Negotiation can be a powerful tool to save you money, yet many people never negotiate because they think it is in poor taste or they are afraid their attempt at negotiation will be denied.  In my experience, more than half of the time you try to negotitate, you will be successful.  With odds like that, and considering negotiation can save you as much as hundreds of dollars at a time, why not negotiate more often?

To negotiate successfully, you must be willing to walk away.  We hear this advice often, but it is quite a different story to actually try to negotiate and yet be willing to walk away.

My husband and I were apartment hunting just a few months ago, and there was one apartment in particular that we loved.  It had two bedrooms upstairs as well as three rooms downstairs that could be used as bedrooms or a study.  The apartment was almost twice as big as the apartment we were squeezed into with our three small kids.  The problem?  The rent was at the upper end of our budget, and that was not including utilities, which would easily cost us $200 to $300 more a month.  We simply couldn’t afford it.

While the landlord understood our situation, he was eager to rent and had several people interested in the apartment.  We walked away because we couldn’t negotiate a lower price.  (The apartment was priced fairly for the market, so I didn’t blame the landlord for not wanting to negotiate.)

We continued our apartment search and were about to sign a lease for a much smaller apartment when the landlord of the larger apartment called us.  This was three weeks after we walked away, so we were surprised to hear from him.  We were even more surprised when he offered to pay all of our utilities if we signed a multi-year lease.  We now pay $30 more a month for rent than he originally advertised, but he pays our heat, gas, water, trash and electric.  We are easily saving $200 a month.  We signed a 2.5 year lease, so over the life of the lease, we will save a minimum of $6,000 in utilities by negotiating AND being willing to walk away.

Our situation was fairly unique in that we were good prospective tenants with strong credit, and he had a few other potential tenants not work out.  However, if we had not been willing to walk away, we would not have secured such a good deal.  As much as we loved the apartment and as much as we wanted to live there, we found it more important to stick to our budget.

Negotiating can save you money if you are willing to make an offer, AND if you are willing to walk away from something you really want if you can’t get the right price.  While it may be difficult to forego what you want because you can’t get the price you are negotiating, know that you are making the right decision for your financial situation.

Do you negotiate?  How successful have you been?

*Photo by oooh.oooh on Flickr*

The Super Bowl is just around the corner and if your house is about be invaded by party-goers, you might be worried about what hosting a huge party is going to cost you.

Potlucks and BYOB are always a good way to host a party on the cheap, but if you want to keep the burden off of your guests, here are a few way to keep the costs down on the food, decor and entertainment.

1. Food

A Super Bowl party is one event where you can get away with serving cheap food. Fact of the matter is, most people aren’t looking for prime rib. They want salty chips and cold beer.

Here are a few things that are easy to make and cost less than $5 each:

Deviled Eggs – Less than $3,00

Bag of Chips & Salsa – $4.00-$5.00

Vegetarian Chili – Around $5.00 for 8 servings (Add another $3.00 if you want the ground beef)

Carryout Pizza – $5.00 for a Large 1-Topping at places like Little Caesars & Hungry Howies

2. Decor

The elaborate, Martha Stewart-like decorations that adorn some football parties are fun, but truth be told, most folks won’t miss them. Save a few bucks and skip out on all of the team decor and football shaped piñatas.

If you’re insistent on decorating, a couple rolls of streamers in your favorite team’s color can go a long way to transforming a room. And if you’re feeling REALLY creative, decorating the party food can be a fun, cheap way to add some life to your party. Check out this massive football stadium we found made out of Doritos, Twinkies  and Guacamole. LOL! It’s brought to you by the fine folks over at HolyTaco.com and here are the step-by-step directions if you want to make your own.

Photo by HolyTaco.com

3. Entertainment

Once the game starts, all eyes will be on the TV, but try adding a little bit of entertainment to keep your guests engaged and socializing. Here are a couple of ideas…

• Start a friendly pool on which team will win how large the spread will be. I recommend setting a house maximum of $20 a person so that it doesn’t get out of control.
• Have all your guests guess how many beer commercials will air during the Super Bowl and send the winner home with a bottle of liquor.
• The folks over at HolidayCentral.com suggest putting together Superbowl Commercial Bingo. They advise you to “create or purchase 5 x 5 bingo cards. Each card must be unique for each player. Play the game like traditional bingo, but the squares on the bingo card will be based on things you will see in commercials during the Super Bowl. Some suggestions include:  Pizza Delivery Guy, Kick to the Groin, Soda Commercial, Talking Babies, Movie Trailer, GPS Commercial, or CarInsurance Commercial.  Any five squares in a row represent a Bingo win.”

