One Day Financial Makeover

Do you start your morning with a grande-one equal-soy-chai latte'? I know I use too until money starting getting tight and I need to take an assessment of my spending. Before you join your co-workings for lunch or you stop by your favorite store to window shop...which turns into you actually buying something. Take a look at Real Simple Magazine's Money-Saving Secrets from the Pros. Then as your financial light bulb goes off in your head...find ways to cut costs and start saving up to 5,000 a year, that 25,000 in five years! That's a down payment on a home, car, your MBA or your little one's college funds. When you saving your money...you can change your life.

9:00 a.m. Research your next purchase.If your dishwasher is close to kaput or your printer is running low on ink, do your purchasing homework now. "Waiting until the last minute means paying full price," cautions Neale Godfrey, author of Money Still Doesn't Grow on Trees ($16, amazon.com). Go to dealcatcher.com or pricegrabber.com, two on-line marketplaces that offer coupons, rebates, and price comparisons on everything from ink-jet cartridges to DVD players to dishwashers. Type in the kind of item you're looking for, then compare deals from outlets like amazon.com, Overstock.com, and BestBuy.com. Or try dealtime.com or bizrate.com, which also offer free price comparisons. All these sites provide reader reviews, which can alert you to the strengths and weaknesses of a given product.
Average savings: From $10 for print cartridges to $50 for a dishwasher (over buying them at a local stationery or department store).

9:30 a.m. Take a bite out of grocery costs.The average family of four spends about $450 a month on food, according to the Food Marketing Institute, a supermarket trade association. To economize, join a warehouse club like BJ's Wholesale Club (bjs.com; $45 annual fee), Costco (costco.com; $50), or Sam's Club (samsclub.com; $40). Visit each club's website to determine which has the best location and product mix for you, then join online. The clubs can be 20 to 50 percent cheaper than regular grocery stores when it comes to products like condiments, coffee, bottled water, and canned beans and vegetables (they're also, hands-down, the best place to shop for appliances, trash bags, aspirin, and best-selling books, among other things). One RS tester found she could save $75 to $100 a year by purchasing bottled water from Costco rather than the local Stop & Shop. (A bonus: Sam's and Costco sell calling cards that charge just 3 1/2 cents a minute on long-distance calls.) But don't neglect your supermarket entirely―it will have better deals on items like produce, chips, and cookies.
Average annual savings: $1,850 (based on the average bill for a family of four at 35 percent savings, minus the average club membership).

10:00 a.m. Cut heating and utility costs.The U.S. Department of Energy estimates that the average family spends $1,400 a year on energy bills. This past season, prices soared up to 45 percent, partly due to increased demand. To lower your bill, surf over to energy.gov, the U.S. Department of Energy's website. Go to Information for Consumers and click on "Your Home." You'll find the Home Energy Saver, a handy energy-audit tool. By entering information about your house―the year it was built, the number of windows, the type of heating system - you'll generate tips for improving its energy efficiency. The more specific you are, the more detailed the advice. You won't have time to fix all these things now, but you can print out a list and follow up this weekend. For example, investing just $33 to $100 in a programmable thermostat―which you can set to lower your home's temperature at night and raise it in the morning―can slice 5 to 30 percent off your heating and cooling costs, according to the Department of Energy.
Average annual savings: $1,000 if you live in an extreme climate, like Vermont; $450 if you live in a milder one, like San Francisco.

11:00 a.m. Scrutinize your wireless, long-distance, and Internet bills.If the cost of staying connected makes you want to become a hermit, scout for better rates at lowermybills.com or billsaver.com, free comparison-shopping sites. LowerMyBills.com allows you to search 18 categories of services, including long-distance carriers and Internet access. When you find a rate you like, call the provider directly. (Both sites conduct background checks on companies listed.) RS testers saved, on average, $150 a year on long distance, $100 on cellular service, and $80 a year on Internet access. Savings vary, based on location and whether you want to go with a brand name. For instance, one tester reduced her monthly Internet-access fee from $24 to $10 by switching from AOL to a local service.
Average annual savings: Up to $80 a year on Internet service, $150 on long distance, and as much as $100 on cell-phone bills.

