How cycling to the office has benefited me many times over

March 3rd, 2010

A few months back, I mentioned that I was going to take the plunge and start cycling to the office a few days a week. So far so good. I do realise that this situation is not idea for everyone, especially if you live a fair distance from the office, or stay in an area where cycling is a risky venture for various reasons.

The trip was initially 4.7km/2.94m, which I was finding a little too short to benefit me much fitness wise, so I have since extended the trip to around 6.5km/4.64m, unless I am running late, which almost never happens (being a woman and all, we tend to be rather organised creatures of habit!)

So far, it’s been good in a few ways. At first, getting used to the morning and evening traffic again was a little challenging, because I have since discovered how rude and obnoxious the majority of motorists can be towards cyclists. They think nothing of turning in front of you, or simply blocking your path. I have even been told on a few occasions that “bicycles have no rights on the road!” What hogwash! believe it or not, even after installing an additional three rear and 2 front flashing lights, I have been told by motorists, “Oh, I didn’t see you,” or “I don’t watch for bicycles. They must just get out my way!”

How flaming rude! So much for us all being adults and learning to “play nicely together.” Mind you, I suppose there will always be a few sour old souls out there that cannot handle seeing a smile on someones face, as well as plenty of semi dysfunctional, intellectually challenged specimens who should not be in possession of drivers permits/licenses, nevermind cars/vehicles!

Despite the attitude of these minions, I have continued cycling to the office a few times a week. I have discovered that over short distances, it is actually quicker to cycle than to drive! The commute takes me 15 to 20 minutes when driving, yet only 8 to 10 minutes when cycling.

That in itself means less carbon monoxide/carbon dioxide emissions into the atmosphere. I have saved quite substantially on fuel/gas costs as well. In the 3/4 months I have been cycling, my rough estimate of savings is around the $50 mark! many may scoff at such a small amount, but to me, it’s a lot.

I am slowly seeing benefits health wise as well, in that I seem more energetic these days, almost reaching a point of natural hyperactivity on the days I cycle to the office. Far healthier than lining the pockets of the big pharma companies by using their chemical laden concoctions otherwise known as anti depressants! Exercise has been proven to be a far better alternative in treating stress and depression anyway. Another benefit is that I am getting a serious dose of free vitamin D3 from being out in the sunshine, which is also known to treat depression and boost the immune system (more on this in another post soon). I have also discovered that fresh air is far more preferable to air conditioning on my commute.

So there we have it. Savings on gas/fuel, less wear and tear on my vehicle, fresh air, good dose of vitamin c, a free endorphin and adrenaline rush, improved immune system, and doing my (miniscule) bit for the environment.

Looks like a win-win situation to me. What do you think?

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Financial quickie update

March 3rd, 2010

February was a challenging month this side, especially financially. It seems like, whenever a person proclaims that they will be paying off debt, something will try to dig its claws in and get in the way.

Rest assured though, that I was able to extricate its evil claws and shove it out the door before any damage was done.

I am now down to owing the final $750.94 on all of my outstanding debt, and have another four payments to make, which will bring it down to zero. I was hoping to have it eliminated by the end of May 2010, but yours truly did forget to factor in the monthly interest when doing the initial calculations. Oh well, live and learn.

But at least I know it can be done. If I am able to achieve this, then virtually anybody can. Once I have reached the zero mark, the savings will then start growing.

If anyone is needing encouragement regarding debt repayment, and getting out of debt in general, feel free to post here, or even drop me a mail if you don’t want your situation published. I can be reached at thegreenpiggy[at]Gmail[dot]com

Have a fantabulous day, and will be posting more soon! I know I have been very slack regarding posting lately, but that will be changing. As was once said, what one puts into something, will be what one gets out of something, so I have decided to commit as much as possible to the blog, regarding time, and posts, in order to make it a success.

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A few more money saving tips

February 23rd, 2010

It’s been a while since I’ve added any frugal tips to the site, so I thought I’d share a few more. A lot of these tips are in use by yours truly, but please exercise caution when trying out something new, as all of the tips and advice contained herein may not work for everybody. I’m sure that a lot of these tips have been shared before, but it’s always good to have a reminder on occasions, especially when things become financially challenging.

Use half the recommended amount of detergent or softener when doing laundry, as this also ensures that it rinses out properly, and clothing is still clean after being washed. This is a winner, especially with dark clothing, that can often be left with laundry detergent residue after washing.

If possible, hang washing out to dry in the sun. Not only does this save on electricity, but it also makes the clothing smell far fresher than simply using the dryer.

If you do not have an outside line, it is sometimes possible to improvise an indoor line down a passageway by running laundry line cord or rope down the passageway and inserting a large cup hook on a  door frame on each side of the passageway to attach the line to.

