Ready-To-Use Financial Tips

We're all in the market for the best financial advice to make our lives a lot easier.  In today's excerpt from my upcoming book Intelligence For Your Life: Powerful Lessons For Personal Growth, I share some of the hard-earned wisdom I've gained from making the worst financial decisions of my life and the absolute best. 

I hope you'll find something useful to make your money matters less stressful:

While we’re simplifying and getting more focused (and destressing),we’d better get serious about financial focus. Personal finances are a great example of how quickly things can get out of control when we lose focus—but by the same token, re-focusing in this area can reap quick and substantial rewards! Consider these bits of intelligence for your wallet:

STOP clipping coupons from your paper and magazines. Coupon clippers often end up spending much more on items they would never buy without a coupon. Why don’t staples like milk, eggs, and bread ever have coupons? Because we always need them. There’s rarely a coupon for something we actually need. That would defeat the purpose of a coupon, which is to lure us into buying something we wouldn’t buy otherwise. So don’t fall for clever marketers who are eager to introduce you to their products—often-overpriced goods—with coupons.

WRITE it down! Always have a shopping list when you go to the market . . . and stick to it! Studies show you will save money on every trip, if you stick to your list—or at least try to stick to 80 percent of your list.

TRY an energy audit on your home. Many gas and electric companies in the US provide this audit for free or a small charge. Even hiring an energy-auditing pro at a one-time cost of a few hundred dollars can save you thousands of dollars in the long run.

AUDIT your phone bills every three months. Make sure that you’ve really made those calls, plus see areas where you might want to improve. If you have free cell minutes, it might be better to make a call with your cell rather than your landline.

BANK on the fact that you will save at least $100 a year, if your bank has free checking accounts. Compare different banks in your area and open a free checking account that requires no minimum balance. Then ask for a list of the fees associated with the account so you don’t get talked into an account with hidden costs.

You can find more of my financial tips in my upcoming book, Intelligence For Your Life:  Powerful Lessons For Personal Growth. Speaking of financial wisdom, listen to this:  if you  pre-order my book before the March 11th release date, I will autograph your copy of my book, give it to you at half price and you'll receive a free DVD of John Tesh Alive Music&Dance.  Don't delay.  Order now by just clicking here.

Comments

[Thor]

Lynda and Anna,

I think you are both missing the point that both Mr. Tesh and I are making. It's not that the internet isn't a great tool for saving nor is it that you shouldn't use the web for savings and shopping tips. Quite contrary. Read the excerpt again, it specifically refers to magazine and newspaper coupons. Not instant savings or web coupons. And the comment is based on research that shows that the vast majority of people who use coupons end up spending more money on items they don't necessarily need, NOT that it's impossible to save with coupons.

I don't disagree with either of you, and the reason I'm commenting is that I don't think Mr. Tesh does either. I'm not arguing anecdotally, as you are, I'm arguing in support of Mr. Tesh's STATISTICAL argument. And there's really no debate there. You're saying you can navigate your way to savings, but the fact is newspaper and magazine coupons are designed to make you try products you wouldn't otherwise get, and they rarely are for items you NEED. That's all. Nobody is saying there aren't OTHER ways to save money. He's just saying here are five quick tips to save money. Don't stop using those websites, although I doubt that they will continue to the point of ubiquity that ebay et al have achieved, since the efficiency of markets would dictate their ultimate ineffectiveness.

And lastly, Lynda, you wrote:

"If she was lucky, she saved 10 to 20 percent off their total bill by shopping this way.

MOST PEOPLE STILL SHOP THIS WAY TODAY. And, it’s what Mr. Tesh advises them to do."

That's not Mr. Tesh's advice. He is advocating that shoppers resist the marketer's lures not that they avoid other means of finding savings.

[Lynda]

Please allow me to clarify my “20 years out of date” reference.

What I was referring to was how people shopped for groceries 20 years ago. The best shopper prepared a list of the items she needed. She tried to find those items at the lowest price possible. Perhaps she found some on sale and bought the rest “off brand.” If she was lucky, she saved 10 to 20 percent off their total bill by shopping this way.

MOST PEOPLE STILL SHOP THIS WAY TODAY. And, it’s what Mr. Tesh advises them to do.

But the world has changed in 20 years, and a huge part of that change has been the arrival of the Internet. Shoppers now have not only access to greater and greater amounts of information, but also to technologies and communication resources that can empower them in ways that previously were not possible. This is just one aspect of a larger social revolution which Howard Rheingold calls “the smart mob.”

(See a reference in his blog to The Grocery Game at http://www.smartmobs.com/2003/11/28/the-grocery-game-collective-consumer-intelligence/)

Now, thanks to websites like SavingsAngel.com, a shopper can know before she even steps foot in the store exactly which sales are the best deals (not just sales promotions) and which coupons or other discounts can be applied to get the lowest price possible. (And that’s key here: coupons should only be applied to items already on sale.) The discounts are incredible. Expect at least 50 percent off on your total grocery bill, if not more. Getting a few free items is routine. Making a profit on a purchase is not unheard of.