Have fun everyone!!

*Superbowl party photo by jasonlam on flickr*

Do you want to know a simple, yet effective way to save money on groceries and to save on the household items you love and buy regularly?

Contact the company and let them know that you like their product.  Almost every time they will send you coupons for as little as .50 off to as much as free product coupons.

Unlike days of old, you don’t have to spend the time to write a letter and mail it out.  Simply contact the company via their online contact form or via the phone and let them know how you feel about their product.

When I found out I was dairy intolerant, there was only one company that made frozen meals I could eat.  I don’t eat frozen meals often, but I do like to have them on hand for convenience because they cost less than picking up a meal out.  I contacted the company, told them about my situation and thanked them for their product.  They rewarded me with five $2.00 off coupons.  Considering I could get the meals on sale for $2, I essentially got five free product coupons.

Just recently, I purchased a special dairy-free cheese that our family loves.  Because it was on sale, we bought 11 bags.  Yet, when we cooked omelets with it, the cheese had a funk; it just wasn’t the cheese we knew and loved.  We tried a few more bags, and each bag we tried was bad.  The grocery store said we could return the unopened ones, but we were out the price of the four bags we opened.  At $3.79 a bag on sale, we were out $15.  I called the company to complain, and they confirmed that the cheese doesn’t contain preservatives, so it could go bad if it was stored improperly.  She then took down my address and sent me 11 free product coupons to make up for the 11 bags that I bought.  Contacting the company saved me the $41.69 I would have otherwise been out.

A friend of mine wrote in to a company to complain about a problem with the pasta meal she purchased.  Rather than getting some coupons, the company sent her several of their products for free.  Was it worth her time to complain?  She certainly felt it was, and it was worth it for the company to respond as they did because now my friend gives them positive praise.

Whether you are contacting a company to praise their product, inquire about it as I did with the cheese, or complain about the product, you will usually be handsomely rewarded for your efforts.  Because it only takes a few minutes to send a message to the company, you might want to consider contacting a handful of companies a week.  You will see your efforts rewarded.

While contacting companies won’t be enough to get you a rockbottom grocery bill, it is helpful in lowering your overall grocery bill.  It can also help you save money on products you routinely use around the house.  Selectively contacting companies and pairing the coupons they send you with sales prices will make a positive impact on your budget.

Have you contacted companies before?  If so, what did you receive?

*Photo by Shiner.Clay on Flickr*

Many parents seek to adopt children for a variety of reasons.  Perhaps they are unable to have children of their own, or they already have biological children but cannot or do not want to have more or they simply want to expand their family and take care of a child in need.

While people enter the adoption path for a variety of reasons, most of them struggle to afford the high cost of adoption, which can cost upwards of $20,000.

If you are looking to adopt, here are some ways to raise the money to do so:

1. Use your skills to generate extra income.  There are many women who excel at a craft and sell their products on sites such as Etsy.  With the extra money that they make, they partially help fund their adoption account.  Likewise, both spouses could look into working additional hours or a side job to raise money to fund the adoption.
2. Slash your budget.  If you have any extras in your budget such as cable, a gym membership, dining out money and others, consider temporarily foregoing the luxuries and instead putting the money in an adoption fund.  When you receive tax money or other extra money, put it in your adoption fund.
3. Create an adoption website.  A woman I know who was adopting as a single parent created a website documenting her journey through the adoption process.  She also had a button where people could anonymously contribute to her adoption fund.  Friends told friends about the blog, and she raised quite a bit of money this way.
4. See if your employer offers assistance.  Many employers are now beginning to offer adoption assistance, sometimes offering as much as $4,000.  Check with your Human Resources department to see if this is a benefit your employer offers.
5. Apply for an adoption grant.  Obviously, these are very competitive, but organizations such as showhope.org offer grants to partially fund the adoption process.  People can apply after the home study visit.  All applicants at showhope.org are also eligible to take part in the Shirts of Hope program, which does not require any upfront costs and allows you to make a commission on t-shirts you sell to help fund your adoption.
6. See if your church offers assistance.  Some churches are willing to work with parishioners to help find ways to raise the money for adoption or to assist with fundraisers.  Check with your minister to see if your church can offer any support.
7. Borrow money.  Paying for your adoption without debt is ideal, but there are ways to finance it.  Although not recommended, some people have taken cash advances from their credit cards, borrowed from their retirement and taken out second mortgages.  However, remember that after you complete the adoption, you will have plenty of expenses associated with the baby, so it is best not to go into debt for the adoption.

