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#881 Halloween Savings: How To Save 50% On Halloween Candy

22 Oct

This money saving tip takes planning and patience. And a secret stash hideout that no one can find.

Step 1: Hit the post-Halloween 50% off sales on candy on November 1. (The earlier you hit them the better the choices.)
50% off halloween candy discount

Step 2: Check the expiration date to make sure the candy will be good NEXT Halloween. Check… (I did indeed buy this candy and plan this post a year ago…)
halloween candy expiration date

Step 3: Sample a few… just to make sure they’re good.
halloween candy lemonheads

Step 4: Stash the candy in a cool, dry place where NO ONE will find the secret cache.

Step 5: Hand out candy when next year’s Halloween rolls around. Sample a few just to make sure they’re still good (they are!). No one is the wiser as you hand out the candy. Repeat yearly.
halloween candy in hand


Bonus: You don’t have to shop for candy last minute.

It has to be Halloween candy because many candies that are not usually individually wrapped are individually wrapped for handing out. Other holidays have themed candy that makes it obvious that you are handing out the wrong holiday’s candy.

Alternatives to handing out candy to massive amounts of ungrateful children:

Keep your house dark and hope no one comes by.

Hide in the bushes with a really scary costume and jump out to scare people away.

Personally, being cheap on this one is easier than the previous two. You can still enjoy the holiday and it eliminates my pet peeve that holiday candy is always 50% off after the fact. Well, I just solved that problem for you. You’re welcome. You can use this tip for any holiday. Just don’t let anyone know that it’s your game plan. They probably will tell others to avoid your treats on the holidays. Come on people, sugar never goes bad!

#882 Halloween Savings: Don’t Let That Pumpkin Go To Waste

21 Oct

jack o lanternAfter carving up your Halloween jack o’ lantern, do you:

A. Let it rot on your lawn or doorstep until it is a disgusting heap of orange and black moldy goo.

B. Throw it away.

C. Compost it.

D. Roast it for pumpkin puree.

I pick D.

So this money-saving idea may be bordering on cheap, but I like to think of it as Native American resourceful. As in nothing goes to waste. I thought my mom was seriously cheap and weird when she did this, but then I moved to Europe where they don’t have pumpkin puree in a can. But they do sell pumpkin slices in the grocery store. That’s when I started to roast my own pumpkin, and my mom’s crazy ways seemed a little less crazy.

Please note: Pumpkins go moldy very quickly so this has to be done within 24 hours of carving to be safe. This means, don’t carve the Halloween pumpkin until the day of or day before Halloween. Who really uses a jack o’ lantern for more than Halloween night anyways?

Step 1: Discard the top with the stem and cut the pumpkin in half.
halloween pumpkin and top

halloween pumpkin cut in half

Step 2: Cut the pumpkin into even-sized cubes and trim the dried-out layer. Don’t worry about trimming the rind off, leave it during roasting.

halloween pumpkin cubes
Step 3: Place the cubes on a cookie tray, rind side down, and brush or spray with canola oil. Roast at 350 degrees until a skewer inserts easily into the cubes, about 40 minutes.

halloween pumpkin roasted
Step 4: Allow to cool for 5 minutes and then trim off the rind with a butter knife and place soft cubes in a bowl. Mash to desired consistency. Or place in food processor for a smoother finish.

mashed halloween pumpkin
Alternatives: Steam on the stove top or cook in a pressure cooker (the rind should be removed for these methods). The end result will be more watery. I like the drier finish of roasting, plus it adds a nice flavor.

Step 5: Measure into 1 or 2 cup servings and freeze what is not used right away.

halloween pumkpin puree

How this Halloween money-saving tip actually saves you money: From one average-priced $6 pumpkin, you can get roasted pumpkin seeds (isn’t that the best part of carving a pumpkin), a Halloween decoration and pumpkin puree. A small pumpkin (that in my case was actually $4.50)  yielded exactly 7 cups of pumpkin puree. libby's pumpkin pureeOne can of premium brand puree is $1.98. Generic brands are $0.99 – $1.20 per can. One can of pumpkin puree is 2 cups. That means my 7 cups is equal to 3 1/2 cans of store-bought puree or $6.93 worth of premium brand or $3.37 – $4.20 worth of generic brand puree. The premium brand canned pumpkin puree cost is more than the original cost of the pumpkin. The generic brand cost is slightly less than the original cost of the pumpkin. And that’s not factoring in that this would be the third use of the single purchase of a pumpkin.