After removing laundry from the washing machine, shake it a few times to help remove stubborn wrinkles. This will save on ironing time. You may find that after shaking, some items will not even require ironing.

Instead of buying expensive gift wrap, get creative, and use colourful newspaper or magazine pages. Or even good old-fashioned brown paper with a coloured piece of wool or string. These days, simplicity is in, after all!

Always compare prices, especially before buying large items/appliances. Many times, the first place you go to, will not be the cheapest.

If each member of the family has cellphones, consider cancelling your landline connection, unless it is used for internet, or emergency purposes if you have a childminder or elderly folk at home during the day.

Try to avoid shopping at malls as much as possible, as prices are often a lot higher there, to make up for their convenient locations.

Try to avoid borrowing money as far as possible, unless it is a definite emergency – and no, those strappy designer sandals in the store window do not count as an emergency!

If appliances need to be replaced, opt for those bearing the Energy Star logo, as these will save money on electricity costs in the long run.

Learn to do small DIY projects yourself, and save a fortune in repair or handyman bills.

Reduce your soda and fruit juice intake, and switch to water. Your teeth, waistline and bank account will love you forever.

Always wait a few days before making a large or impulsive purchase. Often, you will fins that after a few days, the item is no longer as appealing as it was before.

Always try to pay more than the minimum amount required on your credit cards or other outstanding debt. This way, you save interest, and also shorten the repayment time. A sneaky trick to give the bank a taste of their own medicine here, is to check your statement, and then repay the minimum, plus the interest charges each month. This will ensure faster repayment.

Use fabric, or reuseable shopping bags. The amount saved may not be substantial each time, but it all adds up.

Consider relocating to smaller/cheaper accommodation if you have large debts to repay.

Don’t spend extra money on vehicle accessories, unless they contribute to economy, or safety.

Don’t buy excessive amounts of clothing for children, as they grow out of most of it before it wears out. Also shop sales and chain stores for them, as they do not need expensive clothing.

Defrost/thaw meals overnight in the fridge, instead of running them under hot water.

Unplug all appliances that are not in use. Even when switched off, they can consume energy, which is a waste.

Only run the dishwasher/washing machine or dryer if there is a full load.

If using the oven to prepare a meal, turn it off 5 to 10 minutes before the cooking time is up. It is still hot enough inside to cook for the remainder of the stipulated time.

If you have friends with children that are similar ages to yours, consider doing a toy swap. That way, you both save money, and your children both get different toys on a rotational basis.

If you are among the fortunate few to receive a raise at work, consider using it to pay down debt, or save it, instead of spending more.

Do you perhaps have any additional tips for saving money? If so, feel free to comment.

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Go on…you know you deserve it

February 19th, 2010

Pay nothing now! First payment only in six months! Only xyz% interest! Buy now, pay later! Still working with the old one? Replace it! Out with the old and in with the new! You deserve a little extra!

We’ve all heard these sales pitches before. All trying to entice us to spend what we can’t afford, on things we don’t need. This tends to create a vicious cycle, even although at the time, we cannot see it. You may be asking, “What vicious cycle?” The vicious cycle that sneaks up on us in such a way, that we don’t even notice it until we are almost buried under a heap of unnecessary consumer clutter and cr*p.

For many of us, it starts when we enter the working world. After seeing that first pay check in our grubby paws, we often think to ourselves, “I worked hard for this. I deserve a little something extra to celebrate.” Fair enough, everyone does deserve the occasional treat, but these days, people are so easily sucked into the consumerism facade, that this soon becomes habitual, rather than occasional.

After being a victim of it myself for far too long, I came to the conclusion that if it is going to cost money I don’t have, then I actually don’t deserve it. My mindset has now changed to that of, “You mean to say I deserve to get into debt, simply to have that item or gadget? I think not!”

Many people work really hard and long hours for their pay, so we definitely do not deserve to see our money being spent frivolously on bank charges and interest, long after the enjoyment of having the item has worn off.

It’s time that consumers stopped thinking with herd mentality, and stopped buying for the sake of buying.  You do not deserve it if you cannot afford it. You do not deserve to have your hard-earned money be spent on interest and finance charges.

The only things a person truly deserves in life, are love, and those items they can truly afford to treat themselves with.

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I’d like to introduce you to BOB

February 15th, 2010

What a whirlwind weekend this side! Seems like as we get older, they tend to pass even faster. Start on a Saturday morning with rushing around to stock up on fresh fruit and veg, and look again, only to find it’s already Sunday evening!

Admittedly, since BOB came into my life, things like shopping and budgeting have become a lot easier. BOB helps me to keep track of what things cost, and where my money goes each month. By now, you’re probably wondering who, or what, BOB is.

