Oh, the weather outside is frightful

cold house

. . . or soon will be.

We used to live in one of the coldest areas of the country. Our heating bills for a 1,200 square foot house ranged from $225 and $275 a month during the winter. We now live in a state with a more mild winter and our heating bill never really goes over $100 in a month. Needless to say, in our former home, we did everything possible to hold costs down and even though our current heating expenses are not as great, we still take measures to reduce heat loss.

Here are a few of our tricks. Some are worth more than others and many of you will probably be able to add to the list. I will start things off:

  • Lock all windows. Leaving a window unlocked will allow more cold air to flow around it. Locking windows was a part of my routine in late fall and will even improve the performance of modern, gas-filled, double-paned windows.
  • Make sure that glass pane on storm doors is closed. During warm weather months, we sometimes get in the habit of leaving the solid panes open in order to take advantage of the breeze that flows through the screen. I often see homes where the owners have forgotten to close the pane when the heat is turned on.
  • Doors present one of the most difficult insulating problems for modern homes. Put a “draft snake” in front of doors leading to the outside – especially doors that are not used often. If the “snake” is in the way or kids constantly move it or play with it, close it in between the door and the screen door. It will serve the same purpose and be invisible to anyone in the interior of the home.
  • We used to turn the heat off when we left the house – with two caveat’s. There are instances when more heat is used in the warm-up after you return home than if you had let the furnace maintain the temperature in the home while you were gone. Secondly, make sure that you do not have any pipes that might be easily frozen. We never had frozen pipes in our old home, even though we regularly turned the heat down to 50 degrees F when it was -20 and -30 outside.
  • In our old house, the whole family slept upstairs, so there was no point in heating the first floor. This will not work for everyone, but we turned the house heat way down – usually under 60 degrees – and used space heaters upstairs to make up the difference. The sleeping area upstairs was quite cozy.There are some low cost heaters that are quite safe, but you need to experiment and make sure that the space heater is not using more energy than the furnace would use.
  • It is amazing the difference that a few more clothes can make – slippers, a sweatshirt, etc. My personal favorite is a long sleeve t-shirt.
  • Again, might not work for everyone, but the more people who sleep in the same room, the warmer they will stay. Not just because of the extra body heat, but because it reduces the number of rooms that have to be heated. In our old home, our family of five slept in two rooms. Mostly because that is all the rooms we had, but we only had to heat those two rooms .
  • Closing drapes and shades will help to insulate a house, keeping warmth inside and cold outside.
  • A lot of old homes have doors in places where they are no longer needed. In our old home, we had one such door and I placed a 3 inch sheet of styrofoam insulation between the two doors. We never used that entrance and the styrophoam made the space almost as airtight as the rest of the wall.
  • Insulate, insulate, insulate! Between floor joists, in walls, more fill in the attic, on top of the basement wall, around the dryer vent, there are all kinds of little nooks and crannies that could use a squirt of Great Stuff foam sealant or a few tufts of fiberglass insulation.

Do you have any more tips to add?

Article by Stew

Photo by ansik

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Carnival of Money Stories – My Money Flaws Edition

Welcome to this edition of the Carnival of Money Stories! Since all featured posts reflect a money story, I decided to share my money flaws along with the articles.

If you are new to Gather Little by Little, you should read the following articles:

- How to build a compost bin

- How to get your finance under control

- Simple ways to make money online

- zero percent transfer balance credit card

shopping centerMoney Flaw #1: Having Spendthrift Moments

The current recession and the recent read of In Cheap We Trust got me thinking about my spending habits. While I am frugal in several aspects of my life, I am having a hard time spending less on food, clothes and cars. I don’t go shopping often, but when I go on a shopping frenzy, I can spend my whole pay check on clothing… I am actually worse than my wife when it comes to shopping ;-) . In order to control my spendthrift moments, I am continuously asking will I regret it?”. Thinking twice about what I am about to buy reduces my bill at the end of the month considerably;-).

Ben presents Open Enrollment deadlines posted at Money Smart Life.

Tom @ Canadian Finance Blog presents Save Money By Selling Your House Without A Real Estate Agent posted at The Canadian Finance Blog.

