Freeze Your Credit Card?

This post was originally published on the blog at www.getintheloop.coop

You didn't misread the tagline. This tip comes from a member who found a slightly unconventional, but brilliant, way to quit credit:

She froze her credit card in a block of ice.

According to the member, she's always had a hard time resisting the allure of credit cards, but knew how important they were in times of need. How, then, could she avoid the impulse spending while having relatively quick access to the card in an emergency? Freezing the credit card seemed to do the trick.

On three separate occasions, the member felt an impulse to make a purchase on credit. She opened her freezer to pull out the block of ice and let it thaw. Under hot water, she said it took around 45 minutes to thaw. Within twenty minutes, as she saw the block of ice shrink, some restraint would return to her, and the credit card would be re-frozen.

She hasn't used it in a year.

This is not for everyone. This member had AAA (at $54 for a basic membership, it pays for itself the first time you use it), so she didn't need her credit card for roadside emergencies. She also wasn't traveling abroad frequently (it is a good idea to have a few backup payment methods when traveling abroad!). Also, it is worth noting that this doesn't work very well if you have your credit card information saved at online merchants. Still, for many of us, this could be a great way to get into the habit of not relying on credit, to help kick-start the repayment process and help get out of credit card debt for good.

Share your methods for lowering debt on your credit cards here! No idea is too wild: All that matters is that it works.

When is the Right Time?

I have had this question in my head now for some time, turning it over and over, waiting to be asked and answered.  When is the right time to start talking to your kids about money?  After all, money is certainly one of those taboo topics.  When is the last time you talked to friends, acquaintances, co-workers, family, or even your therapist about your finances?   Exactly!  So how do we talk to our kids about something that we just don’t know how to talk about?

First off, we need to understand our own relationship with money.  Here is my suggestion, find someone you really trust, this can include a pet.  Set aside some time (even 5 minutes) and just start spilling the beans about your money story.  Be sure to include your earliest memories of money, your parents’ relationship with money (as seen through your eyes), your deepest desires about what you would do if you won the lottery, any fears you have about money and your dark secrets about money (i.e. the time you spent your paycheck on “fill-in the blank”).  These stories are connected to so many feelings that they clog our thinking, keeping us from being truly present in the realities of our current money situation.  When we tell these stories, let these ghosts out of the proverbial closet, their power over us lessens.  We can then face our current financial situation as it is and use our minds to make the best decisions we can based on our realities.  It is from this place that we can talk honestly and openly with our children about money.

Secondly, the money “talk” is not a one-time event; there is no perfect age or even perfect way to get this “talk” done right.  So just do it.  Every time something about money comes up include your kids. Obviously, depending on their age(s) they will have different levels of understanding.  Regardless, let them help pay the bills (even if this is just coloring in your check register) and put spare change in the piggy bank.  Bring children (ages 6-9) to UMassFive to open an account and join our Super Savers Club!  When facing challenging financial times be honest about the difficulties, all the while reassuring the young people in our lives that we are doing the best we can to take care of them. 

We cannot underestimate what even the youngest among us are absorbing.  My 2-year old son will clearly ask, “Mama, do you have mah-nee?” and then the other day he found a quarter and said “I have mah-nee!” just before putting it in his mouth. 

Why brand loyalty may be costing you money...

Very Loyal to the Apple Brand

As of writing this, I am going through a difficult but very necessary transition from one name brand to another, and I'm not talking about batteries or clothes. I like to think of myself as pretty un-attached to materials, and an enlightened marketer who realizes that half of the cost of an item is often because of its brand, not its quality, and while in this society, some companies stake their brand on high quality, high customer service, good value, and a good social message (ahem, UMassFive), when these things are lacking, I see no reason to be loyal.

Contrary to my optimistic view of myself, I am not impervious to marketing, or brand loyalty, and even though the physical goods I buy often (but surely not always) avoid being blindly loyal decisions, that is not the case with my search engine.

Like many, I use Google. Sometimes I forget that to Google is to search, not the other way around. I also really don't like Internet Explorer, which puts me in another majority. However, my company uses Internet Explorer as its default browser. My habit is to automatically switch straight from Bing to Google as default search. This last week, with a broken laptop, sitting on a temporary computer while waiting for my replacement, I didn't really bother. This allowed me to see Bing in a new light.

