Frugal Living

Great news for anyone thinking of buying their first home or who anyone who hasn't owned a home for the past three years.

An $8,000 federal tax credit, available to people who are buying their first home this year, coupled with continued low interest rates, is fueling what may be the start of a housing sales upswing. Real estate agents say the credit, signed into law last month, has the potential to lift an ailing real estate market, which saw home sales plummet this past year.

The funds are available to first-time home buyers or someone who has not owned a home for at least three years. They must purchase a home by Dec. 1, and their adjusted gross income cannot exceed $150,000 for a joint tax filing or $75,000 for an individual.

The legislation is part of the American Recovery and Reinvestment Act of 2009. Buyers also can receive the $8,000 this year when they file their taxes, if they bought a home in early 2009.

I'm sure everyone has noticed that your favorite food products are getting smaller and smaller in size, while you are still paying the same price. What on earth is happening?

Some of the companies are promoting what they call "Eco-packaging" making you feel good about your purchase ... until you notice that the candy bar or oats bar you normally eat is a little bit smaller. And this keeps happening by little increments. This is called portion reduction, or 'short-sizing', and it has become a common occurrence over the past year.

Wrigley's gum pack used to have 17 sticks of gum, now there are 15 sticks. The large box of Nature Valley granola bars used to have 70 bars, now there are 60 bars. I just read that Dawn liquid dish detergent is now 1 oz lighter. While these products are getting smaller, the prices are not being lowered.

I love Starbucks just as much as any coffee drinker. I even asked for a Starbucks card for a Christmas present. But I just read something that came as a big shock to me. If I start making my coffee at home and put it in a stainless steel thermos instead of buying that $4 cup of coffee that I have become accustomed to, I can save about $1000 a year. Yes, you read that right!

Figure. If you buy one (only one, mind you) $4 cup of coffee every working day of the week, that will total $1040. Most of us have more than one cup on occasion, so we will take that into consideration and round up to $1100. But if you buy a thermos for $20, filter/papers for $10 and coffee for a year for around $60. (assuming you already have a coffee maker, as most coffee drinkers do)... and make that morning cup of coffee to take with you ... you will save a hefty $1000 during the year.

It is that time again to reflect on the year that has passed and to celebrate the coming of a new year. New Year's Eve is a night of celebrating, spending time with family or friends, traditions, or making the night a special occasion. For many it is a Night to Go Out and Celebrate, for others it is a night to Stay In with family, for others it is a night to Attend a Party. No matter how you spend the evening, there are ways to cut your costs and save your money.
For those Going Out to a Restaurant, Bar, Club or Hotel Party-

Forgo dinner and go out for drinks or for appetizers and drinks. Eat at home first. If you are meeting a group of friends out to celebrate, meet them after dinner is over. You will save lots of money by skipping dinner and the extra time you would have to pay your sitter.
Avoid New Year's Eve parties that require Reservations or charge you to attend the party.