Frugal Living: How do you make a living doing what you love? (Part 1)

Frugal Living: How do you make a living doing what you love? (Part 1)

How do you find a career or build a business that you love? This week, Jim talked with Kevin Carroll about building a business around games. Check out Frugal Living on Apple Podcasts, Spotify, Google Podcasts, Amazon, Anchor.fm, iHeartRadio, or anywhere you go to find podcasts.

As the Executive Dice President at Carma Games, Kevin Carroll is uniquely qualified in building a business. He created the popular dice game Tenzi, which is sold in stores everywhere, and he grew his company from the ground up. 

Carroll’s story starts with a concept. It builds with an introduction, and it expands with clever thinking. Listen to the episode for his story.

More About Frugal Living With Jim Markus

This episode was sponsored by Aosom and Highlights. Use our code FRUGAL15 for an extra 15% off your order at Highlights.com.

Frugal Living is a podcast for smart consumers. How do you spend less and get more? The show, sponsored by Brad’s Deals, features interviews, stories, tips, and tricks. Jim Markus hosts season five, out now.

The post Frugal Living: How do you make a living doing what you love? (Part 1) appeared first on The Brad's Deals Blog.

Frugal Living: Why is everyone talking about HSAs?

Frugal Living: Why is everyone talking about HSAs?

In this episode, Jim speaks with financial advisor Marc Bautis about the costs, benefits, and other considerations around Health Savings Accounts. Check out Frugal Living on Apple Podcasts, Spotify, Google Podcasts, Amazon, Anchor.fm, iHeartRadio, or anywhere you go to find podcasts.

What’s the most under-appreciated savings vehicle for working Americans? Consider the Health Savings Account (HSA). Though widely available, many workers completely ignore this tax-advantaged account. This week, host Jim Markus talks with Marc Bautis about these often-overlooked financial tools.

Bautis first appeared in our episodes What can you learn from a financial advisor (part one and part two). He’s the host of the Agent of Wealth podcast and a financial advisor at Bautis Financial. This episode covers the basics behind Health Savings Accounts.

Read a Transcript From This Episode

Jim:
This is Frugal Living. We’ve talked about health savings accounts, HSAs, in previous episodes. But we’ve never really dug into the topic before today. I love these things. And I think they’re underutilized. Maybe people just don’t like talking about health insurance. The goal of today’s episode: let’s change that. I’m excited to talk about health savings accounts and the types of insurance you need to have in order to get one.

Joining me today is Marc Bautis. He’s been on the podcast before. He’s an expert at this. He’s a financial advisor at Bautis Financial. You’ll recognize his name in the name of that company. And he’s also the host of the Agent of Wealth podcast. I’m excited for this conversation. I hope you are too. And if you have any other questions that we don’t discuss, please reach out. You can find us at Frugal.fm. What is an HSA?

Marc:
It’s a tax-advantaged account. It works in conjunction with an HSA-eligible health plan. We’ll talk a little bit about that in a second of what makes a health insurance plan HSA eligible. But the real question is, “Well, why would anyone care? Why would someone be interested in this?” It’s really the tax benefits that come along with an HSA.

And, you know, whenever I talk to someone, and I’ll use the analogy of retirement. Someone will come and they’ll say, “Well, should I save in a pre-tax retirement account or should I save in a Roth type of retirement account?” And really what it is is you get tax benefits on either side. On the traditional tax IRA or 401k, the year that you add money to it, you get to take a deduction of that on your tax return. But when you retire and when you start taking money out, you actually have to pay tax on that.

And then conversely, the Roth IRA is the complete opposite. So you don’t get any tax break up front. This is after-tax money. It goes into a Roth account. But you never have to pay tax on that again, assuming you take it out when you retire.

So it’s often a question of, “Well, should I get the instant gratification? Should I get the tax benefit up front? Or should I wait ’til the end?” It’s left to the person to really, kind of, decide which one. And sometimes it makes sense to do a little of both. Well, the HSA takes it one step further. You get the tax benefit up front and you get the tax benefit at the end.

So there’s very few financial–in this case, it’s a health savings account, but it still falls under the financial umbrella–where you get the triple tax benefits. So that’s the reason why someone should really be interested or someone should really see if it fits is because the tax benefits are unlike just about any other financial product that are out there.

Jim:
Is it true that there’s a way to access HSA money after a certain point for nonmedical reasons?

Marc:
Well, the answer is yes, you can access it. But what happens is if it’s used for non-medical purposes, you lose some of those tax benefits. And, dependent upon when you actually use it or how old you are when you use it, there could potentially be a penalty on top of that.

This is the IRS saying, “We’re gonna allow you to save in this tax-advantage account, but we want you to use it for medical expenses.” It goes back to, you know, the government, or the IRS in this case, they will sometimes, kind of, push people towards what they deem good behavior. And they do that by offering different tax incentives. Like, retirement plans are an example. There’s some tax benefits to real estate where they promote, basically, owning real estate by issuing different tax incentives to do that. Like, education or 529 is another example where they wanna promote people saving or going to, to secondary education. They do that by issuing tax benefits on different types of college saving plans.

This is just another example where they wanna promote people having money to be able to pay medical expenses. And an HSA is, is a type of account where they offer that tax advantage ability on it. But they say, “If you’re not gonna use it for that, we’re taking the tax advantage off.”

Jim:
That makes sense. And when you say triple tax advantage, obviously it means you’re not paying up front and you’re not paying at the end. What’s this third?

Marc:
It’s the middle. So it’s the tax deferred. Let’s say you do save money for medical expenses in a non-HSA or just a regular type of account. What’s gonna happen is, and dependent upon if you have it in a savings account or even in some kind of investment account, every year you’re gonna get a 1099 from that account. And it’s gonna show, did your account earn any interest? Did it earn any income, dividends, capital gains? And what’s gonna happen is that’s gonna be part of your tax return and you’re gonna owe tax on that. The way an HSA works is you get the tax benefit up front. So you get that tax deduction up front. You don’t have to pay tax on any growth in that account.

And we’ll talk a little bit about that as well. And that’s the second benefit. And then the third tax benefit is, like we mentioned, you don’t have to pay tax when the money comes out. Not at the end, it’s whenever that money comes out for whatever. You know, as long as it’s for a qualified medical expense, you don’t have to pay tax on it again. So that’s how you get to the three tax benefits of it.

