Frugality Archives - Smart On Money

Ways To Get College Application Fees Waived

Your child has done it.

She’s worked hard in school, achieved good grades, and participated in extra curricular activities. She’s ready to take the leap and apply for college.

Most high school students apply to 7 to 10 colleges, which offers a range of “safe” schools that the student knows she can get into and “reach” schools, which she’d love to attend but knows she may not be admitted.

However, applying to college can be pricey. The average cost of a college application fee is $44, but some colleges charge as much as $75 (US News).

If your child applies to 10 schools, the application fees alone are $440 or more, in total. Luckily, there are ways to get college application fees waived.

Depending on your financial circumstances, one of these strategies may work:

Use A Fee Waiver

Many high school counselors have fee waivers available in their offices. These are usually available to students who are eligible to participate in the free/reduced lunch program, are 21^st century scholars, or their family meets federal poverty level guidelines.

If the counselors do not have these available, you can also call the college admissions office directly, explain your financial situation, and see if you can get a waiver.

Also, if your child already qualified for a waiver to take the SAT, you can use that same waiver to apply to up to four colleges for free.

Apply Only To Colleges That Use the Common Application

There are over 600 colleges and universities that use the common application. This means your child only completes one application, no matter how many colleges he is applying to. In addition, “42% of member schools [accepting the common app] don’t charge application fees” (US News). If you’re child chooses among those schools, he will not have to pay an application fee.

Apply To Colleges That Don’t Charge A Fee

The College Board has a list of colleges that don’t charge an application fee or will consider waiving the fee for in-state students.

For instance, in my state of Arizona, there are 22 colleges and universities listed. One will consider waiving the fee for in-state students, and 16 don’t charge a fee.

Utilize Free Application Day Or Week

Many states offer a free application day or week. If you apply on that specific day or during the designated week, your college application fees are waived.

For a complete list, check out Collegiate Parent.

Look At The Mail You Receive From Colleges And Universities

By the time your child is a junior, or after she has taken the PSAT, you will likely start to receive copious amounts of mail from colleges and universities.

Look at the mail that you receive closely as some will advertise free college applications or waivers to apply for free.

Get A Discount When Touring The College

Some colleges offer free application waivers when you tour the campus or if you fill out the application as part of your tour.

Information on this is hard to find, though. Your best bet would be to call the university ahead of time. However, there is this preliminary list of colleges that offer an application fee waiver when you tour the campus. This list is a bit outdated, so there are likely more colleges now that offer this service.

When your child begins preparing to apply for college, don’t assume that you’ll have to fork out hundreds of dollars for things beyond student loans. Even if you can avoid paying application fees for half the schools she applies to, you will likely save yourself hundreds of dollars. The time to investigate ways to get application fee waivers is time well spent.

Did your child utilize any of these strategies to save when applying to college? What other strategies have you used?

Blogging Bigwigs Enforce Idea That Financial Stability Comes From Living Below Your Means

By Mr. Money 9 Comments

In a recent post on his site, online marketing guru John Chow got into a discussion about money and frugality, and why he chooses not to live beyond his means unlike so many of the other folks out there spend as much or more than they're raking in.

For those people he offers the best piece of financial advice that he ever received.

John Chow

It’s Not What You Make, It’s What You Keep
It really doesn’t matter how much money you make. What matter is how much you get to keep at the end of the day. There are tons of people who make a lot of money and spend every cent they make and more. They drive all the fancy cars, go to the fancy clubs and live a “millionaire’s lifestyle”, only they’re not millionaires. In Miami, they’re known as $30,000 millionaires. They make $30K a year but live like they make a million.
Thanks to low-cost leasing and zero down financing, anyone with even a modest income can project the image of a millionaire. The only problem is, the debt will eventually catch up to them and that’s when it’ll all come crashing down. This was what caused the US financial meltdown. Too many people were spending more than they make and leveraging their debts to the hilt.

