Sunday, May 29, 2011

Week # 18: Watt's Up? ... er... Down!

As we were researching refrigerators, I looked for a little device I had heard about that can easily measure the electricity usage and estimate costs of power for individual appliances. There are a few of them out there. We found one at Lowe's called the "Kill A Watt" EZ, model number P4460. It was $19, so I'll factor that in at the end. Click here to see the unit we purchased. Keep in mind there are similar units out there by other manufacturers, but this one seems to do everything I was looking for, and it was cheaper at Lowe's than any online price I've seen so far.

First, a little bit of background on our electric bill. There are some fees that are not dependent on usage, so I'll ignore those. State tax amounted to .13 cents for the month, not enough to make a difference, so I'll ignore that too. I'll focus just on the amounts our bill could be reduced by cutting back on our killowatt-hours (kwh) used.

Our bill is split into "tiers" which increase in cost as each dividing line is reached. For our residence, the "baseline" allowance in tier 1 is 267 kwh, which is charged at an average rate of .13 cents per kwh. Tier 2 gives us another 80 kwh, which we used up at .15 cents / kwh. Our usage topped out 103 kwhs into tier 3 during April, for which the charge is .24 cents / kwh.

Our total usage in April was 450 kwh, which was divided and charged at those three different rates. Reducing kwh will eliminate our most expensive kilowatt-hours first, so until we show our total bill creeping down into tier 2, I'll use .24 cents per kwh as the savings amount.

By the way, our bill shows there are as many as five tiers, so I suppose that means we're pretty average and not among the worst electricity hogs in the neighborhood. Still, there is certainly room for improvement, which starts by educating myself about how much each appliance actually costs to run.

Using the Kill A Watt meter is very easy. First, it asked me to set the rate we're paying (.24 cents/kwh for the moment) on the rate screen. Then, simply plug whichever appliance you want to measure into the meter, and plug the meter into the wall socket. Hit the reset button and leave it there for at least a few days for an accurate reading (since appliances often turn on and off based on need, the longer the time period measured, the more accurate the long term estimate). When you're done, the unit automatically tells you how much you're spending in electricity to run that unit for an hour, day, week, month, and year.

Of course, the first targets were the new and old refrigerators. Already, the Kill A Watt meter results are worthy of a blog entry. The old refrigerator, now removed from our grid, pulled 18.07 kwh in 134 hours of being connected to the meter. The new reefer pulled just 9.13 kwh in 146 hours time, well under half the prior usage. The annual cost comparison: $281 for the old, and $130 for the new. At a power savings of about $150 per year, the new unit will probably pay for itself over the time that we plan to keep it.

Checking to make sure tier 3 rates apply to the entire calculation: The estimates from our new toy are 1,181 in annual kwh for the old reefer and 548 kwh for the new. Subtracting and dividing by 12 to get a monthly number, the reduction should be about 53 kwh per month. That will not take us down to tier 2 rates, so the calculated savings at .24 cents / kwh should be pretty close.

I should see an Edison bill reduction of about $12 - $13 per month starting in June due to the new fridge, just in time to switch the air conditioner on. And of course, there's a pending application to increase rates this fall that I just noticed. Oh well... I'll worry about adjusting for that later if it makes a big difference.

One year's electricity cost saved by switching reefers: $281 - $130 = $151, minus $19 for the meter = $132

Total saved to date: $2,841.22

Saturday, May 28, 2011

Week # 17: R & R (Rebate and Recycling incentive)

Southern California Edison offers an incentive for getting rid of an older refrigerator, and a rebate for purchasing a new energy efficient one. I debated on whether to count this separately from last week's entry, or wrap it together. I decided they should be separate entries for three reasons.

One, it was possible to purchase a refrigerator that did not qualify for the rebate, so that monetary gain was not directly tied to our price negotiations from last week. Two, the recycling incentive is connected to the old fridge, not the new one we just researched and purchased.

And three.... I still need 35 more entries to get to the end of the year.

Once the decision to purchase a new refrigerator was made, it wasn't difficult to find the rebate information.  We had references to it among the inserts in our electric bill, so it was on our radar. It's basically a $50 rebate to influence the purchase of energy-efficient appliances. Filling out a little bit of paperwork was the only little annoyance.

The other part of the equation is the incentive to get an older fridge off the grid. We called the program number, got an appointment, and within a few days two guys came and hauled off the old unit. A check for $50 is on it's way.

If you live in Southern California, are a customer of Edison, and are thinking about buying a new fridge or getting rid of the old refrigerator or freezer in your garage, click here for the information on the rebate and recycling incentive.