Patrick @ Cash Money Life presents Save Money on Auto Insurance Rates posted at Cash Money Life.

Silicon Valley Blogger presents My Retirement Plan Or What I Plan To Do When I Retire posted at The Digerati Life.

DR presents 10 Simple Steps to Buying a Car or Truck on eBay. posted at The Dough Roller.

Michal presents Tips to Creating a Green Home Theater posted at Energy Saving Gadgets.

Peter presents This Blogger Fell Into The FICO Trap, But Saw The Light And Became Debt Free posted at Bible Money Matters.

PT presents Results of a Week Without Spending posted at PT Money.

lazyMoney Flaw #2: Procrastination

In my opinion, procrastination is my worst money flaw. The problem with procrastination is that it often doesn’t show. You barely notice that you are losing money because you don’t take care of something. It’s like water dripping from a leaky faucet; you are losing water but you won’t notice the damage until something breaks and you see the big hole under the counter! I try to send myself emails (it’s a Gen Y thing, so says conspiracy theory man) and leave notes everywhere of what needs to be done (like looking at my insurance coverage for example or analysing how much interest I pay on debt). I am slowly getting better when it comes down to take care of my personal finances.

RJ Weiss presents How I Saved $1,925 By Picking Up The Phone! posted at Genyweath.com.

Mrs. Accountability presents The Time I Almost Married An Amway Salesman | Out of Debt Again posted at Out of Debt Again.

Julia Kingston presents Taking the Life out of LIFO posted at Gray Matters

Madeleine Begun Kane presents Ode To Prosperity posted at Mad Kane’s Humor Blog.

CreditCardAssist presents Card Issuers Find Loopholes Before New Law Takes Effect posted at CreditCardAssist.com.

Peak Personal Finance presents 6 Types of Financial Apps for Your Smart Phone posted at Peak Personal Finance.

David Carlson presents Dual Income No Kids: DINKs Buying Silver & Bonds posted at Dual Income No Kids.

KCLau presents Caring for the Elderly posted at KCLau’s Money Tips.

Tyler presents What?s Your Environmental Net Worth? posted at Frugally Green.

more moneyMoney Flaw #3: Looking to increase my income continuously

While aiming for a bigger salary is not a bad thing by itself, I would say that continuously looking towards the next promotion, working more hours to make extra bucks or spending time and energy on a sideline (like starting an online store) will gradually take away from the most important things in life: your family and friends. Since I have finished my MBA, I have decided to cut down on my hours at work and spend more quality time with my beautiful wife and children. I definitely don’t regret my choice!

FMF presents How to Buy a New Furnace and Air Conditioner posted at Free Money Finance.

Steve Patterson presents FastSwings – Blogs – Federal Reserve Holds Rates as Expected posted at FastSwings.

Darwin presents The Truth About Rewards Credit Cards – But, Is it Really True? posted at Darwin’s Finance.

Jeff Rose presents Should You Buy Life Insurance at an Early Age? posted at Jeff Rose.

Aussie Investor presents How To Buy Shares In Australia posted at Australian Stock Market Investing Blog.

Diane Laine presents The Definitive Inverse ETF Guide posted at ETF Database.

jim presents Tips for Buying Used College Textbooks posted at Bargaineering.

suspension bridgeMoney Flaw #4: High tendency to leverage

I have mentioned it before, I have a high tolerance for risk and I don’t mind borrowing money in order to increase my assets or income over time. This is what I call “having productive debt”. However, good or bad, a debt is a debt. If things turn sour, my tendency to leverage everything might blow up in my face as I am taking a lot of risk. I haven’t found any tricks to reduce this “bad” habit. I just hope that I will continue to make money from it I guess!

chris presents Credit Score Factors posted at Real Estate Money Matters.

freefrombroke presents My Experience Switching To Cable/Digital Phone Service posted at Free From Broke.

J.D. Roth presents Knocking Out the Beliefs That Hold You Back posted at Get Rich Slowly.

Baker presents Budgeting Ups and Downs: October and Beyond posted at Man Vs. Debt.

MatthewPaulson presents Tips For Using Your 401k posted at Fine Tuned Finances.

Braudis Lee Pegram presents Goodbye Capital One posted at The koH Resources Blog.

