“Teach your kids to save and you will save money” is the kind of statement that people of my generation would call a “no brainer”. The less you spend on your kids for fad purchases and impulse buying, the more money you will have to send your kids to a good college so, that you won’t be supplementing the income of a 42 year old that works part time at a drive up window.. There is nothing wrong with any kind of work but, in the real world of rent, car payments and groceries, income counts. It is better (better paying), to have the education to run the store that has the drive up window then to simply be responsible for the window.
Start training the children to save at an early age. When a child is very young, have them make themselves a savings bank. Don’t buy one in the store. Have them make the bank out of, for example, a plastic jar (metal cans might have sharp edges and may rust on the coins and make a mess). For most children you should be the one to cut a slit in the lid of the jar however, the child can decorate the jar either directly with markers or, by using scrap paper or old gift wrap paper. In short, it is best if the child feels ownership in his first savings bank. It also saves the parent the money of buying some lame bank the kid will dump in the back of his/her closet and never put a cent into it.
The main lesson to be leaned by children is that if they want something bad enough then, they must make sacrifices to achieve that item, skill or, to belong to a given group of peers. Life is all about making choices and reaping the rewards and unfortunately, the consequences of those choices. If a child saves $50.00 then, they should first be made to take the $50.00 out of their savings bank before mom or dad kick in any money. If the kid doesn’t have the savings to buy an item they must learn to have the patience to wait, sacrifice, and save for that item.
Over time, the sacrifice and savings ideology may begin to cause your child to automatically make decisions of sacrifice/denial (cost/benefit in business school). The child will no longer come to you for every small purchase because the child will take care of the item themselves out of an analysis of cost/benefit.
Just imagine how much money each family could save if each time little Jimmy or little Suzie wanted a $5.00 item in a store and little Jimmy and little Suzie were confronted with the fact that the cost of the item would come out of their personal savings. If the child was saving that money for something the child thought was important then, the parent could remind the child that by buying the $5.00 item the child would have to earn an additional $5.00 toward the other purchase.
Forcing your kids to make tough choices will save you and, them a fortune. It is a simple “no brainer” that teaching kids to save early in life will save their parents money and will make the kids happier and wealthier individuals. You are not torturing your kids by making them earn money for things they don’t need. Making them earn money for things they need is not always a bad idea either (like fashionable cloths).
We all can remember our parents trying to teach us to save for items that we felt we had to have. Of course there was always something sweet about buying stuff with money you earned and saved. It is a great feeling for kids and it is just as enjoyable for an adult.
Monday, January 25, 2021
Monday, January 18, 2021
SELL ITEMS TO COVER THE COSTS OF NEW PURCHASES
This is a great strategy for saving money. Like most people, you already use this strategy for large ticket items so, why not use this strategy for less expensive items like lamps, furniture, dishes, pans, etc? You may already do this but, what about that old junk lawnmower or, junk pile for that matter?
In fact, it is just not enough to sell an item you are replacing. Instead you should try to sell enough items to fully cover the cost of the new item. For example: If you have a lawnmower that you sell for $25.00 but, your new lawnmower costs $200.00, don’t just cough up the other $175.00 out of savings. Find a like amount of stuff to sell to fully cover the cost of the purchase. Sell that old doll buggy, computer, bicycle or anything else you have that you’re not using. This way you have saved yourself $175.00 by selling things you are just storing and not going to miss.
How to sell this stuff? Well, use rummage sales, yard sales, eBay and other Internet sellers, pawn shops, second hand dealers, advertise, word of mouth, for sale signs, and fix it shops (they always want parts). One note about EBay, you don’t have to have an account with eBay to sell items eBay. There are eBay stores in almost every city who, for part of the sale price, list host your items for you on eBay. When the item sells, the host will send you a check.
Some people keep items they are not using around just in case they should ever need them. This is fine when it comes to tools like hammers, screwdrivers and power tools but, most items should be sold. One reason not to hang on to stuff is that the items deteriorate or get damaged just sitting around. When stuff falls out of the closet or the dog chomps on it a few times or, the item gets weathered or wet, it looses value to a potential buyer. Then, as the items become progressively damaged and deteriorate over the years, they become less and less valuable until they will inevitably be rejected by even Goodwill, (Always think of Goodwill before throwing things out). In retail we used to call this shop worn. Shop worn is when an item sits on a shelf so long that it looks like it had been returned a dozen times when it had never even been used. At which time, a really savvy buyer would come along, recognize value in the item and offer a fraction of the original price for the item. Otherwise, the item will be marked down on clearance at a fraction of the original price or, if it has deteriorated too much, thrown in the dumpster.
So sell, sell, sell, to trade up to better items or different items. Get rid of your unwanted stuff (junk) and think of all that extra space and especially, the extra money.
