Admittedly, I drive a large vehicle.  However, when I filled my tank this week for a grand total of $110 I almost fell over.  When will the madness end?!  In the meantime, most of us have no choice but to continue to drive our vehicles, so something’s gotta give when you’re maintaining a strict budget.  Luckily, there are some easy, fairly painless opportunities to make some room.

Gas
While we can’t do anything to change gas prices, at least we can make sure we’re not filling up at the most expensive station in town.  Before you head out for the day, check online sites like GasBuddy.com to see what local gas stations currently have the cheapest gas.  Just don’t go too out of your way to get it or you defeat the purpose!  In my case, a 10 cent difference means a savings of $3 per fill-up!

Food & Drink

• Coffee – make it at home and bring a travel mug with you to work
• Water – don’t buy bottled water; get a faucet filter or filtered pitcher at home and bring a refillable water bottle with you when you leave the house
• Lunch – make your lunch at home and bring to work
• Dinner – cook dinner at home; your grocery bill will be higher but you’re saving the 20% tip!

Entertainment

• Happy Hours/Nights Out – instead have game night, movie night, or dinner parties at home (BYOB!)
• Weekend Daytime Activities – bring a picnic to the park, go for a bike rides, look for free outdoor concerts or festivals
• Books – instead of buying, check them out for free from the library

Shopping

• Groceries – resist impulse purchases; plan meals for the week and make a list…and never go to the grocery store hungry!
• Extra Purchases – before you buy, ask if it’s a “Want” or a “Need” – suspend the “Wants” for now
• “Need” Purchases – research online where to get the lowest price & check sites like Retailmenot.com for coupons before you buy
• Credit Cards – consider making only the minimum payment (only TEMPORARILY!)

Personal Care

• Gym membership – buy workout DVDs instead; if you need extra motivation to work out at home, have workout dates with friends
• Manicures & Pedicures – do your own at home!

Kids

• Diapers & Wipes – buy generic; or if you’re devoted to your brand, buy in bulk!
• Kids Activities – take advantage of free activities like playing at the park, story time at the library, or play dates at a friend’s house; if you have a favorite zoo, aquarium or museum, buy a season pass and get your money’s worth!
• Baby and Children Clothes – shop consignment; they outgrow it so fast anyway!

Home

• Be Energy Conscious – turn off unneeded lights, reduce air/heat when you leave for the day
• Re-purpose Stuff – find new uses for old furniture, storage containers, shelves, etc. (Hint:  there are ton of great re-purposing ideas on Pinterest and HGTV!)
• Consider Downgrading Your Cable/Satellite Service – do you really watch 500 channels?
• Consider Disconnecting Your Land Line – a matter of personal preference, but there is increasingly less justification for keeping one

Who knows if gas prices will decline anytime soon, or if this is the “new normal?”  In either case, it never hurts to trim expenses.  With the pace of inflation, if it isn’t gas prices, it will be something else!  As the great Yogi Berra said, “A nickel ain’t worth a dime anymore!”

How much does it cost to fill your tank?  What are you doing to make room for today’s crazy gas prices?

It is never too early to start saving for college for your children!  529 plans are an excellent tax-advantaged investment tool to save for higher education expenses.  Here is a guide to introduce you to how they work.

What is a 529 Plan?

A 529 plan is a college savings plan named after Section 529 of the IRS tax code.  Contributions grow on a tax-deferred basis and withdrawals used for qualified education expenses of a designated beneficiary are tax-free!  529 plans are administered by state agencies and higher educational institutions, so there are many available across the USA.  There are two types of 529 plans:  prepaid tuition plans and savings plans.

Prepaid Tuition Plans

With prepaid tuition plans you purchase tuition at today’s rates with a payout to cover the future price of tuition.  The plan administrator, which can be a state or a financial institution, pools the assets and invests them to achieve returns sufficient to cover the cost.  Prepaid plans are currently offered in 12 states and cover tuition only.  Typically prepaid plans can only be used at in-state institutions, but not always; be sure to check with the plan to be sure.

