Category: MyLife101

What I did to save a buck

An unfortunate event took place on my way to work on a recent Friday morning. I make my usual stroll to my car about two blocks away from my apartment building and that’s when I saw the travesty right in front of my eyes. My 1999 Camry was hit and my driver side mirror was shattered in pieces and hanging for dear life. Well you know, what was my first thought when I sat down in my car? How much is this going to cost me? See picture below for your viewing pleasure.

What I did to save a buck

During my lunchtime chat with a co-worker I reveal my recent incident and he quickly tells me a story of a similar situation he went through several years ago. It cost him about 200 bucks back then to fix. Now my mind is checking off the dollar signs to the tune of $400-500 because:

1. His accident was a few years ago and Inflation will get the best of me.
2. His car is a newer Camry and I figured newer parts should be cheaper to find.
3. His mirror didn’t need a complete replacement with some body work / painting involved.

NOW I am freaking out because as you already know I am not fond of spending money on miscellaneous transportation costs. It’s the next day and now I have a plan to get at least three estimates from local body shops and go with the best price and customer service I receive. It’s more important to me for the work to be done quickly and efficiently than the overall price.

Now for the Details:

Estimate 1: Body Shop closest to my house- $225 to order part, paint and Install.

Estimate 2: Body Shop about a mile away- $210 to order part, paint and Install.

What did I actually Spend: $35 for a driver’s side mirror found at a local junk yard, 55 to paint and Install part at body shop number 2. $90 dollars total.

So there you have it folks I saved about $120 because I took matters into my own hands and tracked down the exact auto part I needed and hustled my way to getting some huge savings. I stopped at the second body shop because the owner was cool and very open and honest about the details of the job. Because of this I gave him my business.

These tactics can be used by anybody if you just take the time and make a plan to negotiate and save some dollars. I could have just given in to the first body shop estimate, and been happy with the first quote given. But luckily for me that I am never 100% trusting with service quotes, plus I love to shop around for better deals. Never ever forget to get a second opinion in anything you need to get done service wise. Because different people charge different prices at different times, and it may help you tremendously if one of those individuals is in a good mood.

Examples of Price Quotes/Estimates to save a buck:

Car Insurance
Life Insurance
Home Insurance
Home Repairs
Car Repairs
Car Loans
Mortgage Loans (Good Faith Estimate Docs)
Any type of tutoring / lessons
Financial Advisor Fees
Cable / Cell / Internet Services

Now is the time to Comment if you have a cool story on how you saved a buck by taking matters into your hands.

Watch your Money!

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RichUncle EL

Quit Pretending

Quit Pretending

Quit Pretending is a phrase financial guru Dave Ramsey says all the time and I get a kick out of it. I like the hard in your face advice he gives his readers and listeners. (Radio show / Books) What is the premise behind this Quit pretending thinking? It basically means: Stop Living a False life people. Driving a brand new SUV or the many other vehicles while buried under debt is not a good life. Stop trading in those vehicles every three years and continually adding to your debt and financial mess by not holding a car for more than 4, 5, 6+ years. Research shows that as soon as people pay off a car the wanting kicks in and those same people begin to find another new car to replace the old car that was recently paid off. Just doesn’t make any sense.

I crack up when people tell me Hey why are you driving an old car? (1999 Camry) I tell them because that is what I want right now in my life and I do not need anything else to get me from point A to point B. I hate having car payments and debt. I rather save and save instead of making the banks and the car dealers richer. But what will happen if your car breaks down? I’ll go and buy another old car, maybe a 2006 vehicle with better fuel economy than my Camry or maybe another Camry. Ha Ha. I do not want to seem like I am preaching to a bunch of frivolous living people, because that’s how I sound to those people, but if I don’t say something then nobody else will. I am only expressing what I see and hear out there in the streets and social media. Granted nobody is perfect in this life but with small steps you can be closer to it than many others.

Behavior modification takes a lot of work and it all starts by just being content to say “No”.

-Say NO to Yourself and avoid lifestyle inflation.
-Say NO to your Co-Workers who go to happy hour every Thursday and Friday
-Say NO to your Family who doesn’t see the big picture of money management.
-Say NO to the Credit Card Companies hounding you to open a new credit card.
-Say NO to the Dealership sending you junk mail that you are approved for a brand new Car.
-Say NO to your Friends who buy enough Liquor to fill their bathtub up with Booze.
-Say NO to Anybody who is keeping up with the Joneses or the Smith’s.

