Utilities

Rain Barrel: Outdoor Gadgets That Save Money

August 18, 2012 By Jeffrey Strain 4 Comments

If you are someone who enjoys gardening or has extensive landscaping in their yard, a great outdoor gadget to consider purchasing is a rain barrel. Rain barrels are containers which capture rainwater (usually from your gutter system coming down from your roof) which can be stored for use around your home and yard. There are a variety of rain barrel sizes with most ranging from 50 gallons to 80 gallons. In addition to the container, a rain barrel will usually have some type of spigot which will allow you to fill up watering containers, and some sort of connection for a hose.

The main money-saving advantage of rain barrels is the reduction of money spent on the household water bill. The US Environmental Protection Agency estimates that the average household lawn and garden is responsible for about 40% of a household’s water usage during the summer months. A rain barrel system can save a household from using approximately 1300 gallons of water from their water utility during the summer months providing a free water source for use on the landscaping.

For those who have flower gardens and other sensitive plants in their yards, another financial advantage of using rain barrels is that they can help keep soil healthier compared to tap water which can result in less landscaping costs (there is currently some debate as to whether or not rainwater is good for consumable garden plants, so please do your research before using rain barrel water on them). Water coming from the water utility may contain a number of additional substances such as chlorine, lime, calcium and fluoride which over time can potentially damage the soil and reduce plant healthiness. Rainwater collected in rain barrels does not contain these additional substances.

The water that comes from rain barrels is non-potable which means that it can’t be used for drinking water. That doesn’t mean, however, that its use is limited to watering plants around the house and in the yard. Rain barrel water can be used to wash windows, wash cars, and even flush toilets. By using rainwater rather than water from your utility, you save money on all these activities as well.

How much money you will actually save depends a lot on what the water costs are in the area where you live. Those that live in areas where water is quite expensive can see a rain barrel pay for itself relatively quickly, while those that live in areas where water is relatively inexpensive will have to use a rain barrel for a longer period of time to get back their investment. A rain barrel will almost always pay for itself many times over during its lifetime no matter how inexpensive your utility water may be.

While rain barrels don’t cost a lot for the amount of money you will save over the lifetime of their use, you can also make your own rain barrel (PDF) if you have the time, energy and want to save even a little bit more money.

EcoButton: Computer Gadgets That Save Money

July 28, 2012 By Jeffrey Strain 1 Comment

We all know that we should do it, but most of us don’t because it’s either too much of a hassle or we simply forget. Every time we leave our computer and it remains running, we are wasting energy. While each individual time we do this may not seem like like a lot of wasted money, when all those times get added together over the year, it can add up to quite a bit. The EcoButton attempts to solve this problem in an easy and effective way.

Plug the EcoButton into a USB drive and anytime you leave your computer, simply push it and it will place your computer into energy-saving mode. Since the button is bright and right there next to your computer, you’re much more likely to use your computer’s energy-saving feature than you would otherwise be. When you return, simply click the EcoButton again and your computer comes back to life exactly where you left it. This can be especially effective with kids who constantly leave the computer running as they answer phone calls from friends or get distracted doing other things.

Another motivational feature this gadget has is that it calculates the amount of energy you saved each time you use it so that you can see how much money you have saved with each press of the button. This gives your instant gratification knowing that you not only saved money, but you also helped the planet by reducing Co2 admissions.

How much you can save depends on your computer and monitor since all makes and models use energy at different rates. The EcoButton estimates that the average computer users will save about $60 a year on their electricity costs. That means that you will get a 500% return on your investment in the first year alone, and continue saving for years after that. If you happen to be a heavy computer user, or often leave your computer running all night, the savings could be more than double this.

As with all gadgets, the key for them to be effective money savers is that they actually need to be used — even if you have the best intentions, but fail to use the gadget at all, it will be a waste of money. That being said, the cost (about $10) is relatively small for the potential savings and even if you don’t use it every time, it should pay for itself rather quickly. It would also make a wonderful gift for any person you know that spends a lot of time on the computer as you will be not only be getting them a gift today, but also saving them money long into the future.

Money Lessons Learned From a Dysfunctional Phone System

December 28, 2011 By Jennifer Derrick 1 Comment

One of my clients (where a friend of mine also works in IT) recently upgraded their office phone system. The phone system they had was perfectly functional but, like so many people and businesses, they wanted something with more bells and whistles (and something that several of their competitors had). After taking bids, forking over the money, and getting everything installed, the new system has been nothing but trouble. It rarely works and even when it is working, it’s not able to reliably handle the call volume that they deal with. The poor IT staff has done nothing but work on this system for months and the “support” that was supposed to be provided by the seller has been unhelpful. Everyone who has to deal with it is fed up and wishing for the return of the old system.