In the comments of that same post Darren Rowse of problogger.net fame agrees with John completely.

Darren Rowse

One of the best things you’ve written John.
Financial stability has more to do with what you spend than what you earn.

I’ve had people over the years ask me why I don’t drive a better car, living in a better suburb, wear better brands etc too – but I guess ultimately for me it’s about living within my means – which for me means not only spending less than I earn but also about thinking about the future and using what we don’t spend in a way to produce income.

Of course you can take this principle to the extreme where you never spend any of your money on nice things and live like a scrooge – for me it’s about balancing things. We try to enjoy life by taking some good holidays, eating out in a nice place from time to time etc without going over the top.
Of course not everyone has the luxury of being able to earn enough to invest – but many people could certainly cut down spending.

To me it's encouraging to see these two blogging bigwigs talking about personal finance in such a responsible way. They are displaying the true attributes of those with a millionaire mindset, people who live like true millionaires, and not those who are pretenders.

Why encourage people to live a high-flying lifestyle when you know it isn't the way to true success?

What Do People With A Millionaire Mindset Look Like?

So what does a true millionaire look like? In his book The Millionaire Next Door Thomas J. Stanley takes a look at things that millionaires have in common.

“In the course of our investigations, we discovered seven common denominators among those who successfully build wealth..
The Seven Factors
1. They live well below their means..
2. The allocate their time, energy, and money efficiently, in ways conducive to building wealth.
3. They believe that financial independence is more important than displaying high social status..
4. Their parents did not provide economic outpatient care..
5. Their adult children are economically self-sufficient..
6. The are proficient in targeting market opportunities..
7. They chose the right occupation..
Thomas J. Stanley

John and Darren have the right idea in mind.

They're living well below their means, allocate their time efficiently (I'm sure they have to being as busy as they are), they don't really care about displaying social status, and they definitely chose the right occupation. And of course they're both extremely good at targeting market opportunities.

I feel like I'm on the path to do the same as well, and I feel like I know what it takes to truly succeed.

It all comes down to the execution, however, and I just hope I can continue doing well as these guys are.

Do you feel like living below your means is one of the best pieces of financial advice you could give someone? What advice would you give, and where do you think people should focus in order to be successful?

Personal Finance Basics: Pay Cash For Everything You Buy

By Mr. Money 9 Comments

My wife and I are going on 3 years debt free except our mortgage, and I have to tell you, it's a great feeling.

I still remember sending in that last student loan payment, just having a feeling of a weight lifting off of my shoulders, and not having to worry about that obligation any longer.

There was a new found sense of freedom we found by paying off our last debt. We would now be more free to save, invest and give!

In our 3 years of debt freedom we've started to get back to the personal finance basics, doing things like living below our means, paying ourselves first, and planning for unplanned emergencies. We've started keeping a family budget, and making sure we know where our money is going. We've made a lot of big changes!

One of the major changes that we've implemented is that we're now starting to forgo the use of credit cards and finance plans, even on the biggest of purchases. We're not longer financing our cars, or our furniture. Instead we're saving up and paying cash. If the money ain't in the bank and we can’t pay cash, we don’t buy it.

Paying Cash Can Be Done For Most Purchases

Saving cash to purchase most things isn't that hard if you plan ahead. Last year we were finding that our old 5-6 year old desktop computer that we'd been using for years was starting to get slower, and our ability to upgrade the old machine was just about maxed out. It was time for the old computer to move on, and time for us to upgrade.

In the past, as soon as we had decided to replace something, we would have gone out and purchased it on one of our credit cards, or signed up for a financing plan, so that we could get the item right away. Things are different now because we only pay cash. So instead of having instant gratification we saved up for a month or two and got together enough cash to buy a nice refurbished Dell computer. We upgraded the desktop, but kept our old monitor. No need to upgrade everything if we don't have to! In the end we researched and found the best deal, and only spent $300 or so to replace our old machine. Much less than we might have spent in the past!

