While I consider myself a savvy shopper, I do not fall into the coupon obsession crowd. As I mentioned in my earlier post on frugality, my strategies are different – buy un-seasonally, plan purchases ahead of time. So to begin with, I was a skeptic on the whole group buying phenomenon – GroupOn, SavvySource and Plum District. I needed some more proof of the concept working.

All of these websites, offer a “group deal” usually valid for purchase for a limited time, anywhere between a few hours to a few days. The price that you pay is at a discount of the original price. I would always take the original price with a pinch of salt. You will be forgiven if you thought the price was jacked up only to discount it later. My husband signed me up for Group On email newsletter a while ago – but the nearest location for their deals was San Francisco which is an hour away from where we live. Then I read an article in the East Bay Parent magazine that was hugely complementary of the great benefits that some of these websites offered. I decided to try them out for myself. I joined Plum District and Savvy Source.

For a couple of weeks I casually browsed the deals offered by both these websites, but nothing tempted me enough. But in October, I saw a deal that was too good to be true. It was for an dental exam, cleaning and x-ray for $49. That was less than half the price that my regular dentist charged me. Dental exams are not the first thing you would go about trying at a new place. Dental exams are never fun so I thought why not. I checked with a few more local dentists who could not match the price offered on Plum Deal. I wondered why the deal was being offered by the dentist on Plum Deal. Turns out, they were offering this deal to publicize the opening of their new location. I Yelp-ed them and found out that they had a favorable reputation. Then I went ahead and bought the “deal”. (I have my appointment next week – will definitely update my experience with them then)

Soon after the above experience, I saw one on Savvy Source. It was a for a Annual Family Membership to the Oakland Zoo for the price of $40. The regular price for the family membership to the Zoo is $95. This was a great deal and I was quick to purchase it and also to recommend it to a friend.

While I will be a little wary of any website that touts to offer the best deals in town, I will also be checking these websites’ offers to local museums, activities.

So if you are enthused about this group buying concept and want to give it a try here are some tips to keep in mind

1. Read the fine print – the expiration, gotchas etc.
2. If your deal is valid for a extended period of time, go ahead and set up a calendar reminder so you do not lose track of it.
3. Call the vendor and confirm.
4. Remember that most of the deals are Non-Refundable. So if you are not able to use it – gift it before they expire.
5. If you are buying long term services (annual Spa membership), please make sure that you have means to avail of services or get money back if the vendor closes shop.

If you have had any experiences with any of these group buying services, please do share with me.

Update: I had my dentist appointment yesterday. The dentist clinic was state-of-the-art compared to the me-too dentist clinics I had been going to before. All hi-tech equipment and clinic with TVs in the ceiling while I am on the dentist’s chair. I have to say it a men’s paradise. They will not miss a minute of NFL on Sundays even while they are on the dentist’s chair. The dentist looked at my teeth and x-rays of my teeth, finished the cleaning and I was out in under 30 minutes.  Just out of curiosity and now with the taste of extremely subsidized (“deal”), I asked the dentist what the regular price of the same appointment would be without the Plum Deal. It turns out the price was 3 times more. Needless to say, it would be the last time we would be visiting them.

No No!  Hold on! This is not a GIECO Ad that I am replaying.

Read on and see how I managed to save $40 bucks a month by just doing my routine checks into bills and visiting the service provider’s web site. All it took was a 20 minutes on the phone with a service rep, who was surprisingly in the Thanksgiving mood and no waiting time whatsoever.

As with all households we have fixed expenses that include utilities (telecom, waste, power and water). While we have moved everything to e-bill and electronic bill pay, we do have this routine activity to review the bills and see if something is off kilter. So today was the telecom bill review day. We have a basic DSL (Pro as it is called by AT&T, with 3Mbps speed), a family plan for wireless 59.99 per month (550 minutes per month and the other bells & whistles like free in-network calling and evening/weekend relief) + a barebones landline required for DSL.

So with all that we ran a $105 per month. Add uncle sam’s toll on top of that to make it ~$120pm.