Additional benefits of turning your jack o’ lantern into pumpkin puree:

  • No concerns about BPA in canned goods
  • Pumpkins are packed with nutrients namely beta-carotene just like orange carrots. The fresher the pumpkin, the better the nutrients so making your own means it’s fresh and hasn’t been sitting around, exposed to extreme temps to kill bacteria during manufacture and other practices that kills food nutrients.

Your regular jack o’ lanterns might not be the best flavor choice, but there are a huge variety of pumpkins. If you get one from a farm stand or farmer’s market, the grower may be able to tell you more about the richer-flavored pumpkins to choose from.

What to do with all this roasted pumpkin?
If you’re Euro, you’ll go savory with pumpkin soup, pumpkin ravioli or pumpkin risotto.
If you’re American, you’ll go sweet with pumpkin pie, pumpkin bread or pumpkin muffins. I once made killer pumpkin cheese cake and pumpkin creme brulee.

The best part is that Thanksgiving is just around the corner and you’ll be able to wow the guests with tales of home-roasted pumpkin pie.

Growing Up With Pets: My Memories Of 10 Childhood Pets

11 Jun

yellow lab with tennis ball

Photo via flickr by derekskey.

As if having seven children wasn’t enough for my parents, it seems like they could never say no to a new pet. And with seven kids, if one kid gets a pet, another one starts crying for one too. That’s how we ended up with two ferrets instead of one (I was the crier). We had lots of pets growing up, 10 of them are memorable for me:

1. The Ferrets. How it came about that my parents ended up at a ferret farm buying a ferret, I don’t know. But as soon as my older brother had a ferret, I cried and cried for one too. I picked out a fat, lazy, white one and named him Rusty. My brother’s ferret, Nipper, was slim, active and looked like a typical ferret. Many other ferrets followed, but Nipper and Rusty were the first. Ferrets are cute, stinky (some same musky) and sleep a lot. We used to carry ours around in a backpack as they slept. They hopped sideways and made squeaky sounds after we gave them baths with baby shampoo.

2. Butch, The Guinea Pig and his jailbird wife, Mathilda. For some reason, as kids we had a great disdain for hamsters and gerbils. Instead we had guinea pigs. We had a beautiful orange and white long-haired guinea pig named Butch. We pretended that he didn’t have a mate because his girlfriend, Mathilda, was in jail. We’d have Butch talk on the phone to Mathlida in jail. When we got a female guinea pig, the ever-absent Mathlida was paroled, and there was a joyous reunion with Butch. I have no idea how we came up with this stuff. Kids and imaginations are incredible things.

3. The Tarantulas. My older brother ordered these from science lab or something. They were giant and hairy, and well, tarantulas. Luckily, the ferrets seemed to like to get into their tank and eat them. That put an end to the tarantulas.

4. Dix, The Budgie Parakeet. I got Dix for my tenth birthday. To French speakers that makes his name very obvious: Ten. He was also the first in a line of many budgies. For my 22nd birthday, I was going to get a fish for my apartment. Instead I had too many drinks and picked out two budgies at the pet store. More than ten years later, one of those budgies is still alive. Oh, a fish would have been so much easier…

5. The Chameleons. Another one of my older brother’s random-animals-in-a-tank ventures. They escaped one summer, and we’d see them around – green in the grass, brown on the weathered shingles. I still have a fondness for little lizards.

6. Sebastian, The Hermit Crab. I don’t know how a hermit crab can be friendly, but Sebastian was the friendliest hermit crab. He had a companion whose name I can’t remember because he was not nearly as friendly. I loved Sebastian. Then my little sister took the two hermit crabs out to play and promptly forgot them outside. She left them baking in the Southern sun until there was nothing left but a shriveled bit inside their shells. Oh, little sisters.