Madison presents Make the Most of Open Enrollment posted at My Dollar Plan.

Mr. ToughMoneyLove presents Does Las Vegas Deserve a Recovery? posted at Tough Money Love.

tyler durdenMoney Flaw #5: Fighting with my Budget

While I have no problem sticking to my budget (besides a few spendthrift moments ;-) ), my biggest problem is to keep track of each expense in order to be able to analyse them. I did enter each dollar earned or spent for 2 years in Microsoft Money software. But since starting my basement renovations, I have completely lost count and never went back to my original budget again. While I know that, overall, my assets are increasing and my debt is decreasing, I can’t pinpoint where to concentrate my efforts in order to get rid of my debt faster.

Austin Morgan presents The Best $100 I Ever Spent posted at Foreigner’s Finances.

Chris Lang presents Property and money: 20 tips any married woman must read (part 1). posted at Home I Own.

Mike presents The Finish Line posted at Minting Pennies – Personal Finance, Investing, and Microfinance.

TC presents Who Funds Non Profit Debt Help Organisations? posted at How To Eliminate Debts.

Bucksome Boomer presents The Trouble with Rebate Cards posted at Buck$ome Boomer’s Journey to Retirement.

Matthew Paulson presents Thefts at Open Houses Return to Real Estate Market posted at American Consumer News.

Mr Credit Card presents Should I Get Another Credit Card Before Moving Overseas? posted at Ask Mr Credit Card.

The Smarter Wallet presents Secret Bank Accounts And Marriage Don’t Mix posted at The Smarter Wallet.

Miss M presents Hit and Run! posted at M is for Money.

Super Saver presents Part Time Job Situation is Improving posted at My Wealth Builder.

I hope you have enjoyed reading about my money flaws along with the articles in this carnival!

Author: Mike.

Image source:

松林L

ucurami

steve wampler

brandon godfrey

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Friday Gathering: Daylight Savings Edition

alarm clock

I don’t know about you, but I think Daylight Savings is dumb. Why not just let the amount of sunlight wax and wane naturally? I miss driving home when the sun is still up at 5 pm . . . not a big deal, but I would love to get rid of it. Here are some articles that I found interesting this week:

Ron from the Wisdom Journal posted the top 10 consumer credit card events of 2009 – a good read. I am not sure that our current credit paradigm is going to last much longer. We’ll see . . .

The Silican Valley Blogger give a few suggestions of the best ways to invest small amounts of money.

A guest post on Christian PF entitled “There is no such thing as a free lunch – or is there?”. Read it to find out.

Kevin, a staff writer at Moolanomy tells why the first time home buyer extension is a bad idea. I tend to agree with him.

Two weeks ago, I announced the return of Ask Me Anything. I have received several questions and I am working on responses. When I make the final edits, I will post them as a part of my Friday posts. In the meantime, if you want to “ask me anything”, send your questions to glblstew(at)gmail(dot)com.

Have a great weekend. Remember – don’t just spend money, spend time with family.

And the winners are….

Here are the 5 winners of the book “In Cheap We Trust”:

Kate

Financial Samurai

Jermaine

Rob Garcia

Sally Williamson

Winners will be contacted by emails over the weekend.

thx for all the participants!

Article by Stew

Photo by Chris Makarsky

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Are you preparing for the worst?

explosionLast week, after reading Stew’s article about why he does not expect to buy gold, I started thinking. Over the past few months, I’ve been hearing an increasing amount of interest in preparing for “worst case scenarios”. It seems as though last year’s major crisis left some very important consequences. So what are these dark scenarios? Here are a few that are often discussed:

-Collapse of the entire financial system: This one can no longer be dismissed easily since it was a distinct possibility during last year’s collapse of several US and foreign banks.

-Hyperinflation: With all of the money being pumped into circulation by the US government, many think inflation will pick up and could get out of control in the coming years

-Collapse of the US dollar: The US dollar, by almost any standard, has suffered major losses in recent months. There is a lot of speculation about the causes, the lack of the US government support to defend its currency, etc.

-US Government bankruptcy: With costs out of control, there is no end in sight for the deficits in the US and in fact they are becoming more critical year after year. Military, health care and pension issues are only a few of the reasons for the deficit. Will foreign governments decide to stop funding these deficits one day?