Jim:
And I think that’s super important, ’cause I think we do forget sometimes when someone hasn’t looked into 401ks or retirement plans at all. And you’re thinking, “Hey, I’m doing a really good job saving. I’m even investing. I have my own, you know, brokerage account.”

Especially if it’s your first year and you haven’t gotten that first tax bill on… You know, realizing that you’re gonna be paying taxes every year on everything you just mentioned. As your money grows or as your investments pay you out on dividends, you pay taxes on that every time that happens. And that’s not the case with retirement.

Marc:
Correct. And some people will ask. They’re like, “I’m getting the tax benefit up front, but I’m–have to pay tax on the end. Why even bother?” And part of that reason is the tax deferability. Because of compounding, and you’re not having to pay tax every year, the growth inside that–you know, whether it’s a retirement account or an HSA account–it will grow quicker than if you do pay the tax every year.

Even take into account that on the retirement account you’re paying tax at the end. So there is a benefit to it and, you know, you can even calculate what that benefit is, you know, using different calculators. But yeah, it’s a third benefit and should be considered.

Jim:
Obviously there’s a maximum you can contribute to a 401k. That changes usually every year. That, you know, will depend on what the government says you can put into your 401k. But you can’t put in, you know, 50 grand. You’re 20 years old. The same applies to an HSA. And it’s a different level. It’s a much lower amount.

Marc:
That’s correct. So, and it depends on whether you have individual coverage in your plan or if it’s part of a family plan. The maximum an individual can put into an HSA each year for 2022, it’s 3,650. If they’re part of a family, it doubles to 7,300. If you’re older than 55 and a half, it’s the same type of, like, catch-up contribution that is on the retirement side. So you can add an extra thousand dollars to your HSA if you’re over that age. So yes, it is lower.

And there’s different strategies involved with utilizing the HSA. And one of the things that happens a lot too is employers are HSA friendly. So a lot of times they will contribute to the HSA on your behalf. So that’s another thing to consider when you’re evaluating–Should I do the HSA plan? Should I do the regular type of plan?–is if the employer is making a contribution on your behalf. And a lot of times they incentivize you to go with the HSA by making a contribution to the plan that, you know, itself.

Jim:
We’ve talked about this before the last time you were on. I always wanna question motives. You mentioned, well, the government is encouraging us to invest in healthcare because we know we have incredibly expensive healthcare costs in this country. And this is one way we’re incentivizing people to save for their own health plans with an HSA. One thing that you mentioned too, is the fact that there are limits to how much you can contribute to an HSA should be a signifier of how powerful these things can be.

My ears perk up as a frugal person. When someone says you can’t contribute more than 5,600 to this kind of account in a given year, my years perk up. And I think, “Okay, well I should probably try to hit that.” If they’re saying you can’t do more, it’s probably because the smartest among us would absolutely do more if we could because it’s, you’re not paying taxes before, during, or after. Is that fair?

Marc:
Yeah. And we’ll even look at it from two ways and they’re, they’re sort of, like, competing ways. The first is, what you’re saying, is they put a limit on it. So that probably means that it’s definitely a good thing that if there was no limit, people would pump a lot of money into these HSAs ’cause, like we mentioned, there is a big tax benefit. The other thing I mentioned earlier was employers contributing on behalf of employees. So now a lot of times that perks people’s ears up too. And they say, “Well, wait a minute. If the employer is trying to incentivize me to doing this, maybe it’s not such a good thing.

And maybe it’s actually better that I go with the other type of plan.” And I see this come up a lot, just to use a correlation, is with pension buyouts. So people get an offer from a company and they’ll say, they’ll look at it, and they’ll say, “Well, the company offered me this lump sum to get outta the pension. And if they’re, they’re offering me a lump sum, that probably means it’s better to stay in the pension because they’re incentivized by what’s best for the company. And if they’re offer, making an offer for this, it’s probably not in my best interest to do that.”

HSAs are a little bit similar. However, you have to consider everything. In some cases, an HSA may be right for someone. And in some cases a high-deductible or HSA-eligible plan may not be the right thing for someone. And really just to go over a couple of things to consider. And one of the things I always encourage people to do is side by side your options for health insurance. And you really wanna look at the premiums, the deductibles, because an HSA-eligible plan is gonna have a higher deductible. So you have to look at that as part of the consideration.

Yes, it is cheaper for the employer and that’s really why they try and incentivize with some of those payments that they probably make to an or may make to an HSA on your behalf. The other thing you wanna look at is your out-of-pocket maximum. So what this is, is let’s say, you know, you hit the deductible and then there’s probably some kind of coinsurance. And then there’s what’s called an out-of-pocket maximum. Which means, you know, something catastrophic happens, you’re on the hook up to a certain amount.

So that’s really what can come outta your pocket. And you really wanna look at that because, you know, I always tell people, look at the worst-case scenario. Look at something, you know, try and envision something bad happening. This is how much you’re gonna be responsible for on this plan versus this plan. And a lot of times the HSA-eligible plan may have a higher out-of-pocket maximum. So it’s that again is something definitely to consider. Hsas are typically people that are healthier that don’t visit doctors as often. You know, and obviously no one knows for the upcoming year what their medical expenses are gonna be.

But maybe you have some kind of chronic condition. Or, it doesn’t even have to be a chronic condition. Maybe you’re pregnant or planning to have a baby. There’s gonna be considerable expenses. And you wanna take that into consideration the year that those may happen. Because again, that out-of-pocket maximum may be higher. You know, do your kids play sports and maybe there’s a chance of some major injury happening where surgery is needed?

Or this– And, and again, we can’t predict any of this. So the choice to whether to use an HSA-eligible plan or not and go with whatever other plan is offered, it’s very individualized. But I, you know, encourage everyone: look at the options. You know, try and do the math. And try looking at normal scenarios. What are you gonna pay for premiums? What is your deductible amount?