Paying Cash For A Used Car

We also bought a used car about two years ago. Now you might think that paying cash for a car wouldn't be do-able, after all a new or used car costs thousands of dollars! But our last two cars have been paid for in cash. It just requires that you have some discipline. We used a plan similar to the “Drive Free Cars And Retire Rich” plan espoused by Dave Ramsey. Basically you start out by buying a relatively cheap $1500 or so car with cash. Then, over the ensuing years you drive that car and you pay yourself a car payment. When the time is right to buy a new car, you have enough cash to pay for it outright! We've done it twice now, and we're starting to search a for a mini-van or SUV since we just had our first child. We'll pay cash for this car as well!

Plan Ahead And Save For Bigger Expenses

If you want to do the same as we have and start paying cash, just start a budget, and include high ticket items (and smaller items) as a savings goal! When you plan ahead for big expenses, both emergency expenses and planned expenses like a new car, you'll be much further ahead when the time comes to pay for those expenses.

I will grant that some bigger expenses, like buying a house are much more difficult to do, and not everyone will choose to save up and pay cash for those. We didn't. But if you're really motivated, that can be done as well.

Benefits Of Paying Cash

There are tons of benefits to paying cash for the things you buy. Among them:

No need to worry about missed payments or raised rates: If you don't have any payments to make, you don't have to worry about whether or not you made a payment on time or not. You also don't have to worry about whether or not your bank will raise your rates on your credit card arbitrarily. That means less bill paying stress at the end of the month!
You can build wealth faster with no debt: When you have debt, it's much harder to save and build wealth. Shun debt and you'll be better off!
Paying cash means you spend less: Studies have shown that people who spend cash just end up spending less money. Using plastic means you'll spend 12-18% more according to a Dunn and Bradstreet study. It hurts more to pay with cash that you have now, than it does to pay slowly over time with money you hope to have in the future.
You can get a cash discount: Some retailers will give you a discount if you pay cash. The reason? You're saving them the interchange and processing fees charged to them when you use a credit card. Don't forget to ask if there is a cash only discount!
Having less debt means less risk in a down economy: When you have less debt you don't have as much risk when it comes to a job loss or other unplanned negative event. When you have no debts, you don't have payments to make at the end of the month!

For me and my family the benefits of saving up and paying cash far outweigh the negatives, and we'll continue doing it for the foreseeable future.

Have you tried paying cash for the things you want, instead of using a credit card or financing plan? Did you end up spending less, and did you feel more free by paying cash? Tell us your thoughts in the comments!

How To Watch TV For Free Or Cheap Without Paying For Cable

By Mr. Money 53 Comments

If you're anything like me you probably like keeping your expenses to the minimum – while at the same time not sacrificing so much that you're living an austere existence.

You don't mind giving up eating out, as long as you're eating well at home. You don't mind having a pre-paid cell phone, as long as you still have a wireless plan and decent phone. You don't mind reading books online for free, as long as you have some good entertainment. Finally, you don't mind not paying for cable tv, as long as you can still watch the shows that you enjoy watching.

This past year or two we employed a couple of different strategies (legal ones!) in order to stick it to the cable company, and not pay for all the entertainment options we were enjoying. In reality, if you want to, you can do the same thing at your house and get free TV.

Here's how.

Watch TV Shows And Movies On The Computer – Online

The option that many people already know about is watching the TV and movies that you want to see via the internet. There are a large number of video streaming services that will allow you to watch TV shows free either the day of, or within a few days of the episodes airing on regular TV. Here are some streaming sites that will help you to cut the cord.

Here are a few of my favorite online video sites:

Hulu.com: Probably the best one out there in my opinion. Does have commercials, but options are endless. All my favorite shows show up here.
Pluto.TV: A cool online TV network of sorts for web video. Stream it right to your TV via your Chromecast or other device.
TV Network sites: ABC, NBC, CBS all have good full episode streaming options available.
Veoh.com: Tons of content, including TV shows!
Sony Crackle: great shows including Jerry Seinfeld's web series.
AOL Video: Both short and long video clips and full shows.