7. Circe, The Chicken. Circe was all shiny black. I was into reading Greek mythology at the time if you couldn’t tell. I sat and watched Circe nestling in the grass until, all the sudden, out popped an egg. That was something crazy to see as a kid. The ferrets lived next to the chickens and when there was a commotion in the hen house we knew the ferrets had weaseled their way in there. The ferrets didn’t bother the hens or the eggs. They just wanted to sleep curled up under the hens where it was warm and cozy. The hens did not approve.

8. Jacques Cousteau, The Cat. I’d grown up with cats, so when I graduated from college and got a job, it seemed like a cat was a good idea. I adopted one from a shelter. When I moved, the cat went on vacation to my parents and disappeared. We thought he had been eaten by a fox or coyote, but a year later we saw a town publication with a photo of an elderly woman and a cat. That cat was definitely Jacques Cousteau. Maybe all black cats look alike, but I could tell it was Jacques. I was happy to know he wasn’t eaten, and did not want to disturb his happy life with the elderly lady. So long, Jacques.

9. Snowball, The Yellow Lab. I think all kids have a special place in their hearts for the dog with which they grew up. We got Snowball when I was around eight and he died when I was in college. Man, that was sad. He was the best definition of a dog – ever-loving and comforting.

10. The Fish. We had lots of fish. Guppies that had babies that then got eaten. Black mollies. Angel fish. A skeleton fish named Bumpy. But I really loved winning goldfish at the state fair and bringing them to a happy home for a week. They never lasted more than a week, but it was a happy week.

 What’s your favorite pet memory?

#883 Pet Savings: A Kong And Beef Marrow Bones Are (Almost) Indestructible

10 Jun

puppy with puppy Kongs

Our first baby and his puppy Kongs.

My dog never chewed shoes… or furniture… no, it took him two years, yes TWO, to chew through his Kong toy. While I think I spent somewhere between $10 and $15 for the toy originally, which seemed like a lot of money for a dog toy, it saved a lot of money, furniture, shoes and angry yelling. We learned quickly there was no need to buy dog toys that only lasted an hour or a week at best when we had the incredible Kong (please note, Kongs are NOT indestructible, but they are tough).

We started out our puppy on some puppy Kongs that are a bit softer to chew. They lasted quite a while, but not nearly as long as the red, adult version. Some dogs might not be into the Kong if they are introduced to them as adults. But any dog will pretty much be interested in a toy that has a treat inside it.

In order to make the Kong entertainment last as long as possible, fill it with generic peanut butter, or if there are nut allergies, generic cheese whiz, and place the Kong in the freezer. The frozen treat will take the dog forever to get out. Perhaps hours. It can get messy so it might be best to give it to the dog outside or confined to a room.

dog with Kong

The original Kong shape was all we needed. Photo via flickr by dani0010.

Our dog even played with the Kong when there was nothing inside it. The funny shape of the original Kong made it bounce wildly all over our tile floor. He learned to pick it up in his mouth, sling it down and chase it, all for his own entertainment. Even after two years, when he had finally chewed the top off, he still played with it. We finally decided the thing was totally done in and tossed it after more than two years of play. But, boy, were we impressed with the use we got out of it.

The Kong was most helpful when our dog was primarily inside. Despite regular walks, many dogs get bored and over-energized without stimulation, which leads to destructive behavior. Giving our dog the Kong was a good way to channel energy inside when we weren’t out for walks. Now that he is an outdoor dog, which he loves, he’s doesn’t need dog toys so much.

But we do like to give  him an exciting treat/toy to make his day every now and then. Enter the beef marrow bones. Beef marrow bones are available in the meat section of the grocery store or from the butcher counter:

beef marrow bones

At $3.85 for two massive bones, it’s a lot cheaper than a similar pet store dog bone, and it’s from a reputable source.
dog eating a beef marrow bone
One bone lasts us about a week before it is lost or hidden. If the bone is not lost or hidden, it can be washed and treated like a natural Kong and stuffed with another treat once the marrow is gone. Beef marrow bones can also be cut to any size at the butcher’s upon request.

Dogs can eat raw bones because of their wild dog ancestry so there is no need to cook the bones. Cooked bones have a have higher risk for splintering and causing intestinal issues. Beef marrow is also highly nutritious for dogs.

Whenever dogs receive treats, remember to reduce their caloric intake from their regular food to avoid weight issues.

