I have been doing something silly in an effort to save money.  I turned my thermostat down to 55.  Let me tell you why that is a bad idea.  I’m seriously freezing my buns off!!

What all started this was my electric bill this month. I was expecting it to be about $120. When I opened it and saw it was $165, I about had a heart attack! I know it could be worse, but when you’re expecting it to be less it’s shocking.  I decided I was going to go off the deep end and make sure my electric bill wasn’t that high this month.  I set my thermostat at 55.

The other night when I got home I went into my bedroom to change (and put on two sweaters) and the thermometer in there read 49 degrees.  That was my wake up call.  I realized that it’s ridiculous to be miserable in a house that is 55 degrees (or lower) and save money.  What’s the point of saving money if I freeze to death?  I turned the thermostat up to 65 and left it at that.  I’ve been happy since.  I realized it wasn’t worth worrying over.  I’ve got bigger battles to pick.  I enjoy my house much more, am happier, and now I don’t have to worry about my pipes freezing.  It’s a win-win situation.

There has to be a balance between being frugal and happiness.  If I went the whole winter with my heat at 55, I would survive.  It probably wouldn’t be the most pleasant winter, but I would live. Is the $20 extra a month on my electric bill to be warm worth it? Yes. I think it’s important to realize that even though our financial goals may be large, we need to remember to stop and enjoy the small things that may cost us a little more money.  In the end, that’s what it’s all about anyway. 

Posted under Money Mistakes

I’d like to introduce you to one of my favorite bloggers, Ashley from Wide Open Wallet. Ashley is a 31 year old stay at home mom to two children. Her take on being frugal and saving money is always uplifting and very entertaining. I recently had a chance to interview her about her personal finance story among other things.  Please subscribe to her feed today so you don’t miss out! I’m sure you’ll love her blog.

What made you want to start your blog?

Two things. One, I’ve always had a strong interest in personal finance so I thought I would have plenty to say. Two, I was writing a “mom blog” for my friends and family and a lot of times I wanted to talk about our finances but didn’t feel comfortable since everyone I know reads it. So I thought it would be fun to start a new blog just about money. It’s really morphed into way more than I ever thought it would be.

What first got you interested in personal finance?

I’ve always thought in terms of money and had an interest in personal finance type stuff. I didn’t know it was a “thing” until I was about 19 or so. I was hanging out at a friend’s house and her dad had a personal finance book lying on the coffee table. I picked it up and practically read the whole thing right then and there. Then I went to the library and read every book they had on personal finance over the next few months. I’ve pretty much never stopped reading on the subject.

Growing up, did your parents lead a frugal life? How have their money decisions affected yours?

I would say my parents were frugal growing up. It was out of necessity rather than desire though. My mom was in school full time until I was about 10. And then the recession of the 90’s hit a few years after she started working and both her and my stepfather were laid off. My mom used the time off to start her own practice so even then it took several years to really get a good income coming in. She has money now, but I was grown by the time all her hard work paid off.

I would say my parents decisions had an affect on me. I certainly didn’t grow up with fancy things and I had to deal with the fact that sometimes there just wasn’t money for stuff. I am perfectly fine now with not having the best of the best, and waiting until we can afford something. I don’t think I need it right now. Also, I never saw them use a credit card. I didn’t grow up thinking that credit card debt was part of normal life.

I also never felt poor growing up. I think that has had affect on me. We lived in a very blue collar city. Basically everyone either worked in a factory or at the hospital. So even though we didn’t have fancy things… neither did anyone else. So I never felt like I was lacking. That attitude has carried over into my adult life.

What is your biggest money regret?

UG. First off, not starting to save for retirement with my very first job. Secondly, trying to save a relationship with money. Never a good idea. I spent more money than I care to mention here.

What is your biggest money accomplishment?

Hmm… tough one. I would say it’s being a stay at home mom. We never thought in a million years I would be able to stay home, but sticking to our budget and living frugally have made it possible.

Isn’t that funny that it’s not how much I saved, or some fancy thing I’ve bought, but something that good money management has allowed me to do.

What are your favorite posts?

Don’t let the news replace your reality

10 tips to get your house sold

A trip to Costco

Millionaires drive minivans

Saying no to your kids

Don’t forget to subscribe to Wide Open Wallet!

If you’re interested in trading interviews, please comment or email me at ultimatemoneyblogATgmail.com.

Posted under Blogging

As we all probably are aware of, saving money versus paying off debt is a hot topic among personal finance bloggers. I recently came up with a financial plan that should help me be prepared in the instance I lose my job due to the merger. I had initially decided that I was going to pay off the last remaining student loan over nine months. As the economy keeps getting worse, I can’t help but feel that maybe I should hang on to as much extra cash as I can. I decided I’m going to change my plan of attack.

I’m going to do a “reverse debt snowball”. I’m going to take the money that I was going to put towards that student loan into our savings account. That way, if we absolutely need it, we’ve got it. If not, in six-nine months, if things are better I can take that money out of savings and put it right onto that student loan.

I thought about starting a separate account to keep those funds separate, but I currently am earning 4% on my savings account at my brick and mortar bank. I would rather earn that 4% interest and have the peace of mind than not have that money later on if we absolutely need it. I think this will be the best plan for us, but I know it’s going to be hard to take that money out of savings and pay on the loan. Of course, if things are looking up then I think it will be much easier.

Here’s hoping that the economy turns around in a few months!

Posted under Pay Off Debt