There are a ton of other free video sites out there, this list only lists some of the ones I found to be the best. Have some free online video options that you use? Let us know about them in the comments and we'll add them to the list.

Watch Free HDTV Over The Air

One option that a lot of people are just now realizing is the fact that you can watch all the major networks, and a variety of other public television stations free of charge over the wonderful new digital airwaves. In fact, 94 of the top 100 shows are on broadcast TV!

The picture quality is HD and better than cable at times on broadcast TV, and all you need is a nice antenna and an HDTV tuner in order to pick up the shows. In fact, if you're not a big TV watcher you could get by with just the big 3 networks if you wanted to. Here's what we use for an antenna:

Mohu Antenna

There are also a bunch of over-the-air DVRs available as well. Over-the-air DVRS will allow you to watch live broadcast TV, record your favorite shows, or entire series. Here are the two that I think are the best. I have tried both and like them both.

Channel Master DVR+ (full review here)
Tablo TV DVR (full review here): I love the Tablo because I can record the shows and then download them via a software like Tablo Ripper to archive the shows on the computer – on an attached hard drive.

We like some of the cable shows as well, however, so this option alone doesn't cut it for us.

Watch TV Shows On Your TV Streamed Via Media Player

The option that has become the standard at our house for watching TV, movies via Netflix and a variety of other sources is a software called PlayOn. PlayOn is basically a media streaming software that will pull the video streams from sites like Hulu.com, Youtube.com, network websites, MLB.TV, Netflix, Amazon Video and others and allow you to stream them over the home network, to a network media player attached to your TV.

PlayOn also has the ability to stream and record your favorite shows, and can even record streams of entire series from websites where you have memberships, like Netflix and Amazon.

So what do you need to set up a Playon media center?

Network Media player: Any number of media players will work to view the media on your TV including Xbox One, Playstation 4, Wii, Chromecast, Fire TV, Roku. Other supported devices can be found here. We bought a refurbished Xbox 360 for extremely cheap on Ebay – works great!
TV: You need a TV that you can connect to your network media device. We use a 50″ plasma.
Playon software: The software is what allows you to stream all of your favorite online video sites straight to your TV over your home network. The software does have multiple membership levels, including a $59.99 one time fee for a lifetime subscription, which includes the ability to record shows. A bargain in my estimation.
Computer: You'll need a home computer that is connected to your home network that will run the Playon software and serve the video to your network media player. The graphic below gives you an idea of how it works.

We've been using our Playon media setup for years now, and it works great. In fact we just watched all the seasons of Walking Dead in the past few months using this setup. I highly recommend it. It works well because using this setup we don't need to have a computer directly connected to the TV, and we can use our regular Logitech Harmony remote to navigate shows, pause and play, etc on the console.

Other Media Hubs

Other options include popular media hubs:

Media Hub Myth TV: Another popular Digital Video Recorder and home media center hub that you can install on your PC is Myth TV. Check it out here.
Kodi.TV: Kodi (formerly known as XBMC) is a software media center for playing videos, music, pictures, games, and more. There are add-ons that will allow you to use TV tuners to record shows, etc. It can also be installed on a Fire TV stick or other streaming devices to view your media on the big screen.
Plex.TV: Plex Media Server allows you to put all your media in one place and view it on all your devices. I recently purchased a lifetime subscription to Plex. I rip shows from our Tablo DVR and view them on all our devices via Plex.

Computer Directly Connected To Your TV

One of the more popular options for watching streamed TV shows leaves out the media streaming software and network media device altogether, and has you just connecting your desktop or laptop directly to your HDTV. With this option you all you need is a TV and a desktop or laptop with a video output. Our laptop has a HDMI output, so it works well to connect it to our HDTV if we want.