#884 Pet Savings: Two Ways to Save Money On Kitty Litter

4 Jun

cat in window

Let me out!

I was excited when we could finally let our cats outside. Our kitty litter costs went from weekly purchase to zero. Previously, we had lived in an apartment four stories up, so there was no way to let the cats out. Then we had street level access in a car-free environment, but we hesitated to let our “indoor-only” cats outside. Once those cats got outside, they loved every minute of it. And they never used the litter box again. We could cross that expense off our shopping list.

I’ve known many people (including my husband and me) who worry about their indoor cat going outside.

“But he’s only ever been inside!”

“But she doesn’t know how to be outside!”

“But he’ll get lost!”

And then somehow those same people are amazed at how their cat loves to be outside, finds his or her way home and otherwise takes to outdoor life like a fish to water. Cats really are meant to be able to roam free and enjoy lying in the sun in the garden.

I realize that not all cats can be outside. If you live in a high traffic area (the cat will unfortunately most likely get run over) or in a high rise apartment then going outside is not really an option, but if there is no reason why a cat cannot go outside, don’t keep the cat indoors. The cat will be happier, and the litter box will go unused.

cat in sink

Mmm… the sink is nice too… just not for toilet training.

If you are in a high rise apartment or live on a highly trafficked street, you’re not doomed to forever paying for kitty litter. For the brave and thrifty, you can train your cat to use the toilet and be litter box free as well. The cat toilet training works best in a two toilet home so that one toilet can be a dedicated cat toilet during the training process. The process may take weeks, but then it will be years of litter-free living.

I had a co-worker once who was extremely excited to tell me all about his cat toilet training and show me the whole system. I was less than excited to hear about it, but it is a very good idea for cats that cannot go outside. (This particular co-worker’s cat was a country cat so I’m not sure of the point of potty training him was, but…)

Videos like this on YouTube explain the basics of kitty toilet training.

Other benefits of allowing your cat to go outside include:

  • Your furniture will not be clawed. You don’t have to worry about having furniture destroyed by crazy, clawing kitties. Cats that go outside will claw outside or be able to dispense their energy so they are not apt to claw when inside.
  • The cat will be less neurotic. Cats have a lot of energy and it’s hard for them to release it all being stuck inside, which results in neurotic cats. Going outside allows cats to positively get rid of their energy and reduce being neurotic indoors.
  • Weight issues might be addressed. If a cat is overweight, going outdoors may help address this problem as they will be getting more exercise and burning excess calories.

#885 Pet Savings: Make Your Own Dog Biscuits

29 May

homemade dog biscuits

Homemade dog treats were faster and easier made than expected. Cheaper too.

Making my own dog biscuits turned out to solve two problems for me. First, how to keep my dog in treats and second, how to keep my daughter out of the dog food.

My dog is half-pig, half-dog. The breeder said so when we picked him up. (I know I advocate adoption, but the puppy adoption we wanted didn’t work out so we made the new dog owner mistake of paying lots of money for a pure breed puppy). Anyways, our puppy was the fattest puppy in the  litter. He was huge compared to his brothers and sisters. Because this dog has an appetite. If he doesn’t get treats he goes a little insane, so we like to satiate him a little with treats. It doesn’t matter what it is as long as it’s not dog food from the bag.

My daughter loves everything dog. She has a huge collection of play dogs. We can get her to wear anything if it has a dog on it. She loves our real dog so much that she pretty much wants everything he has… his collar, his dog food, his dog treats. So to avoid having her demand dog food every time the dog eats his breakfast, I looked up dog biscuit recipes.

First, I tried a Bernard Clayton recipe in which he wrote that he wanted a dog biscuit that was tasty for dogs and humans. My dog would not eat them. Did I mention this dog is half-pig? He eats everything. The fact that he refused a dog treat was a little mind-blowing. Sorry, Bernard Clayton, your recipe failed the tasty-to-dogs test.

So I created my own dog biscuit recipe, which you can find here. And here are video instructions.

The dog biscuit recipe been tested on multiple dogs and multiple toddlers. Everyone loves them. Turns out other parents have the same issue with their toddlers eating their dog’s food and treats. I was embarrassed at first to admit that my daughter had this penchant for all things dog, including food. But then she started sharing her homemade biscuits with friends, and the parents admitted to the same problem.