I hope you can see the big picture of how the Quit pretending lifestyle is really like. That new Mercedes or BMW you recently spotted someone in, statistically 75% of the time that car is a lease. Now we all know the real truth. A lease is one of the worst money mistakes you can make in personal finance. (Unless it is used for a business expense and Tax write off)  Because research shows that the people that can really afford those types of cars usually go out and buy a used 3-4 year old version and avoid the depreciation factor of the new car.

We all can enjoy life by doing things the right way financially. Money management takes a lot of effort and dedication to staying on the right path. Doing things in moderation is better than doing everything under the sun and regretting how much you spent along the path. To sum it all up if you are always intrigued with doing everything and being everywhere, then you are not fulfilled / happy in this life.

Let me know by commenting on how you avoid lifestyle inflation and the Quit Pretending lifestyle.

Rich Uncle EL

How I lost 20 Pounds

Wow I didn’t expect to lose this much when I started my new work out routine. I was fine body wise but I had a desire to be more ripped. So I got on the P90X bandwagon and it was great for the first 3 weeks, but then the motivation declined. How many of you can relate to this drop off in energy, how are the #newyearsresolutions working out for you? Why did I start doing this new workout, because I was bored with the traditional workouts I had been doing. Lift this bench press here pull that pulley their. I wanted to reinvent and switch up my body to hopefully increase my energy levels and gain power with more unconventional ways. I didn’t have a desire to bulk up anymore like I did in back in 2006. I found that I like looking ripped compared to just looking big. Plus being lean helps improve speed on the basketball court and on the running track.

So I took my workouts outside and away from the gym.(Have not entered a gym in over 4 years) I cut out the extra portions of bread and rice that my body didn’t need. I increased overall workout intensity while increasing my fruits, protein, and veggies intake. Back in 2007 my normal workout routine would take about 2 hours, now I can do a great workout in 30 minutes. (Less breaks and a more intense workout routine)

Excercises I do to stay fit:

Push-ups
Squats
Pull-ups
Sprints and Interval Running
Dead lifts
Burbees
Planks
Core and Balance Movements
Alternate Jumping leg Squats
Jumping Jacks

Probably many of you are thinking what does this post have to do with finances? Well my friends can you say dollars out of my pocket and into the hands of clothes retailers, because now I am more lean and mean my pants do not fit me anymore. Shirts look a little baggy as well. I used to buy large now I am getting medium shirts as they fit better. This is one part of losing weight that has a downside. Money spent to change up and reinvent the ward rope.

So what will I need to get, how about a new suit, at least three new work slacks, and 4 new work shirts. All of these items can total about $1,000 unless I get really savvy and do some comparison shopping and use online discount codes. I can also do some smart shopping during back to school sales and hopefully catch some good percentages off the merchandise.

In conclusion you will spend more if you lose weight by buying new clothes but on the other hand you will be spending less by not consuming all that extra bad food. Some of the foods I do not intake anymore are: Soda, fruity cereals, fast food burgers, non-whole wheat bread, french fries, and only eat a select few desserts. Now that I eat less my grocery bill has been reduced by about 15%. In addition to this I also saved on gym expenses and instead use my dumbbells and will be investing soon in kettle bells. I think the cost savings over the years are worth it to me by elminating time and fuel costs of commuting to a gym. 

Comment if you have tried a new workout routine and the results you achieved.

RichUncle EL

Spent $0 in a week

How:

Hey don’t judge me, I had all the food I needed and all the drinks were already chilled in my ice box, didn’t need to buy gas or anything else. It was a regular week and I finally reached a milestone. I always thought that this would be difficult to accomplish when I started blogging, but I can now say that I have done it at least 3 or 4 times in the last 4 months. It all started by tracking every penny I spent in my handy dandy notebook. The days of the week that I didn’t spend any money vary, sometimes the spend fast week started from Friday to Friday or most recently from Sunday to Sunday. As you would be shocked that I didn’t make a purchase during the weekend, I will let you know that it could be done. So if you want to accomplish a similar feat for all mankind or maybe just for your wallet, start tracking every purchase and then make drastic cuts by planning ahead of time. Groceries should be purchased to last you through the week, your gas tank should be filled prior to as well, and for crying out loud avoid any major retailers.

Why:

As you might be asking yourself why did I put myself in such a predicament of being a terrible consumer and not adding to our nation’s GDP. Well if you may ask I did it to add to my Net Worth which is my very own GDP. Another word for this extreme sport as per shopaholics everywhere, is basically called a spending fast. I had a goal in mind as a way to test myself to think differently and I was going to achieve it no matter what. Every step taken financially will hopefully lead me in the right direction towards achieving my goals. Not a single online purchase, not a single candy bar, and not a single article of clothing purchased in that week.

