Lots of good ideas here! This year I wrapped gifts in babygrows, fabric, old jeans, shoe boxes, old magazines and old posters. I tied them up with ribbons and feel great that most of the packaging can be reused next year!
I am unemployed this year,but fortunately I participated in an online community that gives me amazon cards. I was able to do 90% of my shopping with these cards. I feel pretty good and I was able to get a name from the giving tree at my Walmart. I made some kid a better holiday too. It is amazing what we can accomplish frugally.
I think its really dumb to go into credit card debt for the holidays. The people you buy gifts for are your loved ones anyway, and I'm sure they'd understand you spending less money in times like these. In the past couple of years, my family has decided to do a secret santa instead of everyone getting gifts for everyone. Its saved us all a lot of money and stress.
In a regular account you've already paid income taxes on the money you save. Any capital gains you earn are (currently) taxed at a very low rate.
In a tax-advantaged account you defer income taxes when you put the money away, but then you pay income taxes at the (then current) rate for income when you take the money out. My point was that capital gains lose their preferential tax treatment in a 401(k) or IRA—you pay taxes at the rate for regular income on everything you take out.
Assuming that your investments will return a mix of interest, dividends, and capital gains, you'd want, as much as possible, to earn your interest in a tax-advantaged account, and earn your capital gains in a regular account.
(Note, of course, that all these tax details are liable to change. Just now, for example, dividends are taxed at a low rate, so there's a second reason to hold stocks in a regular account. But that preferential treatment is scheduled to expire at the end of the year, and it's anybody's guess as to whether that feature will be extended or not.)
Your long-term goals should be funded with long-term investments and your short-term goals with short-term investments. The decision about which type of account should be used to hold which type of investment is a tax-preference decision, not a goal time-horizon question.
And, when you think about it, the "enforced" long-term horizon is really just a crutch anyway. Once your finances are under control, you can establish your own horizons in accordance with your own values. You don't need the government to enforce a long-term horizon for you.
Good ideas! Babysitting is an awesome way to make a good amount of money. Usually, parents are willing to pay very well for a night out by themselves, and I'm sure would even up the price for someone willing to give up their own New Years eve so that the could go out.
I am so glad yo said that! I was feeling really stupid for a minute there for giving picture frames that my daughter decorated herself last year for a gift. I was a per-school teacher & Loved picture gifts!!
I would like to see more sports and outdoor-related deals. You are doing an excellent job as you are currently though. Great content and very professional. Love it!
"Holding that investment in your retirement account would be crazy. First, since you already don't owe taxes while you're holding it, you'd get no benefit from the tax deferral. Second, when you withdraw money from a retirement account you have to pay taxes on it as regular income--losing the favorable tax treatment for capital gains."
The second point is really, really wrong. You contribute to retirement accounts like a 401k or traditional IRAs with pre-tax income and get taxed when you withdraw at your income rate, likely to be lower in retirement. In contrast, in regular accounts, you've already paid taxes on the amount you've decided to invest and are paying capital gains on top of it--getting doubly taxed at a likely higher rate.
In contrast to finicking around with arbitraging tax rates, investors should take advantage of the enforced long-term horizon of their retirement accounts and tax-deferred growth to engage in buy-and-hold strategies with high expected total return to maximize growth.
This is my view on tipping (as cruel as it may be). The fact that waiters/waitresses get paid less than min wage doesn't concern me. If I get lousy service I leave no tip. If I get good service, I leave a generous amount. By leaving a tip for bad service, you tell the person that they will get money even if they don't do a good job. Why would they be motivated to go the extra mile if they will still get something?
Excellent job on actively researching and finding a solution! I never use cash anymore these days, having an extended warranty on big ticket items is one reason among many other benefits to using a credit card with reward points.
I agree, I have a pair of jeans and sweater from when I was in high school, that was over 10 years ago. The cost per wear for my clothes are much less than that of $3.
Dont forget about pets , put them away , clean up after them and remove signs of dog hair and smells. Your big dog maybe friendly but it could be the one thing that puts off a potential buyer. The cat litter tray may have been part of your life for years and you may be immune to the smell remove it!
Wow, that's a great benefit of a credit card. There are a few travel cards that cover travel insurance and things like that. I've always considered getting a credit card that has a lot of perks but then, there is always really high annual fees with the good ones.