BOB is my Book Of Budget, where every penny I spend, is carefully tracked and recorded. This makes budgeting and financial planning and debt repayment a breeze! It may sound old-fashioned to write up each expense, but it sure pays off. Simply knowing where my hard-earned cash is going, is a stress reliever. No more question of “Where on earth did my money go this month?”

BOB has also helped me to track the amount of snowflakes I have been able to put towards debt repayment. Each time I channel a snowflake (no matter how small) towards debt repayment, it is written down in BOB. It’s surprising to then see just how much extra can be channeled towards debt repayment. Often we think, “I could never afford to pay back so much.” But in reality, we actually can repay more than we think. During the past month alone, I have snowflaked an extra $40 towards my debt. It may not sound like much, but each bit helps.

Inside BOB, I list each and every cost, ranging from rent, gas, food right down to vitamin supplements. That way, I know exactly what is left over for day-to-day expenses. Lately, I have challenged myself to save as much as possible from day-to-day. Even if I am able to spend $2 a day less than normal, that adds up to $60 a month, or $720 a year!

A lot of people channel these small amounts towards savings, but right now, I choose to channel every spare penny towards becoming debt free, and will not give up until that goal is achieved. It may take longer than initially planned, but at least there is a plan in place, with a set goal. Right now, the goal post is set for the end of May 2010. While I am doing everything possible to achieve this goal, it may or may not be achieved. Life is a strange thing. I have to also be ready for the fact that unexpected essential expenses may crop up, but until now, that hasn’t happened, so I am holding thumbs that life continues in this way, until I have achieved my goal.

What works for me with BOB, is having a page for each month, listing income, as well as outgoing expenses. I jot down the income at the top of the page. Under that, I start by listing all expenses for the month. Once they are all listed, that shows me precisely what is left over for day-to-day expenses.

This is where the fun and games begin. If I buy anything, I keep the store receipt, and I also shop around, until I am able to find it at the best possible price. If I am able to spend less than initially planned on any item, the difference is channeled into debt repayment.

Right now, the only thing that is hanging on by a thread, is my favourite pair of shoes. They are a 10 (yes 10!) year old pair of Cats (yep, I hate shoe shopping with a vengeance…but hey, who would have guessed?). I am carefully nurturing them as best as I can until the debt has been repaid, because it may soon be time to lay them to rest (noooooooooo! I don’t want to!!!!!) But more about them in another post.

Anyways, BOB has helped me tremendously with regards to tracking my earnings and spending habits. This has helped me to look for, and identify, areas where I can spend less. If you need any help or advice about creating a BOB of your own, please drop me a mail, or post here, and I will do my best to help you.

One small snowflake for debt, one large snowball for debt repayment.

Post your comments.

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Chipping away bit by bit

February 12th, 2010

Apologies for the scarcity of posts of late. It’s been an extremely hectic week or two this side. Am hoping to get back on track this weekend.

If any of you are regular visitors to the site, you’ll know that my primary goal is to become debt free within the next few months, namely by the end of May 2010. So far, so good. I am well on track to achieving my goal, and am down to owing $856.69! Not bad, considering that it was a whopping $2386.67 in September 2009.

A lot of you may be thinking that this is such a trivial amount of debt to have, but to me, it’s a heck of a lot. Take into account that, after deductions are made from what I now earn, I am left with a mere $494, of which $187 is being spent on debt repayment. The $187 is the smallest monthly payment that I am making, and if I am able to save a few pennies or a dollar or two here and there, that is also put towards getting the debt paid faster. Last month, I managed to put an extra $42 towards it, simply by shopping around, and comparing prices on goods that I normally buy. It may not sound like much, but every bit has helped to cut the outstanding balance.

The best things in life require a lot of hard work, and commitment. By choosing to commit to a debt-free life, I also choose the effort, sacrifice(s) and commitment required to living a debt-free life. While many other people have chosen to life debt-free as well, many people have not. This is okay too. Not everyone is the same, or has the same goals in life. Whereas some of us choose to no longer make banking institutions rich by willingly donating our hard-earned money to them in the form of interest payments, others see no problem with doing this.

Yes, sometimes it feels like it’s taking ‘forever’ to reach my goal, but I know that it will be worth it once I have achieved it. The feeling of freedom that I will experience from being debt-free will far outweigh the feeling that many people experience when buying stuff.

If you’re also feeling like you’re ‘getting nowhere fast’ with paying debt, feel free to post a comment, or drop me a mail at thegreenpiggy[at]gmail[dot]com and I will be more than happy to offer words of advice or encouragement to help you along.

Feel free to post replies or comments.

