Monthly Archives: February 2010

3 Benefits of Debt

In the personal finance community, it’s best to be out of debt. Without a question, I would rather be $20,000 richer and not have to worry about my student loans. Still, there are several advantages to being in debt:

1. Boost Your Credit Score – When you are building your way out of debt and making your car loan, student loans, and credit cards payments on time, you are improving your credit score. In the short term, being in debt may cost you in interest, but in the long run, you may save thousands by having that good credit score when you get a mortgage.

2. Tax Deductions – Student loans and mortgages are tax deductible, and can lower your overall tax bill. So in addition to owning a home and having a college education, we can take solace that the tax bill won’t be quite as high.

3. You’ll Learn Great Lessons About Personal Finance – When you don’t have to worry about your finances, you don’t worry much about managing them. Once you become responsible for your finances, you realize just how much it is costing you and try and avoid it at all costs. Those who are in debt learn quickly from the experience and are better off afterward.

I don’t advocate being in debt to collect on any of these benefits, but I include it in the reasons why I’m ok with being in debt and why I am saving instead of aggressively paying off my student loans.

Best of the Rest: Valentine’s Day Edition

I hope everyone is doing something special for Valentine’s Day. I’ll be making homemade pizza with Lauren, and this time I’ll be helpful (we tried this once before but it turned out to be her cooking while I watched baseball). I hope everyone has a special day. Let me know if you did anything fun!

Two articles that I enjoyed this week focused on whether you should use savings to pay off debt.

The first was on Personal Finance Journey, where Lakita argued to pay it off and several readers in the comments said that paying off the debt was very liberating and should be done with no question.

My Dollar Plan had a similar article but argued that the liquidity of money should be factored into the equation. I happen to agree and have my money in a savings account rather than making extra payments on my student loans.

And the other favorite articles:

MoneyNing explores your cell phone bills and shows ways to cut costs with cell phone contracts.

Five Cent Nickel looks at interest free financing and cash discounts.

And of course, for Valentine’s day: Budgets Are Sexy gives us The Top 10 Ways to Woo on Budget (or perhaps ever?)


This week, my True Cost of Coffee post was chosen as a favorite in the Money Hackers Carnival hosted by Need Money Tips. Thanks!

The Best Deal I Ever Got

Today is a great day for everyone. For me, I got a snow day. As I’m sure you’ve heard, we’ve been experience snowmageddon here in D.C., but I wasn’t able to participate in the joy because I’ve had work every day this week. Until now. So I’m going to catch up on some work, pay some bills, and get a little extra sleep.

For you, I have a great post. My favorite posts are ones where I teach a lesson by using a personal example. And that’s exactly what I have for you today.

A friend told me he was looking for a new camera, so we did a little investigating and found something reasonable. Our only requirements were that it was small, look sleek, and have a rechargeable battery. Several camera fit the bill, but the Canon SD 1200 was the best of the bunch. It was rated better than the other cameras, but that quality also came with a price: $180.

I use several different ways to find great deals. My first stop is Google shopping. I organize by price and see what the lowest going rate is. $160 for the camera. Slightly lower than Staples, but nothing to brag about.

My second stop is Slickdeals. These people don’t leave any rock unturned and have the best deal. Since these are users submitting deals, you know you’re getting the sneakiest, best deals around.

Using Slickdeals, I found the camera for $180 at Staples, but it came with a $50 VISA debit card. Realistically, that dropped the price to $130.

But these people weren’t done yet. They also mentioned a rebate for people who had previously bought and registered a camera with Canon. Since I had the Canon SD1000 I was eligible for $20 off. That bought the realistic price down to $110.

$70 off the sticker price was great, right? My friend was ready to make the transaction, but I told him patience was a virtue and that I’d look for one more thing.

With all the sneaky deals these people thought of, they did leave out one possibility: getting a coupon from the store. While I didn’t have any Staples coupons, I was able to find a $30 off $150 coupon that I could buy for $3.49. I wasn’t sure it would work out, but I bought it anyway because it’s a low risk, high reward type of transaction.

So this is how it worked out: From $180, the $30 off $150 coupon was applied first, bring the price down to $150. Then the $50 debit card brought it down to just $100. Finally, the $20 Canon rebate reduced the price to $80. Add in the $3.49 to bring the total price to $133.49 in return for the camera and a $50 VISA debit card, or a net $83.49.

