Saving Money as Prices Increase

[Jstpssng]

^^^^
Even if you never use credit, it's a good idea to check for nefarious activity once in a while. I try to spread them out over a year; Experian now, Transunion in May, and the other one in Sept. They will try to sell you "monitering service" and/or other things you don't really need, but as stated above are required by law to provide you a report every year, plus I believe you also can get an updated copy if you've been denied for credit.
I have an "alias" because half a lifetime ago somebody put my last name wrong on a credit app. I don't know if I can get that fixed or not, I have never tried.

 

[Bill Guenthner]

It is obvious prices are on the rise. It is not awful yet, but some think it will get considerably worse. I am not one to get caught with my pants down. SO, I was hoping to gain some insight on things y'all are doing or plan on doing to make the blow not quite as bad.

I am in pretty good shape, better than most probably but we can always do more.
Some things that I am planning on doing or everyday life things that help my situation.

Heating - We live in the SE TN so heating costs are not a huge issue. We have a reasonably efficient heat pump as our main source of heat. On top of that we also have a wood stove in our living room that we use to supplement in the winter. When it is cold and I am home like on weekends our heat pump doesn't run. NEW PROCEDURE - I also plan on running an oil filled radiator during the week while my wife is home so the heat pump doesn't have to work too hard. Probably one in her office and one in the main living space.

Transportation - We both drive 28 to 30 mpg vehicles as our daily drivers, so that helps. And my commute to work is 4 miles, wife works from home. My farm truck is a 85 F250 that get 7 mpg, not much I can do about that except drive it only when necessary.

Food Stuffs- Prices of food are on the rise. Beef and other meats are following right along. I have a deer and a half in the freezer and half a wild boar. Hopefully put another deer in there soon. Also plan on doing the usual gardening this spring. Hopefully seeds will not be in short supply. Might even start it out a little early this year with a cold frame or DIY greenhouse.

Those are the things I have thought about so far. What else have y'all thought about to help ease the sting of rising prices. REALLY value the collective braintrust that is TBN. What are you doing/gonna do different?

One thing you can do for next year is start saving your own seeds. Seeds are crazy expensive. We save seed every year, marigold, zinnia, sunflowers, pumpkins, squash, okra. You can also plant things like beans from the bag in the pantry. I planted black beans that way and it worked perfectly.

 

[YanmarFever]

Proverbs 22:7​

The rich rules over the poor, and the borrower is the slave of the lender.

 

[3Ts]

Also, on your credit report, once you get to be "old enough" (and I forget the age) you can file with each of the credit bureaus to have your credit frozen so new loans can not be taken out in your name. They really don't want you to do this either and it does stop impulse loans since it will take a day or two to unfreeze it which can be done temporarily or permanently. If you do freeze it you'll be given a pin number - DO NOT LOSE IT! It is a lot of effort to recover it if you do, but can be done. If you are under the "old enough" age, you can still freeze your account, but it will cost a few $$. Companies can still pull your credit report, but can't (at least not supposed to) be able to open new credit accounts. We've had our account frozen for many many years. When we go to purchase a big ticket item like a car or a mortgage, we coordinate with the lender and temporarily unfreeze our account for a few days so they can check and then the freeze is automatically restored.

The credit report will also tell you who is making credit inquires into your account.

Opening new bank accounts are not affected by this, they have a different identification system although I think they do check it. I was able to open a new bank account while my credit was frozen but I had to provide multiple proofs of ID.

 

[pmsmechanic]

Our main cars are both diesel Jetta's. I've also driven cheap older diesel trucks for years. I don't drive the trucks much as the insurance fuel etc. on a Jetta is cheaper than driving a truck for most of my work. Every 1000 km's driving my car vs driving the truck 1000 km's saves me over $100.00. I don't know for sure how much as I haven't figured it out for a few years.

If I need a different car I'll buy an older Jetta diesel with a pooched automatic and change it to a standard. Mileage goes up by over 10 miles per Canadian gallon and I have a peppier car to boot. Plus I can sell it for more than I have into it if I want to.

For my fun/good car I have an Audi A4 that was given to me. I put a set of plates in it and drove it home. So far I'm at about $600 for a set of winter tires/rims and other needed parts. It probably won't be the cheapest car I've ever driven but it'll be close. My $500 2001 diesel Jetta takes that title.

Some of the ideas mentioned in this thread are pretty good. Keep them coming!

 

[arto98607]

Our main cars are both diesel Jetta's. I've also driven cheap older diesel trucks for years. I don't drive the trucks much as the insurance fuel etc. on a Jetta is cheaper than driving a truck for most of my work. Every 1000 km's driving my car vs driving the truck 1000 km's saves me over $100.00. I don't know for sure how much as I haven't figured it out for a few years.