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Love is spelled t-i-m-e

February 9th, 2010

Time is not something we can store up to use at a later date. Once the minutes have passed by on the clock, they are gone – forever. We need to embrace each opportunity that comes our way, and make the most of it. For example, when your child comes to you and says, “Please play with me,” would you say that it’s more important to take the time out to spend a few minutes with them, or are the dishes and laundry more important? I read an article where a little girl told her grandmother, “Whenever I ask Mommy to play, she always says, ‘In a minute, honey,’ but the things she is doing always take lots longer than that, and then sometimes she forgets.”

Parents, those “please play with me” moments do not, and will not, last forever. Cherish them now, and take the opportunity to spend a few minutes with your child. The years go by faster than you think, and it will be too late to ask where the time has gone when the children have moved out. A few moments time out with your child should surely rank far higher than a clean floor, or a pile of laundry that needs doing.

Yes, on one hand, I am saying that we shouldn’t procrastinate when things that need to be done, but on the other hand, family time is also extremely important. Children won’t always remember the toys and expensive gadgets we buy for them, but they will remember the amount of time we spent with them. Children tend to spell love as t-i-m-e, and not as t-o-y-s or m-o-n-e-y.

By taking those few moments and spending it with them, and giving them a little undivided attention, we are telling them that, yes, they are extremely important, and they mean a lot to us. So often, I have heard parents telling people that they work such long hours, or don’t have much time for their children, because they want to give them everything they never had.

Believe me, your children would far rather have you be spending quality time with them, than be given all the toys that money can buy. Were they the ones who asked for a newer, or new car, or do you simply use that as an excuse to justify spending so much time away from them? Did they come to you and ask to move to a bigger house/more expensive neighbourhood? I think not.

In fact, many times, children don’t want the changes that accompany a more lavish lifestyle, because it often means moving away from familiar places, schools and friends which they have become accustomed to. More often, it’s a case of we give them what we think they need and want, rather than what they truly need.

Your child will cherish the times when they had your undivided attention, far more than they will cherish the latest toy. Good memories will always outlast the toys. A walk together, sharing an ice cream, and just listening to what your child has to say, without any interruptions, will be something they will enjoy. Be sure to try to turn your phone off while listening as well, because by interrupting those special moments with your child, it is telling him or her that other people are actually more important than he or she is.

Take time out to ask them how their day was. Be sure to listen carefully to their response though, because children know when adults aren’t really listening to them. Make eye contact. That way, you will often be able to tell if there is something wrong.

I know it isn’t always possible for a lot of parents, but try to be there when they play important school matches or games. If you can’t , at least let them know that you would rather be there than be at work, or meet the other obligations. But, mean what you say. Children will know if you don’t mean it.

Cherish the time with your children while you can. You never know what tomorrow may bring. Blink again, and they won’t be asking you to play, but rather, asking you for the car keys!

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Monday Mirth

February 1st, 2010

The past weekend say a fairly entertaining trip to the local mall to stock up on food supplies for the week.

Mall Moment 1:

While in the local Woolworths branch, I was looking at a few items on the shelf, when one of their floor mannequins decided to try dive tackle me, and missed me by only an inch or two, when I deftly stepped sideways. On impact, one of the arms broke off.

Needless to say, the culprit responsible for the mannequins’ apparently death-defying act, was a small person, who decided to give it a push as they were walking past it.

After it hit the ground, the floor staff miraculously crawled out from all of their hidden locations to assess the damage. A I was walking past, I commented to them, “Look, it’s the malls’ first case of mannequin murder!”

Needless to say, none of them found it too amusing. If it wasn’t for the shops’ apparent ”Security Policy,” I would have snapped a photo to accompany the post, because the looks on their faces were absolutely priceless after hearing my comment.

Mall Moment 2:

I was walking past a furniture shop in the mall, that had signage on their window stating, “15% off all dining room’s.” Now, don’t get me wrong, but shouldn’t that have read, “15% off all dining room suites/sets?” Needless to say, that photo will be landing itself a spot in my “funnies” photo album. Wonder what they would have done if I had entered the shop and asked to purchase a dining room?

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Courtesy and Manners, will you please stand up?

January 30th, 2010

It astounds me to see how blatantly rude people can be today. From customer service representatives, to everyday people around me.

Many times, I have requested information from shops, or from banking institutions, as well as many other places, and have been told, “We will get back to you,” or “We’ll have someone get back to you,” or even sometimes from those close to me in the form of “I’ll let you know what’s happening.”

Newsflash! If one out of 25 people actually keep their word in that regard, it’s a lot these days. So often, I have had to follow up and wait on empty promises.

The amazing part is that companies are complaining that business is bad, or sales are slow. But they don’t seem interested in engaging in customer service, or trying to keep the business they do have. A customer much prefers to deal with people and companies who keep their word, and who follow up like they say they are going to.