In fact, it is just not enough to sell an item you are replacing. Instead you should try to sell enough items to fully cover the cost of the new item. For example: If you have a lawnmower that you sell for $25.00 but, your new lawnmower costs $200.00, don’t just cough up the other $175.00 out of savings. Find a like amount of stuff to sell to fully cover the cost of the purchase. Sell that old doll buggy, computer, bicycle or anything else you have that you’re not using. This way you have saved yourself $175.00 by selling things you are just storing and not going to miss.
How to sell this stuff? Well, use rummage sales, yard sales, eBay and other Internet sellers, pawn shops, second hand dealers, advertise, word of mouth, for sale signs, and fix it shops (they always want parts). One note about EBay, you don’t have to have an account with eBay to sell items eBay. There are eBay stores in almost every city who, for part of the sale price, list host your items for you on eBay. When the item sells, the host will send you a check.
Some people keep items they are not using around just in case they should ever need them. This is fine when it comes to tools like hammers, screwdrivers and power tools but, most items should be sold. One reason not to hang on to stuff is that the items deteriorate or get damaged just sitting around. When stuff falls out of the closet or the dog chomps on it a few times or, the item gets weathered or wet, it looses value to a potential buyer. Then, as the items become progressively damaged and deteriorate over the years, they become less and less valuable until they will inevitably be rejected by even Goodwill, (Always think of Goodwill before throwing things out). In retail we used to call this shop worn. Shop worn is when an item sits on a shelf so long that it looks like it had been returned a dozen times when it had never even been used. At which time, a really savvy buyer would come along, recognize value in the item and offer a fraction of the original price for the item. Otherwise, the item will be marked down on clearance at a fraction of the original price or, if it has deteriorated too much, thrown in the dumpster.
So sell, sell, sell, to trade up to better items or different items. Get rid of your unwanted stuff (junk) and think of all that extra space and especially, the extra money.
Sunday, January 10, 2021
MAKE UP KID’S GAME ON THE CHEAP
The other day my mother was taking the wrappers off of coffee creamer bottles. I asked her what she was doing. She replied that she was making a bowling ball set for her great grand children to play. When she finished taking the wrappers off of the coffee creamer bottles I noticed that they really did look like bowling balls. My mom proceeded to put stripes on the bottles and came up with a small (cheap) rubber ball from her basement. Using this old ball that was the approximate size of a bowling ball and then reusing the creamer bottles she had made a very nice bowling game which cost her nothing. In addition, the bowling pins could be left empty inside for easy indoor knockdowns and then used outside in nice weather by putting sand in the pins to stabilize them from the wind and rough surfaces.
I have made mini golf games on the cheap. A real golf club can be purchased at places like Goodwill for just a couple of bucks. I have found golf balls left on my property over the years so I have never had to buy any. By taking a few plastic cups and placing them in holes in the ground you can create your own mini golf course. You can use logs or stones for obstacles and maybe even have sand traps and little ponds to miss. Obstacles could be anything including old tires, unused lawn edging etc. It is really up to your imagination and your kid’s imagination on how to set up the course. The great thing is that you and your kids can improve and modify your backyard mini golf game all summer.
In addition to a mini golf course you could set up a Frisbee course or even one in which the kids just kick a ball through a course of obstacles. Of course you can also set up a weekend treasure hunt. The found treasures could be anything from old jewelry or watches to even some change. Even if you give out a dollar or two in change in treasure hunts you are still entertaining the kids at a fraction of the of taking them to a place that charges huge fees for everything. Remember also, the treasure the kids are looking for on a treasure hunt may not be as important as the fun of looking for it.
You local dollar stores have quite a few games that are cheap. Chess, checkers, magic cards etc. can be an inexpensive way of providing entertainment. Whatever you do by entertaining the kids on the cheap, you will save a fortune.
I have made mini golf games on the cheap. A real golf club can be purchased at places like Goodwill for just a couple of bucks. I have found golf balls left on my property over the years so I have never had to buy any. By taking a few plastic cups and placing them in holes in the ground you can create your own mini golf course. You can use logs or stones for obstacles and maybe even have sand traps and little ponds to miss. Obstacles could be anything including old tires, unused lawn edging etc. It is really up to your imagination and your kid’s imagination on how to set up the course. The great thing is that you and your kids can improve and modify your backyard mini golf game all summer.
In addition to a mini golf course you could set up a Frisbee course or even one in which the kids just kick a ball through a course of obstacles. Of course you can also set up a weekend treasure hunt. The found treasures could be anything from old jewelry or watches to even some change. Even if you give out a dollar or two in change in treasure hunts you are still entertaining the kids at a fraction of the of taking them to a place that charges huge fees for everything. Remember also, the treasure the kids are looking for on a treasure hunt may not be as important as the fun of looking for it.
