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Seven pairs of easily confused money terms

Every area of specialization has its own vocabulary and its own subtleties in word choice. Here are seven pairs of money terms that seem interchangeable at first glance, but are actually slightly different …

APR vs. APY

These two abbreviations are familiar ones from banks and credit card issuers.

Annual percentage rate (APR) gives the yearly cost of a mortgage or other loan, including any interest, insurance, and origination fees, expressed as a percentage. It is the product of the periodic rate and the number of periods per year. APR does not take into account the effects of compounding.

Annual percentage yield (APY) gives the effective interest rate, and is always higher than the corresponding APR, except in the case of annual compounding, in which case APR and APY are equal.

14+ tips for finding and watching cheap movies

Love to see movies? Love to not pay a whole lot of money to see movies? Here are 14+ tips for scoring cheap movies …

I enjoy my fair share of movies. (I admit that lately I've been sucked into the Marvel universe quite a bit! SOOOooo many good movies …)

I'll also rewatch some favorites.

Over the next few years, taking in cheap movies with friends and family will be an affordable substitute for a vacation. All around it's cheaper. The good news for people who really love movies is that it's possible to get by pretty cheaply, and if you downsize other areas appropriately it won't strain the budget that much at all.

Tips for snagging cheap movies

So, here are some tips for casual watchers and movie buffs alike on scoring cheap movies, however you like to consume them:

Do your own store brand comparison testing

A common way to save money on groceries is to buy generic or store-brand items instead of buying name-brand items. Examples of store brands are Member's Mark (Sam's Club), Kirkland Signature (Costco), Great Value and Equate (Walmart), Private Selection (Kroger), and so forth.

Like most ways to save money, this piece of advice has exceptions: “It depends.” For some people, if given the choice of store brand and name brand, the store brand will be better all-around. For other people, the name brand will be better all around.

There's no way to know for sure which will be better for you unless you test it out.

Comparison testing: Finding out what works

One of the many tools that companies use to improve their products is comparison testing. They offer two products to a bunch of people and ask them which they like better. They then determine the “winner” and prioritize that product moving forward.

Seven ways to find time to invest in yourself

Know that you should invest in yourself, but just can't find the time? Well, you can, and the time is probably right in front of you …

Investing in yourself is important because no one cares about your success or your financial security as much as you do.

Businesses will just want your money. Your employer will just want as much work from you for as little money as possible. Community projects will run your life if you let them.

Basically, it's up to all of us to take charge of our own success. Finding the time outside of your normal job, family, community, and social commitments aren't always easy, but “free” time is a good place to look first. Free time isn't free; it ticks away just like any other time. It can be put to good use or frittered away. The choice is ours, and if we don't make the choice, others will.

10+ tips to save money buying and preparing food

Here's a quickie list how to save money when you buy and prepare food for your family …

After mortgage/rent payments, utilities, and transportation, one of the most important categories in just about any budget is FOOD.

It also can be one of the places in your budget that you can reduce the most. (Try getting your bank to reduce your mortgage payment!)

Save money when you buy and prepare food

Nothing is free, of course. If you don't pay with money, you'll often pay with time. It does take time to prepare to buy food, to get things in place to save money when you buy food, and to prepare food.

The main trick is to do activities that give you the best return on your time invested.

Here are some ways that you can save money buying and preparing food that don't need to take up a chunk of your day:

Ghosting a merchant and free trials

Ghosting is a bit of a cowardly way to leave a relationship. It's also a poor way to cancel a subscription. Say good-bye properly …

Regularly signing up for free trials, with the intent of leaving the deal before any costs are incurred, is a game. I don't think it's a particularly fun game, but some people get a buzz out of getting a little something for nothing.

You have to be organized and watch your free trials like a hawk, lest you do what the merchant is hoping that you do: forget.

Ghosting a merchant with a burner charge card

Just in case you're unfamiliar with the term ghosting, I'll explain it briefly.

Ghosting is a selfish, one-sided method of ending a relationship. It involves one person exiting the relationship without any warning.

Spend less by pausing and reflecting

This trick for spending less doesn't cost a dime. Just a few seconds and a couple of thoughts …

As Americans, we have so many opportunities to spend money on things we don't really need.

Thankfully, though, there's no shortage of ways that we can trick ourselves into spending less, like putting up spending roadblocks that make us hesitate just long enough to think twice.

A whole lot of converted money

A post from Becoming Minimalist showed up on my Facebook feed. One of those short statements with a picture background.

This was the short statement (which I promptly posted to my Facebook page):

Emergency fund expenses that aren’t really emergencies

Having an emergency fund gives huge peace of mind. But how many of these expenses are actual emergencies?

Dave Ramsey thinks that emergency funds are so important that he devotes two of his seven Baby Steps to them:

Shopping: Check the packaging carefully

Shopping is usually a pain-free experience, but not always. Sometimes a taped-up package hides a nasty surprise …

Big department stores are one of the conveniences of modern life that most of us use without much thinking about it.

We're fortunate to live fairly close to an IKEA, the Swedish home furnishings store where things are decent and often surprisingly inexpensive. Most of the time, shopping at IKEA is easy and (dare I say it) fun, but the last purchase we made from there didn't work out as planned.

Shopping IKEA to keep bettas happy

Our daughter has some bettas. I don't really swoon over them, but she has a heart for them, so there you go.

Bettas are properly called Siamese fighting fish. They're basically the fighting cocks of the fish world.

401(k) loans are still … loans

Just when we thought our non-mortgage debt was paid off, we remembered about our 401(k) loans …

I've talked a number of times about Dave Ramsey's Financial Peace University. I recommend it regardless of whether you feel you need help with your finances or not. (My wife and I learned a lot more than we thought we would!)

I credit Financial Peace University for getting us into the habit of budgeting. We have a very simple mostly-pen-and-paper method for budgeting that we've stuck with.

401(k) loans? Still at Baby Step 2

Part way into the course, we thought that we were rocking through the Baby Steps.