Another place where courtesy is lacking severely these days, is out on the road. People have become so impatient with everything in life. When a traffic light turns green, is it really necessary to blow the car hooter like an idiot, simply because the driver in front of you doesn’t take off instantly? Mall parking lots are another prime example of impatient, selfish drivers. Many times, I have arrived and looked for a vacant parking bay, only to discover that a few rather selfish individuals have parked like drunken crabs on an ecstacy trip, and have taken up two parking bays. How rude! Mind you, I find the biggest culprits in this category tend to be the SUV’s and MPV’s. People, if you do not know how to drive and handle a large vehicle, then plain and simply, you should not be driving it.

Turn signals/ indicators are on your vehicle for a reason. They are not an ornamental feature. it’s extremely rude to turn out in front of another vehicle without indication if any sort, and here, we are not referring to a middle finger either! Cutting in front of fellow road users is rude. Extremely rude. What example are we setting for our children if we are behaving so badly behind the wheel? If they see us behaving like possessed specimens behind the wheel, they will then think behaviour like that is acceptable, when it is in fact, far from acceptable.

Sadly, I think that many good old fashioned values, manners and courtesy seem to be long forgotten. There is a saying that goes, “Treat others as you would have others treat you,” which I find to be applicable in all aspects of life. If you curse and swear at the habits of other drivers, be sure to not commit the same offences yourself. If you expect others to keep their word, ensure that you do the same.

Feel free to post replies or comments.

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Seeing the finish line in the distance

January 25th, 2010

Many times when people set goals, they tend to think that they will never reach the goalposts, or target. Or worse still, many people simply don’t set goals, because they feel that it will “take too long” to make the intended goal, or “they will never get there anyway.”

People seem to have forgotten that achieving goals requires work, and in many cases, sacrifice to a degree. With regards to paying debt, it may need less spending in unnecessary areas, to get the debt paid in full.

Fortunately, I must admit that my debt burden is far smaller than that of many others out there. People may scoff at the meagre $867 that I owe, and tell me that many folk out there owe a heck of a lot more than that, or that many people repay more than that in interest charges in a month on existing debt. But to me, having it get to that milestone from a whopping $2400 at the end of August 2009, down to the $867 today, is  a huge achievement to me. The goalpost has been set at zero by the end of May 2010, which is an easily achievable goal for me.

Although, should I come into any extra forms of income during this time, it will all be channeled towards repaying the outstanding amount a lot faster.

Yes, it has involved  a lot of sacrifice on my part, but I feel that it has all been well worth it. So many people have told me that they would not be able to live like I do, spending as little as possible, and only spending when truly necessary. But as they say, different strokes for different folks. I have chosen to approach my debt with the intensity of a bull in a china shop, in order to eliminate it as fast as possible.

Absolutely all extra spending has been halted. Any cash left over from the budget each week, is channeled into the outstanding debt. I do realise that it takes a heck of a lot of self-control and discipline to achieve this standard of living on an indefinite basis, but it is something I have chosen to undertake, and I have also chosen to be happy while doing so. I know that the reward of being debt free, and not throwing money away on totally unnecessary interest charges, will be well worth the few months of sacrifice.

It is the ideal way to pay debt faster, but it also does not work for everyone. I realise that many folk are not able to embrace the mode of “total sacrifice” when it comes to spending. That’s okay too. We have all been created differently, and that is what makes life interesting.

As the saying goes, “If you want something badly enough, make it happen.”

Would you be able to cut all unnecessary spending in order to achieve a financial goal? I’d love to hear from you.

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How badly do you want to be debt free?

January 21st, 2010

I’m sure many (if not all) of us have heard someone saying in our hearing that they wish they could be debt free. A lot of folk would tell you to be careful what you wish for in life, but I think this would definitely be one of those times where the “exception to every rule” concept would apply!

Sure, many people wish, and long, to be debt free, but just how many of them actually take steps to make sure that their dream becomes reality? Very few. In short, a lot of folk expect the finance genie to pop out of their wallet, and dissolve their debt. If that had to happen, it would be nothing short of a modern day miracle.

The only time it will happen, is when effort, and action is put into making it happen. Dreams without actions are merely wishes. Dreams coupled with actions, become reality.

The first part of becoming debt free involves sacrifice. Not one of us is able to always have everything we want in life. In order to achieve goals, sacrifices often need to be made. In this situation, it would involve spending less on luxuries and non essential items. Often people will say something like, “We can’t live without our cable tv,” or “I’d die if there were no take outs,” or “I absolutely have to have the latest gadget.” Fair enough, if you have those, and know that you actually can’t really afford them, do not complain about having debt.

Luxury items should only be considered if there are no needs that are waiting to be met, and if debt will not be incurred as a result of making the purchase.

Start off by taking the time to inspect your bank statements each month, so that you can see where your hard earned money is going to. In many cases, there are areas that we can cut back, or even eliminate certain expenses. For example, are 200 premium tv channels really necessary? Is it truly necessary to have the fastest inernet connection available?