I was doubtful of the cost savings of making my own dog biscuits, so I did out the numbers. Turns out the materials are cheaper by cents per pound than generic brands, but by dollars per pound than premium brands. And I’m sure the homemade product is far superior to even premium brand dog treats. I decided it was worth it to me to make my own dog biscuits for the 20 active minutes time it takes to make them because I was assured that the product was safe and palatable not only for my dog, but for my kid. Dog food has not been immune to tainting by food poisoning bacteria and other unsafe materials, so if I can provide a safe alternative I would rather do that. I know everything that goes into the biscuits is fresh, safe and tasty. Plus, it’s a fun activity that my daughter and I usually do on the weekend. I’ve been even known to sample a few of the final product.

To make the recipe even cheaper than store options, you can substitute whole wheat flour for rye flour. Rye flour lends a nice flavor that might be lost on dog-only consumption.

#886 Pet Savings: Adopt A Pet

28 May

adopted kitten

Caution: Cuteness ahead. Photo via flickr by Pargon.

Your first expense when you decide to get a pet will be purchasing said pet. If you’re looking at getting a goldfish and a bowl then the expenses aren’t going to be great, but when it comes to cats and dogs, pedigreed pets can run anywhere from $500 to $1,000. While adopting a pet is not free, it will be significantly less than buying from a breeder. And many pets for adoption are pure breed and pedigreed.

Adoption costs run from $100 to $350 depending on the cat or dog, which is a fraction of the breeder price. Adoption costs cover spaying and neutering, shots, a clean bill of health from the vet and any foster care expenses. So the fee is a fair estimate of what it cost the shelter or adoption service to bring the pet into your home.

Whether you are a cat or dog person will determine what you get, but here are some thoughts on both cats and dogs. And thoughts on other pets.

Cats and kittens:

  • Cheaper than dogs to adopt, cats and kittens are plentiful in shelters. Spring and summer is high kitten season. Other times of the year it might be harder to find a kitten to adopt. Lots of older cats from are also available for adoption. Either option is great as kittens and cats come already housebroken. They somehow just know how to use the litter box or go outside. All they need is a little love for a lot of reward. My family and I have adopted  many cats over the years with no issues.
  • Pedigree doesn’t matter. While pedigree does determine the relative personality of a dog, all cats pretty much act like cats… With slight variances in friendliness or leave-me-aloneness, which is usually affected by upbringing from the kitten stage. A well-loved and handled kitten will be a friendlier cat than one that was left alone. After 8-12 weeks of age, the more a cat is left alone, the less it will like people or be cuddly. This is based on personal upbringing and observation of many cats not scientific study, but I think it’s pretty accurate. A pedigreed cat makes no sense to me when all cats and kittens look cute and cuddly no matter what. There are pedigreed, older cats available for adoption, who may very well have been well loved for a long time.
  • You can get a cat or kitten for free if you find an abandoned cat or kittens. This however is a tough situation because they have not been vetted for health like in a shelter and are not spayed or neutered. Both vet bills and spaying or neutering would add up. You’re better off taking a stray to the closet shelter. Or the vet. Both can check for microchips to find the owner, and let you know about its health. Abandoned cats and dogs can have serious issues with worms, mites and fleas. If you want to adopt the cat, you can arrange it with the shelter.
  • You should always spay or neuter. Unless you are a breeder, you should spay or neuter your cat or kitten before you have a litter of surprises on your hands. Male cats are territorial if they are not fixed.
puppies for adoption

Looking at puppies to adopt is hazardous to your heart. Photo via flickr by jeffreyw.