You local dollar stores have quite a few games that are cheap. Chess, checkers, magic cards etc. can be an inexpensive way of providing entertainment. Whatever you do by entertaining the kids on the cheap, you will save a fortune.
Saturday, January 9, 2021
JANUARY IS A GREAT TIME TO BUY COATS AND JACKETS
January is truly a great month to get a great deal on winter-wear. Most winter clothing like coats, jackets and, boots can be purchased at very deep discounts from the original retail price. It is the time of the year when you can walk into the clothing area of almost any big box retailer and observe a sea of big red signs with the greatest word in the bargain hunters lexicon printed upon them. That word of course is “CLEARANCE”.
Many times you can find winter clearance items at 40%-70% off of the regular retail price. So what does
that mean for the consumer? Well it means that a brand new regularly priced $300 jacket marked down 70% from regular retail can be purchased for around $90 (this of course varies depending on sales tax charges). The savings on such a deal is an astronomical $210. Even if you buy a $300 jacket at 40% off you will still be saving $120. Most retailers run normal sales at just 15%-25% off the listed retail price so the clearance deals are clearly better in most cases.
Now why do retailers run such great clearance deals in January? Well, for one thing the holidays are over and many people are just spent out of money. In order to entice cash strapped and credit card maxed out shoppers to buy, prices need to be dropped substantially. Many retailers finance their businesses on money borrowed from their wholesale suppliers in the form of credit on merchandise. The retailer makes his profits by turning his inventory into cash at a profit and then he can pay off his suppliers and buy more merchandise for the next season without maintaining a debt from the previous one. Turning last seasons merchandise into dollars is a very high priority for many retailers.
At the retail store level the managers are under a great deal of pressure to make sure that their departments are ready to change over from season to season. The competition to be just a little ahead of other area retailers in seasonal changeovers is a real driver in getting that old merchandise marked down and out the door. Retail managers must make sure that they have space for next season’s incoming merchandise. For whether or not the sales floor has room for it, the new seasonal merchandise will be arriving.
There are of course drawbacks to shopping for winter cloths in January. The biggest drawback is that you will be shopping with a limitation on many styles, colors and sizes. There will be limited availability on many items and stores willing generally be unwilling to order you something for a clearance price unless, perhaps for a store with outstanding customer service they might be able to get you the item you want from another store in the same chain and sell it to you at the clearance price. It certainly does not hurt to ask a manager if they would check to see if another store has the item you want.
Besides the limitation on choice you have in winter clearance merchandise you also have a limited time to wear your winter items for that year. However, in states like Michigan where I live winter lasts until about April in most years so you would still have some time to wear your newly purchased winter-ware. Of course, remember that a few weeks prior to the big clearance many are glad to get a $300 jacket as a gift even knowing that someone paid full price or nearly full price for the item.
Overall, shopping seasonal clearance can be a great way to save a lot of money on sometimes very expensive brand new merchandise. In order to shop seasonal clearance you just have to get a mind set that the best time to buy seasonal items is in the middle of or end of a season. So, many of the things you buy will be for next year. However, in the case of winter clothing depending on where you live, you might have several more months to wear your expensive looking low cost clothing. So shop clearance in January and save a fortune.
Many times you can find winter clearance items at 40%-70% off of the regular retail price. So what does
that mean for the consumer? Well it means that a brand new regularly priced $300 jacket marked down 70% from regular retail can be purchased for around $90 (this of course varies depending on sales tax charges). The savings on such a deal is an astronomical $210. Even if you buy a $300 jacket at 40% off you will still be saving $120. Most retailers run normal sales at just 15%-25% off the listed retail price so the clearance deals are clearly better in most cases.
Now why do retailers run such great clearance deals in January? Well, for one thing the holidays are over and many people are just spent out of money. In order to entice cash strapped and credit card maxed out shoppers to buy, prices need to be dropped substantially. Many retailers finance their businesses on money borrowed from their wholesale suppliers in the form of credit on merchandise. The retailer makes his profits by turning his inventory into cash at a profit and then he can pay off his suppliers and buy more merchandise for the next season without maintaining a debt from the previous one. Turning last seasons merchandise into dollars is a very high priority for many retailers.
At the retail store level the managers are under a great deal of pressure to make sure that their departments are ready to change over from season to season. The competition to be just a little ahead of other area retailers in seasonal changeovers is a real driver in getting that old merchandise marked down and out the door. Retail managers must make sure that they have space for next season’s incoming merchandise. For whether or not the sales floor has room for it, the new seasonal merchandise will be arriving.
There are of course drawbacks to shopping for winter cloths in January. The biggest drawback is that you will be shopping with a limitation on many styles, colors and sizes. There will be limited availability on many items and stores willing generally be unwilling to order you something for a clearance price unless, perhaps for a store with outstanding customer service they might be able to get you the item you want from another store in the same chain and sell it to you at the clearance price. It certainly does not hurt to ask a manager if they would check to see if another store has the item you want.
