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Pound-Wise and Penny-Foolish: 4 Ways I Save a Lot by Spending a Little More

June 21, 2016 · by Tiffany Merritt · Leave a Comment

Disclaimer: This post was sponsored by OxiClean™ through their partnership with POPSUGAR. While I was compensated by POPSUGAR to write a post about OxiClean™ all opinions are my own.

When I think back over the last 14 years of my life (the time I’ve been fully self-reliant, financially), I can recall MANY examples of teaching myself how to cut corners and save as much money as humanly possible. In the beginning, that was a survival technique (being a grad student in one of the country’s most expensive cities was rough, ya’ll). Over time, though, being penny-wise also became a way to go from “getting by” to actually thriving. Clipping coupons, taking advantage of free entertainment, and trying to avoid restaurants were just a few of the strategies we used to help us build up a nest egg to put a down payment on a house, buy a car, and even start our family. I’m so glad I learned how to spend wisely.

Spending wisely is what I was to talk about today, because it’s a common misconception that spending wisely means always spending as little as you possibly can. Experience has taught me that there are cases where being penny-wise can cause you to be pound-foolish. Sometimes you will honestly come out money ahead by spending more on the front end. Today I want to share 4 simple ways I save quite a bit of money by spending a little more.

spend more to save more

1. Vacation in a Condo

My family just got back from a week of vacation on Sanibel Island, Florida. We stayed 7 nights in a 2-bedroom condo and our housing cost us right around $160/night. I can tell you now that many hotel rooms on the island charge around that same amount, but I did find one reputable hotel that offered a room for $99/night. So why would I spend over $1100 on housing when I could have paid around $700?

Beyond the obvious benefit of comfort (1200 square feet of living space and separate rooms vs. roughly 300 square feet), there really is a cost benefit: the kitchen! Even if the hotel offered free breakfast, that still would leave my family to either eat pb&j sandwiches every single day for a week (no thanks) or having to go out to eat, which would cost hundreds of dollars. Because I rented a condo, I was able to shop for groceries at Publix, keeping food expenses lower, and I could get what I already knew my family would eat and enjoy, and I could prepare our meals while others played in the pool, napped, read, or did whatever they wanted to do, rather than driving over to a restaurant twice a day. The 3 adults on the trip took turns being in charge of food so that nobody felt overburdened with the task of meal prep, and none of us charged a gratuity! If we were in a hotel, we would have spent all the money we saved on housing on our food bill, easily. It’s my policy that if I’m staying somewhere for 3 nights or longer, I always upgrade to a home over a hotel room and I come out money ahead.

2. Buy a Superior Laundry Detergent

When people seek to save money, it always gives me a chuckle to see the things they tend to focus on as ways to save. Often they are very small things, like saving money on laundry detergent. Friends, I was that person several years ago who kept looking for ways to shave pennies off my expenses instead of looking for the ways to save hundreds of dollars. Are you doing the same thing? I’m certainly not making fun of you if you are, because I get it. It’s tempting to think that DIY stuff will make all the difference, and sometimes it does help the bottom line, but laundry detergent is not one of those areas, because you need to consider the whole picture here: you are dealing with the care of your clothing. The longer you can keep your clothes looking clean and bright, the longer you can wear them before needing to replace them.

best laundry detergent

Now I know better, and that’s why you’ll always find OxiClean™ HD™ Laundry Detergent in my laundry room. As my kids are growing, they are definitely putting more wear and tear on their clothes. OxiClean™ can’t help me with the holes in the knees of their pants that seem to pop up left and right, but stains? Not a problem! The stain fighter technology in OxiClean™ is worth every penny because I’m not losing outfits to a battle with marinara sauce, mud or markers. I also love OxiClean because it keeps the colors vibrant. My girls absolutely love to wear bright, bold colors and OxiClean™ helps the clothes maintain those awesome original hues.

colorful dress on the beach

OxiClean™ has also helped me stop being afraid to buy white clothing. For a long while there, I just stopped buying whites altogether, as I found that those clothes usually had set-in stains after one or two wears, and if they were lucky enough to escape stains, then they just became dingy. I started using OxiClean™ not long after my first was born (after a few rounds of destroyed white onesies, I got wise!) and I haven’t worried about my whites since. Pro tip: if you discover a stain on something in the hamper, add OxiClean™ directly to the spot for a little extra boost of stain-fighting power.