I’m not saying that a person needs to eliminate everything they enjoy in life, but there are limits. Start by simply shopping around, and attempting to reduce your monthly expenses. From there, take what you are saving, and allocate it towards debt repayment. An example in my own life, was to eliminate a little used gym contract, and to spend a little less each month on junk food purchases. The savings from that have gone towards debt repayment, and I am now reaping the reward of seeing my outstanding balance shrink substantially each month.

One area where it definitely pays to shop around is with precription medications. Here in South Africa, we don’t really have the option of ordering medications online (yet). So it is often a matter of perusing, and asking at different pharmacy/drug store chains, to see who is able to supply the items at the best price. I have managed to save $72 a year on one script alone, simply by using an alternative drug store/pharmacy. This principle also applies to those who often have copayments/levies on scripts for flu medication or anything else that may be prescribed by your doctor, as well as regular over the counter medications or remedies. I found that by using a different pharmacy, I was able to completely avoid copayments far more often that I had been at my regular pharmacy.

After discovering these savings, I went home, and reworked my budget accordingly. It would be no use saving in these different areas, if the money was simply going to be wasted elsewhere. All of these small savings have added up substantially, and are being channeled towards making the debt repayment process go a lot faster than initially planned.

It may only be $9 here, and $4 there, but believe me, they all add up. Before you know it, you will be able to pay a lot more than simply the minimum required on an outstanding account. This method of channeling extra money in small amounts towards debt repayment, is often referred to as the snowball or snowflake method.

Personally, I refer to these small amounts as the snowflakes, because they are all seemingly trivial on their own, but when added up, become quite substantial, much like a snowstorm. To me, the snowball method is for thefolks who have a lot of outstanding debt in different accounts, such as multiple credit cards or store charge accounts.

In this case, the snowball is referred to, because once a particular balance is paid up, the amount that was being paid into it, can then be added to another outstanding debt, effectively creating a snowball, towards paying it off faster than initially planned.

In a situation like this, do not let your bank or creditors bully you. On a few occasions, I have received calls from mine, asking why I am paying them more than the minimum required! I politely repond to them by telling them that I no longer see the need to make monthly donations in the form of interest payments, to institutions who are already making a living from the careless spending habits of others. When I commented to a particular banking institution here in South Africa about their exhorbitant interest rates and “monthly loan administration fees,” I was told rather blatantly, “That’s how we make our money and profit.”

On this note, avoid revolving credit loans even more than you would avoid the Black Plague. This is by far one of the most expensive loan options, with approximately 80% of your monthly repayment going towards interest and “administration fees.” On average, a revolving credit loan can take anywhere from 3 to 15 years to repay!

I have a feeling that my banking institution has labelled me as the consumer from hell, because I have a habit of asking them questions that they are often either not able to answer, or are too embarassed to answer, because they know they are taking advantage of their customers. In fact, I am currently engaged in a dispute with them over interest rates, and am awaiting a response from them. Mind you, they are often guilty of not even acknowledging their clients requests, and they still have the nerve to question my “consumer from hell” status!

Should you have any questions regarding the snowball and snowflake method, or have any questions regarding budgeting, please feel free to comment here, or drop a mail to thegreenpiggy[at]gmail[dot]com, and I will do my best to assist you, or even simply offer a few words of encouragement.

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The forgotten art of gratitude

January 18th, 2010

I’m sure most of us have at least heard news about the devastating earthquake that rocked Haiti. It has had catastrophic results for the residents, who are among the world’s poorest people.

Right now, they are simply struggling to survive each day, until enough relief supplies can reach them.

This catastrophe has had me thinking about just how much we take for granted on a daily basis. We turn on the tap, and there’s drinking water. We drive to the store, and buy food. If we need medical attention, we simply drive over to the local ER or doctor, and have our needs attended to. The sad part is, that even in our times of plenty, many of us still find reasons to complain, or be dissatisfied with all that we have been blessed with.

Often, I hear comments like, “I’ll just die without that new handbag,” or, “I really need to go shopping for new clothes.”

The people of Haiti can truly say that they will die, if supplies do not reach them in time. Right now, they are grateful for something as simple as clean drinking water and a little fresh food.

We may not have the latest and greatest gadgets, but we have at least 500 times more than many other people out there. We may not be able to go out to dinner tonight, but if we go to our pantry or fridge, there is a 99% chance of there being food to eat. If we open our closets, we have clothing to wear, most times, a heck of a lot more than we need.

Many times, I have heard children complaining that they don’t have all of the Barbie dolls, or they only have 50 wii games. Now is the time to sit down with them, and teach them to be grateful for the things they do have. Mind you, this lesson goes for many adults as well. We are so often focused on what we don’t have, or what we want, simply because others have it, that we forget to be thankful for what we already have.

