Chill Maadi

Waste

Main point: try to create little as possible and recycle what you can

• Recycle: The age-old saying reduce, reuse, recycle still holds true. By using sites such as Our Earth one can look up community recycling programs in their area.

How this saves money: Many of these locations will actually buy back your waste (like aluminum cans) for a set rate. A bit of research into where and what you can sell back could end up saving a few bucks a month. Put this money in a jar and on a rainy day treat yourself to a tasty meal, or put it towards the utilities.

• Donate used clothes, books,etc: While discussing recycling, many of the items that are too old or are too tedious to move into the new home can be donated at resale shops or thrift stores.

How this saves money: The very stores these items are dropped off at many times have hidden treasures that can save a buck or two.

Consumption

Smart choices that save you money later

• Bring bag to grocery store: The little bags at the grocer can take up to 10-20 years to decompose and they aren’t that sturdy to begin with. Instead bring a bag that can be reused repeatedly.

How this saves money: Once having had to carry a heavier bag, those extra cookies aren’t as appealing, thus cutting down on extravagant consumption.

• Buy local: Especially when it comes to produce, many of your local vendors have the same items you are already buying at the grocer, but at a lower rate.

How this saves money: Establish a relationship with your local vendor to secure fresher, cheaper, higher quality food items.

• Look for the Energy Star label: Efficient dishwashers, washers and dryers, etc. equal reduced utility bills and are better for the environment.

How this saves money: While some of these appliances might cost more upfront, they save money in the long run.

• Change light bulbs: Replace your bulbs with CFL (compact fluorescent lamps). While a bit more at the onset, they have a much greater lifespan and use less energy.

How this saves money: Replace all your bulbs in the house and prepare for a drastic cut in your electric bill.

• Use hangers or clotheslines instead of dryer: Especially in the summer months. Just simply hanging the clothes to dry gets the same job done and costs absolutely nothing.

How this saves money: Less you use that dryer, the more you save.

• Wear more clothes when cold instead of turning on the heat: Chances are you already have a few comfortable sweaters and sweatshirts that you’re embarrassed to wear outside the house, here is a perfect solution. Another method is to cozy up with someone special.

How this saves money: Same goes with the air conditioning, less you use less you pay.

Conservation

• Keeping track of those bills
• Unplug electronics when not in use: One of the greatest uses of electricity comes from our appliances when they are not in use. Just simply plug in your toys as you need them for a lighter electricity bill.

How this saves you money: get a longer shelf life out of your gadgets and lower the bills.

• Use fans instead of air conditioning: For those times when wearing less just won’t cut it. Fans use comparatively less energy (especially ones with Energy Star labels) to power and are easier to shut on and off. Cool trick-put the back of the fan facing an open window to get in some of that cool fresh air.

How this saves money: Pay to power only one electronic instead of air conditioning the whole house.

• Carry a water jug instead of bottled water: Having to keep replacing water bottles is expensive, tedious and produces more waste. In addition the plastic found in the bottles is made from the very oil that’s continually costing you more. Buy a one time sturdy bottle and have your drinking dilemma settled. As an added bonus you can transport iced tea, juice or anything else you would like.

How this saves money: Not having to lug those cases of water bottles every week will reduce stress on your back as well as your wallet.

• Turn off air conditioning and lights when leaving the house: Despite what some may think, it does use more energy to keep the air conditioning on all day instead of turning it on when you get home. While you’re at it, shut off those lights as well if you know no one is going to be home.

How this saves money: Not paying to keep your lonely home light and air conditioned through the day equals extra money at the end of the month.

• Shower shorter: Take your current shower time. Try to cut it in half.

How this saves money: shorter showers cuts down on the heat and water bills.

Transportation

Offsetting rising gas prices

• Biking, carpool, public transport: all these options promote socialization, cost less, and are friendly to the environment. What more could you ask for?

How this saves money: by using your vehicle only when necessary you get the best bang for your buck when it comes to gas.

Here are twelve tips on becoming financially independent that I learned from the books and experience which I tried to implement personally and seemed to work for me.

Spend less than what you can earn.

I think this is one of the most important things that we should do to free us from financial worry. But of course, we should earn a respectable amount to live a decent life. We cannot just be content with our situation. We can always do something to upgrade our economic status.

Buy what you need and be choosy in buying what you want.

This is a bit tricky. The real challenge in this tip is how to determine if what you think you need is not really a want. For example, you’ll say you need a car to bring you and your family from one place to another but then you will probably not be content with just a simple car but probably one that costs more than what you really need because you want a car that looks good thereby bringing its price to a premium. Thus, it becomes a luxury item because you want it that way. But then, you also need social approval so it must look good.