Rebate and recycling savings: $50 + $50 = $100

Total savings to date: $2,709.22

Saturday, May 21, 2011

Week # 16: Take the Floor Model

It's time to replace our refrigerator. It's a hand-me-down from Trish's brother's family and we've had it for 11 years, so we think it's at least 15 years old. It certainly shows. The ice dispenser is always frozen, shelves are creaky (one has cracked), and I'm guessing the unit is an electricity hog, compared to new models.

I left this mostly up to Trish to figure out how to get a good deal on a good refrigerator. The end strategy: establish a relationship with the sales dude, and don't be afraid to take the floor model.

Trish started by looking at all the current features and models, settling on a style (bottom freezer and middle drawer), and then narrowed it down to a few makers and models, including Maytag. Once the model was decided, the objective then was to see if we could make a deal $100 better than what was commonly available. Lowe's, the closest appliance store, posted the retail price as $2294, and had it marked down for clearance at $2196, so we used that as our benchmark.

That sounds like a lot for a refrigerator, but we tend to run things into the ground, as with our current fridge, so I don't have a problem paying a little more for above average quality and features for something we'll undoubtedly still have 15 years from now.

Online searches showed the model posted anywhere between $2196 and $2600 (Best Buy). A check of other local appliance stores showed tags similar to or higher than Lowe's. Nearly all were out of stock for this model. So Trish went back and chatted up the salesman, who couldn't have been nicer. That's when we learned the model appears to have been discontinued so no new ones were available, but they had the one Trish had originally seen left on the floor for show, and offered a 10% discount beyond the "clearance" price if we took it home. 

Normally, we don't go for pre-owned or used items. Always have bought new cars. Just feels more comfortable. But... cognizant of this blog, we went back to Lowe's and struck up another conversation with Jose. The 10% discount already qualified us for blog-worthy savings, but Jose was feeling generous and offered ANOTHER 10% off the already reduced floor model price. I guess he sensed we were interested, and needed the floor space. So for $1788 plus tax, we acquired a fridge that appeared to be the equivalent of a $3000 Samsung version right next to it. And the reefer we selected DOES hold magnets, while the front of the $3K fridge is NOT magnetic, despite both having a stainless steel finish. Well, THAT clinched it, of course.

We have to live with the fact that the stainless steel in front is kind of an unintentional two-tone because of some large promotional stickers... but that will be covered with pictures and magnets within a couple of days anyway.

I'll count the savings based on the $2196 amount, since that's the "before research and negotiations" price that we could have paid without establishing the relationship with Jose and checking around.

Savings for settling for something a little less than new: $2196 - $1788 = $408

Total blog savings to date: $2,609.22

Sunday, May 15, 2011

Week # 15: Poker

Sorry... Way behind. April, being Earth Month, is traditionally busy for anyone in an environmental field. But no excuses... I do intend to get to 52 weeks, so I'll post a little more frequently for a while (I hope).

Apologies to anyone following this who received incomplete messages that I had preset to certain posting dates and then failed to write up the text. I have abandoned that strategy and will just post as I write from this point.

Today's subject was not one of my choosing. As you may have heard last month, the US Dept. of Justice shut down the three largest online poker operations in the US, among them PokerStars, where I had an account with $302.42 that I was using to play in tournaments ranging from $1 to $5 buy ins.

That account was started with money from my Ridesharing earnings. It hasn't changed too much since it began a few years ago, and would have sat there for several more years. However, the federal government in all it's wisdom has decreed that I must cash out that account and henceforth play online poker only for pride and Zynga gotchkas, rather than for anything with any actual value. Not to get too soap boxy, but for a nation that bills itself as the land of the free, it seems odd that we now have one of the most restrictive poker policies of any nation on Earth. Even more odd, considering the roots of the game are firmly planted in American history.

I am not going to give up poker entirely - I'll get my fix in a local casinos here and there - but from the amount being refunded to me, I will set aside $100 that I will put back in my general bank account to pay regular everyday bills. There's my $100 savings for this posting.

The remaining $202.42 will be my poker bankroll for playing local tourneys, and the occasional trip to Vegas. If that bankroll goes away by the end of the year, I'll quit playing until 2012 and at least I'll have the $100 in savings locked in. (I actually made a trip to the Commerce Casino a couple of weeks ago and came out ahead, so the bankroll has started out in a positive direction.)

Savings from US Government Mandates: $100

Total savings to date: $2,201.22

Saturday, April 9, 2011

Week # 14: Don't Forget the Medical Reimbursement Account

Total credit to Trish for this one. Though it's probably too late for others to put reimbursement requests in against last year's expenses, this is still a good reminder for anyone with an active reimbursement account for THIS year to put any pending claims in now. Don't wait until they are forgotten.