3. Subscribe to Digital Entertainment

Does a Netflix, Hulu, Amazon Prime or Sling TV subscription seem like an extra that just doesn’t make sense if you are trying to save? If you have no interest in television or movies, then I agree! But if you like to have movie nights at home (which is much cheaper than the borderline obscene cost of going to the movies), or if you like to unwind after the work day with a few episodes of a show you like, then the expense is SO totally worth it. The trick here is to cut your cable cord. I did it back in 2008 when my introductory cable subscription rate of $19.99/month ended and the price soared up to $80/month. I missed my beloved shows for about 4 days, and then I was over it. This was eight years ago, and now there are many MANY more options on digital formats. Spend the $20-$30/month on whatever combination of options make the most sense for you (for us it’s Netflix and Amazon Prime) and see how enjoyable they can be. Then let the cable go. You won’t feel denied of your favorites and you’ll actually save quite a lot of money, and even some time because commercials are either nonexistent or brief online.

4. Take Regular Trips to the Coffee Shop

I know, I know. I’m actually suggesting going out for coffee as a way to save? Doesn’t every money saving tip guide on the planet love to showcase how you can save thousands each year by ditching that beloved green mermaid? But hear me out. I’m not suggesting that you hit the drive thru on your way to work every morning or that you start buying Frappuccinos on the regular. But there is a place for a coffee shop visit, and here’s how it works for me. I personally head to Starbucks anywhere from 1-4 times during the work week. I go very early in the morning (6-8am) and I score 2 hours of uninterrupted work time during a time of day when my brain is working well (total morning person, right here). When I’m at home during this time, I’m helping make lunches, fielding 12,000 questions about life, searching for socks and shoes, brushing hair and doing other such things to help my kiddos get ready for school. My husband actually doesn’t mind flying solo during this lively period of time in the house, and I know from countless attempts that I can’t get a darn thing done, so it makes sense for me to fly the coop. I spend just under $2.50 for my tall iced coffee, and because I’m enrolled in the rewards program, I get a free refill. I am able to earn far more than that $2.50 by getting work done, and I’m much less stressed for the rest of the day, because my hardest work is already behind me by the time the rest of the family launches for the day. I suppose in this sense I don’t technically save money, but I free up time to make money, which is quite important if you want to have money to save in the first place!

coffee shop

I hope my tips provided some food for thought as you think about some ways that you might be being penny-wise and pound-foolish. Take a moment to think about a few simple changes you can make that might cost more today but help you save more over time. There’s no need to procrastinate on financial wellness!

Have any other tips about things that seem to cost more at first glance but that actually are great deals? I’d love to hear them!

How We Turned a Dream Vacation Into a Reality: Financial Goal-Setting

November 30, 2014 · by Tiffany Merritt · 8 Comments

Just two weeks ago my family returned from a 7 day trip to Walt Disney World. I wrote previously about our Disney vacation budget and was open and honest about just how much it cost. When it was all said and done, the bill came to $3,000 for my family’s share of the expenses (my in-laws traveled with us, so our actual total was higher but they paid their share of the costs).

For some folks, a $3,000 vacation is no big deal at all, and it might even be standard once or twice a year. For us, though, it was a BIG DEAL and a lot of money. Like most other Americans, we have debts (thankfully no credit card debt or car payments, but we have a mortgage and we have student loans). We don’t like being in debt (who does?) so we try to be aggressive about paying those down.

Being aggressive about debt reduction does not seem to pair well with saving for a dream vacation. But I would argue that they are not at all mutually exclusive. I do think that if you want to get out from under the choking death-grip of debt that you have to make some hard choices. For us, that means that we live in a small house to save on housing costs. It also means that I look for opportunities to bring in additional income to increase available funds. For me that means LOTS of very early mornings so that I can work while my kids are still sleeping. What those hard choices might look like for you and your family will likely be at least somewhat different.

But with that said, I refuse to deny my family the opportunity to make magical memories. Is going on an expensive vacation the only way to make such memories? Of course not. For me, though, being able to take my children to Disney World to live and breathe a week full of magic while they still fully believe in the magic was important. And so I started saving for Disney World the month after my oldest child was born, 5 years ago.

It was so important to me to save for this experience that I actually started a Disney fund before I started a college savings fund (that came along about 3 months later!). My #1 piece of advice for those of you who have a dream vacation that seems unattainable is to start a savings account and name it after the trip you want to take. So for us, we set up a savings account called “Disney World.” In the beginning, we set aside $50/month that was automatically transferred in from our checking account on the same day as many of our other bills were paid. Because the money was automatically removed very shortly after it was deposited from our paychecks, we really and truly never missed it. I think the automatic draft piece here is very important. You don’t have to rely on yourself to be disciplined; your account will be disciplined for you!