Adopt a simple lifestyle.

Simple lifestyle to me means being able to at least fulfill the very basic physiological needs such as food, clothing and shelter. As Maslow’s Hierarchy of Needs put it, there are other needs that had to be fulfilled to attain self-actualization. You don’t need to spend a lot to meet those needs. For example, the need for love, affection and belongingness can be addressed by establishing open communication within the family and having a circle of like-minded friends who you can share your life with. A child will appreciate more a kindly gesture of listening to him/her than giving expensive toys that don’t talk and respond. You don’t need to throw a lot of parties to gain genuine friends.

Invest in things that will improve on your financial status

like education, self-generating business, and hobbies that earn. Well, I worked hard to finish the highest degree possible in education. This provided me somehow the security and the potential for promotion and better income once opportunities present itself. We’ve engaged in a small business that earns little but constantly and here I am writing in Triond hopefully to earn a little something while enjoying writing at the same time.

Avoid making loans or buying in installments.

It’s always better to buy things in cash. You get discounts and spared of the monthly, interest-laden bills. I avoid having to pay in installments especially if items are not really that critical in daily living such as in buying appliances. I can do away with the television because what I always see anyway are mainly bad news.

Many credit card holders have a hard time paying their purchases and get bankrupt because they couldn’t feel the weight of the purchased item’s cost using that plastic card. And I learned that credit card companies put those increasing interest rates in small prints. I once considered getting one before but dismissed the idea. I just wanted to have it so I can make purchases online, not to buy things on credit. I got a debit card instead which served my purpose.

Provide for contingencies like emergencies due to accidents and illness.

This is a tough one for me because my wife got sick with cancer, a rather unpredictable illness that will burn your pocket. But anyway, it had become manageable somehow with some thoughtful decision making. I think this is the hardest part because we can’t really predict what accidents or illness will beset us but it would help to allocate funds for this purpose. At least, my health insurance took care of me when I’m sick.

Keep healthy.

Get a lot of exercise and avoid junk foods that will make you sick. Many of the foods we eat in fast foods have carcinogens because of the way those are cooked. According to New Scientist, a chemical known to cause cancer in laboratory animals been detected in some fried and baked foods at surprisingly high levels. The chemical, called acrylamide, was found by Swedish researchers in carbohydrate-rich foods that had been fried, grilled or baked at high temperatures. Eat healthy foods.

This tip is also tricky because at one point my wife and I discovered that the apple we bought were immersed in formalin to preserve it. So that’s why I kept on smelling formalin every time I ate that apple! Time to put up my own organic garden.

If you are healthy, then you are able to work and earn more.

Don’t keep up with the Joneses.

Some people made it big financially due to many reasons. They may have been born rich, got some luck such as in winning the lotto, some obtained wealth illegally or worked for it. For those who are neither born rich nor lucky and law-abiding citizens, the last one is the only option left. Besides, many people are not really what they seem to be. What you see may just be a mask of who a person really is. For all we know, that person is just a charlatan. We should be content of what we can have.

Buy quality goods.

It is not wise to buy cheap items that do not last. It will be more costly to always change your shoes because of poor quality.

Save first before you spend.

If your attitude is to save what’s left after you spend, most likely you end up with nothing left to save. It is better to have a target savings everytime you earn something.

Use efficient gadgets, appliances, equipment.

I switched from a 85 watt, 17″ CRT monitor to a 25 watt, 18.5″ LCD monitor. That saved me electricity by a factor of more than 3. That will mean that I will be paying less than a third of my previous consumption. This allows me more time to write online.

Trust the Lord will provide your needs.

Just be content with what you can have if you can’t do anything more to do better than that. Surrendering everything to the Lord will relieve you of your burden of wants. Believing in the Lord will provide you sufficiency.

I did become financially independent but there are points in my life that I also need to consider. I couldn’t say no if somebody asks my help and where I need to extend a helping hand. But I thought they should also help themselves become financially independent too. It would be unfair on my part to live a simple lifestyle while I could see their extravagant ways. Should I support the lifestyle that I do not subscribe in?

The tips above, I would say, are all directed to one’s self, that one could do something about. And I realized the struggle doesn’t stop there. Becoming financially independent brings you to a higher level. And that is, to give when opportunity comes. And when I am able to give, that’s the time that I realize that I, indeed, have made myself not only independent but found a way to become generous and live a more satisfying life.