Adoption is a process that helps unite children in need of loving homes with parents who want to raise them.  Whether you adopt domestically or internationally, the adoption process can cost thousands of dollars.

While you can borrow the funds for adoption, raising the money upfront yourself through slashing your budget, bringing in more income and pursuing grants and fund raising is preferred.  While it may take a bit longer to adopt if you raise the money upfront, doing so is possible, and you will be thankful that you did so when you are holding your new baby and don’t have to worry about how to pay off debt.

*Photo by mlaaker*

I call it pre-coffee ergophobia. It’s that 30 minute window between the time the coffee begins brewing until the time when the coffee has fully stimulated all of the neurons in your brain. During that time, you’re awake but still fearful of doing any type of work which might require brainpower.

It’s also the time that I find myself completely unable to fight off the calling of early morning infomercials.

Now mind you, I’ve never actually bought anything off of the TV, but I seriously think I’ve seen all of them. The Showtime Rotisserie. OxiClean. The NuWave Oven. And of course, my favorite, the ridiculous “No Money Down” real estate products. If you haven’t seen it or already wasted $360 buying it, allow me to spill the beans.

Here are a few of the ways they suggest getting a “no money down” mortgage…

“Buy to Let” Mortgage

These types of mortgages were very popular before the financial crisis, but they are a bit harder to get now. These loans are for rental properties and in order to qualify for the loan you have to use your future rental income as your collateral. It’s a bit easier to qualify if you can present a business plan and applications from prospective applicants.

However if you’re using a buy to let mortgage calculator, you’ll probably notice that your are going to be required to buy PMI insurance with this type of loan. That’s because loans issued with less than 20% down are usually required to buy this costly insurance which may reduce or eliminate your profit potential.

VA Loan

If you’re a veteran, active duty personnel, national guard/reserve or a surviving spouse, you’re probably eligible for a no-money down VA loan. Another huge advantage of VA loans are the exceptionally low rates (The mortgage interest calculator show the rate at 4.08% this month).

However, in order to qualify for a VA loan, you have to guarantee that you will personally live in the domicile within 60 days of the close. That all but eliminates your ability to rent out the property, unless you buy a home and rent out one of the rooms inside.

Collateral

A little obvious, but if you have another high-value item in your name, the bank may accept it as collateral.

A lot of the programs suggest leveraging your personal home or another rental property in order to qualify for a “no money” down loan. But, who hear has enough equity left in their home to leverage it? Anybody? Cricket…Cricket…

USDA Loan

The Department of Agriculture’s has a program for guaranteeing loans for “rural development.” However, the definition of “rural” is very loosely defined term. Take a look at the USDA’s website to see a map of eligible areas. Unless your looking to build downtown, you’ll probably qualify, although there are restrictions on household income and usually need to be a first-time homebuyer.

Another advantage of a USDA mortgage comes from a bank, is that you aren’t required to buy mortgage insurance. Instead, the USDA levies a 2 percent guarantee fee, which can be rolled into the loan amount.

So, fess up. Anybody else have an infomercial addiction? And, do you think “No Money Down” loans are a good idea?

*Photo by InAweofGod’sCreation*

Whether you’re fresh out of high school and looking to pursue higher education, or an adult learner with the desire to finish up a degree, college tuition is an expense that many wish they could avoid.

Saving money by buying cheap textbooks from the used bookstore and sticking to a strict budget are ways many students cut costs, but the fact remains: college tuition is at an all-time high.

Here are few other ways you can get your college degree on the cheap

Walk the Line

One innovative entrepreneur turned his vision into a multi-million-dollar enterprise by formulating a way to let students pay for affordable college credits on an a la carte basis. Burck Smith’s brain child, StraighterLine, offers online courses in subjects like math, business, accounting, and statistics.

