Making Me a Millionaire

Things I’m Glad I Spend Money On

I try to be frugal as often as possible and for me, being frugal does not mean skimping on quality.  It’s important to me that the products I purchase are good quality and long lasting.  I will gladly put down a large amount of money for something that will offer me much in return.  With that said, here are some of the best big purchases/pricey items I’ve made.

1. My Tempur-Pedic Bed. I used to think it was crazy to spend almost $2000 on a mattress.  Back then, I would never splurge so much on a mattress.  When a friend of ours moved across country, he sold us his Tempur-Pedic mattress for $700 along with a whole bunch of other stuff.  My husband and I had just gotten married and were furnishing our place so we took it all.  The mattress did wonders for our sleep.  I had never slept so well before in my life and when I woke up in the morning, my back never hurt.  We loved our mattress so much we went out and bought 2 Tempur-Pedic pillows to go with it.  We loved those just as much.  Today, we’ve been using the mattress for about 5 years and still love it.  I will never go back to a regular mattress again and we both agree that if the time came to get a new mattress, we will gladly plop down the $2000 for it.  Good sleep and a healthy back are so important to feeling good during the day!
2. Organic, non-processed food. Not all my food is organic, but most of my produce (especially the ones that have the most exposure to pesticides) are.  I’m a firm believer in the importance of living a healthy lifestyle and if there’s anything I can do to improve the quality of my life and avoid major illnesses, I will do it.  If I can prevent cancer in the long run by cutting down on the amount of pesticides, preservatives, nitrites, high fructose corn syrup, and so on, I will do it.  Who knows, maybe I’m not genetically predisposed to cancer anyway and I could have eaten all the chemical compounds I wanted but I’d rather be safe than sorry.
3. My Gym. I used to go to LA Fitness for $30 a month until the place got so crowded that you had to wait in a line to use the treadmills even at 6AM and you had to show up 45 minutes before a class just for a chance to fight for a spot.  I had had enough of showing up at the gym with no machine to use so I decided to quit and join the other local sports club by us.  This was definitely a nicer and more expensive gym and I was hesitant about joining at first but decided I had no other choice because I was NOT going back to LA Fitness.  I always hear people say that you should cut out your gym membership if you’re trying to save money but I will give up many other things before I give up this gym membership.  Why?  Well, first of all, being healthy is important to me.  But second, with the amount we pay for this membership, we get your typical gym equipment, indoor and outdoor tennis, indoor and outdoor swimming, volleyball, a rock climbing wall with instructor, racquetball, squash, basketball, and all sorts of classes (none of them ever full) such as spinning, kickboxing, yoga, pilates, step, belly dancing, water aerobics and so on.  The list is endless.  With access to all these activities, we rarely pay for activities outside of the gym.  If we’re bored on a weekend, instead of heading to the mall, we can go play tennis or go rock climbing.  In the past, we would go watch endless movies on the weekend or go shopping and easily spend $100.  Now, we do one of the many activities offered at our sports club.  So yes, it’s expensive, but it’s worth it!
4. LASIK. The best surgery I’ve ever had.  OK not that I’ve had any other surgery other than getting my wisdom teeth removed, but this is a surgery worth having.  For a little more than a Tempur-Pedic mattress, you can have perfect vision and never have to deal with contacts or glasses again.  You can also pay for LASIK surgery with your FSA account so it is tax deductible!  The procedure is painless and there’s about a 3-4 hour recovery time.  After having this done 4 years ago, I still am amazed at how good perfect my vision is.
5. Travel. My husband and I love to travel.  It’s a great way for us to spend more time together and enjoy our lives.  Sometimes we travel with our college friends and those are always memorable trips.  Yes, travel is expensive, but the experience we’ve gained and the memories we’ve made together are priceless.  There’s no better way to open your mind than traveling.  We do always try to be frugal when we travel though.  We will use points from our credit card for hotel stays and try to research dining options before we go.

In the end, I think having balance is important.  We try to be frugal in many ways in our lives but I do believe there are times when splurging is a good idea or even necessary.  What are some things you spend money on that you will never regret?