Here is how you can use your computer when directly hooked up to the TV:

Navigate Computer With Mouse & Keyboard: You connect your computer to the HDTV (for the big screen) and then proceed to go to your favorite websites like hulu.com, Netflix and others (see some options above) to view your shows. You can use the Hulu Desktop application. You can also watch shows that you've downloaded from Amazon, Itunes or other online video sources – or your own videos. You will most likely need a wireless keyboard and mouse to make this easy – although it isn't required.

Watch TV And Movies On DVD & Streaming

Another great offline option for watching TV and movies is just watching them on DVD! Yes, I know that's so 2000.

There are plenty of low cost or free options for watching movies and TV shows. Here are a few:

Redbox: Redbox allows you to rent a new release movie for $1 a night, which is an extremely low cost movie rental option. They are showing up just about everywhere including gas stations, grocery stores and Walmarts everywhere. Search for coupon codes online for free redbox rentals, and it can be even cheaper!
Netflix.com: There is a monthly cost associated with Netflix , but the added convenience of keeping the movies and TV shows as long as you want, and being able to stream a selection of movies and TV shows over the computer through one of the options above, make it worth it. $8.99 for the basic package, plus you can get a 1 month netflix free trial!
Amazon Instant Video: If you've got an Amazon Prime account, you can stream a ton of shows and movies for free. Otherwise, rentals are usually less than $5.
Google Play Store: You can rent shows and movies from here and view them via your networked device.
VUDU: Rent hundreds of TV shows and movies from this WalMart owned streaming service.
Sling TV: A streaming service that offers premium cable channels for $20/month.
HBO Now: Get premium HBO content for $14.99/month.
Fubo TV: A newer live TV streaming service that starts at $19.99/month.
Philo TV: A new non-sports oriented cable streaming service starting at only $16/month! This is our current main service right now. Full Philo TV review here.
Your Local Library: Your local library will most likely have a decent selection of DVD movies that you can check out for a week or more. In fact, many libraries will actually buy copies of new releases that you can reserve. My local library tends to be a bit picked over, but if you get on a waiting list you can usually find movies or TV shows you’d enjoy watching.
Borrow from people you know: Borrow movies and TV shows from your neighbors, friends and family! They may as well get some use out of that large DVD library they paid so much for!

Conclusion

As you can see from the post above, there a million and one ways to watch TV, movies and other video entertainment, as long as you get creative. It doesn't have to cost an arm and a leg like the cable and satellite companies want you to think. In fact, it can be rather affordable. So get crackin!

Note: One of the few glaring holes in this whole plan is that finding live sports via an online source can be difficult or next to impossible. If you're a big sports fan, until new options become available, you may end up having to pay for cable anyway. Sorry!

Do you have other suggestions for free or cheap ways to watch TV? What setup do you have at your house, or do you still pay for cable or satellite TV? Are there shows that you think you can’t get by using these free video options (like sports)? Tell us your thoughts in the comments!

Your Grocery Bill Could Rise with Dairy Prices

By Miranda Marquit 1 Comment

One of the items that consumers have to contend with is inflation. Prices are always going up — even if wages are stagnating. Recently, one of the areas that has seen some rather dramatic inflation is dairy. According to Marketwatch, dairy prices rose 0.7 percent between January and February of 2014, and milk has risen by 10 cents a gallon since September 2013.

What does this mean for your grocery budget? It means that you could be spending more at the store. Rising dairy prices mean that you pay extra for more than just milk. Cheese, butter, cream, and other items also cost more when dairy prices rise.

If you are looking for a little inflation protection when it comes to your food budget, here are some things to consider:

grocery-bill-dairy-prices

Cut Back Your Dairy Consumption

One of the easiest ways to reduce your dairy costs is to cut back on your consumption. This might be easier said than done for some people, though. I enjoy dairy, so it's hard for me to cut back. Consider less expensive alternatives, and do your best to find ways to reduce what you are spending on dairy. If this isn't an option, though, you do have other choices.