“I would be so happy if,” is something I have often heard people say. Many people make the mistake of trying to derive happiness from possessions. Happiness comes from within us. In fact, it is a choice we make on a daily basis. We can choose to find happiness and be happy, and content with what we have, or we can choose to lament, and complain about what we do not have.

The fact is, we are extremely spoilt with all that we do have in life. We need to be truly thankful for it, and treat each day as a gift. When we feel the negative thoughts, and start to experience feelings of dissatisfaction about life in general, stop, and spare a thought for those who have literally been left with nothing. Rather sobering, isn’t it?

Comments? Replies?

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Frozen flies and days of our lives

January 15th, 2010

Being Friday today, I thought I’d keep posting relatively light, so I thought I’d share a few actual responses I have received from customer follow up calls, as well as anecdotes of what some of my past and present coworkers get up to, or used to get up to during the quiet moments.

Working at a motor dealership provides many entertaining moments during the day. I have worked at a fair few places, so for identity protection purposes, I will not divulge whether these anecdotes result from present or past coworkers.

Me: “Good day sir, your vehicle was in our workshop a few days ago, so we are doing a follow up call to see if you were happy with the service you received from us.”

Customer: “My radio was replaced under warranty, because it was faulty, but now, each time I press the power switch, I have a problem with the electric windows. If they are closed, they open. If they are open, they close, but strangely enough, the radio is still not working.”

Me: “Good day sir, your vehicle was in our workshop a few days ago, so we are doing a follow up call to see if you were happy with the service you received from us.”

Customer: “Good service, but why does my heater blow hot air when I turn it on?”

Me (after checking jobcard): “Uhm, sir, you seem to have a relatively late model vehicle, and it looks like that may be an added feature on the particular model you have.”

Customer: “Oh, thanks. have a good day. Bye”

Me: “Good day sir, your vehicle was in our workshop a few days ago, so we are doing a follow up call to see if you were happy with the service you received from us.”

Customer: “Why does the vehicle’s outside temperature display gauge fluctuate while driving?” (seriously)

Explaining that one was a bit of a mission…

During a quiet spell, one of the aforementioned coworkers decided to create a little entertainment. Ingredients used, were one ziplock baggy and one fresh fly. The fly was placed into the ziplock baggy and placed in the fridge freezer in the office.

The baggy was left in the freezer for an hour ot two, and upon returning to the freezer and removing the baggy, the fly appeared to be rather stiff. The coworker opened the baggy and gently removed the fly, which clung to his hand for a minute or two, and appeard rather comatose. As it thawed out, it started walking, and after a few minutes, it took off.

We took delivery of a large part for a customer, and one of the storemen removed the part from the box and crawled inside. He pulled the flap over himself, and waited for an unsuspecting victim to walk past the box.

As the unsuspecting victim, namely the tea lady, walked close to the box, he reached his hand out quietly and grabbed her leg. To say that she levitated, would have put it very mildly.

In one of the places I’ve worked, we had a mezzanine floor level where a lot of stuff was stored, which also made for a few entertaining moments. The next stunt involved a long cord, to which a large rubber spider was attached.

The poor tea lady was once again the unsuspecting victim here. She was walking down the aisle, and stopped to speak to a staff member. Meanwhile, one of the sales people was upstairs with the spider on the cord. While she stood there, he slowly lowered it down, and had it plop gently on to her shoulder.

She took one look at the specimen that had materialised on her shoulder, and hightailed it out of our department faster than greased lightning. Strangely enough, we didn’t see her for a day or two after that.

Of course, guys will be guys. Where there are guys involved who smoke, the stunts tend to be even more elaborate. One example was having a storeman who liked to play with his lighter. He would fart, and see how big he could get the flame to go. Needless to say, he was caught short on one occasion when the flame took to his pants and set them alight.

While he was trying to extinguish the flame with his hand, one of the sales guys saw what was happening, so he picked up a rather large wooden plank and started swatting at the flames with it. While this fiasco was taking place, the MD happened to walk into the department with a visitor in tow. The MD took one look at the events unfolding before his eyes, and shook his head. The look on the visitors’ face, however, was priceless. The MD turned and said to him, “Welcome to our parts department.”

In between that, there have also been wiper blade wars, antenna duels, and sandpaper skirmishes.

Yip folks, never a dull moment at any of the places I have worked for!

What’s the wackiest thing you ever did at work? Post comments.

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Need vs want – teaching frugality from a young age

January 14th, 2010

“Mommy, I need a chocolate,” or “Mom, I really need those brand-name sneakers and jeans” or “Honey, we need a new car. This one’s so outdated and old.” So often, I have heard those words while traipsing through the stores.