The result? I discovered that Bing has reward points. How do you gain them? By searching. How can you redeem them? On gift cards to Groupon, Amazon, and Tango, a card which apparently links to virtually any other merchant you could imagine. You can even cash in your points for donations to a cause you care about, like Boys and Girls Clubs of America, or Teach for America. And, of course, XBox Live points to get games, music, and videos.

To me, this was a total game changer. Someone at Bing had the brilliant idea to put a portion of their proceeds back into the hands of those who used their search engine. And, even though I'm more used to Google's layout, Bing's search results are actually pretty good, and a lot of the features I like in Google's search, like being able to easily convert units or see a snapshot of the weather, and find the result at the top without going to another search page, are also available. In this case, what does Google search actually do for me? What additional value do they provide for me? What additional value do they provide for society?

Absolutely nothing.

And yet I still find myself typing Google and Googling something to find my information, because I LOVE Google. I have an Android phone. I still find myself telling people to Google when I mean search. And every time I do a Google search rather than a Bing search, I'm costing myself what amounts to maybe half a penny. Not a lot, but with the amount I search, it sure adds up!

Search engines may not matter to you. You may use Ask, or Yahoo!, or any other search engine I haven't named. My point is not to get everyone to switch to Bing overnight (although it is worthwhile to know where the value is). Even for those who do switch to Bing after reading this, there is another lesson to be gained: Think about the brands you may otherwise subconsciously purchase, and ask yourself what the value is for you. Whether it's pasta sauce, nail polish, or ibuprofen, it could be worth taking a second look, and making that uncomfortable but useful transition to a new and strange brand that either saves you money, stands for something you want to support, has great customer service, or, maybe, a little of all of the above.

How I made money on the side (and how you could make more)

Just out of college, I had a tremendously hard time making ends meet. I had a wage and hours that, as a college student I found appealing but as a college graduate didn't work. I had a boat load of student debt, and some months had a hard time paying rent. I was acutely aware of two things:

• I needed to earn more money
• I was pretty good at computers

It's amazing what perspective can accomplish. Looking back, I wanted to make hundreds of dollars a week working with computers. However, I never put a great deal of effort into building a clientele. Even so, just by knowing that I wanted to make money working on computers, and sharing that with friends, co-workers, and acquaintances, I started getting gigs. Not bad at all! $50 here, $150 there, and my wallet began to feel a little happier. The jobs were infrequent, which concerned me, but that didn't matter so much when I had the opportunity to make relatively easy money in a short period of time, all for a skill as natural to me as riding a bicycle, but as foreign to others as Mars and the treks of the Curiosity rover. Not that I was the best at fixing computers, but when you're starting at less than zero, anyone who has half a clue is probably better. Now, in my current career, I have no need to do computer work for side money. Still, looking back, I would do some things differently when looking for side income. Whether you're looking at fixing computers or freelance writing, these are things you may want to keep in mind:

1.  Time is money: Never is this more true than in the world of the entrepreneur. The time spent working on improving your web presence, or reaching out to companies, should be counted along with the time spent actively earning money. If you devote a total of ten hours a week, and you earn $200 for two hours of work, you've just earned $20/hour, not $100/hour. Still a good hourly wage, while being more accurate. This theory also works for students applying for scholarships: Search and apply for 20 hours to five different scholarships, and win one for $500? You just earned $25/hr!

2.   Budget side income just like regular income: There may be a lot of things begging for your side income's attention: Bills, entertainment, birthday gifts, and more. However, if you're budgeting to make ends meet or take some of the pressure off, make sure you're including it as a source of income in your budget. That way you're keeping honest. It may not be the most fun way to go about things, but you can still budget for nice dinners and do so without regret. If you've tried it the other way, you know you'll thank yourself later. Trying to figure out how to budget income when it's unstable? The best way is to average out your income. It's probably better to be conservative in your estimates as well. If you have excess, save it so that when you have a shortfall you won't be struggling to make ends meet!

3.  It never hurts to work on self-improvement: It may cost a little bit of money, but take a class! There are many free classes or affordable online classes that won't take much time out of your schedule, but if you don't have much knowledge about marketing, that could be a great place to start. And, of course, adding knowledge within your field is a good thing.

There are no ­­­­­­doubts many people with far more knowledge than me about the ins and outs of managing a successful side-gig, but just because you earn good money and have a good clientele doesn't mean you're managing your finances wisely. By not neglecting your finances, you will truly make the most out of your side gig, and avoid the mistakes I made in my side-income foray.