While checking the AT&T website today we saw that the same DSL plan we had was going for 19.95 so we jumped on the call to move to that plan. Whilst we were still talking to the rep it seems like AT&T’s latest promotion kicked in and the same $19.95, which we were already delighted to have, now had become $14.95. Straight $15 per month shaved off the bill. While doing that we also saw AT&T had introduced a new option where you do not need to have a landline to run DSL. This was double dipping at its best. We moved our DSL to $14.95 and cut that landline. That is another $15 per month saved. I hope the telemarketers, who so lovingly called us at dinner time, on that line, won’t feel disengaged.

Then onto the wireless service. When it came to cell phone usage, we fall into that reluctant bunch that uses the  cellphone only for necessity and not those long conversations about nothing. As a result a lot of our monthly quota of minutes went unused (despite the rollover of minutes). Google Voice, Skype is increasingly become our mode of conversation.  We impressed upon them the fact that we have been a loyal customer for 12 years and we are definitely considering moving to another service if we cannot cut down our current fare. Lo and Behold, the “customer success” person pulled out a magic plan – not advertised on their site. Apparently it is only reserved for loyal customers (wink!). As you can imagine the customer acquisition costs for AT&T are much higher than the small reduction they offered to a loyal customer. So there – we went from 550 minutes a month (250 of which was unused) to 450 minutes a month. We get to keep all the other bells and whistles and still have lots of talk time to spare.

So  that’s how we saved $40 a month by spending 20 minutes on the phone. Here is the breakdown – add it all up and it comes around $480 per year. Not shabby eh?

Update: Just something to keep in mind while working telecom companies (sigh!), they are not your typical “smart” companies. AT&T leads the pack of … So don’t overwhelm them asking more than one change at one go. Ask one change on one call and then call again for the next change. Believe me it is worth it.

As we all know the day after Thanksgiving is the year’s biggest shopping day of the whole year. We scour through the newspapers, grab store flyers, and hunt across the internet for the big deal. This year  most stores have added a new channel – they are publishing their best deals only to their Facebook fans. So what are some of the best strategies to get the best deals. Let me share some of my quick strategies.

• Make a list and check it twice. This a very important step. By Tuesday evening, you should have a list of things that you absolutely need. Have another list of nice to have’s – if the deal is good. Also have a price marked next to each – don’t assume that everything at the store is at a discount. You should have some idea of the regular price (oxymoron alert?) of items – so that when you find the deal you know it. This is one of the best times for buying the toys, the other being after Christmas. I do make the trip on Friday ( or Saturday) after Thanksgiving to buy clothes – just the basics, jeans, shirts, sweaters. If I find a good deal I will buy a few extras for the kids – one size bigger for the next year.
• Plot your way. Know which shops you want to go first.Know when it opens. Most shops will publish their opening times. But the early bird deals are not released till Thursday. This year a lot of retailers are giving their Facebook fans a look into the 2-day deals. For all you Facebook aficionados this is the time to make all that time on Facebook pay. The other avenue is to get on the retailers e-mail list or check their websites. Target, Macys, JCPenney all have their  sale list on their websites.
• Plan Ahead. Now if you are one of those who needs to have the latest and the best gadgets –  then plan ahead. Best Buy, Sears and Wal-mart usually have great deals. But how about those early bird deals? If you are the first 50, or the first 20 to enter the store etc. Well I assume you know that to get in on these deals you have to literally camp out in front of the store at least a day in advance. If you like the thrill of getting the deal and don’t mind the hussle for a couple of days, by all means go ahead and do that. Tip: Don’t think about just the upcoming Christmas season. Think about what you need for the whole year that follows. If you plan and budget you can score good deals that will stand you for the whole year. For example, you can be prepared with toys and presents for all the birthday parties that your kids will attend.
• Once in a while deals: While we focus on buying regular stuff, this is also a good time for big ticket items. Appliances, HDTV, Entertainment devices – lookout for price drops or promotions. This year for example, if you are in the market for a washer and dryer (front-loading), one of the best deals out there is by Sears – both for 599. That is a good deal considering that the Kenmore brand is usually higher priced.
• Shop early – like a day early. If you are not a morning person and don’t dig the crowd – then do what I do. I start the shopping early – on Thursday. For the past couple of years, I have noticed a trend – more retailers are having some of their deals available online a day earlier – on Thanksgiving Day. So if you want to avoid the Friday morning dash, check out your favorite retailer online Thursday. Most offer free shipping. If you happen to have a discount coupon for them even better.
• Or shop late. On Black-friday I go to the mall around lunch time – after 11 a.m. Everyones got to eat – and I have seen that the stores are little easier to get into when the morning birds go to eat or get home to hit the bed. Of course, the stores are a little in disarray after the morning rush and maybe, just maybe I may not get the best deals, atleast I got a good night’s sleep !
• Or shop really really late. If you have missed the 2 days weekend sale or you are really a savvy shopper, Cyber-Monday is another day to catch the deals. There are tons of retailers, other than the pioneer Amazon who will offer incredible deals online.

