Dan's Frugal Shaving Tips

As I was shaving this morning I thought I'd share some of my frugal tips for saving money while carving your face up.  As a bit of disclaimer I don't have a very full beard so what works for me may not work for you.

1. Wet shave - I shave while I'm in the shower.  This might waste water, but at the very least I find it more convenient than to shave in front of the mirror and then having to clean up afterwards, anyway.
2. Use hair conditioner as shaving cream.  I have a big bottle of suave conditioner that I've been using for at least 4 years now.  Granted, I only shave a few times a week, but at about $3 this has got to be one of the cheapest ways to shave there is.  It's not as full as it once was but I'm pretty sure I can eek this out another year or so.
3. "Hone" your razor blades using your arm hair, as shown by the creepy old naked guy in the video below.  I know this sounds really weird but I've been doing this since I bought a new pack of razors and it honestly seems to have really helped.  I'm guessing that since hair is actually very tough (which is why razors don't last that long), stroking the blade against the tough hair hones the edge of the blade.  I suppose I should qualify that using your arm hair means running the razor down your arm in the opposite direction that you would to shave it.  Please don't yell at me when you shave your arm hair off.

There are other ways to shave cheaply (as in cost of the blades - but there does seem to be a bit of an up front cost), and some dudes really get into it and become these "shaving ritual fundamentalists", it just seems like way too much hassle for me.

Frugal Tip: 10% off at Lowes

As a newish homeowner, sometimes I feel like I'm spending more time at Lowes than at home (or as much money there as I do on my mortgage). Lowes will very helpfully send you a "congratulations on moving" 10% off coupon that you can request on their website here.

That's all well and good if you're actually moving, but what if you'd like to save a few bucks independent of your housing status? Head on over to the post office and pick up a change of address packet to find the same coupon inside. The coupons are only good for a few months so you may want to run and get some every so often.

10% off everything up to $5000 - not a bad deal.

The Great Debate: Diaries of a "Saver"

Having an interest in personal finance (obviously), I hang around a few websites focused on communities of people asking for and giving financial advice. To me, it seems there are two basic schools of thought for those who claim to be in the know about personal finance:

• Financially savvy - These are the people who live and die by the numbers. Interest rates, inflation, tax implications, cost-benefit analysis, liquidity and many other over-my-head words all factor into their carefully formed financial plans. The more financially savvy, the higher the smugness factor of their advice (and intolerance of other's advice). They typically embrace more risk in hopes of more reward. In my mind they all look like this:

• Savers - Savers are the boring cheapskates nobody likes. They never spend money, and if they do, it's to buy something boring and gross. Savers are low-risk and low-maintenance, they don't like to owe anyone money and are willing to take a cut in lifestyle to keep that. Thought by the financially savvy to be simpletons because they largely ignore the numbers, man! The numbers! Here is an artist's representation:

Obviously I took some liberties poking fun at both groups, but each represents one side of the spectrum. If we would consider the two on a numbered scale, with 1 representing the tightest of tightwads and 10 being the smuggest of internet financial planning emperors, I would consider myself a 3.

I'm a saver, and I think that works best for me. If nothing else I don't have to worry about stressing over money. Also, I don't have to deal with the hassle of learning the finer points of finance. I have the time, but I really don't care that much.

Even though it's in my nature to save, I do like to buy things. Or at least think about buying things. Not a day goes by without me yelling "Hey dear, look at this un-necessary item we don't need but I still want on craigslist, pretty good deal" while she rolls her eyes and nods patiently. The saver mentality wins out (thanks primarily to the lack of disposable income at the moment) and I go on living my life without a Red Bull mini fridge. I don't like owing anyone money so, in theory, all my future purchases will be with money already earned (and therefore risk-free - because they're already paid for).

In the end, I don't really care what everyone else considers themselves so long as they've thought about it and have, at least, a general plan regarding their finances. It's all about what you're comfortable with while weighing that against what your (realistic) financial goals are.

That said, this being somewhat of a debate, I'm going to represent the saver side and argue as to why I think it's the better approach when it comes to money.

Financially Savvy Point: Paying off your debts as quickly as possible is foolish, student loan and mortgage debts are good debts and typically are low-interest so there is no point in paying them off early. You'd be better investing the difference and having mad stacks in the future.

Counterpoint: I don't think any debts are good debts. The only thing debt is good for is establishing credit, which is only good for borrowing more money, which is only good for paying interest.

Debt equates to risk. If you lose your job and can't afford your mortgage or student loan payments (which aren't dischargeable in a bankruptcy, by the way) you can be in a world of crap if you don't have enough money saved to tread water long enough along until you can find work again. The more payments (risk) you have, the worse off you will be if you have an income crisis.

Financially Savvy Point: Hey broski, your student loan payments are locked in at 3.5%, I can make more than that doing xxxxxxxxx!