Apart from a few individuals, I think the vast majority would concede that these are remote possibilities that probably will not happen in our lifetime. However, an increasing percentage of the population is starting to prepare for worst case scenarios. How?

1-Cash is king: Having debt is bad enough but even having all of your money locked into investments means you could lose it all if things turn very bad. For this reason, many investors are keeping higher cash balances in their accounts and also at home, hidden in all kinds of places.

2-Metals: When a currency loses its value, one of the alternative assets over time has been precious metals such as gold and silver. For that reason, there is an increased interest in buying physical holdings that buyers can keep at home either in a safe or in a well hidden place. Metals have also been known to be one of the best ways to maintain purchasing power when inflation picks up significantly. These investors are often reluctant to buy gold in the form of ETFs for example because their worst case scenario also involves a complete collapse of the financial system which could render such assets worthless.

3-Diversification: Rich investors are looking at setting up foreign accounts where they can escape from exposure to the US dollar as well as the US financial system.

It does seem like a gross exaggeration doesn’t it? I’m not saying it’s not possible. Of course, it is difficult not to acknowledge the risk, especially after the near collapse we witnessed in late 2008… but personally, I’m not preparing for these scenarios in such a dramatic way for these reasons:

1-This type of crisis does not happen every year: Usually, all parties learn a great deal during such times which helps improve and stabilize the structure. Remember that major recessions usually happen once per couple of decades

2-The US government showed it was willing to do almost ANYTHING to save the system. Let’s not forget the magnitude of what was done last year. Major stimuli, injecting hundreds and thousands of billions of dollars, buying stakes in banks, etc. I personally believe that the only way a complete collapse of the economy would occur would be through a collapse of the US government… and if you believe in such a scenario, then I hope you have personal security guards to protect that gold.

3-It’s just too expensive. Do you know how much preparation  for this type of possibility will end up costing you in commissions, lost interest, etc? Over the course of a lifetime, it will end up being very costly. I just think it’s not worth it; I’ll take the gamble…

author: Mike

image source: scott3eth

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How much does your vice cost?

habit

Wikipedia defines a vice as a practice or a habit considered immoral, depraved, and/or degrading in the associated society. In more minor usage, vice can refer to a fault, a defect, an infirmity or merely a bad habit.

Recently, I spent some time thinking about how much money I spend on things that I really do not need – not necessarily things that make life easier – but rather things that are simply a habit, a pleasure or a waste of time. I am not going to exactly reveal my particular “vices”, but I think it is a good idea once in a while to take stock of the little money trickles in our budget. You know the holes that allow a few bucks to slip through during the course of a month? Some of these items might even have a legitimate place in our lives, but we all must consider the cost.

  • Coffee: $.50 a day   $15.00 a month   $180 a year (if you make it at home)
  • Cigarettes: $4.50 a day   $135 a month   $1,620 a year (pack a day)
  • Alcohol: $10.00 a week   $40 a month   $480 a year (conservatively)
  • Soda: $4.00 a week   $16.00 a month   $192 a year (two cans a day from the grocery store)
  • Cable: $55 a month   $660 a year (low end package)
  • Gambling: $250 in Vegas   $100 year in lottery tickets   $500 ($10 a week in your home game)
  • Cigars: $6 a week   $24 a month   $288 a year (really cheap cigars)
  • Golf: the sky is the limit . . .
  • Marijuana: $15 a week   $60 a month   $720 a year
  • Eating out: $50 a week   $200 a month   $2,400 a year
  • Spectator Sports: $150 a month   $1,800 a year
  • Tattoos:   $100 a year
  • Shoes:   $50 a week   $600 a year

Okay, obviously some of these may or may not qualify as vices, but we could probably find a way to do without every item on this list. Pick out your particular weaknesses, add up the yearly cost and then compare that sum to your monthly budget, your typical paycheck or some other legitimate expense that is a part of life for you. Then ask yourself if it is worth it.

For some of us, eliminating a vice or two could have the effect of a five or ten percent raise. Now you can make an informed decision about whether the pleasure derived from that vice is worth the cost.

Article by Stew

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