Savings Plans

Savings plans are accounts where you choose the investments (generally mutual funds) in the plan according to your risk profile and growth is based on market performance.  Distributions can be used not just for tuition, but for additional qualified expenses such as room & board.   Savings plans are administered by states only and can be used for schools in any other state, provided the school is an “eligible educational institution”.

Tax Benefits

After-tax contributions to a 529 plan grow on a tax-deferred basis and qualified distributions are tax-free!  Additionally, while federal income deductions are not allowed for 529 contributions, many states allow state income tax deductions.  But the tax advantages don’t end there!  Contributions up to $13k ($26k if married filing jointly) during one year for a single beneficiary are exempt from the IRS gift tax.  Further, you can take five years of the exclusion in one year (barring you from using the exclusion again until the five year period is up).

Beneficiaries

You can designate anyone as beneficiary of a 529 plan, regardless of their relationship to the account owner.  You can even designate yourself as a beneficiary!  The only requirement is that the beneficiary be a US citizen or resident alien and that they have a social security number or federal tax ID.

If the beneficiary of a savings plan doesn’t end up going to college or receives a scholarship, you can change the beneficiary to a family member of the beneficiary, leave the savings in the account to continue to grow, or take a non-qualified distribution (earnings are then subject to taxation as well as a 10% penalty).  For prepaid plans, refund and transfer options are typically available but vary by plan.

Qualified distributions fall into the following categories:

• Tuition, fees, books, supplies and equipment required for enrollment or attendance of a designated beneficiary at an eligible educational institution.
• The cost of room and board for a designated beneficiary enrolled at least half time.
• Expenses for special needs services that are incurred in connection with the enrollment or attendance of a special needs designated beneficiary at an eligible educational institution.

Non-qualified Distributions are any distribution that is not a qualified distribution.

Other Interesting Points

• The assets in the account are not considered part of the donor’s estate so it is also a great estate planning tool!
• Funds from one 529 plan can be rolled over into a different 529 plan one time per 12 month period.
• Some states offer benefits such as matching grants to participate in their plan.
• Generally, there are no income limitations or age restrictions.
• With most plans, you can contribute as little as $15 and as much as $300k (although there is a maximum gift tax exclusion.)
• If you’re interested in reviewing the top plans listed by state, Morningstar has a great listing of the top 529 plans here

What About College Savings Plans?  How are They Different?

(Source: SEC)

How to Open A 529 Plan?

Plans can be purchased directly from the state with lower fees, however, it is always prudent to seek professional advice and purchase the plan through your financial professional.  Fees are charged to pay standard sales commissions, however, a professional can advise you on what plan is right for you, as well as what level of contribution and investment risk profile is appropriate for your family.

Bottom Line

As with all investment plans, the goal here is to end up with more money in the account, therefore the expenses matter.  Pay close attention to the expenses associated with each plan and start there.

Sources:

• Smart529.com

The article, Expecting the Expenses in the Washington Post highlights issues couples should consider when deciding to have children. Here are the some of the main points gleaned from the article:

• If you are planning on having children, save as much money as you can before baby gets here. Kids are expensive, but do I really need to tell you that?

• Look into a short-term-disability policies such as one from Aflac, a secondary insurance provider, to help cover the loss of salaries while the new mom is home taking care of baby

• Increase your withholdings (check with your financial/tax advisor) to help make up for the loss of one salary for a few months

• Create a will. I know its scary to think about this but it must be done. The fact is, should something happen to either parent or God forbid both, you want it very clear what’s to happen and who retains custody of the child.

• Set up a trust

• Enroll in your employers dependent care savings account. Otherwise known as a health savings plan which allows you to set aside up to $5,000 of your earnings annually, tax-free

• Decide how you will pay for college. Will you allow your little one to take out loans or do you want to start saving now to pay for college later?

The last point brings us to our main point of discussion:  Will you save for your child’s education? Or will you allow them to take out loans?

The debate in my home is as follows:

Mr Latte contends that we should save for baby Latte’s college fund so that they will not have to struggle with paying back student loans upon graduation. I think otherwise. I believe that if our child understands that they will be paying for their own education they will value the experience and education itself more than the child that was sent to college knowing that mom and dad paid for it with no sacrifice on their part. 