This isn’t unusual: hundreds of online institutions of higher learning offer telecommuting opportunities while working toward degrees. StraighterLine took it one step further: their program allows students to take as many courses as they want for a flat rate of $99 a month, plus a $39 per-course registration fee. Aside from simplified fees, completing courses through the StraighterLine gives students a way to transfer the credits for classes they pass to an accredited college.

With a robust menu of participating accredited colleges who accept credit transfers (and hundreds of others who will consider acceptance of the transferred credits) it’s no wonder the StraighterLine was named by Fast Company as one of the “10 Most Innovative Companies in Education” for 2011.

Don’t Break the Bank

Non-traditional and traditional students both have one thing in common: the quest to save money while completing a degree program in order to further their careers. Even though dwindling federal and state aid, drops in fundraising, and an economy-driven raise in tuition rates have forced many colleges and universities to cut back on financial aid programs, scholarship assistance is still available.

Whether you’re a non-traditional student, single mom, or soldier, there’s likely a scholarship available to cover part or all of the cost of college. Web resources are a great way to get started in your search for scholarships. Avoid sites that charge money to search their database: check out college Web sites, or search for scholarship sources on sites such as FastWeb, Wiredscholar.com, CollegeAnswer.com, College Board, and ScholarshipCoach.com.

Team Up for Success

While scholarships can cover tuition or the costs associated with college courses, many students still opt to save money by purchasing cheap text books, carpooling, or taking on a roommate.

Non-traditional students may find themselves being supported by a spouse or significant other while completing a degree – only to switch places and return the favor. Students may find that taking the non-traditional road will allow for an easier transition between campus and career – all the while gaining an academic history that can propel their careers further, faster.

Regardless of the path you take while in pursuit of higher education, opportunities exist for those who are motivated – and dedicated – to finding ways to save money while gaining a college degree.

How have you saved money on higher education? Share your comments below…

*Photo by slowitdown*

I feel so thankful and blessed that you all continue to read Personal Finance Journey each week. And as a thank you to all of our wonderful readers, I’m giving away a $100 gift card to Target this month!

I’m using Rafflecopter to run this contest and you can enter up to 31 times! (10 regular entries + 21 entries from tweeting) Just make sure you enter before 12:01 a.m. February 2nd, 2012!

Good luck everyone!
 

a Rafflecopter giveaway

I don’t like cleaning; and I make no secret of that fact.  Dust can multiply for months, and I might notice that it is there, but I probably won’t clean it.  I do have the basics that I do every day—dishes, and general picking up.  I clean the bathrooms and sweep and mop the kitchen floor, so I am not a complete slob, but I hate deep cleaning.

A few years ago hiring a house cleaner seemed like a luxury I couldn’t afford.  However, my husband and I are in gazelle intense mode now that he has finished his Ph.D.  Simply put, we have a lot of debt to pay off from his many years in school.  I work from home and have recently come to the conclusion that I make more per hour than a housecleaner does.  I could justify the expense of a house cleaner coming in every two weeks to do more deep cleaning such as mopping the entire upstairs, dusting, cleaning blinds, etc. if I work during the time the housecleaner is there.

Many of us are conditioned to see outsourcing household chores as a luxury that we should not waste money on.  (At least that was the way I was raised.)  However, if you work a full-time job and have a side gig in the evenings and weekends, AND make more per hour than you would pay for the outsourcing, it may make sense to hire someone to do the tasks you don’t want to or don’t have the time to do.  I would much rather do my work than clean the house, and economically, it makes sense to outsource.

Of course, housecleaning isn’t the only chore you could outsource.   There is dry cleaning, lawn care, even meal planning.  (There are plenty of sites that offer meal plans at a reasonable cost.  Every week you login and they give you a list of meals, the recipes, and your grocery list.  All you have to do is the cooking and shopping.)  If you are thinking of outsourcing, choose tasks that you don’t like to do.  I happen to enjoy grocery shopping and cooking, so I don’t want to outsource that.  Cleaning?  That is a different story.

If you can easily afford to outsource, there may be no hesitation on your part.  However, if you are on a tight budget like we are or if you are trying to work as hard as you can to pay down debt as quickly as you can, you may feel that you cannot justify the expense of outsourcing.  Take the time to crunch the numbers.  If you can find someone in the neighborhood to mow your lawn at $20 per hour and you can make $40 per hour doing your own work, it makes sense to outsource because you still walk away with an extra $20 (the $40 you earned minus the $20 you paid to have someone mow).  If outsourcing gives you more hours to work and ultimately nets you more money, it may well be worth doing.