So the deductible is, what’s the amount that you’re gonna pay before any of the insurance actually kicks in. And try and do the math and just calculate, “On this plan, I think we’re gonna spend this. And on this plan, we’re gonna spend this.” And then factor in that HSA to that, especially if the employer’s contributing to it, as an ability to maybe pay some of that deductible or pay some of the expenses. And that’s really, you know, kind of how to go about evaluating, whether it makes sense for someone or not.

Jim:
It’s really important to look at your individual situation. And I think what you hit on is really, kind of, vital to this whole conversation. I know a lot of risk-averse people don’t like the idea of a high-deductible plan. I get it. That makes total sense to me.

If you have regular hospital visits or regular doctor visits, and you don’t like the idea of having to pay out of pocket for all of those, one thing to consider is that HSA that you’re contributing to in addition to paying your premiums, you can use those funds. Not saying you should. But worst-case scenario, if you manage to save $10,000 in an HSA over the course of a couple years, that’s potentially your out-pocket-maximum on a high-deductible plan. And that’s your backup, that’s your insurance.

So it might make more sense if you are younger, if you’re in, you know, better shape, if you’re a little bit healthier right now, and you’re worried about the future, maybe take advantage of it now. The cool thing about an HSA is it stays with you after you leave a high-deductible plan. That money doesn’t get locked away from you if you decide to change back to, you know, a more conservative plan in the future. You still have access to it. And you can still use it for when you’re paying out of pocket to reimburse yourself.

Again, you won’t be able to invest that money for your retirement if you take it out, but it’s there in an emergency. And I think that’s what helped me sleep at night when I signed up for an HSA at the first time.

Marc:
There’s really two ways to look at it. The strategy that you’re talking about is, yeah, you know, you have these expenses, deductibles, copays, you know, coinsurance. And the HSA is great for this. You know, you’re putting money in, you’re getting a deduction, you’re taking the money out to pay for expenses maybe in the year that you put the money in and. You’re not having to pay tax on that money coming out. So it’s great in that sense.

But some other people look at it, you know, and try to utilize a little bit different strategy where they’ll say, “You know what? I know I’m gonna be funding this HSA. Money’s gonna go into it and I’m gonna have medical expenses, but I’m gonna pay for those expenses outside of the HSA. So I’m gonna pay for those just with regular funds. And I’m gonna let this HSA account”–because of those tax benefits, where it’s growing and compounding and not having to pay tax on it–they let it grow.

And year after year, even though the maximum contribution limit is not as high as, like, a 401k, they’re putting in money every year and it’s growing and it’s growing. And you know, we can talk a little bit about what are your options once money goes into an HSA. But now what they do is now they have this retirement health budget. Fidelity did a study a couple years ago where they came out and said, “Couples in retirement, their average out-of-pocket expenses are over $200,000.”

You know, everyone thinks, “Okay, I’m gonna go on Medicare and that’s gonna be the end of it. And you know what, everything will be taken care of going forward.” And that’s not really true. There’s all different types of expenses that you still have to pay even when you’re 65 and you retire and you go on Medicare. Hsas are a great tool to save for those types of expenses. And just to give a quick what are some of the out-of-pocket expenses? It could be your Medicare premiums, any supplemental Medicare coverage you have.

HSAs can be used for long-term-care insurance premiums. Or, long-term care itself. So there’s a lot of, you know, ways that… You know, people save in a 401k for retirement. And of course you can use your 401k to pay medical expenses. But HSAs are another tool that you can use when you’re younger to save. And you can use ’em to pay expenses, you know, as you’re young. Or you can save and actually use them, you know, down the road in retirement to pay for your expenses.

Jim:
This episode, as always, was brought to you by Brad’s Deals. There’s a community of people here scouring the web for the best deals on everything. The site is B R A D S D E A L S.com. One trick for deal hunters: You can sign up for the Brads Deals newsletter. That way, you’ll have a better chance of snagging something stellar before it sells out. Thanks for listening.

If you’re doing your own calculations for yourself, it seems like that’s the kind of thing to keep in mind when you’re building your spreadsheet of your own plan for the future. Do you wanna set this aside to just grow forever? Do you wanna set even a portion of it aside to grow? Can we talk a little bit about what it means to have a high-deductible plan?

Marc:
Yeah. And, you know, like we first started this off, the HSA, it has to be attached to a high-deductible plan. You can’t just go and say, “You know what? I’m gonna open up an HSA. And I’m gonna start pumping in that maximum annual limit.” There are certain characteristics of what makes a high-deductible healthcare plan.

The first obviously is a high deductibility. So what that means, you can have a certain healthcare insurance plan where the insurance company starts paying the minute you go to the doctor and you incur some kind of bills. But the way the deductible works is, they don’t start paying until you hit enough expenses that hit whatever that deductible is. As far as like what characterizes a high-deductible healthcare plan, the minimum deductible has to be $1,400 for an individual and 2,800 for a family.

So that means that’s your… You know, you go to the doctors for the first of the year, or, you know, whenever. And the insurance company is not gonna pay until you incur 1,400 or 2,800 worth of medical expenses for the start of the year. So that’s criteria one. The second is, so not every high-deductible healthcare plan is an HSA-eligible healthcare plan.

So it has to have a out-of-pocket maximum that has to be under a certain amount. So that is a little over 7,050 for an individual and 14,100 for a family. There are certain things you can’t be covered for. Like, HSA, a lot of times people will confuse it with an FSA or a flexible spending account. So if you are eligible and utilize an FSA, you’re not eligible for the HSA. However, a lot of people will use a dependent flexible spending account or dependent FSA. And that most of the time you don’t lose your HSA eligibility if you have one of those in place.

Those are the main things that go into what is a high-deductible healthcare plan. A question I get a lot too is, “I get my insurance from the exchange. Do they have HSA-eligible plans on there?” Or, “If I get my plan through an employer, are there HSA-eligible plans there?” So the answer is yes to both. So you can get an HSA-eligible plan through the exchange. And you know, a lot more employers we’re seeing offer them as part of the company benefit package that they’ll offer. Easiest way to determine whether it is an HSA-eligible plan or not if it doesn’t, like, explicitly say it, is ask. Because then they’ll tell you.