Every year our companies ask if we want to set money aside for the purpose of paying medical expenses with pretax dollars. I'm not very good at keeping track... just never seems to come to the top of the important stuff list.

Last year I did not contribute any money from MY check to a medical reimbursement account, but my employer seeded my reimbursement account with $250 for choosing a particular medical coverage for myself. I did file one claim early on when it was fresh in my mind, but I hadn't thought about that account in several months. And I wouldn't have thought about it to this day, except that Trish mentioned as we were sitting on the couch a couple of weeks ago that her deadline for filing pretax reimbursements was coming up at the end of March. She asked if I had any dollars in an account and any expenses to claim against it. I didn't think so, but the next day I took a look...

Sure enough, there was $169.89 of the original $250 still sitting there. Trish found a receipt for a new pair of glasses that I purchased last year. Without Trish's prompting I would have ignored the account altogether. I think it's a subconscious thing - I'm not a fan of the hassle in paperwork and justification that have sometimes been required in the past. However, this time it was relatively easy to make a quick copy of the receipt, print the reimbursement form located online, and fax the two together on March 30, the day before the deadline for claims. Just a few days later, I had an additional $170 in the bank.

Mark your calendars... In researching this a little bit, most medical reimbursement programs have a grace period for expenses that allow a couple of months of leeway for spending your pretax dollars. And most have a hard deadline for putting the paperwork in before the funds are forfeited... March 31 in the case of both of our companies, and it seems that's a fairly common date. Next year we'll be reviewing our elections and expenses from this year in January to make sure we spend and claim in plenty of time.

Savings from beating the pretax reimbursement deadline: $169.89

Total savings to date: $2,101.22

Wednesday, March 30, 2011

Week # 13: Netflix

Probably should have thought of this one sooner. A couple of years ago, I increased our Netflix account to have up to 4 DVDs in home at one time, one for each of the residents in the house. I didn't realize how expensive that has become until looking through all of my credit card payments.

Just by reducing the number to 3 DVDs the difference is $9 per month. To be consistent with other entries for permanent reductions, I'm calculating savings for 12 months so that my end total reflects results for one year's time.

$9 x 12 months = $108.

Total savings to date: $1,931.33

Sunday, March 20, 2011

Week # 12: Take YOU Out To The Ball Game....?

While I'm on the sports ticket theme, I may as well wrap up that general topic, and this is the perfect time of year to deal with Angels tickets. We have been season seat-holders since 2002, the year of the first and only World Series championship in Anaheim.

I thought about giving them up altogether this year, but at $10 per ticket... unchanged in several years... they are still a good price, and the best seats in the stadium for the money.

Our four seats are upstairs, but literally right behind home plate, so we have a great panorama of the stadium and the surrounding hills. It's tough to give up the long summer nights at the ballpark, and even Trish puts up with games because they are great meeting points to touch base with family and friends, and there is plenty of entertainment IN the stands to watch if the game happens to be slow. (Trish would argue there are few moments that aren't slow... it's all a matter of perspective.)

Each year my aunt and uncle purchase two tickets to 20 games from our stash, so I'll take those out of the equation. From those remaining, last year we sold $442.50 in tickets online at StubHub, the "official" sales location for MLB. So my target for this season is to sell at least $543 in tickets to realize $100 in savings above last year. This could be tough, because overall, interest in Angels tickets has waned a little bit. We may have to put up the most popular tickets (vs. Yankees, Red Sox, Dodgers, and bobblehead nights) to get there, as opposed to keeping them for ourselves. In the grand scheme of life, that's a relatively minor sacrifice, of course.

I could also consider donating certain tickets that are not likely to sell to charitable causes. If you know of a 501(c)3 that is looking for silent auction prizes and such, let me know and I'll certainly consider a donation (and then count the value of the tax write off toward the savings).

As with other ongoing trackable items, I will post monthly updates. If you are interested in purchasing Angels tickets for any games this season, leave a comment and I'll be in touch!  :-)

Angel tickets sold so far: $0

Savings over last year: $0

Total savings to date: $1,823.33

Sunday, March 13, 2011

Week # 11: Ducks Bucks

If you are reading this far, hopefully you enjoy the blog. Please consider adding yourself to the "follower" list, and share a link to the blog on your facebook page. The motivation level will be much higher to get through all 52 weeks if there are more than a handful of interested observers.

This week I'm documenting savings on sports tickets. True... it would be cheaper not to go to them at all, but when you're fans, that's not really an option. But we can do something about the cost.

The Anaheim Ducks are fighting to get into the NHL playoffs again, and we usually go to a handful of games each year. We haven't been to any games yet this year and the kids have been reminding me that the season is growing late, so we had planned to visit the Honda Center box office anyway.