Dogs and puppies:

  • Puppies might be harder to find for adoption in certain areas. There are some areas of the world that are overflowing with stray puppies, and some areas where you can’t find a stray animal anywhere. In the US, Southern states like Mississippi, Louisiana and Texas have large overflows of strays. In places like the Northeast, where there are fewer strays, adoption agencies will bring puppies up from the southern states for adoption. In Europe, places like Italy, Spain and Romania have large volumes of strays and agencies in less stray-prone countries work to bring in puppies for adoption. If you are adopting by bringing a puppy from a high stray area to a low stray area, then the costs will be greater because of transport and care. But if you are set on getting a puppy versus an older dog, this may be the only way to get a puppy age dog.
  • Pedigreed dogs are plentiful. The benefit of adopting an older dog is not only that they’ll most likely already be trained, house broken and socialized, but many are pedigreed with papers from families who bought the dog only to give it up later. If you are set on a certain breed there are breed specific rescue agencies that place pure breed dogs with adoptive families. You can Google the breed’s name along with the word rescue to find breed-specific rescue agencies and opportunities. Most dogs will be from 6 months old to several years old. Pedigrees in dogs will guarantee a certain trajectory of behavior, energy level and other traits.
  • Dogs require a lot more work than cats. Cats mostly get put up for adoption because an older person dies and leaves a cat behind or a move requires the cat to be placed somewhere else. Dogs however are given up for adoption because the family or individual who originally bought the dog did not realized how much work a dog is. Or how rambunctious they are. Or they don’t like their kids get knocked over by the dog. This is all because a dog requires way more hands on training, exercise and attention than a cat. Make sure you’re ready for the dog commitment before adopting a dog.

Both dogs and cats:

  • Mutts are healthier. Usually mixed breeds for cats and dogs are healthier because pedigrees have been interbred, resulting in the desired trait as well as a host of potential health problems. Mixed breeds often avoid these pure bred problems because their gene pool is more varied.
  • Pets are always a commitment. Financially, cats and dogs are a commitment that has to be consciously made. Make sure you have the resources to care for and feed your pet. They don’t need a lot but it is an expense. In terms of lifestyle, getting a pet means you’re committing for their life span. Changing apartments or houses if you are a renter should be considered carefully as many places do not accept pets. If behavior problems arise, it is your responsibility to address the issue constructively, not by just getting rid of the animal.

Other types of pets:

  • Guinea pigs, parrots and other pets besides cats and dogs are available to adopt. It might be a bit more rare to find a non-dog or cat to adopt, but it does happen. If you are looking for a pet that is not a dog or cat, it is worth seeing if a shelter has what you’re looking for.
  • Exotic pets are not a good idea. Pets that have been bred for domesticity are fine. Exotic pets are quite a challenge and should not be considered. They are wild animals with special needs. Many are nocturnal, unfriendly and invasive if released in the wild. The Everglades in Florida are being devastated by pythons that were released by owners who didn’t want them after they grew too big or escaped from exotic pet providers. Steer clear of exotic pets.

#887 Spend Your Money Like A Person Of Substance

24 May

woman smiling

What makes you happy in the long term? Photo via flickr by Worldizen.

When I say person of substance I mean someone who is not putting on a show, trying to make a good impression or interested in superficial matters. I mean someone who is comfortable with him or her self and truly an honorable person. Like someone who would speak up when he or she sees something wrong when everyone else is walking by. Like someone who does something for other people because it makes them feel good. Like someone who would give his or her coat to a homeless person on a cold night because he or she is going somewhere warm.

The person of substance sees what the honorable thing to do is and tries to do it. Why spend your money like a person of substance would?  Here are some reasons why:

  • Stuff doesn’t matter. When you meet people of substance, any stuff they have seems secondary to anything else in their lives. Yeah, they may have a cool gadget or the latest something, but it’s because it was related to another interest or they acquired it without any to-do. They don’t parade their stuff around. If they don’t have something that everyone else has or wants, it doesn’t bother them. They get stuff because it’s related to something more meaningful in their lives, not because everyone else says they should have it.
  • They don’t spend money to have fun. They know that relationships, enjoying small things in life and helping others are all more rewarding then any other activity. And many times those things don’t cost anything at all. Think about the a time when you were absolutely the happiest you can remember. Did it involve a shopping spree? Probably not.
  • They can take fads or leave them. They don’t chase every new thing that comes along on TV, in stores or online. They enjoy the ones they like and leave the ones they don’t.
  • You wouldn’t know if they were a millionaire or middle class. The person of substance is so genuine that money and stuff doesn’t seem to enter into the equation. Like the librarian who lives simply and dies, leaving millions to a charity. Or the wealthy man’s daughter who has a regular job and a modest apartment so that everyone exclaims “you wouldn’t know she was rich!”