And it’s a very quick conversation or quick way to find out definitely this is one or not. Because you are on the hook for making sure if you open up an HSA account and you really weren’t eligible for one, you’re on the hook for any penalties or, kind of, unwinding it or anything that has to be done for that. So you do wanna make sure that, you know, if you do go forward with it, it is truly an HSA-eligible plan. The other difference between an HSA-eligible plan and another type of plan we didn’t really mention before is that the premiums are often lower on an HSA plan. So that is another benefit.

One of the features of an HSA that really make it beneficial, and you mentioned this earlier, is you don’t lose the money. So you put money into an HSA. And if you don’t use it, if you change jobs, if you go off your HSA-eligible plan, that account is still yours to use years down the road. If something happens to you, if you pass away, a spouse is able to be named a beneficiary and can utilize that HSA just as you could.

And you can invest in the same things that, you know, you invest in your investment account or in your IRA or in, you know, some type of other, you know, account that you have. So you have control over what’s in it. It’s not a black box. I mean, it could be in some kind of cash savings, money market, very conservative. You could do that if you’d like. Or you can really try and have some growth over time. But you do have the control over that. So that’s one of the features of the HSA.

Jim:
So there you have it. That was Marc Bautis from Bautis Financial, host of the Agent of Wealth podcast, talking to us about HSAs. We were lucky to have him, as always. Today’s episode was edited by Genny Blauvelt. I’m the host and producer Jim Markus.

The post Frugal Living: Why is everyone talking about HSAs? appeared first on The Brad's Deals Blog.

Frugal Living: How can you beat inflation?

Frugal Living: How can you beat inflation?

In this episode, Jim speaks with deal hunter and shopping expert Casey Runyan about inflation, skrinkflation, and more. Check out Frugal Living on Apple Podcasts, Spotify, Google Podcasts, Amazon, Anchor.fm, iHeartRadio, or anywhere you go to find podcasts. 

Welcome to the summer of inflation. We recently discussed the history of credit scores and how to invest during uncertain times. But how do you beat inflation? This week, we talked with Casey Runyan about finding deals this summer.

Her advice? Look for savings in all your bigger expenses. If you were planning a home remodel this year, you might consider upgrading what’s already in your home instead of paying to replace it entirely.

Runyan also warns listeners to watch out for shrinkflation. It’s pervasive this year, and it’s worth keeping an eye out while you do your grocery shopping. The best way to avoid shrinkflation? Break down prices by cost-per-unit. For toilet paper, use the price per paper square. For olive oil, consider the price per fluid ounce. Some grocery stores already list this information on the shelf. Others require you to do the calculation yourself.

Finally, we learn a few frugal cooking tips. Our favorite? Runyan makes her own herb-infused cooking oil. She freezes it until she’s ready to use it. 

Want the full in-depth conversation? Here’s a full transcript.

Read a Transcript From This Episode

Jim (00:02):
This is Frugal Living. <music>

Jim (00:10):
If there’s one word we hear all the time in 2022, it’s inflation. I wanted to talk to an expert with some unique insight on the subject. So I invited Casey Runyan back to the podcast. You might remember Casey from the $5 challenge episode or from the very first episode of Frugal Living. She’s the managing editor and vice president at Brad’s Deals. 

Casey knows about inflation and she knows about finding deals. So I wanted to talk to her this week about what that means for us. What does a frugal-minded person need to know about inflation? Here’s our conversation.

Casey (00:47):
You know, I think the advice that I have for consumers who want to fight inflation is we cannot control the cost of gas. It’s hard to control the cost of housing. And even food can oftentimes be–you know, there are limits to what you can do there. I mean, sure you can, for gas, you can look for the cheapest gas station, but that’s realistically only gonna save you a few pennies per gallon. 

And so where you really need to look at it is where else you can be saving. And maximizing all of the savings opportunities that you have elsewhere. And, and also just being really conscious of your budget. And the fact that, you know, if your gas costs have gone up by hundreds of dollars per month, you, you’re gonna need to make some adjustments to compensate for that.

Jim (01:36):
We can’t control gas prices, but if you got a gas guzzler, you’re gonna have to deal with it. Where can you save?

Casey (01:42):
You know, I think that it’s in the, the things that you are, are purchasing in more discretionary, purchases. And, you know, consider scaling back. Consider, you know, what you need. You know, it’s springtime. So I think, you know, people are thinking about home improvements right now. Well, this might not be the year to do a kitchen remodel or, or another big project. You know, you wanna try to, as much as possible, think for a big update rather than new. And look at the ways that you can make what you have last longer. 

We’ve seen on the Brad’s Deals site Rust-Oleum deals have been doing really well. And that’s really no surprise because that’s an inexpensive way to give a new look to an area. You can also do things like changing out hardware. I’m also actually recommending people look at their spring cleaning as an opportunity for home improvement this year. . . Reclaiming a space that has become cluttered. 

And, you know, and you can, you know, get maybe some simple organizers that don’t have to cost a ton of money. But that can actually be as fulfilling as buying, you know, new furniture or, you know, bigger purchases when you actually, you know, are like, “Oh my gosh, this area that I’ve had covered with stuff that slowly over time became a place more and more stuff got built up.” I’m really talking about my personal problems here. <laugh> But you know, that, that can be very fulfilling. 

So looking for, for ways to, to say, “Hey, as a consumer, all right, I know I need to pump the breaks a little bit on, on these big purchases. But here’s how I can still get, you know, get the satisfaction that I want, uh, you know, out, out of the spring season.”

Jim (03:24):
I love that. I mean, especially as a frugal-minded person. And even without inflation, I love sitting down thinking about, “Oh, I’d love to have a new bathroom.”

Casey (03:33):
Mm-hmm.

Jim (03:33):
What can I do instead?

Casey (03:36):
Yeah. And we are also coming up on the season where, uh, garage sales and estate sales are gonna be, you know, a real possibility. And I do think those are not to be ignored. You can get some amazing deals. Now I will say, uh, it’s, I think it’s very important for people to understand that when you’re going to a garage sale or estate sale, you may not find anything. 

There are no guarantees and you can be really excited. But I, a few years ago, was considering, you know, a patio set and went to some estate sales. And honestly, the stuff that I was seeing was not for me and and was fairly pricey. And wasn’t the right stuff. So, you have to go in with the mindset of knowing that you may very well leave with nothing. But looking for those opportunities, and, you know, sometimes you can get amazing stuff. I’ve also had success with Craigslist Free.