Is the bulge in your wallet filled more with credit cards and store receipts than actual cold hard cash? Looking for change at the bottom of your purse or between the cushions of your couch?

Here are 12 easy solutions for spending less money that can be incorporated into your everyday life.

1. Food for Thought
We all need to eat, but we don’t need to eat out. A $10 lunch might seem like a cheap meal, but do this every work day and that’s $50 by the end of the week. That’s a lot for just lunch. How will you afford breakfasts, dinners and periodic snack attacks? Save cash by “brown bagging” it, and taking your lunch to work.

2. List Bliss
So you decided to cook at home (good for you!), but first you’ll need to go grocery shopping. Don’t shop when you’re hungry and never leave the house without a list to avoid impulse purchases.

Next to rent, food is the largest bill that most households face. If you wonder why hundreds of dollars seem to disappear from your bottom line every month, read about these cash drains.

1. Convenience store snacks – Stopping at the local convenience store for a drink and a snack can easily become a habit. It seems like an innocent treat, a little pick-me-up on the way to work or a reward for another day finished. But what does this habit cost? For example, imagine that you purchase a 20-ounce soda and a small bag of chips every workday. The average soda price is around $1.25 and the chips are another $1. In a five-day workweek, this habit totals $11.25, or $45 per month. The fix? Consider purchasing a large bag of chips from the grocery store (around $2) and keep this bag in the car, making it last all week. This one adjustment will save you $12 per month.
2. Buying name brands when generic will do – Yes, sometimes the name brand version of a product will be of a better quality than the generic. However, many products are virtually identical, regardless of brand. Experiment with generic products to see which are better deals without losing taste and freshness. Every generic product that replaces a name brand on your shelf can shave 5-10% off of your grocery bill for that item.
3. Not using coupons and sales – Men are especially guilty of this one. Clipping and using coupons takes a little time but can substantially reduce your food bill, especially on items that do not have an acceptable generic equivalent. It only takes a minute to scan the grocery store weekly flyer to find the bargains in the store. Sometimes you can pair an in-store sale with a coupon for extreme savings. One word of caution: Do not let coupons convince you to buy premium brands that will cost you more in the long term than the coupon is worth. Manufacturers use coupons to entice consumers to try, and hopefully get hooked on, their product.
4. Huge portions in restaurants – A few years ago the restaurant industry hit on a new way to sell more food. They simply increased the size of the plate portions and raised the price accordingly. Few folks complain about the inflated price because the portions are so generous. When dining as a couple, do not be embarrassed to split an oversized plate between the two of you. Every time you use this technique you are halving your restaurant bill.
5. Wasting leftovers – This is worst in single occupancy households. You cook a large portion of food, eat until full and put away the leftovers. The next day you do not feel like eating the same meal twice, so you make something else. Most of the leftover food ends up in the garbage or being fed to a pet. If you are single and find yourself throwing out food every week, try working out a dining schedule with your other single friends. Take turns cooking for one another so that all of the food is used on the night it is made. If you don’t want nightly dinner guests, try taking the leftovers to work and doing a lunchtime food swap with your co-workers.
6. Not disputing overcharges in the grocery store – Food items are frequently marked down and discounted. Sometimes the reduced price does not find its way into the automated checkout system. Pay attention to the food items as they are being scanned and point out any discounts, buy-one-get-one bargains or reductions that are not calculated into the bill. Before you leave the store, glance at the register receipt to double check that you are paying the correct price.
7. Shopping on an empty stomach – Snack items and junk food looks wonderful when you are already hungry. Try to put off grocery shopping until just after you’ve had a meal.
8. Buying into menu extras – This is another restaurant sales tactic. From loaded baked potatoes to shrimp toppings on salad to that delicious appetizer, it is easy to say yes, yes, yes! These add-ons add up to big bucks for the restaurant. Just say no.
9. Not taking home the ‘doggie bag’ – This is the equivalent of wasting leftovers, restaurant style. The big difference here is that you are leaving behind food that you have paid a premium for. Take home the leftovers, even if they do not appeal to you right now. Eating the remainder for lunch the next day could save you $5 to $10.
10. Allowing kids to make impulse purchases – It happens so often that it’s nearly a cliché. The kids convince you to purchase the new Hannah Montana cereal. You pay $4 for a box of cereal that ends up in a landfill or as bird food. Children are even more susceptible to advertising than the adults, and they have the added luxury of not worrying about the financial impact of their food purchases. When possible, grocery shop without them or hone your ‘saying no’ skills.

What is insurance?

