3 more ways to save on groceries

A while back I offered 7 ways to save at the grocery store. Here are 3 more ways to save:

1. Compare prices for your favorite items. Prices for your most frequently-purchased items will be different depending on the store you’re shopping at. Next time you go grocery shopping take a pen and notepad and write down the prices for the items you buy most frequently. Repeat at a few other stores in your area, and before long you’ll have a good idea of which store has the lowest overall prices.

2. Product substitution. Say you like peanut butter. The price of peanuts has risen this year because of a shortage caused by bad weather. So instead of buying peanut butter you might try jelly or jam or any number of other alternatives. I use this tactic frequently when grocery shopping. I have a few different brands of bread that I prefer, and I don’t hesitate to buy them — when they’re on sale. When they’re not I find something else to try.

3. Don’t be tempted by items at checkout. Items are placed in checkout lines for one reason only: to get you to buy more. Gum, candy, batteries, lint rollers, anything the store thinks you may have forgotten while shopping. Magazines also appear here. While it can be tempting to pick up one or more of these items while standing in line, your wallet will thank you if you avoid them.

Now that we have 10 ways to save at the grocery store, are there any that I missed?

Photo by qmnonic

Ways to save on your cell phone bill

Just about everyone has a cell phone these days. And over a third now have smartphones. Cell phone plans from the Big 4 (AT&T, Sprint, Verizon and T-Mobile) can cost as much as $80-$100 a month for just one line! So what are your options if you’re looking to save on cell phone service?

Consumer Reports lists Five ways you can save on your cell-phone bill as follows:

1. Don’t automatically buy from the company store
2. Consider a lower-priced carrier
3. Use alternative services
4. Max out on Wi-Fi
5. Investigate employee discounts

Here are my thoughts:

1. The only way I’m buying from the company store is if they have the phone I want and it’s free (with contract.) If you’re with one of the Big 4, the company’s website is a great place to start. They often run online-only specials for popular phones that you won’t get ordering by phone or in-store.
2. The article mentions Consumer Cellular, which I’ve never heard of, as a low-cost alternative. But some of the other no-contract players out there include Straight Talk, Virgin Mobile, Boost, Metro PCS and Cricket. Some of these run on a Big 4-network, and some have their own networks. The advantage of these players is that you don’t have to sign a contract, and you can get a plan for as low as $30 a month. If you need robust national coverage, some of these options may not be for you. Be sure to check out the carrier’s coverage map before making a decision.
3. Carriers like to charge a massive fee for texting packages, and if you don’t sign up for one you’ll pay a per-text price of 10 to 20 cents. And unlimited data is becoming practically extinct. This means you will have to be more creative in finding ways to avoid added costs and imposed limits. Both Apple and Android have apps that allow you to send unlimited texts for free. And for data, there’s a mobile web browser I like called Opera Mini that can limit the amount of data your phone uses to surf the internet. It uses compression technology behind the scenes but still gives you the same browsing experience.
4. Using Wi-Fi whenever possible is one of the most important things you can do to keep your monthly bill down. Most smart phones can switch seamlessly from data networks to Wi-Fi when you’re in range of a hotspot previously accessed by your phone. Whenever I’m around the house, my phone is always using Wi-Fi for data, which allows me to keep my usage below the 200MB level every month.
5. Check your provider’s website to see whether they offer a discount for employees at your company. Some providers offer discounts for college students too, so it doesn’t hurt to ask.

Change for a dollar

I came across this video yesterday, and it really helped me focus on the spirit of generosity we each should have this Christmas season. Please take a few minutes to watch this video.

It’s amazing to me that one man who has nothing is able to take care of so many others.

When I was in college, I got my wisdom teeth taken out. After the procedure, I went home and basically laid on the couch for an entire day. I didn’t even feel like eating. But my sister, who has a caring instinct, made me some mashed potatoes and spent time with me while I recovered. It was a small gesture, but it stood out to me because it shows how the little things can make all the difference.

Try to take a break from the lights, decorations, shopping and presents for a moment and reflect on how you can better serve others. You’ll strengthen your character. You’ll improve the lives of others. And you’ll surely make a difference, whether you know it or not.

It really is the little things in life that make the biggest difference.

Renters Need Insurance, Too

For all you renters out there, do you own a renter’s insurance policy? Renter’s insurance protects you if your belongings are destroyed by fire, natural disaster, or theft. A common misconception is that your landlord’s insurance will cover your belongings if they’re destroyed. Their policy only covers the structure and anything inside that they own, so having your own insurance is a must for renters.

Renter’s insurance is very inexpensive. The average policy is about $15 a month and getting a few quotes online is easy, so there’s no excuse not to have one. For about $180 a year, you can ensure that your possessions are replaced if they’re stolen or destroyed. Some policies also pay for relocation assistance which covers the cost of rent or hotel stays if you’re unable to live at the premises.

One important aspect of renter’s insurance policies to pay attention to is replacement value versus actual value coverage. Replacement value coverage is far superior because it pays you the cost to replace your items, up to your policy limit. But it’s also more expensive than actual value coverage, which factors in depreciation of your items. So with actual value, you’re only getting market value (which may be far less than you originally paid) for your items at the time they were stolen or destroyed. To me, it’s worth the extra cost of 15% or so for replacement coverage.

To buy renter’s insurance, you’ll have to come up with your best estimate of the total dollar value of your possessions. When doing this, you have to distinguish between items with monetary value and those with sentimental value. Items with sentimental value (old love letters, family photos, etc.) can be difficult or impossible to replace, and might not have any cash value. Thus, when calculating the value of your items you should strictly consider monetary value. Based on your estimate, you’ll choose your coverage amount.

One thing I recommend is to walk around your home once a year with a camcorder, smartphone, or digital camera and record all of your possessions. As you go through each room, say aloud what you paid for each item. Store the recording on a CD or USB device at another location. Then, if your insurance company gives you a hard time when you submit a claim you’ll have proof of what you owned.

Some landlords require their tenants to have renter’s insurance. But most do not, so it’s up to you to protect yourself. Don’t let a disaster in your home destroy your finances.

Should you close a credit card you never use?

Say you got a credit card five years ago and you used it a lot during the first couple of years. But you haven’t used it since then and are thinking of closing the account. Should you do it?

You might think that by closing an account, you’re simplifying your life and improving your credit score. You may be right about the first part, but closing a credit card account, especially if it’s an older one, will actually harm your credit score in two ways:

It reduces your available credit, which pushes up your credit utilization ratio. This is a fancy way of saying that you are using too much of your available credit. Your credit utilization ratio accounts for 30% of your credit score. Because this is so important to your score, many experts recommend keeping your balances below 30% of your available credit. For example, if all of your credit limits add up to $10,000, you wouldn’t want a total balance of more than $3,000. But I recommend keeping your ratio at 20% or below to give yourself some breathing room.

It also reduces the average age of your accounts. This makes up a smaller, but still significant portion of your credit score. If you close a recently-opened card it won’t harm your score much. The bad news comes when you close an older account — this can reduce your average age of accounts considerably. Creditors like to see accounts that have been open a long time with a solid payment history. So if you close your oldest account you eliminate a portion of your oldest account activity.

The exception to this rule is a card that carries an annual fee. Especially if you don’t use the card regularly or get rewards from it, it may make sense to close it to avoid paying the fee. Before you do this though, apply and be approved for a second major credit card. You always want to have at least two major credit card accounts open.

A final tip: Use each of your credit cards at least twice a year. Even a $1 pack of gum every 6 months will do the trick.  This keeps them active in your credit mix and helps your overall credit score.