Jim (04:28):
Obviously, this is one of my favorite topics in general. I love estate sales. I love garage sales. But you talk about one area that’s unlikely to be hit by inflation early on. Like, the people who are gonna get hit by inflation first are going to be, “Are you shipping something from overseas?” 

You know, these are, you know, big companies have massive costs associated with these types of things. Much less likely to be hit right now in the first round of inflation is the secondary market. One thing to consider, gas prices will affect, potentially, moving prices. So if you’re hiring movers, that’s something to consider when you’re planning to go to an estate sale. Even on Craigslist Free, if you don’t have a truck or you don’t have a van and you’re hiring someone else to do that, plan a little extra for the gas prices you’re gonna have to consider when booking a mover.

Casey (05:17):
Oh yeah, absolutely. Absolutely.

Jim (05:20):
So we talk about inflation a lot. But one thing that, I guess one topic that doesn’t get co–covered enough is the other side of that. What is shrinkflation?

Casey (05:29):
So shrinkflation is, uh, a term that describes when manufacturers change the amount of the product that you are getting. But they do so in a way that you’re not, that, they are hoping you’re not gonna notice. 

So basically it’s, you know, putting a few, fewer Dorito chips in the bag, uh, even though the bag appears to be the same size. It is putting fewer sheets of paper towels or toilet paper on the roll, even though it’s still the double extra bonus roll or whatever, they’re, they’re describing it as. And so they’re, they’re just hoping that consumers won’t notice and it’s a way for them to increase their profit.

Jim (06:10):
So when I go to the grocery store, I look at, you know, price per ounce, price per whatever. They break it down at certain stores on certain products very well. How do you buy toilet paper? Like, how do you, how do you judge one versus the other?

Casey (06:24):
So you’re absolutely right. Getting down to that per-unit cost is your best bet. Toilet paper is complicated because there are different kinds of toilet paper. And if you’re looking at single ply versus double ply, that is a different calculation. Um, and those are very personal decisions, I think. Um, but, you know, you do want to get down to that per-unit cost so that you can understand and even compare between different size packs of the same product. Because they can vary. 

And something that is really sneaky that I have found, uh, it’s the most sneaky form of shrinkflation. It’s not just that they’re changing the number of sheets that you’re getting. They’re also changing the size of the sheet often by, but, by not a lot. But, you know, I do think that I hit a new level of, of deal hunter the day that I realized I was calculating the square, the cost per square inch of the toilet paper.

Jim (07:25):
Fantastic.

Casey (07:27):
And, you know, I, I realize that that may not be for everyone, but it is something just to be aware of as you’re looking at it. You know, don’t put anything past them.

Jim (07:36):
When we think of real frugality. When we think of, you know, calculating the price per square inch of toilet paper or paper towels. Or the price per ounce of, you know, fluid ounce of a cleaning solution, we really get into those other questions that, you know, maybe if you’re too busy, these aren’t gonna be relevant to you. But if you got the time and it’s important to you to get the best deal, you can make your own cleaning solutions too. You can make a lot of your own stuff.

Casey (08:05):
Yes. Mm-hmm. Um, I actually use… Most of my household cleaning products are from a company called Blueland. There are other companies available too, that do, uh, concentrates. Um, I think there are others that do tablets. They, I chose them because they have, like, these nice high-quality bottles that you can buy and reuse. And they look really good. So I admit I was drawn in by the packaging as well. But you don’t have to use those. You can just use your old household cleaner bottle.

Jim (08:33):
I love this. And I’ve heard of this company and I’ve heard good things about this company, but I haven’t tried them. I’ve been hearing about this type of process for like a decade now. People trying to get waterless cleaning products delivered. And I think we’re starting to see it really shift. I think these are becoming much, much more popular. And I think it’s a really good option that I hadn’t considered in my own life that I’ll probably pick up this year. So thank you for reminding me to do that.

Casey (08:58):
Oh yeah. Yeah, no, it’s, it’s one of those that I was, I was glad when I finally… I thought about it for a long time and I finally, you know, bit the bullet and was like, “I’m, I’m going all in.” <music>

Casey (00:13):
<music> I think this summer we’re gonna see inflation impacting–and I mean this may be expected, but we’re gonna see it impacting travel a great deal. And, and I also think, you know, as we come, you know, out emerged from, from the pandemic state, that’s also impacting travel. And, you know, we are seeing, we’ve been seeing indications on Brad’s Deals that people are really looking at domestic travel, uh, much more so than, you know, far-flung, uh, overseas vacations. 

And I think, you know, there’s a lot coming into play there, both in terms of the cost of travel and then also the, just the comfort level of knowing, you know, you’re not gonna get locked up in a quarantine hotel for three weeks if you happen to test positive, uh, in, in, you know, in the United States, in the continental United States. And that’s a big advantage right now, um, for sure. So I think, uh, but I do think we’re gonna see prices on domestic travel ticking up because I, I don’t think, you know, as you mentioned, it’s not going anywhere. 

And I think that, you know, for a lot of, you know, vacation areas, they’ve been, uh, pretty low-key for the past several summers and they’re gonna be in hot demand this year. So I definitely would recommend booking early. Um, you know, traveling by car is a, is a very real option, but you are gonna have to account for that higher gas price. Um, for, uh, if you’re renting a car, I definitely always recommend that people, uh, just get the car rental booked, uh, you know, a refundable car rental booked as early as possible. And then you can keep hunting for deals. ‘Cause you can always cancel a car rental unless you specifically choose one that says you’re paying upfront to save X amount. 

But, you know, don’t delay, don’t hold off because you’re thinking, “Oh, I might get a better deal in a week or a month.” Get that rental in place, because as we’ve seen, the prices on car rentals are very market driven. And it is not–like, they’re… Even if you think the price you’re seeing right now is high, uh, you may be feeling like that was the best price ever, you know, a month or two from now, so.

Jim (02:29):
Totally agreed. I mean it’s really hard especially with car rentals, and I mean with flights, to predict where those prices are gonna be in an area where, you know, prices are based on gas. You know?

Casey (02:41):
Right. Yeah.