I enjoyed reading your stuff. I have watched my daughter-in-law RIGHTEOUSLY do her couponing right down to getting many Sunday newspapers. I have also watched her be surprisingly wasteful with the stuff she buys. After thinking about it, I think she's wasteful because back in her head she doesn't value her purchases because they were BARGAINS. Also, I seldom find a coupon that is of any value to me. I prefer to buy basics rather than packaged foods Also, I have learned the INCREDIBLE versatility of baking soda which means I can eliminate a lot of expensive products. No, extreme couponing for me sounds like a form of slavery that only results in buying things that you probably don't already use, or in buying things that are too processed and too expensive to start with. No, couponing is not for all of us.
Buy "Cheapo" Mac n Cheese. Yep--I know Kraft is not exactly haute cuisine! But I refuse to buy the "off brands" for the once a month or so Blue Box Special at our house. .
I won't use fake butter. No way. No how. For any reason. Rather do without.
Won't buy the Shake N Pour pancake mix. 'Nuff said.
Won't give up my iced coffee. Doesn't really pay for me to buy and store and brew and chill and I am already exhausted. For a few cups a week it's either Dunks or Cumberland Farms $1 Ex Large Flavored Iced---actually pretty good!
I won't give up my dryer. I can't get to my washer dryer any more to hang up a lot of stuff--handicapped now--and if I asked the members of my family to do the shake it out hang it up clip it carefully---well they would probably toss the things in the recycle bin and I would never see them again! So we do spend a bit more. But as some have mentioned---sometimes it is NOT strictly a matter of "Choice".
I will NOT buy a new car. That drive off the lot lose thousands dealie just has no appeal for moi.
I won't get into a religious frenzy over paper towels. Sometimes a paper towel is the only thing that can really tackle a mess without inducing symptoms that might lead to more mess being created! With three dogs---one of them elderly--and two little kids paper towels available are a must not a "luxury". Don't use them for everything or even most things but when ya need 'em-=--ya NEED 'EM!!!
I won't buy weird off brand dog food.
OR razors
Or brake pads windshield washer fluid car care items
BUT---as a seller of used items on ebay--I HOPE people here and elsewhere DO buy used clothing and sporting goods! Why pay hundreds of dollars for things your kids will outgrow long before they wear them out? Skis skates snowboards helmets are all way too expensive to invest that kind of $$$ in . Even for most adults! As for the "Shoe Issue"---I DO sell used shoes altho I find lots and lots of UNUSED pairs of shoes at the places I shop for re-sale. And when I find a used pair that I offer for sale or give to friends and family I check them very carefully to make sure they have NOT molded to someones foot--this is WHY a lot of people get RID of shoes! They don't have the patience or interest sometimes to wear them for a few days to get them molded or they got them home and just didn't like them. Clothing is something everyone has to decide for themselves. Somethings are just not worth investing the money in for something that you will wear only a few times. Maternity clothing is one of those things. Going on a ski vacation if you are not an avid skier and spending more on the clothing than the tickets for the plane---not worth it!
I for one check all of the items I sell extremely carefully and most of the people I know who sell on venues such as ebay do also. I buy stuff we need that I haven't found locally and then if it is still in excellent shape we re-sell or consign.
And YES I WILL buy on ebay to re-sell--if I am smarter than the person listing the item for sale why SHOULDN'T I???? A lot of sellers don't know what they have and don't know how to promote what they have and refuse to learn HOW to do this. So just like you going to a garage sale and finding a 14k gold bracelet in the box of kids crayons and buying it for a quarter and re-selling it to the local gold scrap guy for $100.00---and bragging on it!!!!--I do the same thing using ebay as a giant garage sale.
In reference to your comment "In many states it's required by law." does that mean that there are states where you don't have to have insurance? That's crazy? What happens if someone causes you serious injury? Who can you claim against? In the UK it's mandatory to have auto insurance, but it's fascinating to hear that this isn 't always the norm elsewhere.
This is great info. We just purchased four major appliances with our credit card, which we immediately paid off. Looks like that might have been a smart way to pay. I'm off to check out Visa's policy. Thanks!
Lots of good ideas here! This year I wrapped gifts in babygrows, fabric, old jeans, shoe boxes, old magazines and old posters. I tied them up with ribbons and feel great that most of the packaging can be reused next year!