Furthermore, the value of a college degree is debatable these days and I don’t see the need to lay out 6 figures for it.  At the very least, 2 years at a community college and then the other 2 at a state school.

I go back and forth on the issue but I would be so hurt if we sacrificed for so many years by saving for their education only to have them blow it all by dropping out or getting bad grades warranting expulsion.

Furthermore, “you can get a loan for college but you can’t get a loan for retirement“, is pretty self explanatory. I want to be more than just comfortable in retirement because who plans to rely on Social Security?  I don’t! Admittedly, I still have a 6 figure loan balance myself so saving for my future child’s college fund is somewhat off my radar at the moment.

What’s your stance on the debate? Will you save for college or will you focus on other areas such as retirement? Will you do both?

This article was originally published on December 23, 2007 and updated on March 6, 2012.

Are you one of those people with several unused Groupon or Living Social vouchers in your account?  If so then pull up a seat, because this post is right on time for you.  Maybe you’re thinking that you save money with companies like Groupon, and maybe you’ve scored a few unbelievable deals. But the most expensive is the one you forgot to redeem.

Groupon Purchases Are Impulse Driven

Every morning you wake up with a new deal in your inbox.  And you probably think, “oooooh I could use that!”  Well the reality is that you don’t need it.  Unless this is a deal you’ve been searching for that aligns with your budget, then you should probably hit the x in the upper corner of your screen.  Rarely are the deals related to something that you actually need so think about how this impacts your financial goals.

This is how companies like Groupon and Living Social make money.  They depend on your inability to control your impulses and buy things you don’t need.  Trust me, they’ve researched your spending habits and like a rat, you’re aiming for the cheese.  But your budget gets snapped like a twig with every unplanned purchase you make.

30% Expire Before Ever Being Redeemed

30% of these deals are never redeemed.  Think about it, you bought the deal to save money and end up wasting it because it by never redeeming them. This takes money away from things you can really spend your money on to improve your financial life.

What Do You Do Now?

• Cancel your subscriptions. Those emails you get every morning?  Unsubscribe and don’t look back,
• Ask for a refund.  Groupon and Living Social are usually pretty good about refunds depending on your situation.
• Sell or trade the vouchers online.  Check with your voucher’s policy on transferring ownership before doing this as each site maintains their own rules.

Are you a deal-a-holic?  How many unused vouchers do you have in your Groupon, Living Social et al accounts?

The art of shopping has become quite a complicated affair. It has become an art form because on one side you have the business owner who has to keep selling or he or she doesn’t make a living, and the consumers on the other side who really only want to buy what they need but are tempted on all fronts to buy more. It is more than an art form.

This is a very real battle.

Much research goes on behind the scenes to find the most effective way to get you to buy more than you need. Business owners want you to part with your money and they are willing to give you a so called ‘bargain’ in order to win the battle of the wills. But you must stand your ground if you are to keep that last dollar in your purse for what you really want, not what you are told you want.

Extreme Couponing is For Suckers

Extreme couponing is a good example of you having good intentions when you go shopping but only finish up with cupboards full of products you don’t really need because you were told you had a bargain. You might not realize it at the time but the current clipping frenzy is sucking you in to buy things you don’t want and the business owner’s are laughing all the way to the bank.

The whole plan behind extreme couponing is to get you into the shop so you will purchase something at full price. The business owner feels it is worth sacrificing something of smaller value to him as long as you buy something of more value while there.

For instance, they hoped you will leave the store with a new outfit that you just couldn’t resist when you initially entered the shop to get a free bottle of perfume with a coupon on a pair of $20 earrings.  Sound familiar?