It seems like many folks have forgotten what truly constitutes a need these days. The true definition of a need is: something that you cannot survive without, such as food, water and shelter.

Yes, clothing is a need in today’s world, but brand-name clothing that will cost you a months’ mortgage payment, is definitely not a need. Speaking from personal experience, I have often found the quality of generic, or non-branded items just as good, and in a few instances, even better than their branded counterparts.

Our children are learning from us. They learn far more from our actions and words than we can begin to imagine. When they hear us saying things like, “Honey, we need a new car,” or “Love, I need new curtains for the living room,” they perceive it as a true need, rather than the want that it really is.

Truthfully, nobody really needs  a new car. In many instances, we buy a new car, simply because someone we know has recently purchased one, or because we couldn’t be bothered to do comparison shopping and buy a gently used vehicle, which is still in excellent condition. I have never yet owned a new vehicle, and do not ever plan to. Simply because of the fact that you lose far too much of the purchase price when driven out of the showroom or off the lot.

Food is a need as well. Dining out, and take out is not a need though. Most times, we choose to dine out or order pizza simply because it is more convenient than taking the time to lift our posterior from the couch, and prepare something ourselves. Fair enough though, there are many folk out there who work very long hours, and who do not have the energy to cook each night. But on the whole, it is simply sheer convenience that draws us to the take outs like bees to honey.

Your child is starting grade school. Yes, she will need school clothing, stationery, a backpack or trolley case, and books. But she certainly does not need a branded backpack, expensive clothing and overpriced branded stationery products (which are often misplaced or stolen anyway).

My niece started school today, which is what prompted me to post on this topic. After seeing the clothing and branded items that were bought for her, I was shocked. I, for one, know that many of these items could have been obtained a lot cheaper, simply by putting in a little effort and shopping around, instead of grabbing the first items off the shelf, simply because it was convenient, and could be charged to a store card.

Three examples that I noted, which almost made me tear my hair out, were a backpack, a pair of summer floppies/sandals, and a pair of jeans.

Branded backpack: $18 vs non branded, which would’ve cost $5.30.

Branded floppies/summer sandals: $7/pair vs non branded, which would’ve cost $2.

Branded jeans: $20/pair vs non branded, which would have cost $7.

Total of branded purchases: $45 vs the non-branded counterparts which would have come in at a mere fraction of the cost, at (insert drumroll here)…$14.30.

Her mommy could have saved $30.70, simply by shopping around, and not giving in to buying expensive branded items, simply for the sake of convenience, and the fact that all had been charged to a store card. Now, I don’t know about you, but $30.70 is definitely not an amount to be scoffed at, especially now that things are so expensive, and more and more folk are becoming aware of what they are spending their money on.

The sad part about this situation is that my nieces’ conception of need vs want will be totally incorrect by the time she becomes an adult. Now is the time to teach your children the true difference between needs and wants. Not when they are teenagers, because by then, it is difficult enough to convince them to roll out of bed and slouch their way to school, nevermind anything else!

Parents, choose your words very carefully, and think before speaking in front of your children, because you are the ones they will be learning from. Take the time to explain the concept of need vs want to them. Teach them about comparison shopping (note: you will have to take the time to engage in this activity yourself if you expect them to learn how to do it).

If there are nags and complaints about having to “make do” with non-branded items, that becomes an excellent time to start teaching them the value of money, and budgeting. Take them through the shops with you, and point out the difference in price between the non-branded, and branded items.

As a form of encouragement to teach them a little about frugality, give them a specific budget or allowance for clothing or whatever else they may need to purchase for the school year. Tell them that if they exceed it, they will need to make a plan to cover the shortfall themselves. But, this is where the fun comes in. Tell them that if they spend less than the budgeted amount, they can them keep the difference (or part of the difference – whichever suits your budget).

Another idea may be to put part of  the saved funds into a savings account for them, and have them add to it during the year, or add to it for birthdays or special occasions. The possibilities here are endless. The only ingredient required is a little creativity.

Parents, this lesson applies to you as well, not only to your children. Yes, a vehicle is a need. Tyres, gas, and services are essential. But a fancy stereo system and detailing, are not. A home is a need, but expensive furniture and fittings are not. You can get by on curtains purchased from a wholesale store, instead of calling in an interior decorator. Do you really need a fitted basement for entertainment? Whatever happened to the living room. There is inevitably a tv in there already, as well as a dvd player and cable connection. Sure, the tv may not be a 50 inch plasma, but again, that is not a need. That is purely a want.

Parents, be the example to your children that you expect them to become. If they see you practicing frugal habits, and comparison shopping, they will follow suit. But there is no way in hades that you can expect them to be frugal, and learn to save, if you are spending every penny you earn, and then some.

How have your spending habits changed since the onset of the recession? Feel free to reply, or leave a comment.

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