Consumer Savvy | Frugal, Wealthy and Wise

Shaping Up the FRUGAL Way

Photo credit: CCFoodTravel.com via Foter.com / CC BY

It’s a New Year. Inevitably, millions of Americans will – once again – resolve to lose weight and get into shape. They are going to join a gym! Guess what? Eighty percent to those who sign up in January will be gone before the end of February! Here are some other interesting statics on gym membership: (source: creditdonkey.com)

The January surge – ‘resolution seekers’ will swell gym attendance this month by 30 – 50%
The second week in January is typically the busiest week of the year
Only 50% of gym members visit more than 100 times a year
Gym or YMCA individual membership runs $20 – $65 (or more) per month but there is generally a $100 ‘initiation fee’. Quit after a couple of months and you’ve paid dearly for your handful of visits!
Monthly membership fees are usually charged to your credit card or automatically deducted from your bank account; it’s easy to overlook them, meanwhile they add up month after month and year after year…

Don’t get me wrong. I am not discouraging anyone from joining a gym. Regular exercise leads to improved well-being, both physically and mentally. And the gym can provide an important social setting as well. But there may be lower-cost options that are right for you. Consider your choices carefully. You want to attain both physical and fiscal fitness:

Partner up – walk, run or bike with neighbors or friends. Make exercise a social event. Plus, a partner or group can provide the accountability you need to exercise regularly.
Shape up at home – get workout DVDs from the library or watch videos on YouTube. There might be a minimal expenditure for equipment (stretch bands, hand weights, etc.).
Check out local high school pools – does your school district open its pool to the public? This could be a very reasonable alternative to a gym or YMCA. Example: the Upper Darby, PA High School pool, charges $45 for annual membership plus $2 each visit.
Join the USMS (US Masters Swimming) – if you want to kick your swim workout up a few notches, join the USMS and be prepared for a vigorous workout. Annual membership is around $50. The USMS chapter near me holds practice at Villanova University most weekday mornings for $6 a session. Happiness is swimming a mile before 7AM!
Take advantage of community/public pools – the City of Philadelphia operates the 50 meter/Olympic-size Kelly Pool in a lovely section of Fairmont Park. Admission is free to all and there are 3 dedicated lap lanes. Unfortunately, the pool is only open approximately 10 weeks during the summer. In contrast, outdoor pools at the International Swim Center in Santa Clara, CA are open year-round (I’m very jealous!) Noontime swims for the public cost $5.
Investigate fitness classes offered by your community or school district – Jane and I are signed up for Pilates through our school district. It averages about $8 per 60 minute session. And guys, Pilates is not some namby-pamby chick thing; it’s tough stuff!
Does your employer provide a fitness center or subsidize membership? A gym located at your workplace can be very convenient and probably cheaper than other gym offerings (or maybe even free). Plus, there is a trend among employers to offer wellness incentives that decrease employee’s healthcare copay.
Ask your health insurance provider if they offer wellness incentives – example: Independence Blue Cross in the Philadelphia area will pay up to $150 per year towards gym membership.

Photo credit: jerryonlife via Foter.com / CC BY

May 2017 be the year that your bod and your finances shape up! Cheers, Paul

Take These Five Actions Before Year-End

2017-calander — My 2017 Dollar Store Calendar ($1.06 with tax) It’s the Muscle Car theme.

We are now in the last few days of 2016. Here are five Frugal and Wise actions you should take before the year’s end:

Stock up on holiday merchandise for next year. Take advantage of the post-Christmas deep discounts on holiday decorations, lighting, greeting cards and wrapping paper. Do not pay full price for the same items next November or December. (But please exercise some restraint in your post-holiday purchases.)

Pick up your 2017 calendars at the dollar store. OK, the dollar store calendars are not as nice as the on ones sold at book stores or Staples for upwards of $8.00. But are the calendars from Staples 8 – 15 times better???

Make last minute charitable donations – if you itemize deductions on your federal tax return, additional donations can reduce your 2016 tax bill (or increase your refund). Typically, those with middle class incomes are in a 25% tax bracket. That means that every $100 donated to charity could reduce your federal income taxes by $25. To qualify as a deduction for 2016, mailed donations must be postmarked no later than December 31^st. Donation by credit card or electronic fund transfer must be initiated by the 31^st.