And guess what happens when this shopper gets home? She logs back onto the website, posts a thread about her best deals of the day, and soon dozens of her online friends are out getting the exact same deals! … Mark my words. In another five years, these sites will be as familiar and as popular as eBay. …

BTW, we are not buying things that we don’t need. I have used these shopping strategies to buy soup, breakfast cereal, lunchmeat, frozen vegetables, cheese, peanut butter and even Cornish hens at ridiculously low prices. I will not pay more than 25 cents for a tube of toothpaste anymore, and I only get shampoo when it’s free.

Thor, you seem to conclude that most shoppers are not smart enough to figure out and overcome the marketers’ attempts to get us to spend lots of money. That may have been true 20 years ago, but no longer. Consumers are getting to be a lot more sophisticated than you -- or Mr. Tesh -- are giving them credit for.

We don’t need to cower on the shores. Jump on the cruise ship! It’s a party out here!

[Anna]

I too used to think the "safe" choice was to "sit on the shore" when it came to saving money using coupons. But no more. EVERY week I save at least 50% on grocery and non grocery items. I have a concise list which never includes things I didn't need in the first place. In fact at this point I ONLY buy what I have on the list. No fancy marketing tricks pull me in because I now realize that ALL the things I need go on sale and have coupons that correspond on a cycle. Patience is the key for me. I don't think that Tesh is out of date I just think like so many others he doesn't fully realize the scope of savings that are available to the average consumer. I encourage people to checkout web sites like Savings Angel (in West Michigan) this type of shopping is liberating and also a great deal of fun!

[Thor]

Lynda,

You drive home a good point. There ARE savings to be had by clipping coupons; however, I think you're missing the point of the article/blog post/book excerpt. It's NOT that there aren't savings to be had using coupons; it's that the vast majority of coupons are for items that you wouldn't necessarily buy if they weren't on sale, and thus you are spending money you wouldn't otherwise be spending.

We live in a culture of bargains. How many times have you purchased something because you felt the deal was just too good to pass up? I know I have. This means you're spending money you didn't 'need' to spend.

Furthermore, I applaud all the people in these comments who are able to abstain from purchasing excessive amounts of products simply because they are on sale. I'm not one of them, and I think the post is speaking to the majority of people who are undisciplined, and can't see the thin line between saving and being sold. It's a hard line to tow, for sure.

Also, there are 5 points of advice in the excerpt. You're choosing to focus all of your attention on one point. To say that the entire book is rendered out of date because you disagree with one point in one section of a book with several hundred pages borders on the absurd. Even if you are one of the few who has the necessary self control to be a 'clipper,' there are still things to be learned from this one passage, let alone the entire book.

In closing, I'd like to say, that I think you're out of line saying the book is twenty years out of date. Not only are you taking general advice and applying it to a very specific circumstance, but you're way off on your dates. IF one takes the advice the way you did, then the book becomes obsolete at the inception of discount advertising, or the Industrial Revolution. Therefore, this book is safely eighty years out of date, not twenty.

I think the advice in this excerpt is sound. For the majority of people, coupons do more harm than good. We get enticed into purchases we don't need in the name of savings. For some, they can navigate the shopping straits of Magellan and walk away a Captain of Savings. But for the rest of us, it's best to sit on the shores. Buy only the things you need and don't waste your time clipping coupons for items you don't.

[Lynda]

Mr. Louis Lapides states, "If there were a Southern California version of savinsgangel, I would sign up and give it my best shot." He also implies that due issues to fuel costs and traffic, joining such a club in Southern California would be foolhardy.

With great respect, and hopefully you will also see the humor in this, I must tell you that Teri Gault turned her coupon-clipping hobby into a club like SavingsAngel.com. The only differences is, The Grocery Game is a national franchise that has tens of thousands of members in all 50 states. ... Can you guess where Teri lives? ... Seen her buying 10 cans of dog food lately? ... :-)

www.grocerygame.com
www.thecouponmom.com
www.mygrocerydeals.com

These sites are all alike! Tons of people are saving tons of money using coupons and they live all over the country!

I'm sorry, but Mr. Tesh really missed the boat on this one. It's a shame his new book will feel about two decades behind when it comes to advice on how to stock your pantry and medicine cabinet.

[Louis Lapides]

I think the members of savingsangel.com have a great thing going out in Western Michigan (where they are located). I visited their website, checked out the testimonials as well as the stores these people were shopping in. Other than Walgreens, I never hard of the other market locales. I live in Southern California and we do not have the stores mentioned on the savingsangel website. I also noted there are membership fees to be part of savingsangel, though there are excellent incentives to recruit other potential angels as a way of reducing your own membership fees.

In John's excerpt he said, "Coupon clippers often end up spending much more on items they would never buy without a coupon. Why don’t staples like milk, eggs, and bread ever have coupons?" I have never seen a coupon for these perishable items ever in my life while living in Southern California. The philosophy of savingsangel is to stock up on items that go on sale. Instead of one can of dog food, buy 10 at a reduced price due to the coupon. I think John's right. You end up buying food you did not plan on purchasing simply because they're one sale . . . especially body cosmetic products.