However something to keep in mind – it is easy to lose control and go on a buying spree. Buy only things that you really need. It also a good teaching opportunity for your kids. Encourage them to think of those who don’t have as much. Teach them what the holidays are really about – family and friends.

And don’t forget the deal that gets missed out by most. Identify the charity, hospital or school that is dear to you and write a check. That deal keeps on giving – the happiness you cannot buy at a retailer.

In the current economic recession everyone of us is looking for ways to reduce unnecessary spending. Back during the glory days, we got addicted to the habit of spending without flinching for a moment. Now hopefully with the lessons learned from the downturn, the fact that materialism works great for the country’s economy – but not for our our economy has registered well.

The word Frugality long a fancy name for cheap – has become fashionable now. Frugality to me does not necessarily mean or need to be dollar store shopping. It can be smart, easy and achievable – but it is a lifestyle change. It is the way our parents and their parents lived to put us through to a better quality life. I would like to explore some strategies to achieve that in our times.

So where does one start?

The first place to start is by taking stock of your expenses. Look through your bills for the previous 3-6 months and identify where your money goes. If you pay your bills with credit cards – most of these have tools which show a chart explaining your spending patterns. Budgeting is a painful task but trust me it pays off.

Here are some simple ways to cut expenses without feeling a pinch.

• Keep what you need: A lot of people subscribe to cable and satellite bundles with a lot of channels. Really, how many of these channels do you regularly watch? Check if you can move to a lower bundle or go without the cable/satellite for a few weeks. I thought I could not live without cable and my HGTV, but since we shut off cable almost 4 years ago, I seem to have taken it in stride easily.  As a blessing in disguise, I have been spending that time watching the great programming on PBS – lots of educational information. And for the programs that I never had time but was missing, I continue to watch them on Hulu.
• Use what you have: In this age when cellphones have become an extension of our lives, most of you might be realizing that the land line is being under utilized. We did away with our land line. Not completely. We actually moved to a bare bones plan which is just to receive in-coming calls and for DSL (if that is your broadband connection). Check out the if a bundle – internet access, phone and TV makes it cheaper. Most cell phone plans have enough minutes that you can actually live without a land line. Additionally, see if you can get a Google Voice for FREE local and long distance calling. In addition to dialing on the web, you can also use their blackberry and other mobile apps to call.
• Plan ahead: One of the simplest ways to reduce expenses is in your grocery shopping. Planning meals ahead of time helps you figure out the ingredients needed. Armed with the ingredients list, you can cut your shopping trips – saving some time and gas. Alternatively, you can combine this with the grocery store coupons weekly. You can find a lot of coupon strategies on the internet by moms who have mastered that art. I have experienced an added bonus from planning meals ahead – when I put the meal plan where it is visible, whoever gets home first starts preparing – the “menu” is available and the ingredients are all ready in the pantry or refrigerator.
• Buy Bulk: Buying in bulk saves money. Warehouse clubs (Costco, Sam’s Club, BJ’s) offer almost everything in bulk, including produce. If somethings in bulk are beyond your consumption levels (10lbs of potatoes anyone) then find a friend who might be interested in co-buying with you. I have a couple of Costco buddies with whom I split vegetables, cheese and even the twin packs of Jelly that come is larger quantity that we can consume by ourselves. The additional benefit is helps me reduce my trips to Costco as we take turns. Not to mention the contribution to the eco-friendliness there. Bulk means reduced packaging, less wastage and also fewer trips to the store – less gas usage.
• Buy un-seasonally: I thought it was just me that did this but upon talking to some friends of mine, it seems like they have made it an art. Buying clothes toward the end of the season or after, can save money, especially if you have growing children. Shop for basics T-Shirts toward the end of the summer season. These will be on end-of-season sale. The seasons vary in different places – so remember to check your local stores. What you do is buy some clothes one size bigger so that you are not running to the store in the middle of the summer looking for the correct size and pay full price. Just as retailers plan seasonal sales strategy, you are countering it with a post-season strategy.