Speaking from the Asian market viewpoint, insurance is still something most people would stir clear of. Everyone can somehow come up with at least one reason why they shouldn’t take up a policy but in the first place, do they really understand what insurance is about? If they don’t, I really hope they’d give an insurance agent a chance to explain to them – why insurance has become a necessity today (and not just tomorrow) – when he/she approaches them.

Have a look at the list below. I’m sure at least some, if not all, are on your own concern list.

1. Emergency fund

It’s not uncommon nowadays to hear about down-sized o solvent organisation. One minute you’re right on top of the chart, and the next you’re given four month’s compensation (or none at all) to leave the company because they can’t afford to pay you anymore. It’s really terrifying especially for those who have huge commitment to their families and tonnes of debts to pay.

Saving some of your salary from the beginning of your career could save at least some of your trouble should retrenchment happen to you.

In insurance, there is such thing as a policy loan and this is immediate and less painful compared to getting loans from a bank or a money lender.

If the going gets tougher, surrendering the policy for the cash value would be an alternative to policy loan.

2. Retirement fund

How much do you need to support your standard of living every month? When you retire, how many more years do you think you have before you hit the road and not come back to earth? Most people live for a good thirty years after retirement. So what are you going to survive on if your income has stopped? Most people find that their provident fund or some savings in the bank wear out just five years after their retirement. After that, some go back to work, some depend on their children (which is a struggle and uncertain) and some… well, live miserably for as long as they can.

Putting aside some money for an endowment plan is a good way to build up a retirement fund. The moment you retire, the money is just right there, begging to come out and give you an easy life after you’ve worked for so many years. That’s the time to pamper yourself. Make sure you have lots to spend by then!

3. Education fund

This is for people who plan to have children. Before your child is born, look around for good education fund. Nowadays, college fees are killers. Some people sell their properties just so they can send their children to college. Others struggle to work 25 hours a day so their children get to learn some kind of skills in small institutions.

Instead of just putting money in the bank where you save before you create, purchase an education plan where you can create the fund for your child as you save. Most of these plans come with premium waiver in case a parent is unable to continue paying due to death or disability.

4. Hospitalisation and surgical

You can determine a lot of things in your life but some of the huge issues in life that you can’t foresee are accidents and illnesses. You could be hospitalised for any reason at all. You know you didn’t plan for all these but they come and steal your savings like a thief in broad-daylight. So if you have a medical card, your hospital and surgical bills can are paid by the insurance company, as long as you remember to renew it annually. Just think: you may not have paid much for your premium but whenever you need money for a medical emergency, it’s right there for you.

5. Critical illnesses

Upon diagnosis of a critical illnesses such as a stroke, the insurance company pays a lump sum of money to the insured. This is useful for covering expenses are than your hospital bills since the bills are already paid for by your hospitalization and surgical policy.

6. Personal accident

There are three types of people in the world where personal accident policies are concerned. The first group does not think that getting into an accident is possible if you’re always very careful. But please remember that accidents DO happen anywhere, anytime and to anyone. You don’t have a crystal ball to tell you when or whether or not you’re going to have an accident. You can be the most cautious person in the world but the person next to you may not.

The second group consists of ‘PA extremists’. They buy all the personal accident policies they can find or are offered but are not sure whether all the policies are necessary and/or claimable.

The third group is buys moderately. Whichever group you belong to, know that you need a personal accident policy to go with your life and medical plans. For more information, please read my 11 Things to Consider When Purchasing a Personal Accident Coverage. Somehow, people tend to realise they need this only when it’s too late.

7. Death or total permanent disability

This is a basic life policy where a lump sum is paid to the policyholder if he/she is disabled or to the beneficiary upon the death of the policyholder.

When a person is disabled and are unable to perform the tasks that his job requires of him, he will not be able to earn any income. The money claimed from this policy can be a lot of help with regards to continuing his financial support of the family, additional medical expenses or even hiring a nurse for home care.

Upon death, the money claimed could help loved ones in funeral expenses or settlement of outstanding liabilities.

8. Income protection

In the event of a misfortune, the income of a person is always one of the first thing to be affected. Whether or not you have a family, a financial commitment is something you can’t avoid. If you’re single, you have your car and/or credit cards to pay for. If you have a family, your expenses are three to ten times more, depending on the size of your family. When your income stops, your commitment suffers.

Buying an insurance policy helps you to continuously support your own or your family’s needs should an unfortunate event happen. Remember, whatever your marital status is, your responsibilities do not disappear along with your inability to bring in income. Somebody still has to pay your bills…

9. Business continuation

If you are a proprietor of a business and you have a few partners, it would be good to buy policy which allows you to divide the shares of your business equally should something unfortunate happen to any one of your partners. Upon death or disability of a partner, the insurance company could provide the finances for the other partners buy his/her share so that the business can continue to function.

