not be reproduced without written permission. ─────────────────────────────────────────────────────────────────────────────── ┌──────────────────────────────────┐ │Have More....Don't You Deserve It?│ └──────────────────────────────────┘ Do you enjoy getting the most for your money? Maybe you "sneak" deals for fear of being labeled "cheap" or perhaps you're vocal about your latest bargain. But chances are, you like to feel smart about how you spend your money. If you're like me, you work hard for your money, and want to be sure that you're getting the absolute most for your hard-earned dollars. After all, who is more important: you, the phone company, the utility company, the banks that issue your credit cards or any other contributor to your monthly budget woes? Why do you need this newsletter? In today's tough economic climate, it's more important than ever to get the most for your money. But the good new is, everyone can learn how to get More for Less: whether your household income is $20,000, $50,000, or more than $100,000 per year. Plus, by learning and adopting the cost-saving strategies and techniques that this newsletter will discuss, you'll have more money to enjoy! Then, you can begin to do more of all the things you want to do! In the 1980's -- the era of conspicuous consumption -- no one would have cared to read a newsletter such as this one. During that time, people were convinced and encouraged to overextend themselves financially in order to have the "finer things" in life. Buying on time became fashionable, and having more credit cards meant an instant raise, a salary extension. Unfortunately, while many Americans stretched their credit cards (instead of their budgets) to new limits, credit card interest rates often reached 18 - 24 percent. As a result, a $2,000 balance could be costing you $400 or more per year, in interest alone! And with today's economy, it's more important than ever to get More - not - Less for your money. But, my quest isn't just about saving money. Although this is certainly important and a very definite component, it's about living infinitely better than you are now with the same amount of money. But best of all, enjoying More for Less doesn't have to be difficult! Make a game out of getting your best price and the best deals -- in all areas of your life! Once you get going, it's a lot of fun. After all, it's your money! My "BIG" decision. It all started for me when I graduated from college, began my first job, and received my "real" education: from my mother. Mom always said that a child's education wasn't finished until he/she moved back home after college and learned how to handle money. I owe a great deal to her! (So does my husband!) Well, I did move back home for a short period (no, not rent free), but I resisted any kind of budget because shopping was my "hobby." However, Mom's rules were simple: I could live at home and pay a reduced rent rate, but only if I agreed to set a budget and financial goals! I agreed, and began charting a path that would allow me to achieve several of my financial goals by age 25. This was the turning point in my life, making a decision, to set goals while also maintaining the lifestyle that I enjoyed so much. And I'm living proof that it's not impossible! You just need to learn the "tricks of the trade!" Page 1 The key. The most important thing is to write down your goals and work around them! But more importantly, stick to them ! Remember, you are the only one who can determine how you are going to live. Studies show that the person who writes down a plan or goals is many times more likely to achieve his or her dreams (while living infinitely better), than the person who earns the same amount of money, but lives without any kind of plan or set goals! By applying this principle -- and by learning how to buy almost everything for less -- I was able to shelter thousands of dollars in IRA's (one of the best ways to accumulate money for retirement), purchase a diamond Rolex watch, pay cash for a 6,000-mile used car, enjoy a Caribbean honeymoon, and build a wardrobe (from all the best department stores), while maintaining a very healthy bank account. All this -- absolutely debt-free! And I was not earning a Wall Street salary: I simply set a plan, and stuck with it! As a friend puts it (and he's not the first to make this statement), "if you fail to plan, plan to fail." But, if you also learn how to obtain more (as in more merchandise, more nights in a hotel, more car for your money, and more free airline tickets -- just to mention a few examples) and spend less, then you can begin to achieve a very special type of success. Ben Franklin may have said that "a penny saved is a penny earned," but in today's economy, "a penny saved is at least two or three pennies earned!" Carron Parnell ──────────── ┌─────────────────────┐ │Getting Started......