Best Places to Buy Books

My husband and I are voracious readers.  We will spend at least one day out of the week visiting the local Barnes & Noble and picking out a good book to read.  Sometimes we will sit in the cafe, get a coffee and skim through piles of books and magazines.  This is fun and all, but the fancy drinks add up and since it usually takes about 4 visits for me to finish one book, it’s actually cheaper for me to just buy the damn book.  After all the book buying, we thought it would be a good idea to become a Barnes & Noble member and pay the $25 a year for the discounts we get on books.

We’ve been members for 4 years now and we plan to retire that membership after this year. Why?  Because there are much cheaper places where we can buy our books.

1. Half.com. You can get many books on here for just 75 cents.  You do have to pay an extra $3+ for the shipping but still.  You are paying around $4-$5 for a book instead of $22.  Usually just released books will be more expensive so if you can wait for the prices come down, you’ll save big.  This is also a great site if you are a student and are in search of used/cheap textbooks.
2. Craigslist.  You can also find great deals here although the selection is not as wide as Half.com.  The great thing about Craigslist is you can negotiate with the seller and in most cases you’ll save on shipping since you’ll likely be meeting the seller in person for the exchange.
3. Amazon. This is a great site for those of you who want brand new books.  If the thought of someone else having read your book while sitting on the toilet freaks you out, then Amazon is for you.  The prices are some of the lowest and shipping is usually free if you purchase more than $25.  Unfortunately, this usually means you’ll be purchasing at least 2 books to get that free shipping.
4. Costco. Like Amazon, Costco has some of the lowest prices on brand new books.  You don’t have to worry about shipping costs since you’ll be buying the books at the warehouse.  The only negative?  You’ll need a membership.  But in my opinion, that is not a negative!
5. Borders. OK so Borders doesn’t exactly have the best prices.  But unlike Barnes & Noble, you can sign up for a Borders Reward Card for free!  You then get coupons sent to your email every week or so to use on books.  These coupons are usually equivalent to those given to Barnes & Noble members so you’re pretty much getting discounts without having to pay for a membership.  Another cool thing Borders offers is Borders Bucks.  You get $5 in Borders Bucks for every $150 you spend at Borders.  You can use these Borders Bucks at the store.

Christmas Photo Cards For Cheap

Today I just picked up my photo Christmas cards and paid only $9.99 for a set of 50 with envelopes!

Costco.com allows you to pick a holiday card and insert whichever photo you like.  You get a set of 50 for $14.99.  Great deal considering most photo cards cost more than $1 each.  If you look at the current Costco coupon book, you’ll find a coupon for $5 off the photo cards.  Now this is an excellent deal!

Of course, you can go cheaper and get a pack of cards for less (and even lesser if you shop after Christmas season for them) but I like to send out more personalized cards since the Christmas season is all about family and giving.

Why I Love My Costco Membership

A few years ago, Costco came to my neighborhood and planted itself within 5 minutes from my house.  So after hearing all the rave reviews about the great deals and excellent customer service Costco offers, I decided to join.  For the last 3 years, I had a Gold Star membership for $50 a year that gave me access to buy high quality items at competitive prices and a lot of times in bulk.  I bought my SLR camera, my bedroom furniture and many other big ticket items from Costco.  One day when I was checking out at the register, the cashier told me I had spent more than $3000 already and I would benefit from upgrading to an Executive membership that offered cash back rewards.  I told her I would think about it and upgrade if I felt it was a good idea.

How does a household of 2 manage to spend so much money at Costco?  Well, like I said…we bought bedroom furniture off Costco.com.

After looking through our previous year’s expenses, I decided that upgrading my Costco membership was very much worth the extra $50 a year.  I plan on spending at least $2500 this year at Costco so that I can get my $50 cashback reward!  Here are great things about Costco and the Executive Membership benefits.

1.  High quality items at great prices. I try to be frugal but I will very rarely skimp on quality so I can save a few bucks.  I would much rather have a good quality shirt I can wear over and over again than a poor quality inexpensive shirt that will rip in the wash.

2. Easy to make back what you spend on membership. So you might think that spending $2500 a year for a 2 person household is ambitious.  I thought so too at first but now I know it’s not a stretch at all.  Costco sells just about everything you could ever need at home -household products, groceries, office products, electronics, sporting goods, cosmetics, pharmaceuticals….everything.  When you combine all these categories, do you spend a total of at least $2500 a year?  Probably.