This is not to imply that you can’t play them at the same game, you can beat the system if you use self discipline:

• Make up a shopping list of what you want before you go shopping, go
  through your coupons to see which ones you can use to your advantage.
• Check newspaper ads to see where the bargains are and off you go. It is a fact that you can save a lot of money by
  being careful how and when you cash in your clipped coupons but the secret is only using a small
  amount at a time and don’t allow yourself to be sucked in.
• Make use of the frequent shopper program (sales emails) whenever you can as this is a way you will get told in advance of any bargains that are planned in the future.
• When shopping always be aware of the various marketing ploys employed by the different shops and their products. When rummaging through the dump bins keep an eye out for the price, you will often find a higher priced article thrown in among the bargains.
• Island displays are another to be wary of. The middle shelf is often where the higher priced brands are placed, very low and very high shelves usually contain the lower priced.
• Also, items that attract the impulse buyer are usually made more prominent than others, especially around the checkout counter.

By, keeping all this in mind while you shop you could save yourself hundreds of dollars a year.

Kristy Ramirez is a frugal freelance personal finance writer for Life Insurance Finder where she helps people sort through a range of different insurance types and find the best solution to meet their needs whilst saving money.

Over the last few weeks, several friends, family members and acquaintances have gotten engaged which of course has prompted discussions around wedding planning and the inevitable, how much will all of this cost?  Your wedding should be memorable, but it shouldn’t break the bank.  Check out the following tips on how to save in different areas:

Budget Costs and Save For The Wedding Before Setting A Date
This isn’t always possible for those who want to get married within 6-12 months.  However, for those planning on being engaged for 1-2 years before tying the knot,  it would be prudent to save the money based on your expected budget.  We’re in a recession and if you know that should one of you lose a job things would be on hold then it’s best to save and have the money set aside so the show can go on should you lose your job.  Never dip into your emergency fund for a wedding.  Go to Vegas instead!

Wedding Dress
Get what you love and make sure you swoon when wearing it!  But, don’t break the bank.  Ebay has quite a few custom wedding dress makers who can make exactly what you want or pretty close to it fir $200.  It is best that you start this process early and test out some vendors by looking at previous work.  Ebay also has overseas sellers who will sell you the dress at an insane discount because they sell their stock dresses to the same companies who mark it up 300-700% and sell it back to you.

Wedding Invitations
People throw these out once the day is over so there’s no need to spend more than $150 in this area depending on how many guests you’re planning on having.  Vista Print has an awesome deal for wedding invitations at $75 for $200 invitations.  If you really want something fancy for your own memories then create that special invitation just for you and maybe your parents but otherwise, paying for something your guests will eventually toss in the trash is a waste of money.

Target also sells wedding invitations that can be printed out at home.  Again, you may spend the same amount of money as Vista Print depending on how many guests you plan on having.

Bridesmaid Dresses
Whatever you do, please don’t make your bridesmaids spend $300+ on a dress.  They will hate you for it especially if they can’t wear it again.  Trust me, I’ve been there a few times!  Give them information on how to rent a bridesmaid gown/dress as prices start as low as $65!  Do them a favor and rent the dress!

DJ-Music
This is one area that has come down in price over the years with the advent of the iPod and other music devices.  Unless the DJ is coming with his own equipment, talk them down to a decent price.  Today, I would pay no more than $600 for a DJ at my wedding.  When  got married, they were charging $1500 for 4 hours.  I didn’t go with that option and I am glad we didn’t.   Bottom line is I would get a schedule of music I want played and have an iPod savvy friend or family member work the iPod during the course of the day.  At the most you may need to rent speakers and other equipment but that’s it.

All in One Catering Hall (location + food/catering in one place)
This is often the best bet when trying to secure a catering hall with a wedding location.   You pay for everything in one price rather than going a la carte when you find a location that doesn’t offer catering.  Wedding caterers are known to jack up the prices because they know how to pull at your heart strings given the enormity of the big day.  They will charge you extra down to the type of fork you use, so be savvy about this and get everything done for one low(er) price.

I was fortunate enough to be able to use my uncle’s home as he has a rather large estate at 10,000 square feet and 8 bedrooms.  Therefore we were able to save $4000 on the location and move some of that money towards the caterer.  You can even check with large estates that have gone empty if they are on the market.  Check with the Realtor to see if the owner would be open to renting out the home for your big day.