While this hasn’t been my problem directly, I’ve certainly had to listen to my friend complain about it every single day for the last three months. In all of the complaining, I’ve picked up on a few money lessons that apply to both businesses and individuals.

The cheapest product/bidder is probably that way for a reason

Also known as, “You get what you pay for.” The company opted for the lowest bidder, as many companies and individuals do when choosing a vendor or contractor. The trouble is, the lowest bidder is usually cheap for a reason. In this case, the installation was faulty and the promised support never materialized.

The Lesson: When shopping for a contractor or vendor, do your homework. Don’t choose someone just because they’re cheap. Make certain that they will do the work you need and do it well. Find someone who takes the time to understand your unique needs, not someone who’s looking to make a quick buck. Check their references and look at some of their other jobs, if you can. Low cost is great, but if it’s going to end up costing you more in the long run to fix the resulting problems, choose another contractor.

Just because the Joneses have something doesn’t mean you need it, too

The main reason that this company opted for this particular phone system was because many of their competitors used it, too. That may seem like a flimsy reason for choosing a system, and it is. But this industry is dominated by appearances and the thinking always goes that if someone else has something and they are successful, then we will be successful if we have it, too.

The Lesson: Keeping up with the Joneses is almost always a bad idea. Whether you’re a business or an individual, buying something just because others have it is rarely a good idea. The item may not meet your particular needs, it may cost more than you can afford, and it may not be as good as the item it replaces. This is the case with phone systems, cars, houses, and anything else that you buy simply because someone else has it. The wiser action is to buy something only when you need it and do your own research to determine which product is right for you.

If you feel like something is off about a deal, you’re probably right

My friend told me before the deal was finalized that something seemed off about it. The price they were quoted was much lower than anyone else’s quote. The salesman was hard to reach and seemed to avoid phone calls. My friend recommended that they use another vendor. She was overruled by upper management and the low cost vendor was chosen, with disastrous results.

The Lesson: If something feels off in any sort of deal or financial transaction, listen to your gut and go elsewhere. Too many times I’ve tired to ignore that feeling and I’ve always been punished for it. I’ve learned through a lot of trial and error that if something feels wrong I’d better find another solution. Sure, you might miss out on something great, but the chances are that your gut is right and there’s something wrong with the offer.

Doing some research ahead of time can save a lot of trouble

Had this company taken the time to research this new system, they likely would have learned about the problems that other businesses had with the vendor. They would also have learned that this vendor does not make systems that scale well to the size of my friends’ business. Of course, they learned all of this after the fact. They didn’t do any research on their own and instead listened to the claims of the salesperson, who was in it only to make a sale.

The Lesson: Always do your research before entering into any kind of financial transaction. Make sure you know as much as you can about the provider, the terms of the deal, what other people have experienced with this provider, and make sure you read any fine print. If you have to get a lawyer involved to go over the contracts with you, do it. Make sure you know exactly what you’re getting and that the product will meet your needs and perform as promised. Never believe what a salesman tells you because they are not your friends. They are looking for a sale. Verify everything with independent sources. Doing your own research will save you a lot of headaches.

If you already have something that works well, keep it

The phone system that the company had before worked fine. It just wasn’t the latest and greatest thing. Now that they have the latest thing and it’s a disaster, everyone wants to old system back.

The Lesson: Don’t get rid of something that works perfectly well just because there’s something newer out there. It’s one of those, “Better the devil you know…” situations. Sure, your current item may not be the greatest, but you know that it works and you might even know how to fix it already. A new item is always a gamble. It might work great, but it might also be a total lemon that makes you yearn for the item you discarded. Keep what works until it stops working or until you have a justifiable need for something else.

This experience with this phone system has taught this company a lot of valuable lessons about how to hire and work with contractors. They’ve learned the hard way that upgrading for the sake of upgrading can be a risky and costly strategy. Maybe next time they’ll think twice before deciding that they need something just because the competitor up the road has it.

(Photo courtesy of Peter Kaminski)

Save Money While You Sleep

June 28, 2011 By Jennifer Derrick 3 Comments

You probably don’t think that the hours you’re sleeping can possibly cost you that much. After all, everyone’s in bed, everything is off, and no one is out shopping. But the truth is, the overnight hours can be costing you hundreds of dollars per year and you might not even realize it.