When we experienced job changes and our income was reduced by almost half while we were paying a mortgage AND rent for 5 months, we had to take a really hard look at all of our non-essential expenses. Our Disney World fund took a hit. We didn’t touch the money, but we reduced the monthly transfer amount to $10. I didn’t want to stop altogether, so we changed the amount to something very minimal, but we didn’t stop saving. I think that was important for me, mentally, to not give up on the dream, even though it would have taken us 25 years to save for the trip at that rate. Even if what you are able to save now isn’t “enough,” do it anyway. The day will come when you can save more, and you’ll have some momentum built up.

As my blog grew, I was able to make larger contributions to the fund over the past 2 years. When we connected with the Disney travel rep and got a price quote, then I knew how much more I needed to earn to take care of the entire bill. So I put my nose to the grindstone over the summer and did some extra work and had the entire bill covered by the end of September. If I had decided just this year that I wanted to take my family to Disney World ASAP, I would have had to go into debt to make it happen. Some people make that choice, but for my family, that really would have just meant that we wouldn’t have gone. Even though I have had a decent year with my income, and was able to provide for about 1/3 of the costs in just a handful of months, I still needed all that money that had been saved over the last 5 years to make the dream possible. I am so thankful to our past selves who never quit saving, even when all we had to give was $10/month. Every single penny saved helped us out, and we turned a dream into a reality without going into debt.

The process of setting aside money every month for a long period of time is not all that fun, and it can be hard to see the benefit when you are not that far along in your savings goal. For example, we had only saved up $600 when we had to drop our monthly contributions down to $10/month. I’d be lying if I told you that I didn’t feel a little hopeless and like we should just stop saving altogether and use the money for needed expenses (because things were certainly tight for that period of time!). Looking back, though, continuing to work toward our goal during that time was absolutely critical. The dream stayed alive through the lean times, so it got very special attention when our finances were better and we could save more. Basically, we believed in our dream and we refused to give up, even though we had to save at a snail’s pace.

When I hear people tell me that they could never afford a trip to Disney World, I have to raise an eyebrow. Obviously everyone deals with their own set of financial circumstances and I do not want to suggest that I know and understand yours. But this I do know to be true: what’s important will get taken care of. Period. If a dream vacation is important to you, really and truly, then you CAN make it happen. Start with a special savings account, and automate your monthly contributions. You can even set up transfers to happen twice a month, or even weekly! Whatever you need to do, do it. Don’t worry about the final bill and how you’ll ever get there. Just focus on contributing what you can now, and never give up on your dream.

Capital One 360 Black Friday Sale

There’s never been a better time to get started on achieving financial peace of mind, and setting a goal for a dream you have, be it to Disney World, the Caribbean, or anywhere else in the world you want to go. Definitely check out Capital One 360’s Black Friday Sale, because there are some GREAT opportunities to save money, and even to earn some money! Capital One 360 products are actually intended to help you save time and money. They are perfect for people who like to bank online or even on their mobile (yes, there’s an app for that!). If you are interested in a savings account, they are fee-free and they do earn interest. You can even take advantage of remote deposit capture with the CheckMate tool (I LOVE being able to deposit checks by snapping a photo of them…you’ll love it, too!). It’s a REALLY great way to take advantage of unexpected windfalls that might be headed your way (perhaps a year-end bonus or a Christmas gift in the form of a check? Send them straight to your savings account, friends!).

Here’s a complete list of the offerings happening right now with Capital One 360. Be sure to note the referral bonuses, because if you encourage your friends and family to also start pursuing their dreams and working toward financial peace of mind with Capital One 360, you can earn some extra money for YOUR dreams!

Product	Offer	Details
ShareBuilder	Up to $1,250 bonus (tiered offer)	Must be a new ShareBuilder customer
Home Loans	$1,250 off closing costs	Must sign up for the loan during the sale period
360 Checking	$100 bonus	Must make a $500 minimum initial deposit and make five transactions Must be new to 360 Checking
360 Savings	$100 bonus	Must make a $1,000 minimum initial deposit Must be new to 360 Savings
Refer a Friend	$40 bonus per successful referral	For someone to receive the referral bonus, they must be a current customer Their friend must meet the minimum initial deposit requirements Applies to all accounts

I’d love to hear if there is a special vacation you have on your heart and your mind. Have you started saving, yet? If not, what might be holding you back?

I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.