Next time you buy something think about what it means to you, why you are buying it and what it will add to your life. The more you think about your life, the more you will realize what you value. And what you value may very well turn out not to be material things. Or in other words, you are a person of substance.

#888 Manage Your Money Like A Corporation

23 May

coca-cola logo

How do you succeed financially? Take a cue from corporations.

Corporations may be cast as callous and impersonal, but they sure do know how to manage money. In fact, their bottom line is the bottom line. The question corporations want answered is: Is there a profit or a deficit? If the corporation is successful, it means it is making money and growing it’s capital. Sounds good to me. So if money, not people are the important, let’s not hate corporations, but learn from them.

A little more corporate ruthlessness for personal finances is not a bad thing. Take the good part of corporate money management and improve your bottom line.

Here are some thoughts about managing your money like a corporation:

  • Budget. O.K. if you read this blog regularly, you’re probably tired of hearing this one. But no company operates without a budget. You shouldn’t either. It’s really not that hard. So companies have the accounting department to take care of tracking it, but most people either see a budget or have to submit numbers for it on a yearly basis. So start doing it for yourself and learn to be your own accounting department.
  • Cash flow. Cash flow is different from a budget because it tells you what is leftover after all your expenses. So your income minus your expenses leaves your net cash flow. Everyone including corporations want positive cash flow, meaning you have something left over after expenses. Negative cash flow means you’re living beyond your means. It would mean death for a corporation if it continued to have negative cash flow year after year. Make sure your budget results in positive cash flow, which can then be invested, saved or otherwise used to improve your financial outlook.
  • Monthly, quarterly and yearly reports. If you are tracking your budget and cash flow, then you’ll already be generating regular reports to see if your finances are on track for the year. If something gets out of hand (why are my gas expenses twice what is budgeted therefore making my cash flow smaller?), you’ll be able to catch it and correct it sooner rather than later.
  • Are you in the black or red? Everyone want to be in the black (profit) the majority of the time. Being in the red (deficit) is only acceptable for short periods of time for extraordinary circumstances or expenses. Ruthlessly pursue being in the black like corporations do.
  • Get your shareholders on board. Who are your shareholders? Your spouse. Your kids. Your partner. Anyone affected by your financial decisions. Make sure everyone is on board with the financial plan and outlook so they don’t get unhappy and dump your stock. Good lessons can be learned by all.
  • Try a Board of Directors. I’ve heard this suggested a couple times, and it’s an interesting idea if it works for you. Certain financial and life decisions, which always have financial impact, are difficult and very emotionally charged. If you meet people in life who are thoughtful, and you value their input but they are not close friends, ask them to be on your personal Board of Directors. This means when there is a major and tough life decision, you can present your proposal to the Board members, and they can yay or nay the project based on whether it makes sense to them. The process of seeking impartial opinion and putting together a concrete proposal will help sort out all the numbers, reduce emotional motivations and make the move strategically more clear. Family members and close friends are usually not good choices because they are too emotionally biased or have their own motivations for a certain outcome. Old bosses, networking contacts or casual but respected acquaintances would work.

See, all personal finances can benefit from a little corporatization.

#889 Treat Your Money Like A Wealthy Business Person

22 May

warren buffett

Warren Buffett has lived in the same house since 1958. Photo via flickr by Art Comments.

If you’re dedicated to being thrifty, then you’re well down the path to treating your money and resources like a wealthy business person. First off, successful, wealthy individuals have budgets. When you have a lot of money, you want to know where it is, where it’s going and where it’s coming from. Second, they’re thrifty. Many successful business people have modest homes, cars, limited cash on hand and bargain shop. Don’t think they don’t have a shopping list and stick to it.