The biggest culprit is vampire power drain. All of those electronics and appliances that you think are off are still drawing power whether they’re on or not. To combat this, you can unplug everything or use power strips to make turning things off as easy as a flick of a switch. There are other money suckers at night, as well, including lights that are left on, A/C or heat units that are left running at daytime temperatures, and leaking or running plumbing fixtures. Here’s a quick routine that I go through before bed each night to make certain that my sleep time isn’t costing me any more than it has to.

Check outdoor lights

After I bring the dog in from doing her last business of the day, I quickly check to make sure I’ve turned off all the outside lights. If you like to leave an outside light on for security purposes, look into motion detectors which will only turn the light on if someone is in the yard, or look at solar options. At the very least put your outside lights on timers so they go off in the morning without you having to remember to turn them off. Outdoor lighting left burning all night, particularly floodlights, can add a pretty penny to your power bill.

Check faucets, toilets, and sprinklers (And the ice maker!)

I quickly check each sink and toilet as I pass the rooms to make sure that they are fully off and not leaking. Sometimes people in the house are guilty of not getting things all the way off and a little drip can mean a big water bill later. If I’ve been using the sprinkler outside, I check to make sure it’s off. Also check your ice maker, if you have one. I turn mine off each night. I used to leave it on, but one morning I came into the kitchen to discover that it had malfunctioned overnight, had run all night, and left an enormous puddle of water all over my kitchen floor and inside the freezer. Ever since then, I turn it off at night and when away on vacation.

Turn off lights and electronics and unplug everything

As I go room to room, I turn off all the lights and unplug unnecessary items (or flip off the power strip). I power down and unplug the computers, as well. Yes, it takes a little time to boot in the morning, but they continue to draw power even in the sleep mode. I also unplug any chargers. If the phone is charged, leaving the charger plugged in all night won’t increase the charge, it will only waste power. Once the charging is finished, I unplug the charger. I also look up and turn off any ceiling fans in unused rooms. They cool people not rooms, so using them at night is a waste of money. If you need night lights, there are LED options available that use only a tiny amount of power but give off a good glow.

Adjust the heat or A/C

In the winter, I turn the heat down to about sixty degrees overnight. Everyone is under blankets and in warm sleepwear so it doesn’t need to run full blast. In the summer, I keep the temperature around eighty during the day, but turn it down to about 75 at night. It keeps the house cooler, but since it’s night the AC doesn’t have to work as hard to keep it down. If you want to automate this chore, get a programmable thermostat.

This routine doesn’t take me but all of five minutes and it’s done as I’m heading to bed and passing each room anyway. I’ve estimated that the little bit of time I spend checking things and turning them off saves me about $30- 40 per month, or $360 or more per year. It might not seem like a lot of money, but for many people that’s a car payment, a couple of trips to the grocery store, or something fun that they wanted.

Pain Free Cost Cutting

January 11, 2011 By Jeffrey Strain 6 Comments

Over the years, I have called the cable company to reduce the amount of money my mom pays for her cable TV on a fairly regular basis. I just did it again this week and saved her $170 over a 6 month period. No matter how many times I tell my mom that she needs to do this when her cable rates increase when the promotional rate expires, she never seems to do it. There seems to be a lot of people that aren’t willing to do this. I’m not sure why since this is pain free savings.

One of the things I realised early on when getting my finances in order was that all types of cost cutting is not created equally when it comes to the pain it causes. This doesn’t seem to be intuitive to a lot of people. Many of my friends that I have helped over the years had assumed that cost cutting was the same no matter how they approached it and never considered that some ways to cut costs could be far more pain free than others. Whenever I am trying to cut costs for myself or to help others, I always go for pain free savings first.

If you want (or are forced) to cut the amount you are spending, it makes sense to start saving money where it isn’t going to cause any pain to your regular lifestyle. It is often surprising how much can be saved this way, and best of all it doesn’t entail any sacrifice. In order to do this, it’s important to understand the different cost cutting categories which exist since different categories will determine the amount of “pain” you are likely to feel.

Streamline to Pain Free Savings

When I need to cut costs, the first type I try to find is streamline cost cutting. Cost reductions found within the streamlining category are by far the best type of money saving tips to find since they cause no pain or change ones lifestyle. Streamlining means getting the exact same things you currently purchase for better price. It’s basically a tune-up of recurring expenses. Much like a car requires service over time to make sure it’s performing at its best, streamlining is doing the same with your spending by making sure that you receive the best deal for the product or services for which you are currently paying. You won’t change anything that you are currently doing or make any changes to the services you are receiving, but merely get a better deal on these.