Something else that helped cut costs is that  since my family is Vegan, we did not have the cost markup that can come with having meat on the menu.  Before you gag, no one knew the menu was vegan!  Based on some of the selections, let’s just say the meat eaters thought we had meat on the menu!  And to this day, people talk about the menu on our wedding day, it was indeed delish!

Photographer/Videographer
I tend to think that this is an area where you should splurge because this crystallizes all the memories of your wedding day via video or pictures.  This is not the time to  skimp and go with a photography student or a novice in the field.  I’ve heard horror stories of people not showing up or forgetting film etc  This isn’t limited to newbie video/photographers but personally, it isn’t a risk I would take. Still paying more than $2000 in this area is a bit much.  Make sure you understand what you’re getting and talk to other brides to get a sense of their experiences.

Destination Wedding
This is my favorite option and I even wish we did this instead of staying stateside.  Looking back, the whole wedding would have cost us no more than $7000 if we went this route.  Brides are often concerned about some family members not being able to afford this option but if money is tight, do it.  You can always have a party when you get back to announce your nuptials formally.

Looking at the Ritz Carlton in Jamaica (where I totally want to have a vow renewal ceremony!) and based on the numbers it would cost no more than $5000.  I’m a little older now so it doesn’t bother me that certain people wouldn’t be able to make it.  If they think you are important enough then they will make it their business to be there.  And, if they can’t, that’s OKAY too.  Remember, everyone who is supposed to be at your wedding will be, don’t sweat the people who can’t or won’t come if you choose this option.  This is your day, own it.

As always negotiate prices in each area where you can!  Nothing is set in stone as all vendors are eager to get your business.  Most of the time they are expecting you to negotiate and have a price in mind based on your request.  As the day nears, compose yourself and be mindful of your spending, but don’t forget to stop and soak it all up!  You have one chance to get it right so don’t let anything mess it up!

Last week I got my gas and electric bills only to be surprised that the utility companies owed me money in the form of a credit on my account.  I set up my bank’s bill pay system to pay all of my bills so I didn’t really notice that I was overpaying until I logged into the account.

Well, to my surprise my bill went down.  Way down.  Keep in mind at any given time over the last 2 months there have been at least 4-6 people in my home.  This includes house guests in addition to my husband and I.  I’m used to bills that hover around $350 for gas and $200 for electric which used to drive me batty.  Who wants to pay that much to a utility company?  I don’t!

Here are a few tips that helped reign in those electric and gas bills.

Keeping the Temperature Low

Here in the DC area we recently had a dip in temperatures and normally anything below 70 degrees prompts me to turn the heat on.  This time I didn’t and instead invested in a few plush Sherpa blankets which keeps me warm and toasty at night.  My massage therapist gave me a tip – get a tempur-pedic mattress top plus a Sherpa blanket (heated is optional) and you’ll stay warmer (and cozier) at night.  I did just that and she was right!  Normally, on any day of the year I am walking around my home in shorts and a tank top and while that hasn’t changed, I’m warmer at night.  Before I would keep the thermostat at 80 degrees even though it meant my heating bill would soar.  Never again.

Cook All Meals On Sunday Night + Invest In A Toaster Oven

Our regular oven exploded over the summer which left the glass on door shattered and rendered the oven dangerous to use until we got it fixed.  In the mean time while we waited on the estimate and parts to get here we got one of those super toaster ovens.  You now the ones that broil, bake and toast bread on the counter top?  Yep, one of those babies.  It turns out that instead of using our regular gas oven to bake and broil everything, this smaller toaster oven uses less energy to prepare our food.  So now, I cook all meals on Sunday night within 3 hours instead of slaving over the pot on my stove for 1-2 hours each night.  Saves me time and money!  We like that!

Get Everyone On Your Energy Bill Page

We turn off lights and plug out appliances when not in use.  I have not an extra red cent to give to the utility company (sorry Pepco!) so I tell people to turn off lights or I will gladly go behind them to do so. Energy saving bulbs, power strips and the whole nine!  If it saves me money on the bill then I am on it!