I am unemployed this year,but fortunately I participated in an online community that gives me amazon cards. I was able to do 90% of my shopping with these cards. I feel pretty good and I was able to get a name from the giving tree at my Walmart. I made some kid a better holiday too. It is amazing what we can accomplish frugally.
Great tip, Kelly! Thanks for contributing to the conversation. Happy holidays!
I think its really dumb to go into credit card debt for the holidays. The people you buy gifts for are your loved ones anyway, and I'm sure they'd understand you spending less money in times like these. In the past couple of years, my family has decided to do a secret santa instead of everyone getting gifts for everyone. Its saved us all a lot of money and stress.
I guess I still think I'm right.
In a regular account you've already paid income taxes on the money you save. Any capital gains you earn are (currently) taxed at a very low rate.
In a tax-advantaged account you defer income taxes when you put the money away, but then you pay income taxes at the (then current) rate for income when you take the money out. My point was that capital gains lose their preferential tax treatment in a 401(k) or IRA—you pay taxes at the rate for regular income on everything you take out.
Assuming that your investments will return a mix of interest, dividends, and capital gains, you'd want, as much as possible, to earn your interest in a tax-advantaged account, and earn your capital gains in a regular account.
(Note, of course, that all these tax details are liable to change. Just now, for example, dividends are taxed at a low rate, so there's a second reason to hold stocks in a regular account. But that preferential treatment is scheduled to expire at the end of the year, and it's anybody's guess as to whether that feature will be extended or not.)
Your long-term goals should be funded with long-term investments and your short-term goals with short-term investments. The decision about which type of account should be used to hold which type of investment is a tax-preference decision, not a goal time-horizon question.
And, when you think about it, the "enforced" long-term horizon is really just a crutch anyway. Once your finances are under control, you can establish your own horizons in accordance with your own values. You don't need the government to enforce a long-term horizon for you.
Good ideas! Babysitting is an awesome way to make a good amount of money. Usually, parents are willing to pay very well for a night out by themselves, and I'm sure would even up the price for someone willing to give up their own New Years eve so that the could go out.
I would like to see more deals on grocery items, and maybe a section on deals in my area. (coupons too!)
I am so glad yo said that! I was feeling really stupid for a minute there for giving picture frames that my daughter decorated herself last year for a gift. I was a per-school teacher & Loved picture gifts!!
I would like to see more sports and outdoor-related deals. You are doing an excellent job as you are currently though. Great content and very professional. Love it!
"Holding that investment in your retirement account would be crazy. First, since you already don't owe taxes while you're holding it, you'd get no benefit from the tax deferral. Second, when you withdraw money from a retirement account you have to pay taxes on it as regular income--losing the favorable tax treatment for capital gains."
The second point is really, really wrong. You contribute to retirement accounts like a 401k or traditional IRAs with pre-tax income and get taxed when you withdraw at your income rate, likely to be lower in retirement. In contrast, in regular accounts, you've already paid taxes on the amount you've decided to invest and are paying capital gains on top of it--getting doubly taxed at a likely higher rate.
In contrast to finicking around with arbitraging tax rates, investors should take advantage of the enforced long-term horizon of their retirement accounts and tax-deferred growth to engage in buy-and-hold strategies with high expected total return to maximize growth.
I would like to get a massage!
We really want a new food processor - we've just about worn our little out and we use it all the time to save money by making our own food!
This is my view on tipping (as cruel as it may be). The fact that waiters/waitresses get paid less than min wage doesn't concern me. If I get lousy service I leave no tip. If I get good service, I leave a generous amount. By leaving a tip for bad service, you tell the person that they will get money even if they don't do a good job. Why would they be motivated to go the extra mile if they will still get something?
Excellent job on actively researching and finding a solution! I never use cash anymore these days, having an extended warranty on big ticket items is one reason among many other benefits to using a credit card with reward points.
I agree, I have a pair of jeans and sweater from when I was in high school, that was over 10 years ago. The cost per wear for my clothes are much less than that of $3.
I tried everything and nothing worked. It's probably just me.
Dont forget about pets , put them away , clean up after them and remove signs of dog hair and smells. Your big dog maybe friendly but it could be the one thing that puts off a potential buyer. The cat litter tray may have been part of your life for years and you may be immune to the smell remove it!
Point no 8 got me real good. only if i read tis masterpiece earlier.
I would like to see more Health & Beauty deals.
i would like one of two items... either a tablet OR a membership to audible.com.