Conclusion:

The end result if I do this more often than not, I will reduce my annual expenses and systematically increase my savings. I have so many goals in life and I want to achieve them as badly as we all need air. Well maybe not that bad, but you get my point. Sometimes to achieve something you have to make drastic changes and this is my major change as of right now. I can not say that I will keep the spending fast going for long or that I might not spend money on something as dumb as a $150 dollar pair of Jordan’s. I can clearly state that I am more focused and determined than ever to do what I have to do, which is to be in a more stable personal finance foundation while growing my net worth.

RichUncle EL

Mazda 3

In this post you will learn why I might consider buying the new Mazda 3 with Skyactiv technology. I recently read a review in Car & Driver magazine about the Mazda 3 with skyactive technology. It stated it is a fun, fast, reliable car with fuel efficiency to boot. But am I really ready to trade in my car and get this car? Will I be better off waiting a year or two and getting it used as this is a new technology that was recently released this year. As you can see from the picture the car is sharp looking and it comes with some stylish accessories also. The car and driver review rated the Mazda very high in its ride, handling, and fuel efficiency. It placed 2nd out of 6 compact cars in a recent comparison test. One of the editors even described it as a budget based BMW due to it’s excellent ride and feel. Consumer reports also gives this car two thumbs up with high reliability marks. This just makes me happy that my radar is on point in picking high quality yet frugal products. On the other hand I definitely do not want another car payment and I do not want to add to my car Timeline total . What a dilemma I am stuck with?

How much Fuel Efficiency:

  • Realized 40-45 MPG in Highway

  • 14 Miles per gallon better than my current car in the highway

  • 28 MPG in the City

  • 8 Miles per gallon better than my current car in the city

 

As you can see the fuel savings will be far superior to what I am currently getting. But is the trade off better? I will be getting a new car and not have to worry about it breaking down on Interstate 95. But on the other hand higher insurance costs and a monthly payment. I think I have to find a few hundred dollars in the budget to finally update my 14 year old car that was given to me by the Mrs. I can probably get a good 4 grand for her car as it is the color green like money and it even sports a cool moon roof which will not hurt the trade in value.

Here you can see the car’s Specs:

2012 Mazda3 i Grand Touring SkyActiv-G Sedan

Base price (with destination): $23,095
Price as tested: $24,495
(Options include $1400 tech pkg)
Engine: 16-valve DOHC I-4
Displacement: 2.0 liters
Power: 155 hp @ 6000 rpm
Torque: 148 lb-ft @ 4100 rpm
Drive: Front-wheel
Transmission: Six-speed automatic
Fuel economy: 28/40 mpg (city/highway)

Car Review provided by Automobile Website: Mazda 3

As you can read I am leaning towards getting it because it will be a better / safer mode of transportation and I can recoup some of the costs by driving with great fuel efficiency for many years. My current commute is about 25 miles each way to work and home and if this car really puts up the numbers as mentioned by Car and Driver I can most likely cut my gas bill in half. After doing a fuel savings test for both cars I will list a few money savings stats below:

Camry
Mazda 3
Fuel / Price per gallon
3.15
3.15
Average MPG per Car
27
40
Miles Driven per Year
13,000
13,000
Plan to own my car 5 yrs
Annual Fuel Costs
1,517
1,024
Cost Savings per Yr
0
$493
Cost Savings for 5 yrs
$2,464

After 5 years I will save $2,464 in just fuel costs at the $3.15 current price at the pump. If gas happens to sky rocket to $4 dollars per gallon my savings will also increase with the new car. In addition if my commute time goes up in the future I will not be worried as I have a more modern, reliable, and greener car. On top of that I will be going back to my roots of Mazda products, as my first two cars that I ever owned were the Mazda RX7 and the 626. In part two of this post I will discuss negotiation figures with Mazda dealers to give you more details on the new car development and also I want to test drive it soon.

 Here is a link to another Mazda 3 Auto guide car review: MZ3 Skyactiv

Comment below and let me know what are your thoughts on this car and anything else you might recommend to me as a mode of transportation.

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Personal Finance

What does this title mean to you? Do you want to know what it means to me? It means being in control of your financial life. The standard definition by Wikipedia is:

Personal finance is the application of the principles of finance to the monetary decisions of an individual or family. It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.