Seal All Windows and Doors (Door Draft Stoppers or Bubble Wrap)

We haven’t done this yet this season but this has proven to be a great way to save on energy costs during the winter months.  Our door has a serious draft which causes the main level to get really cold.  I’ve already sealed the windows downstairs and just need to get one of those door draft stoppers to put under the front door and that should help with the draft.  Since heat rises, the 2nd floor is pretty warm, even toasty at night.

Get On Budget Billing

Ahmad from Victory By Design recommended we do this way back over the summer but I only completed this task last week.  Mainly because I hate owing the the utility company after the cycle is over.  Right now the real bill is actually lower than my budget bill but I know that will change in a few months when temperatures get frigid and the thermostat and I start bargaining again.  But this will help when the real bill gets higher (not too high!) and they will just put the extra towards the overall amount owed next year on the budget bill anniversary.  Getting on budget billing allows me to pay a set amount every month while figuring out different ways to lower costs.  Gas is by far more expensive where we are and I am just figuring this out.  The less we use it (stove and heating our home) the more we save!

What do your winter bills look like and how do you plan on taming them this winter?

Im sure we can all relate to opening up that email or paper bill from Verizon, TMobile, Sprint or AT&T and gasping at the huge bill.  I know I do.

Last year we switched from the strong arm of AT&T and the iPhone in favor of Sprint and the HTC EVO.  I’ve been in love with the Android OS and the super high end HTC EVO phone ever since!  I was tired of the higher priced phone and data plans along with the politics that came with Apple and their Walled Garden.

I was done.  So, we switched to Sprint.

Minus a few issues here and there we’ve been quite pleased with the service.  The cost?  Still leaves much to be desired.  Paying an extra $10/month for 4g/EVO and $30/month for the Sprint HotSpot (wireless tethering for 1 or more devices) stings my wallet every time.  Every month the bill comes to around $220 for two phones on a family plan sharing 1500 minutes (we share landline and mobile to mobile are free) with free nights and weekends.  We are both heavy cell phone users so there’s the occasional charge for going over the minutes.

Lately I’ve been seeing more and more ads for Cricket, Boost Mobile and Virgin Mobile.  After conferring with the man, we deicded that it’s time to look a little deeper into Virgin Mobile since they tend to have more midrange Android phones and maybe moving towards the higher end devices pretty soon.  The other options, not so much.

The plan?

Since Virgin Mobile does not have a contract requirement, we’ll get a phone and test it out for a few months.  And, since we will be traveling for both business and pleasure over the next few months there’s opportunity to test it out for a few months before dropping Sprint altogether.

Now, there are a few things that give me pause about Virgin Mobile but I’ll have to see for myself.  These include the lack of flash video support on the Virgin Mobile LG Optimus V, lack of a front facing camera, camera picture quality and data service.  I also need it to be as fast and responsive as the EVO.  I understand Virgin Mobile rides the Spring network as they are a subsidiary of SPrint. I’ve read reviews where this can be a problem as many users note a “Service Busy” message during peak usage time.  We live in a large metropolitan area so I need to see how this plays out before dropping Sprint like a bad habit.

The cost?

As I said earlier, my current charges with Sprint and the EVO are around $220/month.  With Virgin Mobile if my husband and I get the $40/1200 minutes plan then we would pay no more than $100 per month after fees and taxes for both phone plans.  That would be an extra $120 in savings per month! Comparing the savings to other carriers, check out the chart below:

I keep telling myself it’s a cell phone for heaven’s sake and I should just switch and take the lumps that come with a midrange phone but I am a heavy mobile user so I need certain things to be in place like good data coverage.  I don’t really use the 4G right now so I am more concerned about the 3G data coverage as their phone coverage seems to be excellent in this area.  There’s the option of severely restricting our current plan but I’m certain that it wouldn’t be realistic given our heavy use.  I just don’t think cell phones should cost this much and  I cringe when I see the bill every month!