Counterpoint: Yea, maybe you can get a little ahead by doing some sort of investing but it's much harder these days (uncertain market, CDs/savings paying very little interest) to get any sort of guarantees. I'd argue that then I'd owe that much less money and that would minimize my risk, but again thats and obvious argument suited for people who are ugly and can't play sports good.

What you can't forget is factoring in your time and what it's worth to you. Let's say you took $5000 you could have applied to a student loan and did some short term investing (index fund maybe?) and it grew 8%, so after a year you'd make $400, which is effectively $225 more than you would have "made" by paying off your loan at 3.5%.

So great, you're $225 up! Sweet, brah. Oh wait, here comes the tax-man. He wants his cut. Quickly that $225 turns into $168.75. Is the time invested into picking a right fund/stocks/CD worth $168.75 to you? How about if you factor in the risk of the awful investment returns the past few years? To me it's a no-brainer. I decrease my debt, increase my net worth, with no risk and no time invested. You know, so I have more time to be ugly and bad at sports.

Financially Savvy Point: You're losing your liquidity by paying so much on your debts!

Counterpoint: This is a fairly moot point as any true saver is going to have some money socked away for emergencies, anyway. And these days, even the financially savvy can't have $50,000 in a money market account because the numbers dictate that your "return" is higher by paying your debts since money markets and CDs are paying next to nothing at the moment. Even a very low interest on a student loan is still going to be 3-5% so your effective return is still higher.

Financially Savvy Point: I got my new car/laptop/carpeting/bed at 0% interest, can you even comprehend the extent that I am gaming the system and sticking it to the man simultaneously? No, you cannot. It's FREE MONEY!

Counterpoint: This is where the bulk of my argument lies. Where the financial-savvy will see these opportunities as too good to pass up and/or justification to buy things they want, the savers will ignore the age-old "what will my payment be" and look at these items to decide whether or not they need them or just want them.

Car:

• Financially Savvy: Brand new Honda Accord with some bells and whistles (I mean you gotta, ZERO INTEREST HOLMES - FREE MONEY!) - $30,000 paid over 5 years. Pay no mind to instant depreciation of new cars, even one that holds it's value as well as an accord. They are instantly upside-down on their loan. At least they're not paying interest, I guess.
• Saver: I also like Honda Accords, but I think I'll buy one a couple years old with 30,000 miles and a few less bells and whistles on it and pay cash - $15,000 paid - hyper-depreciation is already bottomed out, the remainder of the depreciation will be fairly steady for the rest of the life of the car. Remember: Cars are a depreciating asset, why would you borrow money for something that loses value (quickly)?

Computer:

• Financially Savvy: Best buy is offering 0% for a year for computers over $800! I don't need one that fancy, but have I mentioned the free money?
• Saver: Eh, I only really do e-mail and web stuff at home anyway, I'll use my 4 year old computer until it dies.

Carpeting:

• Financially Savvy: Well, we wanted to redo the carpet at some point anyway, might as well do it with our lowes card! Thanks to my opportunistic new car and computer I miss a payment and now my butt hurts from accrued interest.
• Saver: Though this carpet is the bane of my existence I will allow it to crush my soul for a little while longer until I can find the best deal possible and save for it.

Ignoring the obvious risk of missing payments on these 1 year same as cash plans and retroactive interest out the wazzo, the savers will be better off in the end because they will (shockingly) spend less money on unnecessary items. Any potential ground gained by the financially savvy and their fancy numbers will be lost to opportunity and impulse buys when they come across a good deal. This will increase their risk, and it doesn't take anyone savvy at anything to acknowledge what a risk it is to make short term investments in our current market.

As a saver and a payer of debts, you are getting a guaranteed return by paying off your debts. Your blood pressure and net worth will thank you later!

Again, in the end, whatever way you go you'll benefit from being more involved in your finances. I get fairly annoyed being a saver and having that sound in any way bad. Are the theories and practices of a saver a bit un-refined? Sure, maybe, but slow and steady typically wins the race.

The Final Countdown

Hindsight being 20-20, I really should have started to document our debt-free journey long ago instead of starting when we're already in the home stretch. I think it would have been more motivating to be able to keep up with our progress on a monthly basis or so, but yet here we are. Better late than never, I guess?

Amber and I got married October 11, 2008 which marked the day that I was no longer debt free. While we did a great job saving money and paying for our wedding in cash, it was once again time to buckle down and look toward our future.

Through some relatively frugal living, generous wedding gifts, some help from uncle Obama (first homebuyer tax credit), and hard work, we will have paid off ~$50,000 of student loans and bought a house in our first two years of marriage. Never one to shy away from complimenting myself, it is an amazing accomplishment.