*Photo by Cole007*

It is not unusual for students to move several times over the course of their college career.  They may move from the dorm to an off campus apartment with friends and then to their own apartment.  However, before moving multiple times, think carefully about the expenses you will incur.

When I was in graduate school, I moved six times over the course of 2.5 years.  I had a nice apartment the first year, but it was small and a bit over my budget.  I thought the responsible thing to do would be to move to a cheaper apartment, but I ended up moving every few months after that for a number of different reasons.  However, in almost every apartment I moved to, the landlords never gave me back my security deposit, even though I had not caused any damage to the apartment.  I lost at least $1,000 over those moves in security deposits.  (I now know what they did was illegal and that I had rights as a tenant, but I didn’t know that then.)  Suddenly the savings I saw from moving to a different apartment evaporated.

When you move to the new apartment, you will have to pay a security deposit, typically 1 to 1.5x the amount of your monthly rent.  Some apartments also require that you pay first and last months’ rent also.  This can cost you several hundred to several thousand dollars upfront.

Then there is the expense of moving your belongings and furniture.  If you have to hire movers, this could run a couple of hundred dollars.  If you have friends that will help you move, buying them pizza is a nice gesture.  Depending on how many friends help, this could run you $50 to $75.  If you have large furniture to move, you will probably need to rent a moving truck for a day or two.

In addition to the larger expenses of possibly losing your security deposit from the old apartment, paying a security deposit and possible first and last months’ rent at the new apartment and the cost of the move itself, there are other smaller expenses.

-If your new apartment is not wired for the Internet service you prefer to use, you will need to pay for the installation.

-If you still use checks, you will need to pay for new checks with your new address on them.

-You may need to buy smaller items for the apartment such as new shower curtains, blinds, and other accessories.

There are many expenses that you will have to pay when in college.  While it may seem responsible to move to a cheaper apartment to save money on rent, make sure that you crunch the numbers to see if, after all of the associated moving costs, you are actually saving a significant amount of money.  Moving is not fun; why go through the hassle if your savings will be minimal?  The best bet is to choose a location you can live in for the majority, if not the entirety, of your college career and save yourself the expense and hassle of moving.

*Photo by Parvinder Singh*

You’ve probably been paying car insurance premiums since you were a teenager, but did you know that most states have ways that you can get out of the requirement?

I’ve recently been looking for a new car insurance company, so in between checking for the best auto insurance rates, I decided to check with my state’s website to find out the minimum insurance requirements. To my surprise – Florida is one of many states that have a method of opting out of the state insurance requirement.

Whether it’s fiscally responsible to opt out of car insurance or not is a decision I’ll let you make on your own, but if you’re interested in giving your agent a kick to the curb, here’s out to do it…

1. Surety Bond 

In most states you can purchase a surety bond which will eliminate your need to buy car insurance as long as you provide the state with the bond certificate. Surety bonds are used for a variety of purposes (bail bonds, business bonds, etc.), and are relatively easy to obtain as long as you have good credit.

Depending on the state, you’ll be required to purchase a bond with a value of anywhere from $25,000-$50,000. However, the advantage of a surety bond is that you are usually only required to put up 3%-5% of the total amount.

If you become involved in at-fault accident, you’ll be required to pay the damages out of your own pocket. That’s a risky proposition, but if you have a high net worth it might be an idea worthy of consideration.

2. Leave a Deposit with the DMV

Instead of purchasing a bond, you can leave a deposit with the DMV. For example, the state of California will let you opt out of the insurance requirement by leaving a $35,000 deposit (much to the chagrin of CA auto insurance companies). You’ll need to leave the full $35,000 (as opposed to the low 3-5% a surety bond charges), however this method eliminates the fees that come with a surety bond.

3. Self-Insure

The last option is to self-insure yourself. This is usually only an option for businesses that have a large fleet and there are usually strict requirements on net worth and financial stability. For example, Michigan requires that you have a net worth of more than $5,000,000 and more than 26 vehicles registered in your name.

Before you decide whether to opt out of car insurance, it might be smart to sit down with an accountant who can fully explain the risks and rewards. Eliminating a car insurance premium would save most of us several thousand a year, but you need to be prepared because a car accident could end up costing you hundreds of thousands or more!

*Photo by Ian Brittion*