So tell me what do you know about Virgin Mobile and their service?  Is it good?  Should I stick with Sprint or go with Virgin Mobile?

photo credit: bchow

By now you’ve watched the TLC series, Extreme Couponing about how a family pays less than $10 for over $500 worth of groceries.  And, while I admire the technique, time and patience it takes to cut costs in this manner I don’t believe that it’s for everyone.

Processed Foods Dilemma
Unless you’re into eating loads of processed foods like chips, canned foods and cereal then I’ll pass as this is my number one reason for not utilizing this in my grocery shopping routine. I primarily shop at Whole Foods and Trader Joes and 90% of what I buy are organic fresh fruit, vegetable and meats. The other 10% of what I buy are from CVS and Harris Teeter for toiletries and cleaning supplies.  I follow a clean eating diet unless I am eating out so most of the foods in my kitchen are perishable fruits and veggies.

Buying More Than You Need Just Because It’s On Sale

Totally defeats the purpose of buying what you need to save money. From what I gather on the show, extreme couponing requires that you buy high quantities of certain items forcing you to stockpile in pantries, basements and garages them even if you have no immediate use for them.  It’s a waste of money to have your home double as a mini-mart in the name of saving money.   Still, I understand that some extreme couponers do so to help others, and if that is the primary goal then I get it.  But to overstock my pantry just because I can save some money on a can of peas?  Nah.  I like to buy what I need as I go along.  Now if I see something that I can store in the pantry on a major sale, I will buy it but that usually doesn’t happen for me since most of what I buy is perishable.

Time Consuming

Extreme Couponing takes time which I simply don’t have.  My friends that do this tell me that it takes at least a year to get all the coupons you need to save as much as you see the families do on TLC.  Then there’s the actual time needed to search through the papers and shop at various supermarkets hunting down deals. One accounts details the couple spending 4-5 hours in the supermarket? Do you know what I can get done in the supermarket? It takes me 45 minutes to get in and out of Whole Foods for 2 people. 4-5 hours is just onerous.

Extreme Couponing Fraud?

I’ve watched the news clips about the methods with great interest and read some forums about just how this is done.  There seems to be some question as to whether or not the methods used are indeed above board. Some would call it coupon fraud?  Here’s an example.  Let’s say you have a coupon for $1.  It says you can use the coupon  on a 20 oz can of coke instead of the 12 oz can of coke.  Cashier doesn’t pay attention and you look the other way and voila, there you have it.

The Frugalista interviewed Bud Miller, executive director of the Coupon Information Corporation about the issue:

FRUGALISTA: In the videos, it looks like this shopper, J’aime Kirlew, was using coupons labeled as being for one product, but buying a different product from the same manufacturer. Is that really a big deal?

BUD MILLER: It’s a criminal act. You need to use the coupon only within the terms and conditions printed on the coupon. In English and Spanish or whatever the local language is. A coupon is a contract and an offer. You have to follow those terms. Bar codes are a method of processing coupons.

FRUGALISTA: I’ve heard people say that the bar code is the “real” writing on the coupon, so the acceptable uses of the coupon are really whatever it’s coded for, no matter what the words say.

BUD MILLER: They’re wrong.

FRUGALISTA: I can see how bad this would be if you are taking a high-value coupon for an expensive product, and applying it to a much cheaper product. But what if the product is around the same price, like a company’s regular toothpaste brand and then the new version with a new feature advertised on it? Do manufacturers really care in a case like that?

BUD MILLER: Yes they do care. Coupons generally have their own budgets. That goes into the whole accounting system … controlling expenses, managing the business.

The good news is that the new bar coding system should eliminate most of this. (Stores are) in the process of transitioning (now). (This is why on some coupons now you see two bar codes): you’ve got the older one and you’ve got the newer codes … They’re all in the process of moving towards it.

Let’s just use the coupons for their intended purpose shall we?  The following is not a conversation you want to have with your cell mate:

You- “What are you in for?”
Cell mate “Grand Larceny, you?”
You- “using a save $1 coupon on a 12 oz can of coke instead of a 20 oz bottle

So there you have it. I simply refuse for the reasons stated above. Granted, yes, I do struggle with my grocery bill being $400-$500 just for two people. I feel it should be more in the range of $300 and that will be my goal for this month. If someone knows how to extreme coupon between Trader Joes and Whole Foods show me the way! I plan on experimenting with organic produce delivery this month and see how that shakes out at the end of the month with our budget.