│ └─────────────────────┘ First things first. As I mentioned earlier, setting goals is important if you want to realize your dreams. So let's get started. Make a list of what it is you wish to accomplish, and then take a close look at your monthly financial picture. But don't limit yourself. After all, who's more worth it than you? I remember when I got married, my husband was also in love with his credit cards (sorry, Jeffrey), so we had to figure out what our goals were. We both agreed that first and foremost, we would not play the " revolving game!" (Banks often refer to credit card holders who only pay a portion of their debt each month as "revolvers.") To begin, we allowed ourselves some discretionary money for household items we needed (like a vacuum, kitchen table etc...), and for "play" money, because we didn't want to make ourselves crazy in the process. The trick is to figure out what each amount is for you and then, make sure to stick with it. Remember: when you budget, you are making a contract with yourself. So if you don't have it to spend, don't spend it! Next, you'll need to take an inventory of your fixed monthly expenses. Then, subtract that figure from your monthly take-home pay. This will determine your "discretionary income." (Hint: be sure to include everything from gas to groceries!) Now that you have a list of goals and you know your discretionary income figure, pick as many goals as you think are attainable within the next year. Then, calculate the cost of each goal and divide by 12 months. Example: (see below) To shelter $2,000 for an IRA this year, subtract $167 ($2,000/12 months) from your discretionary income figure. You now have $223 ($390-$167) remaining in your monthly budget. I recommend establishing different savings accounts (or earmarking money within your current savings account) to ensure that "budgeted" monies are not spent for other purposes. ┌───────────────────────────┬─────────────────────────┐ │Monthly Expenses │ Monthly Income │ ├───────────────────────────┼─────────────────────────┤ │Mortgage : $1,000 │ $2,000 │ │Utilities: 125 │ │ │Water: 20 │ │ │Phone: 50 │ │ │Credit Cards: 200 │ Discretionary Income │ │Groceries: 250 │ │ │Insurance: 100 │ $2,200 │ │Contributions: 50 │ - 1,810 │ │Gas: 15 │ -------- │ │ │ │ │---------------------- │ 390 │ │ $1,810 │ │ │ │ │ └───────────────────────────┴─────────────────────────┘ ┌────────────────────────┐ │Maintain Existing Assets│ └────────────────────────┘ Controlling expenses is an important part of saving money and if you enjoy expensive leather shoes, I'm sure you can appreciate the need to protect your "investment." One thing I've found that works well is to have heel and toe "taps" placed on each pair of new shoes. At your local cobbler, the cost should only be a couple of dollars per pair, and your shoes will last much longer! (Hint: be sure to ask for metal taps, if they're available.) Taps also keep your shoes looking "new," by decreasing wear and tear, and give you a "well-groomed" look! Page 2 ┌───────────────┐ │Paying too Much│ │Every Month for│ │ Utilities? │ └───────────────┘ You could be losing money if you don't act now! Many local utility companies offer terrific programs designed to save you money. By participating, you lower their wholesale power cost, which enables them to offer you a lower rate or a monthly credit on your utility bill. Such programs are designed to "beat the peak." In other words, by reducing the peaks which occur when the largest amount of electricity is being consumed, participants enjoy costsavings and no inconvenience ! Our utility company's program called "Beat the Peak" allows us to save $70 each year (actual credits on our monthly bills)! That's $700 over 10 years, or $1,400 in 20 years! I don't know about you, but I have no trouble finding somewhere other than the utility company to spend that money! To participate in a plan, simply call your utility company to schedule a time when a technician can install the necessary switches in your home (free of charge). The switch may be connected to your electric hot water heater, central air conditioning unit/heat pump or electric furnace. During peak load times the switch temporarily shuts off the power for very short periods of time. You will never even notice the difference! In fact, when I placed a call to one of my company's energy service specialists, he