In addition, the philosophy of savingsangel.com asks you to initially put out a lot of money to stock up. A lot of us cannot do that even if it means saving money in the long run. I also observed there were many different stores the consumer needs to visit to get these great deals. In Southern California that means lots of gas consumption which spells more money spent on fuel and more air pollution from all the drivers trying to get the best deal on toilet paper.

If there were a Southern California version of savinsgangel, I would sign up and give it my best shot. This coupons savings approach devised by savingsangel.com appears to only benefits our neighbors in Western Michigan and leaves the rest of us out. I am happy for them but I cannot share in the fullness of their consumer joy.

As a fan of John, I have observed that his blog and radio show reaches nation wide and tries to embrace everyone when he offers advice. He cannot steer his advice to benefit only one segment of our country.

I wish the savingsangels the best. You guys inspired me to spend this Sunday evening during the Oscars checking out my Sunday paper and start clipping coupons. Thanks for your advice and challenge.

[Brenda]

Dear Mr. Tesh,

I also have to disagree with you in regards to coupons. I save alot of money each week by using coupons. The trick is to apply the coupon at a time when the item is on sale. For example, a local grocery store had toothpaste on sale last weekend for 4 for $5.00. Now, that is a pretty good deal, only $1.25 each.. BUT, if you applied the coupons that were in the newspaper for $1.00 off each, I was able to get the toothpast for $.25 each. Now THAT is a good deal. A few weeks ago a local pharmacy had body wash on sale. I applied a $2.00 coupon to the body wash and I received body wash that is normally $5.99 for $1.99, PLUS they had a special deal that you get a body lotion free when you purchase this body wash. They also have many coupons in the paper for eggs, bread, cheese, and last week there was coupons for milk!! Country Dairy milk to be exact!! Another necessity for women is feminine products. There are coupons for that in the paper as well, when you combine the coupons with the sale that is going on this week, you can purchase these products before you need them, rather than waiting until you need them and then you have to pay full price. There are about 6000 people in the West Michigan area who are saving money by using coupons. Please research this before you tell people that it is not something that they should do. Please check out the website http://savingsangel.com/amember/go.php?r=4790&i=l1 this will explain to you and to your listeners how to use coupons to SAVE money on their groceries.

Thank you so much!

Brenda Lane

[Tonya Cheyne]

Dear Mr. Tesh,
Please let me start by saying my husband and I are huge fans of your show. You always have interesting topics, and we love the way in which you deliver them.
I must, however respectfully disagree with your opinion that clipping coupons is a waste of time and a clever trick my companies to entice you to spend more. I believe you've heard from several of my fellow West Michigan members of savingsangel.com. We have all been able to save literally hundreds on our yearly shopping bills by clipping coupons and using them at the right time. Even better, is that the money that has been saved is typically applied to old debt, or used to purchase items for donation to shelters.
I agree, there are lots of coupons out there that I'll never use, but I trade them with my fellow angels for ones that I will use. (One man's trash is another's treasure.) I also have coupons for staples, such as bread, milk, and eggs.
So please, don't be so quick to write off coupon clipping. When applied properly, they are a true blessing. I appreciate your time and consideration.
Sincerely,
Mrs. Tonya Cheyne

[Carie (Credit Card Debt Free but a Disappointed Tesh Fan)]

Wtih all due respect, I completely DISAGREE on your advice regarding cutting coupons. I have been a member of an organization called Savings Angel since December and have saved HUNDREDS of dollars by taking advantage of store sales in combination with using coupons. In fact, in January alone I purchased $1,635.81 worth of groceries and household items and paid only $559.26, a savings of $1,076.55. How can you possibly consider not paying attention to coupons not worth it? It takes me an average of 2 hours a week to make my list, clip my coupons, and shop. If you take my average weekly savings of $269, I figure I'm "Paying Myself" about $135 an hour! In today's economy, what many of us struggling consumers have IS TIME....NOT extra money! You claim the things we need don't have coupons? Yesterday I purchased Crest toothpaste for .25! I was able to purchase over 10 tubes of which I'll be sending to Guatemala this summer for a missions trip. I also purchased Aunt Millie's whole wheat bread for $.75. How about a $.50 off coupon for Country Dairy milk? How about Cinnamon Life Cereal, Mueller's Whole Grain Spaghetti, Garnier Shampoo, Colgate toothbrushes, Peter Pan peanut butter all for FREE! Sound too good to be true? It's NOT!! My food pantry is growing to the point where I'm now in a position to donate regularly to local food pantries BECAUSE OF clipping coupons. Savings Angel is a PROVEN method of saving a significant amount of money. Is your advice of NOT clipping coupons PROVEN to be effective? It's unfortunate that this book is being published containing advice on an area you are clearly misinformed about.

[Jill]

Dear John,
I can't begin to tell you how much I love listening to your usefull information and advice on the radio and reading the articles on your website. I just absoulutely cannot get enough! Thank-You soooooo much!

P.S. I am looking forward to reading your book and giving them as gifts!