Besides the limitation on choice you have in winter clearance merchandise you also have a limited time to wear your winter items for that year. However, in states like Michigan where I live winter lasts until about April in most years so you would still have some time to wear your newly purchased winter-ware. Of course, remember that a few weeks prior to the big clearance many are glad to get a $300 jacket as a gift even knowing that someone paid full price or nearly full price for the item.
Overall, shopping seasonal clearance can be a great way to save a lot of money on sometimes very expensive brand new merchandise. In order to shop seasonal clearance you just have to get a mind set that the best time to buy seasonal items is in the middle of or end of a season. So, many of the things you buy will be for next year. However, in the case of winter clothing depending on where you live, you might have several more months to wear your expensive looking low cost clothing. So shop clearance in January and save a fortune.
HAVE A HOBBY THAT IS A CASH GENERATOR
One great way to have some extra money is to turn your hobbies into cash generating machines. If you have a hobby that you want to start to make money on, you already know about how to buy items for your hobby. Hence, you already know how to sell your items. You might be selling them on eBay, another on line service, in the news paper, at consignment shops, bazaars, auctions, word of mouth , hobby clubs, rummage and garage sales, conventions and shows, your own on line store or the conventional brick and mortar shop.
So, there are many ways to sell items from your hobby. Of course before you start a business hobby you need to know the costs. Costs can be anything from materials, extra electricity, extra phone and Internet services, costs of machines like copiers ad computers, labor, time, transportation and, shipping costs. In addition to costs you must make sure you have the space to accomplish all you business tasks. You will need a desk area for records as well as a place to create your projects and an area to package your items for sale and shipping.
Many of your costs can be deducted on your income tax although some, like machines, may have to be amortized (a small deduction each year instead of deducting the full cost in the year you purchase the machine). You will need to consult a good tax person before you are up and running as a business. Other ramifications like sales taxes, business taxes, social security taxes etc., may have to be added to your costs.
Of course depending on the state you live in and, if your business is small enough, you may have very few if any extra costs imposed by government entities. One very big positive to having a small hobby business is that you may get some nice tax breaks against other income that you have.
What if you don't have a hobby yet but, want to find something to do that can be fun and rewarding and be profitable as well? Going on line is the one great way of seeing what hobbies are available. Checking at hobby stores or visiting places like bazaars and consignment shops that sell hobby items, can also generate ideas. Your hobby does not have to be about producing an item for sale. It could also be a service like landscaping or cooking meals for on the go families. There are hundreds of computer programs you can purchase to help you create a small business. For example, fixing old photographs. If you like to travel then, being a tour guide might be a great hobby/business. On line publishing of things like children's books, maps, articles, photos,calendars,etc., are just some ways of making money via Internet services.
Overall, there are literally thousands of hobbies that can be turned into businesses. Some people eventually, make their hobby/business into their main source of income. They might even expand and have to hire people. Starting with a small hobby/business is a good way of testing the waters so to speak, to find out if a hobby can be a viable business and, if you can be a viable business person.
So, there are many ways to sell items from your hobby. Of course before you start a business hobby you need to know the costs. Costs can be anything from materials, extra electricity, extra phone and Internet services, costs of machines like copiers ad computers, labor, time, transportation and, shipping costs. In addition to costs you must make sure you have the space to accomplish all you business tasks. You will need a desk area for records as well as a place to create your projects and an area to package your items for sale and shipping.
Many of your costs can be deducted on your income tax although some, like machines, may have to be amortized (a small deduction each year instead of deducting the full cost in the year you purchase the machine). You will need to consult a good tax person before you are up and running as a business. Other ramifications like sales taxes, business taxes, social security taxes etc., may have to be added to your costs.
Of course depending on the state you live in and, if your business is small enough, you may have very few if any extra costs imposed by government entities. One very big positive to having a small hobby business is that you may get some nice tax breaks against other income that you have.
What if you don't have a hobby yet but, want to find something to do that can be fun and rewarding and be profitable as well? Going on line is the one great way of seeing what hobbies are available. Checking at hobby stores or visiting places like bazaars and consignment shops that sell hobby items, can also generate ideas. Your hobby does not have to be about producing an item for sale. It could also be a service like landscaping or cooking meals for on the go families. There are hundreds of computer programs you can purchase to help you create a small business. For example, fixing old photographs. If you like to travel then, being a tour guide might be a great hobby/business. On line publishing of things like children's books, maps, articles, photos,calendars,etc., are just some ways of making money via Internet services.
Overall, there are literally thousands of hobbies that can be turned into businesses. Some people eventually, make their hobby/business into their main source of income. They might even expand and have to hire people. Starting with a small hobby/business is a good way of testing the waters so to speak, to find out if a hobby can be a viable business and, if you can be a viable business person.
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