informed me that the chances of ever noticing your appliances being tumed off were slim. (Hint: most utility companies employ energy conservation specialists who can answer a number of your energy conservation questions.) If your utility company does not have a similar program, they should be able to recommend off-peak times when it's more cost-efficient for you to use certain appliances. For instance, instead of washing your laundry on Saturday mornings, which may be a peak time, find out when the off-peak times are and try to wash your laundry then. Chances are, it's not inconvenient at all, but simply a matter of rearranging your routine. Good news, apartment dwellers: you can also take advantage of most programs, with the landlord's permission. ┌─────────────────┐ │Buying a New Car?│ │ STOP! │ └─────────────────┘ Think twice before buying a brand new car. The minute you drive off the car dealer's lot, the value of your "investment" depreciates by 30 percent. On a $15,000 vehicle, you lose $4,500! Couldn't you find something better to do with $4,500? Yes, it does require additional time to look through the local newspapers, but it's worth a little inconvenience to save that kind of money. The key is to be patient and not make an emotional decision. Many financial professionals, in fact, often talk about "buying something because it's a good deal, and not because you fall in love with it." But it's great when both happen at the same time, and they sometimes can when you purchase a car. A very dear friend of mine, whom I'll call "Mary," was looking to buy a new car and was considering a new Toyota Tercel. She really wanted to buy the more expensive Celica, but figured she could not afford it. After I finally convinced her to consider a used car, (one or two-years old with very low mileage), she decided to take my advice. Within one month, Mary was driving an eight-month old Toyota Celica, with an odometer reading of 6,000 miles. The book value at the time (and the seller's asking price) was $13,000, but she offered $9,500, the maximum amount she could afford. The seller was disappointed and refused the offer, but Mary left her name and number, and asked the seller to call if she was willing to negotiate. Less than two weeks later, Mary received a call from the Celica owner, who needed to unload the car quickly so she could be approved for a mortgage (with the car, her debt ratio was too high). Given the circumstances, she agreed to sell the car for $9,500. If Mary had purchased the car brand new it would have cost $15,000. But by waiting for what she wanted and not acting impulsively, she saved $5,500 and owned the car of her dreams in the process. And with today's income and sales tax rates, everyone can appreciate a tax-free bonus of $5 ,500! Let the Buyer Beware. Be careful about buying used cars, though, because you could be inheriting someone else's problems. In fact, it's a good idea to have a reputable mechanic check out a vehicle before you make an offer. The cost for this service should be nominal and is an excellent investment. (You should also look at the car's service record.) It's also important to have a good feeling about the people who currently own the vehicle. Sometimes, it pays to trust your instincts! I bought my last car from a wealthy retired man who owned two other vehicles, and drove mine to his suburban summer home on weekends. The car was 1 1/2 years old and in mint condition, and had only been driven 6,000 miles! Today, the car has under 50,000 miles and is still in excellent condition. (Hint: It's a good idea to check with your insurance agent before buying a car. Sometimes, rates between car models vary dramatically!) Page 3 CENTER FORUM ┌─────────────────────────────┐ │Helpful Tips From Our Readers│ └─────────────────────────────┘ Great Bud Vases ∙ Save your designer water bottles and transform them into cute bud vases! Many of the tinted water bottles have labels that can be easily removed, leaving a pretty vase to hold fresh or dried flowers. Great for your desk at work; how many times have you fumbled for something to put your flowers in? Keep an eye out! - G. Dunn Connecticut Inexpensive Cat Toy ∙ Besides your shoes, blinds, pens or anything else that hasn't been put out of reach for your cute little house companion, a great and inexpensive form of entertainment for your little friend is an old tube sock filled with catnip. Your cat(s) will absolutely go crazy! Don't forget to replace the catnip every so often! - L. Hawkins Florida Keep Lingerie Twice as Long ∙ Your lingerie (particularly brassieres) will look great twice as long by