10. Senior citizen’s fund

Who says insurance is not for those over the age of 55? A senior citizen can still buy a policy which pays the sum assured upon the death of the insured. This would be helpful for their loved ones to settle funeral expenses or leftover medical bills. None of us, regardless of what age we are should have to leave this world, worrying about how our loved ones would have to cope financially when the emotions involved is bad enough.

Having said that, it’s all about how a person prioritise his/her expenses. Saving money in the bank is essential too but we can’t keep all the eggs in just one basket. Insurance is also a form of savings. It is a necessity now because it provides protection besides handling your other financial worries. Everyone is encouraged to have a comprehensive coverage – life policy, critical illnesses policy, hospitalization and surgical policy and personal accident policy – in order to optimize the benefits of insurance.

Get one today before it’s too late. No one needs to look back and say, “Should’ve”, “Could’ve” or “Would’ve” on their hospital bed.

Nowadays, almost everything you buy or any company you register with would offer you a Personal Accident coverage with high sum assured and discounted premium. These offers can be really attractive. Anyone would feel inclined to buy. After all, a coverage is a necessity. It’s cheap! And you only have to pay 50% of the usual premium now and every time you renew your policy!

Some people own over 20 personal accident policies without knowing the benefits. When it’s time to make claims, probably only one or two of those would pay. What about the others? They tell you, “Oh, this plan does not cover what you just went through…” So you paid – discounted as it may have been – for absolutely nothing. You’d have to make sure you die of an accident in order to reap the benefits of all the policies you’ve bought. Well, it’s not you, but your beneficiary who will get that lump sum you’ve been hoping for.

Here are some of the things you need to take into account when purchasing a personal accident coverage:

1.      Accidental Living Benefit

If you survive an accident, you will receive a lump sum for the above benefit as stated in your policy. The living benefit is usually twice the sum assured, which is the death benefit.

2.      Accidental Death Benefit

If you do not survive an accident, you beneficiary will receive the sum assured.

3.      Accidental Dismemberment Benefit

If you survive an accident with loss of any part of your body, you will receive a percentage of the total amount of cover, depending on the severity of your injuries. The percentages vary from insurer to insurer.

If you survive an accident with permanent and total disability, you will receive the sum assured.

 4.      Medical Reimbursement

Let’s side-track for a paragraph. A hospitalisation and surgical coverage allows you to claim if you are hospitalised. However, if you are admitted to the emergency ward for some stitches following an accident, you will not be able to claim from your hospitalization and surgical policy.

Medical reimbursement under the personal accident policy lets you claim your medical and surgical expenses, whether it is an out-patient or in-patient treatment for any injuries caused by an accident. There is a maximum amount of claim, depending on the plan offered and the amount of sum assured.

 5.      Treatment Benefit

If you are hospitalised within a certain period of time because of your accident, you will be reimbursed for your medical expenses, up to a maximum amount according to your policy.

 6.      Physician Benefit

You will be reimbursed up to a certain amount of cover if you seek alternative treatment for injuries caused by your accident. These treatment could be acupuncture, bone-setting, chiropractic therapy, osteopathy, or physiotherapy.

 7.      Weekly Indemnity

If you sustain temporary total disability due to an accident and are unable to perform your normal routine, you will receive an amount every week up to a certain period of time as stated in your policy.

 8.      Accident Hospital Income

If you are hospitalised because of an accident, you will receive a daily income up to a certain period after the accident as stated in your policy.

 9.      Home Care

If you are hospitalised as a result of an accident, you will receive an amount in one cash payment for each accident.

 10. Public Conveyance Benefit

If your policy provides this benefit, you will receive a certain amount of cover if an injury or death occurs as a result of an accident while you are travelling in any public transportation.

 11. Broken Bones and Burns

If you suffer broken bones or burns as a result of an accident, you will receive a percentage of the amount of cover, depending on the severity of the injury.

 Of course, there is not one policy that has all the benefits. You can always consult your insurance agent on the benefits that you wish to receive for the policy that you purchase. For some people, they may not see it necessary to purchase one with the benefits of broken bones and burns cover. Others, may prefer accident hospital income to weekly indemnity. However, if your agent is creative in nature, he/she would be able to package a few policies in such a way that they cover as comprehensive as possible and provide most, if not all the benefits.

Having said that, your needs (and budget) should be the main concern of your agent. He/she should be able to whip up a concoction that best caters your needs.