A Halloween Bargain So Good, It’s Scary

Learn one mom’s trick for buying her daughter a Disney Store costume and getting a fall wardrobe for “free.”

The Personal Finance Hour, Episode 25: Why Does Everyone Hate Budgeting?

On today’s episode of The Personal Finance Hour, I’ll join Jim from Bargaineering to discuss personal budgets. What works and what doesn’t? And why are so many people scared of them? (Personal finance writers especially seem afraid to talk about budgets.)

This show will air live at 3pm Pacific (6pm Eastern). It’s much more entertaining for everyone when you call in to participate. If you have some thoughts on budgets — are they good or are they evil? — then join us on the show. (When the show is over, I’ll update this page to give a brief run-down of what we talked about.)

The Personal Finance Hour
There are a few ways you can catch The Personal Finance Hour. You can listen through an audio feed at the show page, or you can also listen through this widget:

We’re also on iTunes! You can subscribe to The Personal Finance Hour as a weekly podcast by following this link (which will open iTunes).

Jim and I do this most Mondays — and we hope you’ll join us. We think this is a fun way to connect with readers and to help everyone learn more about money management. You can catch The Personal Finance Hour live at 3pm Pacific (6pm Eastern) nearly every Monday.

—
Related Articles at Get Rich Slowly:

• The Personal Finance Hour, Episode 11: Frugal Weekend Fun
• The Personal Finance Hour, Episode 12: Earning Extra Money
• The Personal Finance Hour, Episode 4: Couples and Finances
• The Personal Finance Hour, Episode 3: Finding Balance
• The Personal Finance Hour, Episode 8: Pets

How does group health insurance work?

Ever wonder how your health insurance premium is calculated if you’re covered under your employer’s plan?

Does the Slap Chop Beat a Regular Knife?

WalletPop put Slap Chop to the test — both in a regular kitchen and the kitchen of someone who chops for a living.

Recall: Breyers Mislabels Ice Cream

Unilever United States Inc., Breyers’ parent company, is recalling an undisclosed number of 1.5 quart tubs of “All Natural Cookies & Cream” ice cream that are carrying labels that say “All Natural Mint Chocolate Chip.” The lids, however, correctly identify the ice cream inside.
What makes this a problem isn’t so much that people with a hankering for mint chocolate chip ice cream end up with cookies and cream, but that the cookies contain wheat and given that it has the wrong label there’s nothing to warn those with a wheat allergy.

Beware Burgers, There’s a New Chain in Town

Beware burgers, there’s a new chain in town. Will a new eatery that focuses on fruit be able to steal customers from the old-standby’s like Burger King and McDonald’s?

Small Amounts Matter

This article is the fifth of a thirteen-part series that explores the core tenets of Get Rich Slowly.

Getting started with smart personal finance isn’t always easy. It’s one thing to read about the steps you should take, but it’s another thing to actually do them. Your debt is so overwhelming or your saving goals so lofty that you begin to believe that the only way you’ll ever get where you want to be is by winning the lottery.

Part of the problem is that we live in a society that idolizes the Big Winner. Nobody celebrates the guy next door who bikes to work, grows his own food and cooks his own meals, shops at the thrift store, and gets all his books from the library. That sort of life isn’t glitzy. Yet it’s that sort of life that can (and does) lead to true wealth.

This image was submitted by GRS reader Karen L.

Starting small
I can’t remember the first thing I did when I decided I was tired of being buried in debt. But I do know one thing: It was something small. When I became concerned about my finances, it was months before I had any big decisions to make. But there were tons of small things I could do right away.

It’s true that it’s important to save money on the big stuff, like a home or a car. Any time you make a large purchase, your opportunity to save is magnified. But large transactions are rare. How often do you spend more than $100 on anything?

You have more opportunities to save when shopping for groceries. You can clip coupons or buy in bulk or shop for store brands or compare unit pricing. And you can do it today. Saving fifty cents a week on milk might be inconsequential as a one-time occurrence, but over the course of a year, it amounts to $26. Taken together, many such small economies make a real difference. Small amounts matter.

Maybe you save fifty cents a week on milk by using a cheaper brand, save $4 a week by clipping coupons, save $2 a week by taking the bus to work on Fridays, save $25 a month by dropping to basic cable, save $47/year by canceling your subscription to The New Yorker, and save $100 during the summer months by growing your own vegetables. These are small changes, but these choices alone would save you over $750 a year.

Starting small has an interesting side effect. As you get in the habit of cutting costs on one thing, you find that you can transfer that skill to other parts of your life. One small step leads to another.

An uncertain future
Some folks frown on frugality. They equate it with being “cheap” and consider it beneath their dignity. Others are unwilling to make sacrifices today when the future is so uncertain. They’re not willing to “live like that” when they could get hit by a bus tomorrow. I think this is crazy for a couple of reason:

First, spending is not the same as happiness. Second, most of us are likely to live a long time. Which would you rather do?

• Prepare for a long life by saving and investing, but then die tomorrow.
• Spend money you don’t have now, and then be unable to afford what you need when you’re older.

Recently, I had a chat with an acquaintance who runs an adult foster home. She told me anecdotes about her elderly residents who’ve run out of money. Their quality of life is not high. If you think it’s a burden now to give up your cell phone or to take the bus, try having to pinch pennies on necessities when you’re 70. Or 80. Or 90.

There’s real value in boosting your income — I don’t deny that. But frugality is an important part of personal finance, too. And for each of us it’s different. I might be able to cut back on clothing and transportation, but I’ll probably always spend a lot on food. On the other hand, food may be a perfect place for you to cut costs, but you’re not willing to compromise on your wardrobe.

Frugality doesn’t mean living like a pauper. Frugality is a good thing. Thrift is a responsible choice. When we restrict our spending on the unimportant, we’re able to indulge ourselves on the things that matter most in our lives.

This is the fifth of a thirteen-part series that explores my financial philosophy. These are the core tenets of Get Rich Slowly. Previous parts included:

• Tenet #1: Money is more about mind than it is about math
• Tenet #2: Goals are the gateway to financial success
• Tenet #3: Spend less than you earn
• Tenet #4: Pay yourself first
• Tenet #5: Small amounts matter

Look for a new installment in this series every Monday through the end of the year.

—
Related Articles at Get Rich Slowly:

• Small Amounts Matter
• Investing for Your Future
• Sound Saving and Investing: Taking the Road to Riches Step-by-Step
• Organizing Tax Documents
• How Lower Fees and Expenses with Index Funds Could Mean 33% More to Spend in Retirement

The truth about free credit scores

Though the credit bureaus must give you free annual reports, their important numbers will cost you. Now 3 sites offer free peeks at those scores, but how helpful are they?

10 things that can kill a home loan

Just having a pulse isn’t enough to get approved for a mortgage anymore. But knowing the rules ahead of time can help you steer clear of any potholes.