Gather up unwanted clothing and household items to donate. This week could be a great opportunity to reduce household clutter and get a tax break to boot! All that stuff no longer being used can be carted off to the Salvation Army, Goodwill, Purple Heart or similar organizations. Be sure to get a receipt for your donation. As a rule, your donation is valued by what it would cost to purchase similar items in a thrift store (Thrift Store Value). Donating $100 worth of clothing and household goods (not all that difficult to come up with) could reduce your tax bill by, say, $25.

Bump up your retirement plan contribution by a percent or two – at a minimum, you should be contributing enough to your 401k or 403b to get the full match from your employer; failure to do so means losing out on a huge sum of money over a lifetime. Every year, try to ratchet up your contribution just a bit more: 1 or 2 percent each year? Such a small reduction in take-home pay likely will not be missed* but could significantly accelerate your retirement savings. See my posting You can’t spend what you ain’t got: Why You Need to Automate Your Savings.

*Example: If your annual salary is $60,000, one percent is $600 or only $50 per month. If your contribution is pretax and you are in a 25% tax bracket, your take-home pay is only reduced by $37.50 per month. Over a 30 year period, assuming a 7% annual return, these extra 1% contributions would accumulate about $56,000 in additional savings!

Wishing you a Happy and Prosperous New Year! Cheers, Paul

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My Favorite Things Part V

trains This is the final installment of the My Favorite Things series. Admittedly this episode has a definite home electronics bent. But then, with the Northern Hemisphere in winter, it’s a great time to stay home, listening to good music or catching up on shows and movies.

Note: most of the items below are discretionary purchases, not necessities. Please treat them as such in your budgeting.

Klipsch Speakers – in general, it’s hard to beat BIC speakers for their bang for the buck (refer to the BIC DV62si bookshelf speakers mentioned in My Favorite Things Part IV). However, Klipsch speakers are definitely a step up but still provide excellent price/performance. I happen to own ten Klipsch speakers: 5 for the home theatre, 2 for the living room stereo, 2 for the home office and this nifty KMC-1 portable Bluetooth speaker (atop the big speaker). The KMC-1 is an incredible value at $130, outperforming other, more expensive, name-brand Bluetooth speakers.

Below the KMC-1 is my pride and joy: the Klipsch RF-5’s. Real cheery wood veneer, made in Hope, Arkansas, not imported. A pair of RF-5’s go for $1500 retail. I got mine on eBay for $450.

Fugal and Wise Take Away: save big on home electronic items getting them used on Craig’s List or eBay. Take advantage of all those audiophiles and techies who are continually trading up to the latest and greatest. Or snag an item the is being discontinued by the manufacturer at a discount.

Roku Streaming Players – I like Roku for three reasons: (1) They are ‘content agnostic’ unlike Amazon, Apple and Chrome/Google offerings. (2) Roku offers the largest variety of video content sources (3) A great value throughout the product line. Prices are comparable to Amazon Fire, but a fraction of what Amazon TV costs. Meanwhile, Roku offers models which stream 4K Ultra High Def content, which Apple TV does not.

Cons: The Roku user interface and remote can be a bit clunky. 4K programming choices are still limited (but growing).

Fugal and Wise Take Away: Streaming players are a great alternative to costly cable services – refer to Cut the Cable! Cut the Costs!

Yamaha YST-SW012 Subwoofer – the best subwoofer to be found for under 100 bucks! Mine is in the home office, rounding out the Klipsch RB-41 bookshelf speakers. The Yamaha provides that extra kick, whether you are listening to Copeland, Coltrane or Coldplay. Or Bach, Basie and Barry White.

Cons: Best in smaller space, may be under powered for larger rooms. No controls for cross-over or polarity, just volume (not a big deal for most folks)

A Patio Sound System for under $200!: Yamaha NS-AW150 outdoor speakers & Blue Fidelity Model 300 amp. For being so inexpensive, this combo makes a pretty awesome patio sound system. I’ve received a lot of compliments on how great it sounds. The Blue Fidelity unit receives music via Bluetooth streaming from your phone, tablet or PC. Though only the size of a deck of cards, it puts out plenty of power – the neighbors occasionally ask me to turn it down (luckily, we share similar tastes in music.)