following this simple tip: when washing, place your lingerie into a pillow case (close it with a rubber band), and wash on a delicate cycle. Air drying is of course best, but if you can't be bothered, take lingerie out of the dryer when damp. I keep the pillow case and rubber band right above the dryer to make things easy. - Kelly Fisher Virglnia Cheap Bird Seed ∙ Love watching birds, but not enough to buy food for them? Wash, dry and store the seeds from your melons, squash and pumpkins. Add some stale bread, and you've got a great snack for your fine feathered friends! Shower Curtain Scum? ∙ Wait! Don't throw out that shower curtain, it may have a whole lot of life left! Soap scum on shower curtains seems to be a losing battle when trying to scrub clean, but try saturating a rag with vinegar, then rub curtain. This often removes soap scum, mold and mildew. Mold in Grout ∙ Here's an inexpensive and safe cleaning remedy to get that awful mold out of the grout in your bathrooms. Mix a solution of borax and baking soda, and scrub. The mold will be killed and the room will be disinfected. ......................................... Send me your money-saving tips and if published, you'll receive a free one-year subscription! (See page 8 for details!) ......................................... Video Cassette - Guarantee ∙ When purchasing blank video cassettes to record your favorite T.V. programs and movies, be sure to look for a lifetime warranty (many leading brands offer this guarantee). Withthis policy, if a tape stops functioning, simply return it to the store where you purchased it and get a free replacement. Also, make it a point to support stores with "hassle-free" returns! - J. Dillon Nor Carolina Safe, Inexpensive Insecticides for Your Garden ∙ Try to avoid adding more chemicals to our environment and try a home insecticide remedy first! Blend the following ingredients together to a fine liquid: two Jalapeno peppers, one onion, two cloves of garlic, and one cup of buttermilk. Pour into a spray bottle and mist your plants. ∙ Sprinkle cayenne pepper or red pepper over your plants after a rain or when wet, for another allnatural alternative to insecticides. Page 4 Inexpensive Home Deodorizers ∙ A great way to keep your kitchen smelling fresh is to deodorize the garbage disposal. Pour ice cubes and vinegar down the drain and turn on the disposal. This also helps to sharpen the blades. - Brian Insley Maryland ∙ Can't get rid of the odor after cooking fish in the kitchen? Try boiling one cup of water in a pan, and add juice from a lemon along with the lemon halves. Boil for a few minutes. - Anna Comisarow Pennsylvania Inexpensive Adhesives ∙ In a pinch and need a tiny piece of tape or some glue, but can't find a thing around the house? Try some evaporated milk; it's a good emergency adhesive for a label or postage stamp. ∙ For another good emergency adhesive for an envelope or postage stamp, try some nail polish. It dries fast and works well. Inexpensive Home Cleaners ∙ Wondering what to do about those oil stains on the floor of your garage or driveway? Take a small amount of kitty litter, sprinkle liberally on the area and rub with your feet as if you were trying to put out a cigarette butt. Then sweep clean and dispose of litter ∙ Can't get rid of that ring aroundthe bath tub? Moisten a paper towel with kerosene, rub the area, and the ring should disappear. (Be sure to rinse the area well with soap and water when finished, to remove any excess kerosene.) Nail Tips ∙ To save a nail break or tear: instead of spending six to eight dollars for your manicurist to do a silk or linen wrap, get a tea bag from the kitchen. Empty the contents, then cut the outer lining of the bag to the size needed on your nail and adhere with nail glue or Krazy Glue. Let dry, then file and buff until smooth, and apply nail polish. This can work just as well as if done professionally! - Molly McDonald New Mexico ∙ Nail Polish Spills. Spills on your waxed floor or tile can be remedied by waiting for the nail polish to harden before trying to remove. When the polish is just barely solid and a bit flexible it can be peeled right off. Smears can result if the spill is wiped up before it has dried, or if a solvent is used after the polish has hardened. Clogged Bathtub Solution ∙ Bathtub Drain Clogged. Tired of spending money on "unclogging" products that may not work? Try using a plunger. But before using the it, place a wet wash rag in the drain hole so air cannot escape. Place the plunger over the drain, and fill the tub with enough water to cover the suction cup. Plunge vigorously. This will dislodge many