Noon. Convert coins to cash, get a library card, and swap your gift cards.After a lunch break, get ready to take a walk or a drive. Gather up all your spare change and go to one of the free or cheap change-counting machines that are available in many grocery stores and banks (for a nationwide listing, visit theunderstory.com). One tester turned up $143, which she then put into an interest-bearing savings account. While you're out, sign up for a library card. Borrowing hardcover books instead of buying them can save even the casual reader, who buys an average of four hardcover books a year, about $70. Once you're back, hunt down any unused gift cards you have and go to swapagift.com. For a $4 listing fee, you can buy, sell, or trade your unused cards for those of merchants you prefer.
Average annual savings: Library card, $70. Found money, varies by household. Gift cards, $25 to $50 (assuming you would otherwise have let the cards languish in your desk drawer).

1:30 p.m. Liberate yourself from video- and DVD-rental late fees.You checked out The Remains of the Day at Blockbuster on a Thursday and plugged it into your DVD player, as planned, on Friday night. But just as Emma Thompson came on the screen, the phone rang...and you never saw the remains of the movie. The next thing you knew, a week had gone by, you'd forgotten all about the movie, and the late fee was more than the cost of a new DVD. If this sounds familiar, don't feel bad; you're in good (if late) company. A recent report by Decisive Analytics, a market-research firm, found that 20 percent of movie renters pay, on average, $7.60 in late fees for every tardy rental. So take three minutes―literally―and sign up at Netflix (netflix.com). Then take five minutes more to browse through their listings and create a rental queue. For $17 a month (the cost of renting four new releases at Blockbuster), you can rent as many DVDs as you want, keeping three out at a time for as long as you want. When you return one, the company will send you the next one from your queue. Each movie arrives in a prepaid envelope, which you reuse to return the DVD. And you'll never pay a late fee again.
Average annual savings: Depending on your lateness record, up to $280 a year (based on rental costs and late fees for the average of 60 rentals a year, with half of those returned late).

1:45 p.m. Analyze your attendance at the gym, the theater, and art museums.Let's face it: Sometimes your ambitions don't mesh with reality. You buy a pricey membership, then hardly use it. Take the gym. In a three-year study, economists at the University of California at Berkeley and Stanford University combed through 8,000 gym-membership records in the Boston area and found that about 80 percent of the members with a monthly contract were paying significantly more than they would have if they had gone on a pay-per-use basis. That's because the members had overestimated their gym usage and went fewer than five times a month, on average―far less than they had initially projected. The result: An average user paid $17 per workout, even when a $10 pay-per-use option existed. And that added up. Members were losing on average $700 over the life of their monthly or annual gym contracts. One RS tester realized she hadn't been to her local Y in more than a year and was wasting $87 a month ($1,044 a year) in membership fees. She found she could pay $10 a visit and canceled the plan.
Conversely, you may be overpaying for single visits to the local zoo, art museum, or aquarium if you go frequently and don't have a membership. For instance, another RS tester, who lives in Philadelphia, found it would cost her family of four $56 to visit the zoo, plus $7 for parking. But for just $79, her family could buy a membership and enjoy unlimited visits and free parking for a year.
Average annual savings: $700.

2:00 p.m. Donate to charity.Rummage through your closets and bookshelves for clothing and household items you can donate. "Have a two-year rule," suggests Michelle Singletary, a Washington Post columnist and the author of 7 Money Mantras for a Richer Life ($30, amazon.com). "If you haven't worn or used it in the last two years, give it away." Even a sum as nominal as $150 worth of goods can reduce your taxes by about $42, if you itemize your deductions and are in the 28 percent tax bracket. (If you're in the 15 percent tax bracket or lower, this may not be worth your trouble. You can find your tax bracket at irs.gov; search for "tax rate.") Try to do this at least twice a year, and remember to get a receipt from the charity.
Average annual savings: $84 (if you're in the 28 percent bracket and make two $150 donations a year).

Introducing: Money Mondays

Does your financial house need a little boost? Our new channel: Money Mondays will help you with money-savings tips every fabulously frugal Working Diva needs in her life. From balancing your own budget to cutting everyday costs we are committed to giving you the tools that would make even Suze Orman proud. So start saving your pennies and check in with us every Monday.

Refresh a Room with a Mini-Garden

Get a jump start on spring and give your room a floral view. Set up a mini-flower garden on a windowsill, counter or breakfast bar. Bringing the outside in boosts your mood. Collect your favorite herbs in small pots and put fresh cut flowers in a vase. And there you have it…instant-bliss!

Cut your grocery bill now! by Jennifer Openshaw

Before you head to the grocery store this weekend to stock up your shelves. Read this and SAVE!

Seven ways to avoid the cash traps at your local grocer:

Running into the store to pick up a gallon of milk for tomorrow’s breakfast? Don’t be surprised if you end up leaving with a lot more than you initially wanted to buy.