My friend was ecstatic and I was very proud of myself for helping out. I’ve gotten great deals before, but a 53% discount for a total of $96.51 off was something even I’m amazed at.

What tools do you use to find great deals?

Festival of Frugality #216

Welcome to Sweating the Big Stuff and to the Festival of Frugality #216.

This is my first time hosting a festival, so for those who don’t know, a carnival or festival is a round-up of articles on a topic and is hosted by a different blog each week.

Since this week was all about the Super Bowl, so I thought I’d split up the posts into corresponding parts of a football team. Enjoy!

Super Bowl MVPs (Most Virtuous Picks):

Joe from Personal Finance By The Book presents Tax Refund? How You Should Use It and Why You Should Lose It.

MD of Studenomics presents 8 Principles for a Frugal College Student to Follow.

Darwin’s Finance presents How Much Could You Reduce Your Budget if You Get Laid Off?

My Dollar Plan presents Throw a 50th Wedding Anniversary on a Budget.

Quarterbacks (Putting up Points):

Kyle of Suburban Dollar presents 3 Website that Save Me Money.

Paul of Provident Planning presents Thrift Store Bargains.

David of Personal Finance Analyst presents Cars for Under 500 Dollars: How to Find Them.

Defensive Line (Preventing the Enemy from Scoring):

The Sun’s Financial Diary presents 7 Ways to Control Spending When You Have Out-of-Town Guests.

Rachel of Quirky Momma presents Pinch those Pennies: 50 Tips to be Frugal.

Craig of Money Help For Christians presents 10 Unique, Personalized, and Cheap Valentines Day Gifts.

Tom of FSC Blog presents Tips to Lowering Your Cable Bill.

Katie of OC Mom’s Activity Guide presents Cost Saving Make at Home Specialty Coffee Recipes.

Tom of Canadian Finance Blog presents Reduce Your Electricity Bill By Choosing An LCD TV Instead Of Plasma.

Steve of Propose To My Girlfriend presents Cheap Wedding Plans – How to Save A Bundle of Money on Your Dream Wedding.

Coaches (Planning for the Future):

Credit Shout presents How To: Manage Your Credit with Mint.com.

Silicon Valley Blogger of The Digerati Life presents Best High Yield Savings Accounts.

Jeff Rose of Good Financial Cents presents There’s Room for Life Insurance in Your Budget.

Gather Little by Little presents Our Bank Network.

Patrick of Cash Money Life presents How Much Should You Leave Your Children’s Guardians in Your Will.

The Smarter Wallet presents Managing Our Family Finances During A Jobless Recovery.

Rookies (Learning Lessons):

Mike of The Frugal Law Student presents Is Law School Worth The Cost?

Bob of Christian Personal Finance presents A Bunch of Great Ways to Save Money.

Patrick of Military Finance Network presents What Kind of Insurance Do You Need?

Condo Blues presents Keep in the Heat: Insulate Outlets and Switches.

Kickers (Short but to the Point):

Jason of Live Real, Now presents Clearing Up Social Debt in 3 Steps.

Yasmeen guests posts at PT Money with Stay Slim on a Trimmed Budget: Inexpensive Healthy Foods.

Free From Broke presents Eating Well On A Budget.

Referees (Enforcing the Rules):

Matt from Debt Free Adventure presents TurboTax – Prepare Taxes Online – Free eFile.

FIRE Finance presents Donating an Old Car May Not Be Tax Deductible.

Joel of Credit Card Chaser presents Government Help for Credit Card Debt: Grants, Loans, & Other Mythical Creatures.

Offensive Live (Under Appreciated, But Some of My Favorites):

Lean Life Coach of Eliminate the Muda presents We Canceled My Wife’s Life Insurance.

Neal of Wealth Pilgrim presents Free Weight Loss Program Still Working and Paying Unexpected Dividends.

J. Money of Budgets are Sexy presents 6 Questions to Financially Get to Know Each Other.

Free Money Finance Presents Top Six Mindless Money Wasters.

Dough Roller presents List of Free Prepaid Credit Cards.

Wide Receivers (Flashy):

Big Cajun Man of Canadian Personal Finance Blog presents Financial Shock Collar.


Thanks for all of those who submitted articles, and head over to the Festival of Frugality page to submit articles for next week or host the festival yourself.