At work, vendors are frequently on campus to show off various products and services. As I was walking back to my office a couple of weeks ago, I happened by a table where a bunch of promotional deals were laid out. I was just going to quickly browse past it, but one caught my eye... an offer from the Ducks. For $40, you could buy a card that had several ticket deals attached... two free tickets (up to $65 value), and four 2 for 1 deals (same max value). The potential savings: $390 per card for a $40 investment.

After reading through all the fine print and finding no catches, I bought two cards, figuring that we would go to a couple of games. The first free ticket would pay for the card all by itself, knowing that Ducks tickets don't come any cheaper than $40 as a rule.

After consulting with the family, we settled on two game dates: one for six and one for eight tickets, to include some extended family and friends. Trish and I went to the box office last week. We upgraded a little bit to seats in the lower level and paid the difference (between the $65 value of the voucher and the $81 cost of tickets). Between the freebies and two for one deals, we saved $65 on 9 of the 14 tickets purchased, or a total of $585. Subtracting the $80 I paid for the two discount cards, the net savings for the transaction was $505. My mother in law reimbursed us for two tickets so I'll subtract one $65 discount and claim credit for $440 in savings to MY wallet.

Overall, I'm sure we've spent less on the Ducks this year than most in the past, but I'll just highlight the savings from this transaction. I just wish I could also recall the name of the company to share it with you. From their display, it appeared they had available savings on just about any major entertainment option in Southern California.

Savings in hockey tickets: $440

Total savings to date: $1,823.33

Tuesday, March 8, 2011

Monthly Update - February Wrap

Transportation: Posted in March, so no update. ($2.58 for the year to date.)

Bottles and cans: Nothing new since post. (Still $1 for the year... working on it.)

Coupons: Nothing new since post. (Sitting on $24.78 for the year.)

Lunch Adjustments: $16.57 in February, since the last update. (Lunch savings, year to date: $44.17... getting there!)

Angels Tickets: Value of new tickets sold: $0. Total value for year: $0. Savings above the $442.50 sold last year: $0.

New savings: $16.57, bringing the overall cumulative total savings to $1,383.33.

Sunday, March 6, 2011

Week # 10: Transportation

Part of my role is to convince employees at my company to avoid driving during their commute by carpooling, vanpooling, taking a bus or train, cycling, or walking. I have not followed my own advice as much as I should, despite the fact that my employer offers some excellent incentives. This week I'm figuring out my cost of driving and pledging to leave my car in the driveway occasionally.

First, I'm going to separate the cost of DRIVING from the cost of OWNING. If I leave my car in the driveway for a day, I am obviously saving on gas and a little bit of wear and tear. However, I am NOT saving money on things like car payments and insurance. Those expenses are going to be there every day until I eventually sell the car, whether it sits in the driveway or takes me to work. For today, let's just look at the gas, since it's the easiest thing to quantify, and a hot topic in the media again. (For a detailed breakdown of all costs of owning a vehicle, AAA puts out a very good annual Cost of Driving analysis, although the gas price they used is now a little outdated at $2-something).

My main commute (to the primary job) is 14 miles one way, so I put 28 miles on my car in a typical day with no side trips. Most cars would burn at least a gallon each day. I drive a Prius, so my challenge will be tougher. It's an older one so I average 42 miles per gallon. Doing some quick math, I use about 2/3 of a gallon each day, so I'll use a constant of 0.67 gallons saved for each day I can leave my car in the driveway.

The price of a gallon of gas has been fluctuating. These days a price change can happen while you're putting gas in the car, if a recent news report is to be believed. I want to use actual numbers, so I will hang onto the receipt from my last gas purchase and use the price of the gas that is currently in my tank to calculate savings. The last price I paid was $3.85 (yikes!) so if I can eliminate one commute, my savings are: 0.67 gallons x $3.85/gallon = $2.58. There are a couple other commutes I occasionally make which are much longer. Using similar math, I could save $8.98 or $7.52 per day, depending on my destination for the day.

Okay, then... what are my alternative commute options?

TRAIN: I love riding the train when opportunities present. Metrolink trains are smooth, clean, go where I need to go, and run on time more than 95%. Unfortunately, they are a little bit pricey for this challenge. A ten trip pass is $59.50. Taking my employer's 50% subsidy into account, my cost is $29.75. I could choose to deduct that amount from my pay as pretax dollars. Many employers do offer participation in pretax transit programs - similar to medical reimbursement programs - because employers also save on payroll taxes for the amounts employees choose to set aside. So I might save another 30% on the $29.75, bringing my estimated cost to $20.83. Dividing this cost by 5 days (a ten trip ticket is really five round trips) my daily train cost would be approximately $4.16. That's more than my daily cost of gas. I am actually surprised by this... for me to save money by riding the train, gas prices would have to rise to at least $6.21 per gallon, and that would just be a penny better than break-even. I would like to think that's beyond the realm of possibility, at least for a few years. So for my primary commute, the train doesn't help me with this challenge.