Here are some more ideas that you may or may not be practicing that successful (and rich) business people use to become successful, stay successful and pass the formula for success onto their children:

      •  Improve yourself and your knowledge. In no way does learning ever stop. Not after high school. Not after college. Not after you retire. Reading new material and constantly seeking information is a great way to improve yourself and your knowledge. And it’s not only reading related to your industry or interest. Some of the best advice I got from someone in order to do my job better as a fundraiser, which involved a lot of cocktails and small talk, was to read one magazine or source of information totally unrelated to my interests per month. Like picking up an copy of Cycling magazine and reading it cover to cover.  It’s shocking how quickly the material becomes relevant in ways you never imagined. Reading and getting info on your own industry will do nothing but help you on a daily basis. Reading in your own industry and interests is easier and less daunting than picking something you initially care nothing about.
      • Rely on other people’s strengths.

        Photo via flickr by buddawiggi.

        This means valuing relationships and identifying other people’s strengths and how they can complement your weaknesses or areas in which you have no knowledge but need someone who does have knowledge. You can’t do everything yourself. Surround yourself with good people, and you’ll reap the rewards. Whether you’re building a team to work with or hiring a babysitter, relationships will make your life easier if you pick the right people and cultivate the relationship to ensure reciprocal benefit and enjoyment. For lots of people the word “networking” strikes fear into their hearts. Networking means building positive relationships and staying in touch – even if it’s only twice a year to say “Happy Birthday” and “Happy New Year.” Those relationships will come into play and reward you throughout your life.

      • Set goals. Goals usually mean physical goals versus monetary goals… Make eight more sales calls per month. Write a blog post per day. Finish a Masters by the end of the year… Instead of make $10,000 more by the end of the year or $1,000 more by the end of the month. The goals will move along and are achievable because you are in charge of pursuing the completion of the goal. Life satisfaction will follow, and most likely the money as well.
      • Treat every decision like an investment.
        money bills

        Photo via flickr by sushi♥ina.

        Ask “What is the benefit?” “What am I getting out of it?” “Is it worth it?” “If I do this then how does it affect everything else in terms of time, money and other resources?” Business people are very talented at looking at the cost-benefit of decisions when it comes to their investments, including time.

      • Keep innovating. This does not mean only coming up with big ideas or groundbreaking ideas to cash in on. This does mean thinking about how to do things that you already do better or really well. A lot of successful people have built their success on doing something ordinary really well. This means always thinking and always innovating, even if it means on the same old thing.
      • Numbers don’t lie. When it comes down to it, statistics and numbers are a powerful tool to use to help you analyze a situation and make a decision or change your course of action. Business people don’t just make a decision based on a feeling, it has to be a feeling backed up with numbers or evidence that make any kind of sense.
      • Think strategically. Not everything is a huge gain. Small gains accumulate over time for a large gain or to lead to a large gain. The small moves are part of the larger game.
      • Learn from failure. In the game, there will be failures. Wealthy people often have failed more than the average middle class citizen, which makes sense if successful business people are putting themselves out ahead of everyone else more in their quest to succeed. But wealthy business people learn from their failures in order to hone their way of doing things until success becomes almost inevitable.
      • It’s cheaper to walk away sooner. If things don’t feel right, it’s much cheaper to way away sooner and leave a deal on the table. Unfortunately, how this applies to most middle class citizens is marriage. Walking away before getting married is way cheaper than going through a divorce, both financially and emotionally. So don’t let hurting feelings, wanting to go through with it because you said you would or any other reason keep you from walking away from a deal that doesn’t seem right. Not buying a house, not getting married or not going in on any financial commitment is better if it doesn’t feel right then suffering the financial fallout, which always includes emotional fallout as well. Business people know to walk away.
      • Stay healthy. Being healthy is often associated with being wealthy. Because when something goes wrong, the wealthy can afford the best care or care at all. But a large part of being healthy is preventative care, which anyone can afford. Exercising, eating well, not incurring health and financial costs associated with being overweight are all preventive measures anyone can take. If you stay healthy, you can mimic the good body and mind care of the wealthy. Good health insurance plays a part when something does go wrong. Sadly, the poor and middle class lose out big time on this in the United States.

I originally was going to say treat your money like a wealthy person, but there are all kinds of wealth. Inherited wealth, suddenly acquired wealth, hard won wealth… the most pertinent is the wealth of successful business people because they have actively become successful (or continued to be successful if inherited wealth was a part) and have healthy money habits that allow them to continue being a successful business person. It’s really much easier than you think. All of these suggestions are good for you no matter what.