Wow, that's a great benefit of a credit card. There are a few travel cards that cover travel insurance and things like that. I've always considered getting a credit card that has a lot of perks but then, there is always really high annual fees with the good ones.
I enjoyed reading your stuff. I have watched my daughter-in-law RIGHTEOUSLY do her couponing right down to getting many Sunday newspapers. I have also watched her be surprisingly wasteful with the stuff she buys. After thinking about it, I think she's wasteful because back in her head she doesn't value her purchases because they were BARGAINS. Also, I seldom find a coupon that is of any value to me. I prefer to buy basics rather than packaged foods Also, I have learned the INCREDIBLE versatility of baking soda which means I can eliminate a lot of expensive products. No, extreme couponing for me sounds like a form of slavery that only results in buying things that you probably don't already use, or in buying things that are too processed and too expensive to start with. No, couponing is not for all of us.
Things I just won't do:
Buy "Cheapo" Mac n Cheese. Yep--I know Kraft is not exactly haute cuisine! But I refuse to buy the "off brands" for the once a month or so Blue Box Special at our house. .
I won't use fake butter. No way. No how. For any reason. Rather do without.
Won't buy the Shake N Pour pancake mix. 'Nuff said.
Won't give up my iced coffee. Doesn't really pay for me to buy and store and brew and chill and I am already exhausted. For a few cups a week it's either Dunks or Cumberland Farms $1 Ex Large Flavored Iced---actually pretty good!
I won't give up my dryer. I can't get to my washer dryer any more to hang up a lot of stuff--handicapped now--and if I asked the members of my family to do the shake it out hang it up clip it carefully---well they would probably toss the things in the recycle bin and I would never see them again! So we do spend a bit more. But as some have mentioned---sometimes it is NOT strictly a matter of "Choice".
I will NOT buy a new car. That drive off the lot lose thousands dealie just has no appeal for moi.
I won't get into a religious frenzy over paper towels. Sometimes a paper towel is the only thing that can really tackle a mess without inducing symptoms that might lead to more mess being created! With three dogs---one of them elderly--and two little kids paper towels available are a must not a "luxury". Don't use them for everything or even most things but when ya need 'em-=--ya NEED 'EM!!!
I won't buy weird off brand dog food.
OR razors
Or brake pads windshield washer fluid car care items
BUT---as a seller of used items on ebay--I HOPE people here and elsewhere DO buy used clothing and sporting goods! Why pay hundreds of dollars for things your kids will outgrow long before they wear them out? Skis skates snowboards helmets are all way too expensive to invest that kind of $$$ in . Even for most adults! As for the "Shoe Issue"---I DO sell used shoes altho I find lots and lots of UNUSED pairs of shoes at the places I shop for re-sale. And when I find a used pair that I offer for sale or give to friends and family I check them very carefully to make sure they have NOT molded to someones foot--this is WHY a lot of people get RID of shoes! They don't have the patience or interest sometimes to wear them for a few days to get them molded or they got them home and just didn't like them. Clothing is something everyone has to decide for themselves. Somethings are just not worth investing the money in for something that you will wear only a few times. Maternity clothing is one of those things. Going on a ski vacation if you are not an avid skier and spending more on the clothing than the tickets for the plane---not worth it!
I for one check all of the items I sell extremely carefully and most of the people I know who sell on venues such as ebay do also. I buy stuff we need that I haven't found locally and then if it is still in excellent shape we re-sell or consign.
And YES I WILL buy on ebay to re-sell--if I am smarter than the person listing the item for sale why SHOULDN'T I???? A lot of sellers don't know what they have and don't know how to promote what they have and refuse to learn HOW to do this. So just like you going to a garage sale and finding a 14k gold bracelet in the box of kids crayons and buying it for a quarter and re-selling it to the local gold scrap guy for $100.00---and bragging on it!!!!--I do the same thing using ebay as a giant garage sale.
In reference to your comment "In many states it's required by law." does that mean that there are states where you don't have to have insurance? That's crazy? What happens if someone causes you serious injury? Who can you claim against? In the UK it's mandatory to have auto insurance, but it's fascinating to hear that this isn 't always the norm elsewhere.
This is great info. We just purchased four major appliances with our credit card, which we immediately paid off. Looks like that might have been a smart way to pay. I'm off to check out Visa's policy. Thanks!