When I travel to one of the alternative locations, my employer will expense mileage. I don't expense my driving because then I'm not practicing what I preach, but I would expense train tickets. My employer likes that because the train is far less expensive than the per mile rate they would pay me for that distance (if I bothered to file the paperwork), so it's a win for both. I can save about $8.98 by taking the train on the days I'm making the secondary commute, so the train will work occasionally.

WALK: Too far. If I left now, I might make it to work on Thursday.

VANPOOL: The fares at my company are subsidized and VPSI provides great vehicles and maintenance services. Unfortunately, vanpools are on a fairly set schedule. My employer does offer a certain number of taxi rides at their expense if I get stuck having to stay late after riding a vanpool. That would help, but I'm a little too close to work for a vanpool fare to be really efficient for me.

BUS: My employer is in Orange County. The local bus provider is OCTA. They have gotten together on something called an EPass (Employer Pass). Employers can choose to provide a free annual pass to employees. OCTA bills the employer only for rides actually taken, at a reduced rate from the regular daily fare, and capped at a monthly rate that is a discount from the regular monthly pass. It's free, so I have an annual bus pass in my wallet. Have I used it? A couple of times in a pinch. It does take a while to get to work... the shortest commute time listed on OCTA's website is about 75 minutes compared to my 20-30 minute drive. But the price is right, and I can at least be productive using my iPad during the commute, so I'm not going to count it as much of a time loss. For my primary commute, this is a good option to save the $2.58 per day.

BIKE: Hmm. I probably should give this a try this summer. That will require some advance planning... changes of clothes in the office when I get there, shower supplies (there are showers available at work but they're generally BYOS (sundries)), and I'll need to review a safe route. 14 miles is not a small ride and will still take well over an hour to complete. I'll have to work up to that. I'll start by putting some air back in the tires and getting my bike tuned up. By the way, Bike to Work Week is May 16-20.

On Friday, I took the bus to work to kick off my effort. I found that there's also a lot of additional walking that takes place getting to and from stops, which is a fringe benefit of this challenge. I'm carrying an iPod Nano with a pedometer and passed 10,000 steps in one day for the first time. It would be great if I lost a couple of pounds along the way, and with the car in the driveway, even though I drive a Prius, I still saved about 15 pounds of CO2 from the atmosphere just by leaving it in the driveway one day. As with other cumulative efforts, I'll update transportation savings as the year goes along.

Commute savings so far: $2.58.

Total savings to date: $1,366.76.

Next week: Ducks Bucks.

Sunday, February 27, 2011

Week # 9: Coupons!

So apparently, there are these pieces of paper with bar codes that occasionally come in the mail and can be found online, which offer discounts on any number of items offered for sale in local stores of all kinds. I'm told these redeemable vouchers are called "coupons".

Trish has occasionally - and very casually - clipped a few coupons in past years. Most of those sit around in the miscellaneous junk drawer and eventually get thrown out a couple of years after they expire. So we've probably saved a few dollars per year via coupons before, but I'm going to count the dollars from this new effort to organize and track the savings we realize.

From the looks of things, it shouldn't be too hard to find coupons that cover things we actually do buy and use. A quick Google search for coupons turned up any number of online coupon sources. One notable site was CouponMom.com, which includes some printable online coupons as well as a complete list of the coupons available in each Sunday newspaper in our region. Those newspaper coupons are not printable online as far as I can tell, but it's nice to be able to put check marks next to the coupons you would probably use and then see them isolated on a handy list. From there, you can decide if purchasing the Sunday paper is worth it for the savings you would get from those offerings.

You will recall from our archived notes that we gave up the newspaper in week one of this year. If the coupons are particularly lucrative on a particular Sunday, we might grab an occasional newspaper from the store. To maintain the integrity of our running total of savings, I will subtract the cost of the paper from the coupon savings if that's the route we go.

I needed to replenish some sundries and found a few matching and printable coupons online. My first visit to the store with calculated coupon clippings netted $12.49 in savings. I also happened across a two for one offer on vitamin D in the store, something our doctor has suggested we take daily, so I'm counting the free bottle as kind of an instant coupon. That brings the total to $24.78 in savings, all on stuff we will definitely consume: shaving cream, deodorant, aspirin, peanut butter, tostitos (okay... this one probably would not have ended up in my basket without the coupon, but I do enjoy the occasional chips and salsa treat), vitamins, and orange juice.