stubborn clogs. Shoe Care ∙ Before packing your leather boots away until next winter, salt rings and stains can be removed fairly easily by applying a light solution of vinegar and cold water. Have them looking in tip-top shape when you pull them out for the first time next season. Car Care ∙ Keep your car's carpeting looking brand new by replacing the car mats every so often. Buy rug remnants that match the interior from a carpet store. Often, you can get them free or for a dollar apiece. This will preserve your carpeting, while also keeping the interior looking new. ∙ Protect the front dash and interior of your car by using a cardboard sun visor. Sun light and heat can do serious damage to a car's interior, but by placing a sun visor on the dash board and by applying "Armor All" on a regular basis, you will prevent or minimize dashboard and upholstery damage. The shade will also keep your car much cooler during the summer months. Page 5 ┌───────────────────┐ │Bag Lunch for Work!│ └───────────────────┘ People rarely think about all the money that slips right through their fingers on a daily basis. They're often quick to say they can't "afford" something without realizing that by slightly adjusting their lifestyle (or spending habits) in different areas, they would "find" money that they never realized was available. It's the small, trivial, daily expenditures on a regular basis that add up to large amounts of money over a period of time. One such habit relates to your daily lunches at work. If you currently spend just $5 per day, you're spending $25 per week....or more than $100 per month! Over a 12-month period, you're spending $1,200! If this is a habit of yours, start bringing your lunch to work now and allocate the money you would have spent toward something special you would love to have, but ordinarily wouldn't be able to "afford." Be sure to keep this money separate from the rest of your monies so you can allocate the savings toward that special something. And don't feel guilty... this is money you would have already spent. (If the "lunch out" habit is a difflcult one to break, you could begin by bringing two or three bag lunches each week.) To keep the "bag lunch" habit from becoming another "routine," you may want to be creative when selecting items that you bring each day. Sandwiches are great, but don't forget leftovers, salads, and pasta. If you have a microwave at work, make use of it. To unwind or "recharge" during your lunch hour, you may want to eat "on the run," and take care of several errands. Any task you accomplish during this time will help to increase your leisure time. Many of us enjoy having lunch with friends --- or perhaps catching up on the latest "news." If this is the case, invite your friends to join you in the company break room, or take your lunch to a nearby park or shopping mall. A related budget-stretching idea is to bring beverages to work, instead of buying them at the company vending machine or local store. Like most aspects of budgeting, this will require some planning, but can be well worth the effort. If, for instance, you get a really good deal on a 12-pack of soda, you'll pay $0.17 - $0.25 per can, as opposed to the "daily" rate of $0.50 - $0.85. That's a savings of $0.25 - $0.68 per can, which at a consumption rate of one soda per day, for one month amounts to $5.00 - $13.60 per month. Over a period of one year, that's a savings of $60.00 - $163.20! (If you consume two canned drinks each day, your savings double!) Remember, it's the money you save daily that makes the overall difference in your standard of living. Page 6 ╔══════════════════════════════════════════╗ ║ A Few Words About 401 (k)s and IRAs.... ║ ║ That You Can't Afford to Ignore ║ ╚══════════════════════════════════════════╝ Why worry about saving money you can't touch until you're 59 1/2, when it's difficult to make ends meet now? Because you can't afford not to! And, with uncertainties in the workplace and in the economy, the sooner you put these plans into action, the better off you're going to be at retirement. If your employer offers a "defined-contribution" plan such as a 401(k), this is the best place to start. Why? Because with most plans, taxes are deferred on the amount of money you contribute and on the interest you earn. The value of this tax shelter is demonstrated in the chart below and can be summed up as follows: if you're in the 28% federal income tax bracket, and your 401(k) fund eams an 8% retum, you've really eamed 36%! Even Wall Streeters will tell you that this is a great retum on your money! Plus, you build a foundation for retirement. Many