Reduce Other Grocery Costs

Another option is to make up for it by reducing other grocery costs. According to the Marketwatch article, you probably won't pay more than $1 per item extra as a result of higher dairy costs. If this is the case, it might be possible to cut back in other areas to keep your grocery costs low. Consider cutting back on treats and junk food. You can also make an effort to find coupons and sales. This can be a way to reduce your grocery costs without cutting your dairy consumption.

Consider Local Sources for Dairy

Even though the average cost for dairy has risen in recent months, I'm not actually paying more for these products. This has a lot to do with the fact that most of my dairy is locally sourced. I get milk straight from the dairy up the road, so increased transport costs and other problems don't affect my milk costs. I also get cheese from the same dairy, and from a local cheese outlet.

While I expect prices to rise eventually on the dairy items I buy locally, the good news is that the price increases generally lag behind national trends. So, I have more time before inflation (at least on dairy products) kicks in.

Pay Attention to Inflation

It's a good idea to pay attention to inflation in other aspects of your budget as well. Prices continue to rise, and your income might not keep pace. It makes sense to track your spending, and make adjustments as necessary. You might need to earn more money (perhaps a side gig) or cut costs in order to avoid becoming a victim of inflation. Whatever you do, though, it helps to stay on top of the situation before your budget is busted. Pay attention and create a plan that works for you and your situation.

5 Tips for a Successful Homemade Christmas

By Miranda Marquit 1 Comment

This time of year is often rather expensive. It's hard to stay on budget, even with the help of tools like layaway, and careful used credit cards.

One way to reduce your costs during the holiday season is to go for a homemade Christmas. Not only can you save money, but you can also produce unique gifts that are personal for the recipient. Here are some tips for making your homemade Christmas a little more successful:

1. Be Thoughtful

homemade christmas Your first priority with any gift is to be thoughtful. Think about the recipient might enjoy, and use. Consider favorite colors, as well as the function of the gift. In some cases, it makes sense to make a favorite treat, or create something in a particular style. Really consider what makes the recipient tick, and what he or she would appreciate.

2. Encourage Others to Participate

I know families that make it a tradition to do a homemade Christmas. This includes extended families in some cases. If everyone participates in the homemade Christmas, then it is more likely to be acceptable to everyone. It's a fun tradition to have, and even the kids can get involved. Encourage everyone to create homemade gifts, and it might surprise you to discover others' talents.

3. Play to Your Strengths

I'm terrible at crafts. I just don't have that artistic bent. I can do some simple things (I crocheted a scarf for my son), but, for the most part, those types of projects aren't going to be a success. I do, on the other hand, enjoy baking and making candy. I usually make chocolate truffles for Christmas gifts, as well as making other baked goods. Think about your strengths, and what you are good at. Then, create a gift based on what you are good at.

4. Consider Services

Perhaps you don't have a penchant for actually making something. But maybe you have a skill or a talent that others could use. One fun idea for Christmas is to encourage everyone to exchange gifts of service. You can offer to babysit your sister's kids while she enjoys a night out with her husband. Offer to wash a car, clean a house, or edit a school paper. I know a family that, instead of exchanging physical gifts, chooses to each offer some small service as a gift. They write the service neatly on a pretty piece of paper, and wrap it in a small box. It's fun to open, and everyone enjoys the feelings that come with providing service.

5. Be Gracious

Finally, if you want a truly successful homemade Christmas, you need to be a gracious recipient. Whether you give homemade gifts or not, you should be thankful, and show your gratitude, when you receive a homemade gift from someone else. Be a gracious recipient, no matter the circumstance. You'll feel better because your graciousness will cheer the giver. Remember that part of a good holiday is being kind and thoughtful to those who have been good enough to remember you with a gift.

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