If I need a different car I'll buy an older Jetta diesel with a pooched automatic and change it to a standard. Mileage goes up by over 10 miles per Canadian gallon and I have a peppier car to boot. Plus I can sell it for more than I have into it if I want to.

For my fun/good car I have an Audi A4 that was given to me. I put a set of plates in it and drove it home. So far I'm at about $600 for a set of winter tires/rims and other needed parts. It probably won't be the cheapest car I've ever driven but it'll be close. My $500 2001 diesel Jetta takes that title.

Some of the ideas mentioned in this thread are pretty good. Keep them coming!

No argument about Jetta Diesel economy, as long as we are talking about older models as you already mentioned!

I Bought used 2010 Jetta Diesel in 2014 and drove it for around 70,000 miles.
Great fuel mileage and really nice small car but.....


Due to emission control design faults it had an engine hydrolock (condensation water due to intercooler & EGR design problems entering intake) and about year later the DPF cracked and had to be replaced!

Both very expensive repairs and totally defeated any fuel usage savings.

Luckily I was able to resell it back to VW at a great price, which made up for the repair costs.

So used Jetta Diesel buyer beware and stick with the older models, or the newer ones after a liquid cooled intercooler was introduced!

IE. Better to do your homework before buying.

 

[Larry Caldwell]

Why wouldn't you use a credit card for groceries? Trying to stay out of debt? Just curious...

I pay for everything with a credit card. I always pay in full at the end of the month. Then I reap the rewards. Our monthly CC bill is anywhere from $3k to $6k. They have a crazy scale, but I'd say an average is 2% back. it adds up.

I'm the same, but I have the resources to pay the credit card bill every month. Late last year I had a credit card bill for over $12,000. I wrote the check, minus the $245 cash back I had accrued. The next offer was $150 for opening a 2% savings account with $15,000 or $200 for opening a savings account with $25,000. It was a nice offer, but not worth the hassle.

Most months my credit card bill is a little over $3,000. That covers groceries, feed, vet bills, and incidentals.

 

[Larry Caldwell]

Work uses age based retirement investment allocation...

Never privately owned Bonds but about half my work plan allocated to bonds... seems counter intuitive last year straight 10% gain...

Question... Are Bonds a good way to save?

It depends on the bond. My brother lost half his retirement savings when Washington Mutual and Chrysler went bankrupt, even though his daughter in the banking industry was warning him to dump WaMu months in advance. Low interest treasuries are going to take a bath if the Fed quits buying the deficit. A 2% federal bond will be deeply discounted if a buyer can get a 5% straight from the treasury. I hold some bonds, but through bond mutual funds that actively manage the bond market in the US and offshore. Some bonds are riskier than others. Ukraine government bonds have an estimated 15.39% yield, with the down side that Ukraine may not exist next year.

 

[Larry Caldwell]

this is very good advice.
I'm a retired CFP and spent a long time being a financial doctor to families, showing them how to send their kids to school, how to pay off their credit cards, and to retire before they got too old. I'm also a retired insurance underwriter and can tell you the use of credit scores is insidious. What you pay for your car and homeowners insurance is affected by your credit score. Want that preferred rate on car insurance? Better have a good FICO score.

I just took out short term financing on a used car only to get the paid loan on my file. I have no debt and that really dings you. So I keep the note for 3 months and then pay it off. You have to pay debt on time to get good scores. Mine is in the 830's so I don't care about trying to get it higher. Anything around 750 and above means you are fine.

One credit card, with cash back, airline miles, something, and pay it off every month. Took me a long time to figure that out. Now that I'm retired, lack of debt is very important.

My credit rating is the same as yours, with no loans and paying off my cards every month. I don't think debt is necessary for a good credit rating.

 

[Larry Caldwell]

Talked at length with my daughter last night. Some of her teammates have gotten Omicron. If they live in the dorms, they are banished to 5 days in a “quarantine dorm”. About 15% of the 22,000 student body has it at any given time, so it’s no small number. You must stay in your room at all times. Can’t go anywhere-even for a walk. Most kids leave just the campus and go home.
My daughter hasn’t tested positive yet, but really wants to because then they stop testing you as much for 90 days. She said everyone just wants to get it (except the real panic stricken sissies) just to get it overwith.

It will never be over. Immunity to corona virus does not last. Caribou Barbie just caught Covid for the 2nd time. She had it last March, and now can't show up in court because she has it again.