eligible employees do contribute at least a small amount to a 401(k) plan, but "if you are not taking full advantage of yours, you could be losing one of the biggest tax breaks available to the middle class," according to a recent issue of Fidelity Stages, a Fidelity Investments publication. Last year, employees could contribute as much as $8,728 depending on their salary and their individual plan's provisions. In 1993, this figure increased to $8,994. You may not be able to contribute this amount, but the sooner you get started and the more you do contribute, the better off you'll be. Your money will have more time to grow because of the "compound interest" effect (interest is paid on both the principal and on the interest you've already earned). And, most employers will also contribute to your account, creating an additional return. ┌──────────────────────────┐ │A Special Word About IRAs.│ └──────────────────────────┘ There hasn't been too much talk about IRAs lately, probably because the 1986 Tax Reform Act disallowed income tax deductions for some workers, and drastically reduced these deductions for others. But even if you are no longer allowed the tax deduction, IRAs are still a good deal because they allow you to contribute up to $2,000 each year and earn tax-deferred interest. With both IRAs and 401(k)s, the current tax laws are designed to encourage retirement savings, and penalize any withdrawals from these accounts before you are 59 1/2. But by the time you reach this age, you will most likely fall into a much lower tax bracket, and will pay Uncle Sam much less than when your earnings were greater. As with all investment or retirement planning, please consult a qualified financial planner for details, and read a prospectus before investing in any stock, mutual fund or other opportunity. PUTTING MORE MONEY IN YOUR POCKET ╒══════════════════════════════════════════════════════════════════════════════╕ │ Example Kerri Kerri │ │ contributes 6% contributes 14%│ │ to her 401(k) to her 401(k) │ ╞══════════════════════════════════════════════════════════════════════════════╡ │Kerri's gross salary: $30,000 $30,000 │ │ │ │Percent of salary Kerri │ │puts into 401(k): 6% 14% │ │ │ │Kerri's annual 401(k) │ │contribution is: $1,800 $4,200 │ │ │ │Kerri's federal tax bracket: 28% 28% │ │ │ │Kerri's 401(k) saves her │ │this much in taxes │ │(28% * contribution): $504 $1,176 │ │ │ │Kerri's 401(k) earns 8% annually: $144 $336 │ │ │ │Kerri's "real" 1993 return (36%): $648 $1,512 │ ╘══════════════════════════════════════════════════════════════════════════════╛ Page 7 ┌───────────────────────────────────────────────┐ │************ My Personal Guarantee ************│ └───────────────────────────────────────────────┘ I'm so confident that you will save money with my newsletter, I personally guarantee it! If you find that you're unable to save the cost of this publication with my tips and principles, I will gladly refund the balance of your subscription, no questions asked. ──────────────── How to Subscribe ──────────────── To receive your subscription, please send your name, address, and check or money order, as follows: ∙ One Year (8 issues): $12.95 ∙ Two Years (16 issues): $22.95 Mail to: More for Less Guaranteed P.O. Box 3054 Greenville, NC 27836 ∙ Friends outside the United States and Puerto Rico, please add $6.00 per year to subscription price. ┌──────────────────┐ │Gift Subscriptions│ └──────────────────┘ Just send us the names and addresses on your gift list, along with a check or money order, and we'll do the rest. (More for Less makes a great graduation or bridal shower gift -- being financially savvy is especially important early in life!) If you'd like, we'll even send a personalized gift card with your message. Be sure to include your name and address, and if you're a current subscriber, we'll credit your account $1.00 for each gift subscription you purchase (limit 10 credits per subscriber per year.) Freebies..... ∙ Food Safety. For information, write to: Consumer Affairs Office (HFE-88) Food and Drug Administration 5600 Fishers Lane Rockville, MD 20857. ∙ Food Care. Have questions about safe handling of meat and poultry? Call the USDA's Meat and Poultry Hotline (800-535-4555) or write to: "The Meat and Poultry Hotline" USDA-FSIS,Room 1165-S Washington, D.C. 20250. ┌─────────────────────────┐ │Free Subscription Anyone?│ └─────────────────────────┘ Send in your money-saving tips or ideas and for each one published, we'll add one free year to your current subscription. Offer does not apply to tips already planned for future publication. More for Le$$ Guaranteed Page 8