Do you have any tips on extreme couponing with organic fruits/veggies and meats? I am waiting on Whole Foods to get with it and offer real coupons for things that people buy consistently.

You know the feeling. It may not happen often, but when it does… You’re in the dressing room of your favorite boutique, falling in major lust with a pair of jeans that were made for your body. Despite the shop’s terrible fluorescent lighting and 8-way mirrors, you have been instantly transformed into a sexier, fitter, smarter W-O-M-A-N.

The only thing standing between you and this slice of denim heaven is the hefty price tag, so you make a quick pact with the shopping gods that you’ll be a good girl for the rest of the month. As you make your way to the register and brace yourself for the final total, the associate informs you that– bazinga! – the jeans are actually 50% off the regular price. WAHOO!

I hate to think of myself as a cheapskate (I prefer ‘cost conscious’ thank you very much) but with a little patience, it’s fairly easy to save money and snag discounts on a regular basis.

I’m not a finance guru or expert, but if one of your resolutions is to save $$ in 2011, then here’s hoping that just one of these “everyday” pointers will prove useful to you. And since I’m always open to new ideas, I’d love to hear some of your tips as well.

• Sign up for email alerts to free websites like Groupon, Deal On and Half Off Depot. Seriously, I can’t remember the last time I paid full price for a manicure, pizza or oil change.

• The great thing about running and walking? OK – two great things. It’s good for you and doesn’t cost a cent. If outdoor cardio isn’t your thing, now is the time to “gym shop” for the best deal around. It’s the New Year, which means every gym, fitness center, personal trainer, and boot camp on the planet is slicing and dicing prices so be sure to take advantage of those waived fees and discounted memberships.

• I pay approximately six dollars each month to color my hair. (Yes, from a box. Yes, it looks more than acceptable.) I strategically wait for Walgreens or CVS to advertise my favorite shade of L’Oreal on sale and then piggyback it with a two dollar coupon from the Sunday paper. Bam. Six bucks, ten minutes and zero grays later, I’m happy as a clam.

• To save on gas, I avoid any unnecessary ‘single’ trips. Instead of going grocery shopping on Monday, hitting the drugstore on Tuesday, and the dry cleaners on Wednesday, I plan my trips back-to-back in one day if possible.

• As a writer, it’s necessary for me to read. A lot. Although my small mailbox fills up quickly with magazines, I save lots of cash each year by subscribing versus paying per issue at the local newsstand. $12 for twelve issues or $4.99 for one. I am so not a numbers person, but even I can do the math on that one.

• And speaking of reading… As a self-professed book nerd, 90% of the books I devour are on loan from my local library. The other 10% are purchased from the ‘used’ section of amazon.com for a fraction of the cover price. $24.95 for the latest James Patterson? Never again.

• I used to be a full-fledged cosmetics and shampoo junkie. I’d scour the aisles of department stores and beauty supply shops and fill up a cart (or two) with pretty packages promising to fatten my hair, lashes and lips. Years later, I discovered that not all expensive products are created equal and in fact, there are many “under $5” products that work as well as their salon-brand counterparts. Granted, there are a few items that I continue to splurge on (foundation for example), but there are a lot more that I save on. So until Chanel signs me up as their next spokesmodel, I’ll stick with mascara and lipgloss from my local drugstore.

• I used to pay $4.95 per movie rental at Blockbuster. I then switched to a $14.97 per month Netflix plan that allowed me to rent an unlimited number of movies. Life got busy and I was lucky if I had time to enjoy one flick a week. Enter Redbox. At $1.00 per rental, I’m spending less than five dollars a month on movies, popcorn not included. And THAT is what I call a bargain.

Happy 2011 – may your year be filled with lots of smiles, laughter, happiness and money in the bank!

Susan Gernhart is a regular contributor to Girls Just Wanna Have Funds.  Check back regularly for her fresh perspective on personal finance