Jim (02:42):
Um, on that note, probably a good summer for carpooling. If you’re going out somewhere with another family or with a larger group of people, taking one car, one larger car might make more sense, uh, if you can come from the similar location. And camping is an option for, for our listeners especially. 

If you haven’t made plans in advance– I know booking a campsite in advance can sell out very quickly. But a lot of campsites will… They set aside some of their inventory for drive-ups. So it’s worth going, seeing if there’s anything available as early in the day as you can. And if you’re a camper, doing it that way.

Casey (03:22):
Yeah, no, national parks are, are a great resource. Uh, and you know, there are so many of ’em. And I think that people tend to gravitate towards some of the, the, you know, towards, you know, Yellowstone, Yosemite. And, but, like, there are lots of national parks and they are run to a very high standard. And also you can also explore parts of the, the, even the parks that aren’t the biggest tourist draw. The places that the tour buses don’t go, that’s where you wanna be.

Jim (03:52):
Great advice. One thing I learned recently too, and, you know, you might have this in the back of your head, but it’s probably a good reminder, but if you qualify for a military discount or a senior discount, national parks have these types of discounts. They also have annual discounts. 

Do you go a lot? Do you bring your whole family, especially this early in the year? It’s probably worth looking at. You know, can you save money? Rather than getting the admittance fee every time you wanna go to a beach or a trail, just getting this annual pass.

Casey (04:22):
It’s worth doing the math to figure it out.

Jim (04:24):
Absolutely. And I mean, that’s a good theme of just the podcast in general. If you wanna save money, do the math. How much are you spending?

Casey (04:32):
Yes.

Jim (04:33):
And we will remember to put in the show notes, uh, on Frugal.fm, the, uh, where to go to get discounts on national parks, which, by the way, don’t apply to state parks. That is a separate thing.

Casey (04:45):
Yes, yes. Those are separate.

Jim (04:47):
Is there anything else that we need to know about inflation this year? Or what can we do to prepare over the next year?

Casey (04:54):
Yeah, I mean, I really think that it’s just about being mindful about your expenses. And, and, you know, checking in on them and considering what you’re using. I mean, it’s even the little things like, “Am I actually using my, uh, Showtime streaming now that, uh, Yellowjackets is done?” Or has it just been sitting there and I’m not actually using it? Because you can always turn it back on. There’s no penalty for that. And sometimes just toggling those things. I mean, if you can save 10 or $20 a month, that adds up. 

And so just being really smart about those expenses, making sure to look at, you know, checking credit card statements to look for ongoing subscriptions. And, uh, the worst feeling in the world is when you realize there’s something that you’ve been signed up for that you’re not using. And just being mindful when you’re buying things. You know, is this a good price? Do I need this? And you know, what, what, what value is this, is this bringing me? Or can I defer this purchase?

Jim (05:53):
Really good advice. And this harkens back to something Marc Bautis mentioned on our financial advisor episode. Uh, the start of season four, he mentioned, like, cost cutting parties and doing exactly what you’re saying. 

Make a time twice a year, sit down with your, you know, a friend or a significant other, and go through your credit card statement. And, like, it’s, this can be a fun thing. And, you know, worst case scenario, you find nothing. But best case scenario, you save yourself money every month because you cut out a subscription you weren’t using.

Casey (06:21):
Yeah. I, I just got a new phone and, uh, for, uh, magical reasons, it’s causing my phone bill to drop, uh, significantly. And, you know, and I’m like, “Wow, how long ago should I have done this?” And, you know, I, I mean, and we’re talking for, for, for two people down, I think, uh, you know, 50, $60 per month. And…

Jim (06:46):
That’s huge.

Casey (06:47):
So, that’s huge. And so it’s just, it’s worth checking into those things and, you know, making sure that you’re getting the best deal possible.

Jim (06:55):
Ah, that would seem to cover a gas increase. You know, even if you’re paying more for gas.

Casey (07:02):
I am one of those people who does not drive a whole lot just because of my city location. I actually use a tank of gas in about two months.

Jim (07:11):
That’s awesome.

Casey (07:12):
So, uh, I am very lucky in that I have lots of things in walking distance to me. I guess that’s why I live where I live. Um, and I do, you know, pay for that, that expense. But yeah, um, I, I am lucky to not have been hit there. But I am, you know, as everyone, I think it’s hitting everyone somewhere. Right? Uh, I’ve, I’ve definitely seen it in food costs. I like buying good, high-quality food and I’m like, “Whoa, this is expensive.”

Jim (07:40):
I’m with you there. My plan? Gardening. Lotta gardening this summer.

Casey (07:44):
Yes. Yeah, I, uh–Do you have your seeds started?

Jim (07:48):
Oh yeah. I mean, not enough of them. I don’t have enough space for all the seeds I want.

Casey (07:52):
Mm-hmm.

Jim (07:53):
I planted my seeds this year in, like, a very… Last year, it was like, “I wanna try everything.” This year, it’s like, “No, what do I eat the most of?” Like, I’m never going to run out of arugula. Like, I will have so much arugula, hopefully a bunch of onions, things that I never wanna run out of that I tend to spend the most money on. That’s what I’m planting this year. What about you?

Casey (08:12):
I, well, I’ve got my AeroGarden going strong. Um, and so, and that I use for herbs because I do spend way too much money on herbs and then I let them go bad. And then I’m so angry at myself because I’m like, “This was beautiful basil. And I used, like, almost none of it and now it’s no longer good.” So I love having the fresh herbs. A lot of my gardening is more flower, you know, not edible based. But I do plan on having… I’ll do a trailing type of tomato in a hanging basket. I worry about the wildlife in the area getting into some of my things. So I wanna have everything I wanna have sort of in hard-to-get-at spots. And I’m thinking about doing some peppers this year.

Jim (09:00):
Ooh, highly recommended.

Casey (09:02):
And I will, in addition to my basil indoors in the AeroGarden, I will also do some basil outside and probably some cilantro outside. Cause those just tend to grow really well. And then I get a bumper crop. And I love to do both with the AeroGarden and outside. I love to, uh, where you chop up the herbs and freeze them in little ice cube trays with oil so that you can have those to use whenever you want. Um, I actually get really bummed if I ever run out of them because I’m like, “Oh no, all I need is, like, my little thing of tarragon or, you know, whatever and, and I’d be set for this meal.” But, um, yeah, I, for me, that’s a big cost saving cause I can easily drop, you know, way too much money just buying, like, herbs.