Just as a department store is designed to make you walk through the costly perfume and cosmetics counter (and, they hope, stop for an impulse buy), grocery stores force you to walk buy stuff you’re likely to toss into your cart on a whim. To get to the dairy case at the back of the store, for instance, you have to walk past all sorts of enticing products like Super Bowl Sunday party goods and vegetables (we all feel like we should be buying those, right?).

For years, Marcie Rothman has been giving this advice to shoppers: “Stick to the outside aisles.” Marcie, who goes by the moniker The 5 Dollar Chef (see her site), points out that the real food — the unprocessed, fresh, and less expensive stuff, is generally found on the perimeter of the stores.

And if you limit your spending to meat, produce, and dairy, and skip strolling up and down the aisles filled with expensive pre-packaged products, you’ll spend less. “Making your own food is healthier, and it doesn’t take any longer to cook real food than something out of a box,” she says.

Research shows that the average American spends 30 percent of their monthly budget on food, so even a small savings can make a difference week after week. Karen Schuppert, who blogs about healthy eating (see blog), recently shared a list of expensive grocery store items that budget conscious shoppers should avoid.

Cut the following out and you’ll your bill down immediately:
Bagged salad — These can be a time-saver, but they can cost three times as much as buying the same amount as an ordinary head of lettuce. “Salad kits,” where you get some greens, a small bag of dressing, and a small bag of croutons — are even more expensive.
Energy or protein bars — They’re often stacked at the checkout counter for impulse buyers who grab them for a quick health fix. They are high in sugar and fat and about as “wholesome” as a candy bar. They’re also two to three times as expensive.
Spice mixes — Things like grill seasoning and rib rubs might seem like a good buy because they contain spices that you would have to buy individually. But once again, it pays to read labels. Usually the first ingredient you see is salt, followed by a few herbs and spices. Look in your own pantry; you’ll be surprised to discover just how many herbs you already have on hand.
Bottled water — This is a bad investment for many reasons. It’s expensive compared to what’s coming out of the tap, its cost to the environment is high, and it’s often no better for your health than what’s running down your drain.
Boxed rice “entree” or side-dish mixes — These consist basically of rice, salt, and spices — yet they’re priced way beyond the ingredients sold individually. Yes, there are a few flavorings included, but again, you probably have them in your pantry. Buy a bag of brown rice, measure out what you need, add your own herbs and other seasonings, and voila! You’ve just saved some money, and prepared something that likely tastes better than what you were going to buy.
Pre-formed meat patties — These are handy, but they’re more expensive than buying the ground meat in bulk and making patties yourself.
Tomato-based pasta sauces – These may run $2 to $6 a jar, while the equivalent amount of canned tomatoes is often under $1. So, try making your own sauces from canned crushed tomatoes or fresh tomatoes. Put the tomatoes into a skillet, stir in some wine or wine vinegar, your favorite herbs, and whatever chopped vegetables you like in your sauce—garlic, peppers, onions, mushrooms, even carrots—and let simmer for an hour. Easy!

Avoiding these cashtraps will make a real difference in how much you spend each week. This has an impact on you as a consumer, but what about the flip side — what does the change in grocery store habits mean to American companies?

The latest earnings reports just arrived for several large consumer product companies, including Procter & Gamble (NYSE:PG), Kimberly-Clark (NYSE:KMB), and Colgate-Palmolive (NYSE:CL). Laundry detergent, diapers, toothpaste, and other staples are all expected to suffer as consumers cut costs by avoiding cashtraps and by purchasing store brands instead of name brands where they can. While you change your own shopping habits, think about how changing consumer habits could affect your portfolio, too.

Jennifer Openshaw, author of The Millionaire Zone, is co-founder and president of WeSeed, whose mission is to enable people to discover the stockmarket in their everyday lives through their passions, their fashion, their careers, their kids and the brands they know and love. You can reach her at jopenshaw@weseed.com.
(source: yahoo.com)

Organize your Home

It's the first Saturday of the New Year. The perfect day to get centered and organized for all the richness 2009 will bring. From your overloaded closet, cluttered home office, and a garage so packed you need to be on an episode of HGTV's Mission Organization...Take control and DETOX your home. Every Working Diva needs a clean slate. Check out these tips from on how to get organized in 2009. (read on) (read more)

Don't overwhelm yourself. Do a different room everyday. If it is to taxing, have a "Get Organized Party" and ask a few friends to help you out. By next weekend you will be relaxing in your cozy space where you can start creating your 2009 master plan clutter free!

And as always, share your tips with us. Leave your comments. Reach one, teach one.