3. Costco gas. Very very rarely do I ever find a gas station with gas that is cheaper than Costco gas.  Costco gas is usually .10 to .20 cents cheaper per gallon than other gas stations.

4. The food court. A gargantuan slice of pizza for 99 cents.  A hot dog and soda for $1.50.  These are 2 examples of very tasty food for very cheap.  I don’t recommend eating this everyday, but each weekend when my husband and I shop at Costco, we will have a filling lunch here for $2.49.

5.  Clothing. Ok, so if you are the fashionista type, maybe Costco is not for you.  But if you are looking for comfortable stylish clothing that will not go out of style in a few months, this is the place!  I got a Calvin Klein tunic sweater today for $19.99.  The hubby got a Nike golf fleece jacket for $26.99.  Not bad at all!  I also saw men’s Citizen jeans for under $100.  I consistently see great deals on fleeces and jackets at Costco.

6.  They have organic food and eco friendly products. No, you don’t need to go to Whole Foods if you want organic food.  I regularly buy my organic milk, organic orange juice (which btw is the best orange juice I have found in any store so far), organic rice and organic chicken from Costco.  They have many many more products which I occasionally buy too.  They also have lots of great health foods like pomegranate juice, fruit juices, Cliff bars, etc.  I’ve also seen eco friendly cleaning products and laundry detergent too which I have yet to use but will try one day.

7.  Free samples. OK so I usually steer clear of processed foods as much as possible but I will admit…there are days when I go to Costco on an empty stomach and am quite satisfied by the time I leave the warehouse.

8.  Revolving/seasonal products. If you go to Costco today, you will very likely find Halloween, Thanksgiving and Christmas decorations.  In January…I guarantee you’ll find something else.  I noticed that Costco will change around their products and have random items in their stores I have never seen before.  They’ll be there for a few weeks and then be replaced with another new and random item.  One week you’ll see golf clubs, the next week it’ll be a massage chair, then maybe a vanity and so on.  It keeps things exciting.

9.  Excellent customer service. It’s not a secret that you can return anything you bought and there will be no questions asked.  I have a friend who said he bought his SLR camera there then brought it back in the box a year later and traded it in for a newer model.  I’m not saying you should do this but its an example of good customer service.

10.  Costco.com. If you’ve never been to Costco.com, go now.  An enormous number of products, and reviews you can check before your purchases.

11. Coupons. I love coupons.  Every month members will get a new booklet containing several pages of coupons on popular products.  I look forward to receiving these coupons every month as they offer very good discounts (you can get Charmin toilet paper for almost the same price as the crappiest cheapest toilet paper at your local supermarket).

Things you should know as an Executive Member:

• The 2% cash back is on pre-tax amounts
• You won’t get cash back rewards for cigarettes, alcohol, gasoline, stamps, food courts, membership fees, costco travel, insurance services. But yes, you do get rewards for purchases made through Costco.com.  Click here to look at additional info on the costco site.
• At the end of your membership year, you will receive your cashback rewards in the form of reward certificates.  You can use these at the register at your local warehouse on merchandise only.
• The cap on your annual cashback reward is $500.  That means if you spend over $25,000 that year in Costco, you will still only receive $500 back.
• If you want to upgrade but you just paid for your gold star membership a few months ago, Costco will give you the upgrade at a prorated price.

….and if you are a die hard Costco fan…..

….then sign up for the American Express Costco True Earnings Card.

• no annual fee
• 3% cashback on dining and gas, 2% back on travel and 1% back on everything else.

This is actually a great deal especially for those of us who shop at Costco a lot, drive around a lot and eat out a lot!

Now, back to the Executive Membership.  If you do sign up for this membership, be sure that you are committed to spending that $2500.  I now buy all my household products and the majority of my groceries from Costco.  If there is anything out there that I plan on purchasing, I will check Costco.com before I make a purchase to see if it is available through them.  If you want to buy a plasma tv, a camera, a laptop, or any kind of electronic, I recommend getting it from Costco.  If you don’t like it, if it’s broken or you simply have buyer’s remorse, all you have to do is return it for a full refund.  I’m not so sure you can do the same when you buy an expensive gadget from Best Buy.

If you do sign up for the Executive Membership and decide you don’t want it anymore or realize you aren’t able to spend the $2500 to make up for the membership fee, all you have to do is cancel your executive membership and ask for your full refund.