• Make hay when the Sun shines: How many of you weather the day-after Thanksgiving shopping frenzy ? But it is a great time for deals – if you plan properly. I have a friend who stocks up on toys, craft kits, games etc. available on sale for birthday gifts for the upcoming year. She so is well-organized that she rarely has to do the last minute run for anything. She also buys clothes etc. at the end of the season. We all call her the deal-queen. But her secret to these amazing deals is timing and planning.
• Apply the strategy elsewhere: Clothes aren’t the only things to buy at the end of the season. You can apply the same strategy for your big buys. Home Improvements done at right time saves a lot of money. For instance, buying a new furnace in spring or summer can save you money in not just the equipment but also the installation costs. Similarly you can save on fans at the end of summer or in the fall. We saved on the cost of painting our house during November. Not only did we save money – but the painting contractor was available easily when we needed – we did not have to wait for him.

• Stick to the list: Have you noticed that shops keep moving things around a lot. It is not just for some logistical issue or for want of space that they do that. I might be preaching to the choir here. But the goal behind doing this switcheroo is to get you to spend more time in the shop looking for things you need and along the way hopefully get you to indulge in impulse buys. To counter this, always go shopping with a list in hand. Here is something that has worked for us. We maintain an ongoing list of things we need and put a store name next to it. I jot down anything I remember that need to buy, including gifts for birthdays parties, craft supplies or household supplies. This is the master list we stick to.
• Check thy utility: Another way to cut on your expenses is to check your utility usage. If you pay attention to your energy usage you will find lots of ways to reduce wastage there as I alluded to in my $40 utility bill post.
• Make your Tax work for you: One of the great things about this country is that majority of the tax dollars we pay get used to some really great things for the community – Parks, Libraries, City Hall, Fire station etc. I think most of us pay taxes and forget that we can take advantage of those benefits afforded to us. Using the local library is a great alternative to buying books, DVDs and CDs. In addition to saving money it also helps reduce the clutter in your house if you were to buy them. If you end up saving a lot of money, go ahead and consider donating some to your neighborhood library – it helps a lot of others that can also benefit.
• Check the Plastic: Despite the de-leveraging of the American economy and citizens, we still cannot forgo our plastic. But some careful decisions while choosing the right credit card can save you a lot of money.  Costco Amex card for example gives back enough money to pay for your membership and then some. Every gas purchase puts some money back in your pocket.
• Make Costco pay for the membership: I am a big fan of Costco. Besides the wholesale purchases at better-than-anywhere prices, they also have a lot of other services that are available to you as a member. Insurance (Home and Automobile), Travel Services, Vacation packages, Payroll services, Stamps, Check Printing and lot more. Make sure you evaluate them before you go elsewhere. You membership fees affords you all these and from experience – all of the aforementioned services have been great for us.
• Share the ride: Carpooling with your children’s friends for school and other activities can save you money and some time. This holds true for baby-sitting also. Trading baby-sitting duties with your friends can save you money and give you that peace of mind when you are enjoying some much needed down time.

I will keep this list running and would welcome any suggestions you think are apt as additions to this list.

With the news of the financial stimulus package being all the rage these days, President Barrack Obama signed the stimulus package yesterday at Denver CO while also sharing some details of the $50B bailout package to help homeowners who are in the water.

The stimulus package means a lot of things to lots of us. Check out what it means to you.
http://finance.senate.gov/press/Bpress/2009press/prb021209.pdf

If you happen to be a worker, who lost his job recently, here are specific things you might be interested and benefit from
http://www.kiplinger.com/columns/ask/archive/2009/q0216.htm