Canning Your Food is Fun and Easy!

These days everyone is talking about frugality. What could be thriftier than canning your own food? Not only that, you can make it the way you like, without added preservatives, corn syrup, or things with unpronounceable names. Best of all, you can savor the bounty of local food long after the first freeze hits this fall.

Besides canning, you can dry, freeze, pickle, cure, smoke, ferment or place foods in cold storage. When choosing a method for food preservation, safety is a primary concern, with taste being a close second. It’s not too intimidating to throw something into the freezer, the root cellar or the refrigerator with some vinegar. We can be pretty sure that calamity will not follow. You’ve probably made tomato sauce and frozen it, or stored onions in a cool, dark place. It’s canning that’s kind of scary, and therefore the method with the most rules.

While canning does have a lot of rules, it’s also fairly simple—that is, it’s simple if you follow the rules. The most important thing to know is that the bacteria responsible for botulism thrives in the absence of air in moist, low-acid environments. Therefore, it is absolutely necessary to increase the acidity of low-acid foods, to kill any bacteria with heat, and to provide an airtight seal so nothing ominous can enter the product after you’ve sealed it. That's it.

Most fruits are acidic enough to can using a hot water bath canner, while most vegetables need to be processed with a pressure canner and some added vinegar or lemon juice to raise their acidity. Tomatoes are a borderline acid item, while green beans are low acid. If you don’t like your tomato sauce with added lemon juice or vinegar, you should probably try freezing instead. However, a bit of lemon never hurt a green bean.

Using the best, freshest produce makes the best preserve. Follow recipes from a reliable source, and you are assured a good product. Don’t omit the lemon juice, change the amount of salt, or try to cut down the heating time. Kosher salt and pickling salt are both good choices. Table salt contains anti-caking additives and iodine that can cause pickles to darken. Salt substitutes can turn bitter and give preserved foods an unpleasant flavor.

Some signs your preserved food has spoiled:

• The food, jar or lid has mold on it, or food has leaked out.
• The food looks slimy, shriveled, spongy or cloudy.
• You can see bubbles or bulging of the lid.
• The jar’s contents “shoot” out when the lid is opened.
• The food has an “off” odor.

Here are some additional resources for you if you decide to give canning a whirl this year.

1. The National Center for Home Food Preservation has a terrific website and offers a free, self-paced online course from the University of Georgia. http://www.uga.edu/nchfp/
2. Blue Ribbon Preserves by Linda Amendt
3. Quick Pickles by Schlesinger, Willoughby and George
4. The Complete Book of Small-Batch Preserving by Ellie Topp and Margaret Howard

A version of this article entitled “Preserving the Bounty of the Season” written by Peg Toscanini was first published in the River Valley Market Newsletter, Summer 2009.

That little savings jar of mine

It’s the last day of the month and you know what that means… it’s time to empty my coin jar! I actually have two jars, one on the kitchen counter and one in my bedroom. The one in the bedroom doesn’t get much action because I am pretty good about emptying my pockets the moment I get home.

You see several years ago I was interested in knowing just how much coin I accumulated in any given month. The best way I found was a jar on my kitchen counter. It says “golf money" on it but to be honest I am really bad at golf and have yet to use any of that saved money for that purpose. I just hate to waste it! Maybe that’s my problem I don’t play enough…

Anyway what began as a whim has turned into almost an obsession. Let’s just say I am very “diligent” in collecting every last penny I have.

I have to tell you those coins add up!  I usually bring the coins to the Northampton branch and use the coin machine in the lobby. It’s a great gizmo, takes about a minute, and I get a receipt to take to the teller line to make my deposit. Best part is there is no fee for using the service. Last month I had $33.07 in coin!  That’s just one month’s worth of just emptying my pockets, which is about average for me.  So far this year my highest month was $46.33 and the lowest month was $20.75. So far for the first six months of the year I collected $201.05!

So now I get to see how I did in July…its looks like we will be a good month from what I can see, but the coin machine will give me the official count. I can’t wait to find out.  If the second half of the year is as good as the first I could break $400 for the whole year and maybe even $500!  See what I mean when I said almost an obsession….but hey it works for me.  There are other ways to save money that you wouldn’t normally think of, check some of them out here.