Cons: If I were doing it over, I’d get the Yamaha speakers in black rather than white so they’d hide dirt better.

Mazda 3 – we have a 2012 Mazda 3 sedan with the 2.0 liter Skyactiv engine and 6 speed manual transmission. It looks like all the other nondescript compact sedans out there. But wait until you get behind the wheel! This is a driver’s car. Zero to 60 in 7.9 seconds. Top speed of 123 MPH, limited only by a computer chip. And how it corners! It pains me greatly to say this, but it actually handles a bit better than my 1996 Mazda Miata. Zoom. Zoom.

Cons: It takes a while to get over the 2012’s smiley-face grill (the 2013 and later models have better looks). Seats are not terribly comfortable for long trips. Around town mileage is so-so in the low to mid 20s in miles per gallon. And I really wish the redline was 500 – 1000 RPMs higher.

Frugal and Wise Take Aways: New, a 2012 Mazda 3, like ours, listed for just under $20,000. We bought ours used in 2015 from a private owner for $10,500. That’s a substantial savings even though the car had 43,000 miles on it at purchase. Another point: you don’t have to pay vast sums of money to own a car that’s fun to drive. A step up from the Mazda 3 but still on the reasonable side is the Honda Civic Si (although the Si requires premium gas.)

Lionel Trains – I saved the best for last. As I write this, there are sixty year-old Lionel trains circling the Christmas tree. Prices for vintage model trains peaked in the early 2000’s. Since then, pricing on all but the rarest items have been steadily declining. Why? Model train owners are an aging demographic. More train collections are getting downsized or sold to settle estates.

Here’s a link to my trains in action.

Frugal and Wise Take Aways: With prices being more reasonable, this is a great time to get into the hobby. Check offerings on eBay or a local train meet. Here’s a schedule of train meets around the country – just put in your zip code to find events near you. But another point: don’t get caught up in a ‘collectables’ mania. Model train prices peaked about the same time as the Beanie Baby craze and the dotcom bubble: a cautionary tale indeed.

In closing, here’s the link to the last version of My Favorite Things: this time covered by Luther Vandross. Enjoy!

I wish you all Merry Christmas, Happy Holidays and a Happy, Frugal, Wise and Prosperous New Year!

Cheers, Paul

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A Class on Personal Finance

FYI for readers in the Philadelphia area: I will be teaching a class on stewardship and personal finance at Tenth Presbyterian Church starting Sunday, December 18, 9:00 – 10:15 AM, in Fellowship Hall east. There will be 9 sessions running through February 26, 2017 (no class on Christmas or New Year’s Day).

The class will be interactive and tailored to the financial questions, needs challenges and goals of the individuals attending. Bring questions!

Here are some of the proposed topics:

A Biblical perspective on money, wealth, stewardship and contentment
Practical suggestions on becoming savvy consumers, cutting costs, stretching dollars and living below your means.
Getting out of debt, staying out if debt. Good debt vs. bad debt
Saving and investing: the power of compounding, the importance of an emergency fund, long term investment for college and retirement. Saving for a house.
Legal essentials, particularly for families with young children.

Please join us if you can. Information on parking can be found on Tenth’s website. Regards, Paul

My Favorite Things Part IV

Public Radio – there is life at the bottom of the radio dial! In-depth news, thought-provoking programming and music you won’t hear on commercial radio: classical, jazz and avant-garde. And for the most part, it’s commercial-free. Some of my favorites: WBGO (88.3 Newark NJ) for jazz and Saturday morning R & B, WRTI (90.1 Philadelphia) for classical music in the morning and jazz at night. The organic gardening program You Bet Your Garden from WHYY (90.9 Philadelphia) and the Saturday night Blues Show from WXPN (88.5 Philadelphia). (As far avant-garde exposure, my daughter Abi has been featured a number of times on WXPN – both live performances and from her recordings.)