Jim (09:46):
Same. I love that. There’s no better feeling than knowing that this has been growing on my windowsill. I know exactly where it came from. You talk about knowing where your food comes from. This came two, two and a half feet from the left.

Casey (09:59):
Yes. Yeah, no, I was, you know, it takes a little while for an AeroGarden to get going to where you can actually–But I was like, “Okay.” I was like, “Oh, you’re ready for your first harvesting.” Like, I’m, you know, and I, you know, I don’t even know what I’ll use it for first. But it’s literally you can pluck a couple basil leaves and throw it into your scrambled eggs, you know. And, and you’ve instantly upgraded that dish.

Jim (10:23):
Love that. Tell me more about using… So you’re freezing herbs in oil, in, like, an ice cube tray?

Casey (10:31):
Yeah, I get, I have two that have, they have a silicone bottom, so they’re really easy to pop out. And they’re very small cube sizes. You don’t want, like, big ones. What I do is I just put about, I would say probably about a tablespoon of only chopped herbs in each, uh, each one. And then I cover the herb with oil, with olive oil. And then, you wanna pop, you do need to label them if you’re doing more than one herb in a tray to make sure. Because you wanna be able to put them, pop ’em out, put ’em in plastic baggies, and label them with what it is so that you know. So that you’re not thinking like, “Oh.” Uh, you know, like, cause they all look the same once they’re frozen. Really. Uh, but you don’t wanna mistake, you know, your basil for sage or something. You wanna know which is which.

Jim (11:22):
And you’re dropping them right out of the freezer? Out of–You have kept them in little bags in the freezer. You drop ’em right into your pan?

Casey (11:27):
Yep, exactly. And so they, and, and, and you just adjust the amount of oil that you’re using, but it’s not a ton of oil. But yeah, you just put that in. You can, you know, for some herbs, for, like, basil, like, I like to put basil in more towards the end of the cooking process because it’s such a tender herb. But, like, for things like rosemary and, and, and thyme, those I, I would often add earlier in the process.

Jim (11:52):
All right. So we need to definitely do a cooking episode then because all of this is too good not to use.

Casey (11:57):
Yeah, no, it’s honestly, it’s, it’s a great thing. The other thing I will say, uh, if you’re not saving your Parmesan rinds and freezing them, you should be because they are the best. If you add those to soup, they instantly, like, ratchet up that umami flavor. You don’t eat the rinds, but it just sits in there and, like, spreads its, like, cheesy goodness.

Jim (12:19):
Yeah. These are, these are tips I’ve never heard before but will change the way I cook forever. Huge thanks to our guest this week, Casey Runyan. Our audio editor this week was me, Jim Markus. Frugal Living is brought to you by Brad’s Deals. That’s B R A D S D E A L S.com. I’ve worked at Brad’s Deals for more than five years. Every day, the editorial team finds new deals online. They price compare. They check coupon codes. Sometimes they find exclusive offers. And it’s available to you for free. 

If you go to BradsDeals.com, you’ll see new offers every day, including some offers that may still be live from earlier this week. But if you want the freshest offers, go to the site, click on New Deals or sign up for the newsletter. You can find Brad’s Deals the same place you find our show notes and transcripts at Frugal.fm. 

Frugal Living is also available on TikTok. We’ve had a really pretty surprising reaction from a video we posted about, uh, my rain barrel. I have a rain barrel on the side of my house. And it’s surprisingly controversial. If you wanna see this controversial video, check out frugallivingpod on TikTok. You can also connect with us on Twitter or Facebook or LinkedIn, all at frugallivingpod. Again, our show notes are available along with our transcripts at Frugal.fm. And if you like the show, please leave a review on iTunes. <music>

More About Frugal Living With Jim Markus

Frugal Living is a podcast for smart consumers. How do you spend less and get more? The show, sponsored by Brad’s Deals, features interviews, stories, tips, and tricks. Jim Markus hosts season five, out now.

 

The post Frugal Living: How can you beat inflation? appeared first on The Brad's Deals Blog.

Frugal Living: Can Worms Save the Planet?

Frugal Living: Can Worms Save the Planet?

In this episode, Jim speaks with Cathy Nesbitt about vermicomposting. Check out Frugal Living on Apple Podcasts, Spotify, Google Podcasts, Amazon, Anchor.fm, iHeartRadio, or anywhere you go to find podcasts. 

Why pay for soil amendments? Once you understand the basics, composting takes little effort and offers ongoing benefits for your garden. In this week’s episode, I talked with Cathy Nesbitt. She’s a self-proclaimed worm advocate and the founder of Cathy’s Crawly Composters.

Worm composting, also called vermicomposting, differs from regular backyard composting in a few ways. The biggest difference? Worms. These little creatures devour the compost in your bin, churning through it, and they produce rich compost.

Unlike a regular compost pile, vermicompost can live inside your house. Outdoor piles grow to enormous sizes. The bigger the pile, the more insulated the inside gets. The heat in a traditional compost pile helps break down the components, but that kind of heat would kill worms in a vermicomposter.

Worm composters still require the same primary ingredients as compost piles. You’ll need leaves, shredded paper, or something similar to act as “bedding.” Your food scraps add additional nitrogen.

Interested in vermicomposting for your own home? You can find a full transcript of this week’s show below.  We’re on TikTok, Instagram, and everywhere else. If you want to connect with Cathy, she’s on Twitter!

More About Frugal Living With Jim Markus

Frugal Living is a podcast for smart consumers. How do you spend less and get more? The show, sponsored by Brad’s Deals, features interviews, stories, tips, and tricks. Jim Markus hosts season five, out now.

The post Frugal Living: Can Worms Save the Planet? appeared first on The Brad's Deals Blog.

75 Experience Gift Ideas For Anyone on Your List

75 Experience Gift Ideas For Anyone on Your List

If you’re still hunting for a perfect last-minute gift and struggling to come up with ideas, consider gifting an experience instead of a physical item. Experience gifts can be a thoughtful way to build memories that will last a lifetime. We’ve got 75 gift ideas to help you come up with the perfect experience gift for just about any hard-to-shop-for person on your list!