I think that definition in its entirety said exactly the same thing I said in the sentence above just with a bit more fluff. Being in complete control over your finances is proving to be an extremely difficult task, as people every day are taking a step forward and two steps backwards. A shift in how we handle money needs to be taken into serious consideration because people still have not gotten the memo. Granted nobody is perfect and we all make mistakes in life, you and I are included. I am still paying for student loans that I did not want to take out, but did allow me to graduate within 2.5 years from beginning to end. Those student loans are the only thing left on my list of life debts and they are not cheap as interest charges are 6.8% of the total. I hope I can stick to my goal of paying it off in two years.

Continue reading Personal Finance

Gifts and Money

gifts and money
Pic by Canada Website

 

Hey don’t we all like to receive some cool gifts and money? I for sure love to be surprised with something I currently do not have or didn’t know I needed. Gifts are a fun and cool way to say to somebody hey I think you are somebody special in my life. The tricky part of this is will the person need or even appreciate the gift. In addition to this how much should you spend on said gift? Well I will give you some insight as to why I decided to write this unique and fun post. The best gifts in life do not costs tons of money. The gifts may be a cool experience like a baseball game or a concert that you want to share with someone or it may be a something out of the ordinary that the gift-ee will treasure for ever.

Examples of the Best Gifts I have recieved:

-Tickets to a US Open Tennis Game- The Mrs.
-A hand painted Cigar Box- My Daughter
-A Wallet- The Mrs. and My Brother
-A Comfy Sweater- My sister and the Mrs.
-Dinner – The Mrs.
-Shoes for Work- My Father
-A Suprise Party- The Mrs.
-A Benjamin to help with computer purchase-My Mother
-A Cool Watch- The Mrs. and My Cousin
-Free Software- Two of my cousins
-A weekend getaway- The Mrs.
-A handpainted drawing-My Daughter
-NJ Nets Game and a Basketball- The Mrs.
-Tickets to a Yankee Game-The Mrs., My Father, My Cousin

As you can see some of these cost some pennies but nothing too crazy. Experiences as I mentioned before go a long way because our memories are timeless. In the end, hopefully thats all we can take with us. I hope to surprise the family with many more experiences like skydiving or a cruise around the world. If you can think back to what you recieved for christmas three years ago you win a prize because most people forget. But I bet you remembered where you celebrated it and with who. In the future I will focus my money and energy on gaining more experiences with my loved ones as that is what matters to me now a days.

Comment back if you have a cool gift and money that you recieved by surprise. It can be an experience or a actual product as long as you cherished it and actually used it.

Rich Uncle EL

Friday Financial Quotes III

I wanted to share with you a few quotes today and hopefully this will get you motivated to start the weekend right. These financial quotes will help you get motivation in your life, whether it may be you are working a part-time / side job, looking at growing a business, taking care of a real estate property, or attempting to save a number of pesos this weekend by not making it rain in the clubs. Either way I wanted to share with you these excellent quotes and you guys can take the message any which way your mind desires.

Quotes-

-My favorite things in life don’t cost any money. It’s really clear that the most precious resource we all have is time. – Steve Jobs

-Never spend your money before you have earned it. – Thomas Jefferson

-If you incur debt you will soon walk the poor man’s Trail. – RichUncle EL

The first quote is so powerful as it clearly explains how limited our greatest resource is, Time. Take advantage of the time you have because you do not want to be the one stating 30 years from now, I should have could have would have done that. The next two quotes are about the debt monster as in life people do not realize how important it is to be free of owing money. I guess I am in the great company of Thomas Jefferson, LOL as we both want you to avoid debt at all cost, while living a stress free life doing the things you want.

Random Posts I recommend reading:

-52 Best Money Tips- Free Money Finance

-J.Money’s Net Worth- Budgets Are Sexy

–Retired at 30– Mr. Money Mustache

These three posts are by the three blog authors I read often as a way to motivate myself. Feel free to get some financial knowledge by checking these posts out for yourself. The first one is about money tips which we can always use. The second post is about a guy who is obsessed with budgets and happened to amass a good Net Worth at a young age. The third is about a retired 30’s something guy who doesn’t hold back his tongue but let’s you see his inner scorecard mentality on how he makes his money work for him.

Well now that you have been enriched with my financially related wisdom, do you feel like commenting? Yes you do. Maybe you feel like writing your own quote, send me an email to Moneywatch101(at) Gmail (Dot) com and I will post it here next week or sometime in the future. Obviously with your permission. LOL.

Watch Your Money!