NPR (National Public Radio) is also a great resource for business news and topics surrounding personal finance. The weekday evening Market Place program is carried on many public stations as well as the twice-weekly Planet Money. Both programs offer podcast archives. There’s an NPR app to locate and stream public radio stations from anywhere in the country as well as to listen to podcasts.

Cons: Commercial-free but quarterly fund raising drives can be tiresome and obnoxious. NPR news reporting does come with a liberal bent that some may object to.

Pilot Gel Pens – I once found a Montblanc pen in a parking lot. Then I lost it just a few months later. Easy come. Easy go. No more fancy pens for me! I just love how Pilot gel pens write. To be honest, they write better than the Montblanc ball point pen I once ‘owned’. Sometimes I completely use up the ink and simply discard them but, I am just as likely to lose or misplace them. Regular price for a pack of gel pens is a tad over a dollar per pen. But watch for them to be discounted as part of Staples Back-to-School specials by as much as 50% off. Hopefully, a dozen pens will last you a year or two.

Road ID – If you run, hike, bike, ski or swim, please get one of these ID bracelets for under 20 bucks. What if something should happen to you during an athletic undertaking? What if no one knows who you are or whom to contact? Get one for the sake of your loved ones. Your bracelet can also list life-threatening medical conditions that an EMT should know about.

BIC America DV62si Bookshelf Speakers – Incredible speakers at $120 for the pair. Initially, I had bought a pair of used Bose 201 Series IV speakers from a friend for the living room stereo. Hooked them up and …. meh! They just seemed dull. Then I discovered the BIC DV62si’s at Amazon. The DV62si’s have a bright sound with AMAZING detail; the 201s sounded muddy by comparison. A far superior speaker to the Bose 201’s at half the cost. Plus, they comes with a 7 year warranty. Keep in mind that they are bookshelf speakers; you may want to augment the bass with a sub-woofer. (I’ll suggest one for you in the Part V installment of My Favorite Things.) Lesson learned: products from a prestigious brand are not necessarily a good value may not come close to being the best performer in their category.

Cons: The vinyl cabinet finish seems a bit chintzy. But these speakers are intended to be heard, not seen.

That’s all for this installment of My Favorite Things. In the meantime, click this YouTube link and take a listen to Tony Bennett singing the Rogers and Hammerstein song (from his 1969 Christmas album Snowfall).

Cheers, Paul

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My Favorite Things Part III

The Next Installment of My Favorite Things ….

Melitta European Roast Coffee – ditch that ruinous daily latte habit; brew yourself an awesome pot of coffee at home for a fraction of the cost! A 12 ounce can of Melitta goes for $5-6 at regular price but can be had on sale at Shop Rite for as little as $3. Even at $6 a can, that’s only 25 cents per 8-ounce cup. Take that, you Four Dollar Latte!!! melitta

Our friend, fellow blogger, coffee aficionado and roaster Bryan Stoudt once complimented us on the coffee we served. That’s a resounding endorsement from someone who knows good coffee when he sips it!

GasBuddy– gas prices in given area might vary by as much as 15 cents per gallon, or even more. The GasBuddy mobile app or website helps you find the least expensive gas station near you, whether in your neighborhood or on a road trip across the country. And it’s free (though they do derive revenue comes from ads).

CONS: It may not save you that much money. If you drive 12,000 miles a year, get 20 miles to gallon and GasBuddy saves you 5 cents per gallon every time you fill up (optimistic, IMO), that’s only $30 per year. Also, there is a lot of frustration with the recent update to their mobile app.

ALDI Supermarkets

If you are fortunate to have an ALDI nearby, you cannot beat their prices. ALDI sometimes gets put down as the ‘ghetto’ grocery store. But guess what? ALDI is owned by the same German consortium that runs the hip Trader Joe’s chain. And ALDI is to be greatly commended for bringing inexpensive, fresh food options to America’s inner cities.

CONS: Typically, smaller stores with a somewhat limited selection. Mostly store brands with few name brands. Remember to bring your own bags.

That’s all for now. Look for more My Favorite Things postings to come. And please send me a list of Your Favorite Things.

Meanwhile, click this YouTube link to hear Mary Martin singing My Favorite Things from the original Broadway musical. Sound of Music opened on Broadway this month, 57 years ago (16 November, 1959)

Cheers, Paul

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