This is one of those trackable items that I will update on a monthly basis. We should be able to reach $100 in coupon savings by the end of the calendar year.

Next up: alternatives to driving. Have a great week!

Coupon savings so far: $24.78 in just one visit. I guess it pays to look around a little bit for deals.

Total saved this year: $1,364.18

Sunday, February 20, 2011

Week # 8: Bottles and Cans and Dogs

Our kids are teenagers - one in college and the other a high school senior, both living at home - so they know about this little experiment. My daughter saw me working on the blog last weekend and commented, "Oh, I didn't know you were actually still doing that." She hasn't noticed any change to her normal lifestyle, so she assumed I'd given up on the resolution, like many others before.

Now that I think about it, apart from coming up with a new idea each week and attending to the administrative details of this blog, nothing much has changed. Our quality of life is exactly the same. That is certainly an indication that we have subscribed to and spent money on things we could easily live without. After seven cuts of $100 or more, the one and only thing I truly have missed is the summary of games on TV in the Register sports section. Maybe we'll make it farther into the year than I thought before we have to get really creative.

Number eight is also not much of a sacrifice; just a little extra collection work.

Bottles and cans in California have a redemption value associated with them. We pay the grocery store a CRV (California Refund Value?) for each glass and aluminum container, usually a nickel.

When we finish with a bottle or can here at home, the container goes into recycling to be whisked away by Waste Management. I would be interested to know if they collect the bounty and add it to their bottom line. For a large company collecting millions of recyclables, that could be a significant boost to revenue. For a small household, it still offers an opportunity to save at least $100.

My employer actually has a program in place to collect recyclables. There are receptacles at every major employee entrance. Money collected from cashing in the bottles and cans helps to fund training and development of guide dogs for the blind. Occasionally, the trainers are colleagues who bring the puppies with them everywhere, including our office building. It gives the charity a very tangible feeling; we can see the results of the collected money in action.

The sign on the side of the container says they get a nickel for each bottle and can. Instead of tossing them in our recycle bin at home, I will bring our cans and bottles to work each time a batch of 20 (worth $1) is collected. Can we collect 2000 cans before the end of the year? I think so, but whether we do or not, I don't know why we wouldn't just keep doing this, so we'll get there eventually.

Even though this $100 is not staying in our pockets - and not adding to our savings directly - I'm counting it for credit toward the challenge because we're creating $100 in value for a charity we want to support, without having to write a check to do it. I was able to find 20 bottles and cans ready to be recycled this weekend, so it's $1 down, $99 to go! I'll update the tally at the end of each month, along with other strategies that require some tracking.


Bottle / Can value so far: $1

Total savings so far: $1,339.40

Sunday, February 13, 2011

Week # 7: Yet Another Wine Story

No, we are not alcoholics. We just happen to enjoy the nectar of the gods - in moderation, of course. And red wine is good for your heart, right?

This one is a little different from the wine clubs we've already cancelled.

There's a great little store up the street called Wine Styles. It's part of a chain you can check out at WineStyles.com if you're curious. We're members of their club.

For $38 per month, we get the "selections of the month" - two bottles of something that's usually very interesting, discounts on the store's wares, and invitations to special events. The cubby hole of a room in the back has excellent wine tasting ambience and occasional live music. It's become a bit of a habitual meeting place to keep in touch with some of our neighbors, which is the primary reason for our attraction to the store.

So we're not going to give that up altogether, but we can do without the club membership for a few months. Suspending the membership for three months hits the $100 mark.

$38 x 3 months = $114

Total savings so far: $1,338.40

Sunday, February 6, 2011

Week # 6: Land Mine... er, Line - The Battle to Cancel MCI

Okay... any guilt I had about reducing our contributions to the national economy is gone for good after the effort I had to expend to make this week's budget cut. I have no idea what "MCI" stands for, but after  this week I wouldn't be surprised to learn that it's Make Customers Insane.

We've been in the current house for almost 11 years. When we moved in, for whatever reason, AT&T was our designated local service provider, and MCI provided long distance service for our land line. That's just how it was set up and we never bothered to change anything.

Now that we're taking a closer look at things, we don't need long distance service since we have cell phones with national range. We considered getting rid of the land line altogether, but Trish is required to have a back up contact phone for her days on call. We haven't figured out a way around that yet. At least  we could cancel MCI's long distance service, so I set out to challenge their phone menu system on Friday afternoon.