The perfect example is my mom and her cable TV. She still is getting the exact same TV channels that she was getting before, but paying less for it. Another example of this would be refinancing your home mortgage with your current mortgage lender at a lower interest rate. Contacting your credit card company and getting a better interest rate on any credit card balance you have (studies have shown that it’s possible in some cases to have a credit card company lower the interest rate they charge simply by asking) would be another. In all these instances, the exact same service is received from the exact same institution, but the cost is reduced.

While the most obvious streamlining opportunities come from recurring services, they aren’t limited to services. It’s possible to streamline the cost of products you use on a regular basis as well. An example would be if you drink a couple of cans of cola each day and you go each week to the store to buy your supply for the next week at retail price. If you instead purchased a 3 month supply when the cola went on sale (most sales cycles come about every 3 months), you still get the same cola while reducing the cost of it.

Laziness and habit are the main nemesis of streamlining. There is a very good reason that the cable company offers a discounted price for a specific period and then raises the price once that time period ends. They know that most people are like my mom and will not call and ask for a better deal when the promotion ends. What this means is that streamlining is a never ending process that requires you to be proactive on a regular basis to make sure you are getting the best price for the things you are purchasing. The good news is that the better you get at streamlining, the more money you can save without changing your lifestyle.

Reasons Not To Have A Cell Phone

January 7, 2011 By Jeffrey Strain 15 Comments

I am probably one of the last people in the US that doesn’t have a cell phone. I don’t have a cell phone to protest in any way. I actually think there are a lot of interesting aspects to them. I have friends that keep telling me that I really need to get one so that it is easier for them to get hold of me. There isn’t an issue with money as I could easily afford one and it would fit into my budget of spending less than I earn. There are a few times a year when I think to myself that it certainly would be more convenient if I had one at that specific moment. The fact remains, however, that each time I have considered getting a phone I realize that I really don’t need or want one.

Over the years, I have gotten better and better at determining between wants and needs. I know this because I buy far less than I used to and find it much more difficult to find true needs. This wasn’t always the case. I was pretty efficient at rationalizing my wants as needs for a period of time. I think this is an issue that many people struggle with, but it certainly is much easier to make the determination between wants and needs when you know what makes you happy.

Getting cell phone isn’t simply a want versus need question in my case. While I do save money not having one and that savings allows me to do an extra week or so of traveling each year, I do have the money to get a cell phone if I want one. With this in mind, whether or not to get a cell phone becomes a question of will a cell phone provide the convenience that would make it worthwhile for me to purchase one? As I mentioned, there are always a few times each year that I think a cell phone would be really convenient (usually when I have planned to meet someone at a certain time and they aren’t there). If I only considered these inconveniences, I would almost certainly get a cell phone.

What keeps me from getting a cell phone is that I know myself well enough to know what would happen if I purchased a cell phone. I spend far too many hours already on the computer and a cell phone would mean that I would simply spend more time with a gadget rather than doing the things that make me happy. The fact is that I am much happier that people can’t call me whenever they want and that increased happiness far outweighs any inconvenience that not having a cell phone causes.

With this in mind and understanding how I would use a cell phone if I had one, I know that not having a cell phone is in my best financial interest. My feeling is that most people do not have a need for a cell phone, but society makes it quite easy for people to pretend that a cell phone is a need rather than a want. It would be very easy for me to justify needing a cell phone even if I didn’t have the money for one. I could argue that I own my own business and it is important for people to be able to get in contact with me (true — I just insist that it be done through email) to claim that a cell phone is a necessity. The fact is that just because I can justify it to others doesn’t mean that it is truly a need.

If you are currently in debt, I think that you should really evaluate your need for a cell phone. Once you determine whether or not it is truly a need, you then need to determine how much you really need to use it (my guess is very little) and the most appropriate cell phone plan for this need. If you aren’t in debt and have the money to afford a cell phone, I think it would be worthwhile to evaluate (much like I did) whether it makes you as happy as you assume it does.

Virtually everyone that I have explained the above of why I don’t have a cell phone thinks that I am absolutely nuts. Even after explaining the exact reasons why I don’t have one, they think that I am trying to make some type of protest, that I am being cheap or that I don’t understand all of the things I can do with a phone (again, one of the main reasons I don’t want one because I don’t want to be playing with it all the time). Despite the shakes of the head and the looks of disapproval, I am confident that I have made the correct decision for me. There may be a time in the future where a cell phone does become a need or a want that is worth paying for, but that is not the case as of this moment.

If you were expecting a list of reasons not to have a cell phone, here are five reasons to give up a cell phone