In This Post

1. Classes & Lessons
   1. MasterClass Membership for Lifelong Learners
2. Tours
3. Outdoor Actvities
   1. Classes and Tours For Outdoor Lovers
4. Passes and Memberships
   1. A Note for Museum Lovers
   2. National Park Annual Pass
5. Subscriptions
6. Event Tickets
7. Fun and Games
8. Rest and Relaxation
9. Miscellaneous Experience Gift Ideas

Classes & Lessons

Do you have an aspiring chef to shop for? Maybe a tennis pro in the making? Or someone who just wants to learn a new skill? Search in your area for classes and lessons and sign ’em up! Here are some popular ideas for classes and lessons you can gift:

• Cooking classes
• Painting, sculpting, art classes
• Dance lessons
• Yoga, pilates, barre, spin, or other fitness classes
• Golf, tennis, surfing, or other sports lessons
• Language lessons or software like Rosetta Stone
• Scuba certification classes
• Piano, guitar, or other musical instrument lessons
• Plant growing or floral arrangement classes
• Cocktail making class

MasterClass Membership for Lifelong Learners

Not sure which class would make the best gift? Try gifting a membership to MasterClass and let your gift recipient choose for themselves! Learn about conservation from Dr. Jane Goodall or become a green thumb with a gardening class from Ron Finley. There are hundreds of classes to choose from, with more being added each month.

Tours

If you know someone who loves learning about all the wonderful history and places their city has to offer, gift them a tour that allows them to explore different areas based on their personal interests.

• Winery tours
• Brewery tours
• Distillery tour
• Local photo tour
• Ghost tour
• Food or restaurant tour
• City tours
• Historical tours
• Architectural tours
• Sightseeing by train tour

Outdoor Activities

For the outdoorsy people in your life, consider booking some excursions where they can be outside either with you or in a group (or even solo!).

• Horseback riding
• Kayaking
• Plan a camping or glamping trip
• Book a sailing excursion
• Snowshoeing
• Skiing or snowboarding
• Plan a hike and a picnic

Classes and Tours For Outdoor Lovers

REI offers a variety of tours and classes for all the outdoorsy folks on your list. Gift snowshoe tours, rock climbing lessons, or outdoor survival classes.

Just visit the REI Classes and Events page and enter your location. You’ll be shown dozens of options in your vicinity for fun experiences outside.

Passes and Memberships

Day passes and annual memberships to cultural experiences are great gifts for all ages. These are especially great gifts for kids or if your giftee has mentioned that they love visiting certain cultural places often. Some passes and memberships have discounted gift rates, especially during holidays so be sure to check for promotional pricing on their website or social media pages.

• Museum membership*
• Planetarium membership
• Aquarium membership
• Botanical garden membership
• Membership to the zoo
• A yearly pool pass
• Yearly access to a national or local park**
• Day pass or access to an amusement or water park
• An annual ski pass
• Pay their entrance fee for a race or marathon

*A Note for Museum Lovers

If membership to museums or gardens is something your gift recipient might enjoy, take a look at the North American Reciprocal Museum (NARM) Association. The NARM Association is a network of hundreds of cultural institutions across Bermuda, Canada, El Salvador, Mexico and the United States and their members gain access to arts, science, history, botanical gardens, and more.

**National Park Annual Pass

An excellent gift idea for any outdoor lovers on your list, a National Parks & Federal Recreational Lands Annual Pass gives pass owners access to more than 2,000 recreation areas across the U.S. One pass is valid for two “owners” and up to 3 other adults within the same car for entry into parks and recreational areas. Kids under 16 are always admitted free. Find out more on the USGS website.

Subscriptions

Subscription gifts are fun because they are enjoyed for quite a while. If you gift a streaming service, they can watch it daily. If you gift them a subscription box, they’ll get to enjoy something new and fun every month.

• Audible or other audiobook subscription
• Kindle Unlimited subscription
• Online fitness subscriptions like obé Fitness or Daily Burn
• A wine or beer subscription
• A subscription to Amazon Prime or Walmart+
• A coffee subscription
• Indoor plants by subscription from The Sill
• Weekly meal subscription boxes like HelloFresh or EveryPlate
• Streaming services like Disney+, HBOMax, Netflix, Hulu, or Discovery+
• Kids activity box subscriptions like KiwiCo, Little Passports, or Lovevery

Event Tickets

Do you know their favorite band or sports team? If so, snag tickets to see a live show or live game! Not sure who they root for? Consider a gift card to Ticketmaster.

• Broadway or off-broadway shows
• A comedy show or tickets to see their favorite comedian live
• Concert tickets
• Sporting event tickets
• Movie tickets for the whole family
• Tickets to a local festival or fair

Fun and Games

These are great ideas for families or couples. Give them the gift of trying something new or enjoying something nostalgic that they haven’t done in a long time!

• Try a scavenger hunt
• Plan a group for an escape room
• Book a few hours at the bowling alley
• A few rounds of mini golf
• Take them ice skating
• Book a game of laser tag
• Buy them an astrology reading
• Plan a skydiving experience
• Reserve a bay at Top Golf
• Indoor rock climbing

Rest and Relaxation

This is the list that most excites me! If you’ve got a busy, stressed-out gift recipient, consider gifting them some rest and relaxation. Offer to babysit or cook a meal, hire a cleaner to help with their chores. Even just taking them out to dinner so they don’t have to clean dishes would be such a great gift idea.

• Book them a home cleaner
• Gift a manicure or pedicure
• Schedule them a massage
• Get them a salon gift card
• Book a day at the spa
• Offer to babysit
• Cook them dinner or take them out to dinner
• Buy them a food delivery gift card from DoorDash
• Gift them a facial
• Treat them to a night with a personal chef

Miscellaneous Experience Gift Ideas

Still not sure what to get them? Here are a few more ideas that may fit just right. Consider donating to a charity that means a lot to them or gifting them a design consultation!

• Book a session with a family photographer
• Get them a Cameo celebrity video
• Donate in their honor to a favorite charitable organization
• An interior design consultation

What is the most memorable experience gift you’ve ever received? Let us know in the comments!

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