First attempt: I dialed the number and warily stepped into the voice maze. This particular system felt like a video game, and I quickly defeated and advanced through several levels until I got to THIS challenge, asking what kind of change I wanted to make to our account: press 1 to add services, 2 to change services, or 3 to cancel service. I pressed "3". Wrong answer... first life lost. A cheery voice informed me that all representatives were very busy indeed, and my wait time was estimated at "18 minutes." I dug in my heels and tried to keep the elevator music from starting any permanent loops in my head.

Ten minutes into my hold, I tried to look at the time on my cell phone and inadvertently disconnected the call. Since I had a chance to start anew, I decided to try a new strategy, just as you have to try a different move the second time through a video game if you don't reach the end the first time.

This time, I told the nice virtual lady that I wanted to "add" service. When presented with a menu of services that they would be more than happy to set up for me, I feigned ignorance and refused to push a button, for fear that I might actually finish the call owing more than when I started. Sensing confusion, the helpful virtual lady placed me into a queue, presumably the one for those who had expressed an interest in spending MORE for additional unnecessary services. This time I was not given any estimate of the wait.

Guess what? Jennifer, a very helpful real person, was on the line in 45 seconds. She was obviously caught by surprise when I told her the reason for my call was to cancel. After some shuffling through papers to find the appropriate and unfamiliar script, Jennifer informed me that they could replace AT&T as our local provider for basic phone service for the low price of $6.11 monthly, and would that be okay? AT&T charges $27/month for that same service, so I said... "sure!"

"Great" said Jennifer, and she put me on hold to process the change request. Three minutes later, she returned to take care of the details. "Now", she said, "is your income less than $24,000 per year?"

I'm pretty sure I wouldn't have been paying $16 per month for years for basically nothing if that were the case, but I still should have seen that coming. Giving her some benefit of doubt, it's possible she just took a wrong turn on her flow chart before quoting me the impossibly low rate. I told her that we weren't going to qualify for any special programs based on low income. "Oh, okay... we'll just enroll you in the Neighborhood service at the regular price then." Before I could object, I was holding again.

When she returned, I had to turn the conversation back around to get the details from her before she completed the transaction. $25 per month plus per minute charges for long distance calls plus fees. The old bait and switch! That's basically our deal with AT&T. So I politely requested to just cancel the MCI bill... again. This brought on a fourth round of elevator music.

Upon her return, Jennifer, apparently out of sales pitches, informed me that she would be transferring me to the voicemail system which handles service cancellations. (Why, then, couldn't I have simply been directed there after punching "3" the first time around?) Finally... the last level... the chance to slay the dragon! After another round of silly menus requesting information I had already discussed thoroughly with Jennifer, I was finally given a confirmation number.

All in all, it took 40 minutes to make a simple cancellation. Makes me wonder how much MCI depends on revenue from accounts which users try to cancel, but are unable. At least I succeeded at jumping out of the understaffed or non-existent queue for cancellation calls, and we are no longer obligated for the monthly payments of $16 for land line services.

We'll probably examine the remaining land line charges later in the year. Any ideas about cheap services are welcome!

MCI savings for one year: $187.20.

Total savings so far: $1,224.40!

Saturday, February 5, 2011

Monthly Update

Early each month I will go back and update the totals from any actions that are cumulative, such as the lunch adjustment savings that are adding up from Week # 3.

Additional lunch savings from Jan. 20 - Feb. 4: $16.13

That  brings the lunch total to $27.60...

and the overall year to date savings to $1,037.21.

Friday, February 4, 2011

Week # 5: Cancel Other Wine Club

Yep... we were members of two different wine clubs, as I was reminded when a shipment arrived from Clos du Bois just last week. So I canceled that one too. This one shipped four times per year, charging $80.12 each time, so one year's savings is:  $320.48.

The psychology of canceling these services is interesting. Going back to week #1, making that first call to cancel something we've routinely subscribed to was really hard, not just because we like the things we've signed up for over the years, but I genuinely felt bad talking to the person on the phone about their company losing a customer. From the sound of it, I wasn't the first cancellation of the day, and there was definitely some guilt on my end of the conversation.

As I've gotten through the first month, it has definitely gotten easier. It helps when we realized that some of our money was just being given away for no return just by lack of attention. And as the dollars are adding up, there's a realization that we could actually save enough to cover property taxes or take a nice vacation. That is very motivating. The confidence in our decisions has grown and the guilt has become less and less with each call. Now it's only a small factor. Before this year, the guilt (along with some apathy) was probably the main barrier to making these decisions and calls. Interesting.