What's the secret? Well, there isn't one. I read this book, it gave me the ideas and the motivation to do something about my debt (We've probably bought 15 of these so far to give away as gifts so far - If you want one, ask!). Aside from the book, here are some general guidelines that have helped me just starting out:

1. If you're not already, keep track of all the money you spend. This can be an real eye-opener when you see how much those fast food runs add up over time. I'd recommend doing something at least like Mint.com (which does all the work for you), even better would be doing a spreadsheet or a program like Quicken.
2. Create a budget and stick to it. Base your budget off figures you've gotten from past months spending, and what you think you should spend in the categories. Don't freak out if you have to adjust these over time.
3. Minimize your spending. Do you really need a new MP3 player or laptop? That monthly subscription to fantasy football forum? Nope, you don't. And don't try and justify it, either. (I'll punch you in the face)
4. Pay yourself / your bills first. Every payday I'll update my quicken file with the income, and then everything I have to pay until the next payday. This will tell me "what I have left", so I know how stingy I have to be. If I'm out of money coming up on payday, then I guess I'm not going out to eat. Easy as that.
5. Plan ahead! If you know your car inspection is coming up and you're going to need tires, then start setting money aside for it. Life's little surprises can un-motivate you really quickly. Constant vigilance, citizen!
6. Plan for what you can't plan for. Set some money aside that is for emergencies only. If something comes up, you won't "lose traction" or add to your debt.
7. Make some extra money. Whether is be a side job or selling stuff on craigslist, any extra income will help you reach your goals.

Amber and I don't have a tremendous income, but without car payments or a $130 cable bill, what we do make lasts pretty well. We only have to concentrate on getting our mortgage, utilities, and living expenses taken care of, and then anything left over is thrown at the student loans.

Every two weeks (on payday) I feel a great satisfaction pressing the "Make a Payment" button on the AES website and watching the student loan balance drop. We're really in the home stretch now, and honestly it's going to be weird in a few months when we don't have any super-aggressive debt payments. But somehow I think we'll make do :)

7/16/10 Debt Counter: $5,842.47

$3 Bicycle

The bicycle has got to be one of the coolest and under-appreciated inventions in modern history. I can still remember a younger version of my fast-approaching-30-self getting excited over each of the many bikes I've owned (and ruined) in my childhood. The bike was my first real taste of freedom, like it is to many kids. As we all grow older, fatter, and lazier the wonder of the bicycle escapes us faster than reaching our flabby arms out the window for our drive-thru McDonalds treat.

Having absolutely no data to back me up, I'll say that the bicycle is the most efficient means of human powered transportation. Without hills in your way you can cover a lot of ground quickly without using a whole lot of energy. Gasoline required? Zero. Calories burnt? Plenty. It's a win-win (until you factor in the size of your hind parts and how they'll feel trying to get acclimated to a narrow bicycle seat again).

I'm by no stretch of the imagination an anti-gasoline tree hugger ("the stable" at home contains two cars, a motorcyle, a go kart, and a truck - with high ambitions for adding more and more - did I mention I'd like more toys?), but I still love a good bike ride to remind myself that I can move my considerable mass around using only my own leg power.

Last year my wife and I bought our first home out of town in a gorgeous country setting. We're both "country mice" so we love the area, but thanks to the rolling landscape, it's made it hard to go for a leisurely bike ride and not throw up or have a heart attack along the way.

My bike at the time was the bottom-of-the-line Trek mountain bike complete with absolutely no suspension, 21 gears, and meaty tires that hinder-more-than-help any riding on the road. Of course, that didn't stopped me trying out the 4-mile road "loop" around the house last summer and promptly swearing off ever doing it again. I'll spare you the bulk of my excuses, but the hills are steep and numerous, and I'm too stubborn to stop and get off the bike (or pedal standing up). In between gasps of air, my brain slowly calculated my stubbornness to roughly equate to ten times my lung capacity. As I'm coming into the home stretch, every bit of my lungs, mouth, throat, legs, and brain ache, throb, or just stop working to some degree. You know, the home stretch after a 4-mile bike ride. Pitiful.

There had to be a better way, and again the stubbornness wouldn't allow me to drive my bike somewhere just so I could ride it. After talking to my friend Jon (who has been a bit of a bicyclist in his time), he told me that a road bike would be more suited to biking on the road - imagine that. I've never owned a road bike before but the large skinny wheels were more aerodynamic and lighter, which helps reduce pedal effort and increase overall speed. Hey, sounds great. Where do I sign up? Over there? And it costs $600? For a cheap one? Oh, well then. I'll pass.

Fast forward to this year, my lovely wife comes home from yard-saling with a answer to my road biking needs: A "vintage" Giant RS920 for the I-kid-you-not sum of $3 (if the blog title and website name hadn't tipped you off already). After cleaning the chain, adjusting the brakes, and putting some air in the dry-rotted tires, I took it for a short spin up and down the road (the least amount of hills possible) and wouldn't you know it rides well, shifts well, and fits me perfectly (being a bit short this was very pleasing to me). Chalk it up to fate, or the gods smiling down on me, whatever the case I don't want to waste this opportunity.

In the short term, I see this blog as a motivator to not let my $3 gift go to waste and hold me somewhat accountable for my goals. More generally I'd like to use this as an outlet for different thoughts on life, careers, being cheap, and how they typically all tie together. Stay posted for some updates on everyone's favorite $3 bike.