Annual savings from this action: $320.48

Total saved to date: $1,009.61

Sunday, January 23, 2011

Week # 4: Cancel Wine Club

Much as we enjoy a glass of vino to end the day, the James Gang wine club (Tobin James Winery) is a twice yearly credit card charge we can live without. We do enjoy their wines, but right now we have enough wine in the house to last us for at least a few months. We'll focus on consuming the stash we already have and help out the credit card a little bit.

Each shipment was $155.51 and there are two scheduled per year, so...

Savings: $311.02

Total Saved to Date: $689.13

Wednesday, January 19, 2011

Week # 3: The Lunch Adjustment

The long holiday weekend was busier than expected, so this post is late. Still shooting for Sundays.

One of the first things you hear about when thinking about saving a few dollars is how much is spent on lunch at work. True... Considering a $6 daily average, which is conservative at many eateries, lunch expenses can add up to more than $1,500 per year.

The first thought is usually to pack a lunch. The second thought is that usually means eating at the desk. Hmmmm... I do that when I need to, but much prefer to take some time in the middle of a busy day (which is basically EVERY day) to get away for a short time and reset the brain, or catch up with a friend or two. It would be tough to give that up.

My alternative plan is still a sacrifice. I'm giving up french fries and sodas during the weekday lunch hour. Over time, I will track the difference between the "meal" option and the solo sandwich, take water with me, and add up the couple bucks (and the calories) saved each day.

After one week, I am noticing the difference is usually a little over $2, so I will hit the $100 savings target sometime before my 50th lunch. I am tracking the daily difference and will update this post as I go. If I lose any weight I'll try to document that too. Perhaps I will be able to also capture $100 in reduced medical expenses as a result of eating better.

Saved so far: $11.47 in five lunches as of 1-19-11.

Total saved to date: $378.11 in three weeks.

Sunday, January 9, 2011

Week # 2: Cancel Old Web Hosting Account

While we were involved with booster clubs for the kids' schools, our credit cards were frequently used to help out with various things, including website hosting. A glance at the bill revealed a monthly charge for hosting a website that had actually been moved to a different service provider two years ago. Oops.

It's a $19.95 monthly hit, and we probably wasted about $400 just because we weren't paying attention. Would like to have that money back, but at least the leak is plugged now. So far, good resolution.

For periodic charges like this, I'll calculate the savings based on a year of time, just to keep things consistent. So...

$19.95/month x 12 months = $239.40 in annual savings.

Total saved to date: $366.64.

Sunday, January 2, 2011

Week # 1: Cancel the Newspaper

We're a little behind the times on this one I think, so it was obvious. We did enjoy the printed news while our kids and their schools occasionally were mentioned, but they're moving on to college and we get most of our information online now, as you probably do, since you're reading this. Hopefully a few trees will also be spared.

We can and do visit the OC Register's online site to read their still very interesting and helpful information. (The guy on the phone was very nice about it, but he almost sounded like I was personally eliminating his job, so I'm trying to eliminate a little of my guilt by giving them a plug.)

Anyway... this is an easy one. One down, 51 to go.

Savings: $127.24 for 2011, based on our payments in 2010.

Total saved to date: $127.24

Next post: Sunday, Jan. 9.

Saturday, January 1, 2011

What's This About?

So for 2011, I have two resolutions. One is a joint resolution with my wife, Trish, to improve our finances by finding and closing money leaks that have been ignored for too long. The other was to try blogging, so here you go.

Each week, Trish and I will try to make one change that will save at least $100. The change can be anything that creates $100 in new value that we would not have had if we had stuck with the status quo at the end of 2010. I expect this to be a fairly easy thing for at least the first several weeks - we are paying some bills and hanging onto some subscriptions only because we always have. Some things we just don't need and will be relatively easy to cancel.

What do we expect to happen? Starting out, this should be a fairly easy weekly goal. Sometime around April or May, I expect it to become more of a challenge to find new things to change or cut. When we get into the fall, I expect that we will be making some very real sacrifices in order to successfully complete 52 weeks of changes.

How are we going to do this? I'm not sure exactly, which is why this challenge is interesting. The only rule is to create at least $100 in new value or savings each and every week. This will involve canceling subscriptions, going without a few things, cleaning out the garage to put things on Ebay, and probably many things we haven't thought of yet.

The schedule: Every Sunday, starting tomorrow, a new entry will be posted. The idea is that going public with this blog will help us keep on track and make a resolution stick for an entire year, for a change.

I'll keep a running list of our choices and the resulting savings in a log for all to see. If you have ideas that will help us get to week 52, we're more than happy to hear them.

Because I'm brand new to this blogging thing, the look today is about as plain as you can get. I'll enhance the look, features, and information... as I learn about them!

Good luck to us, and Happy New Year!!