U.S. Representative Mike Rogers has proposed a bill to stimulate new cars sales by allowing for consumers to deduct $7,500 from federal taxes on the purchase of a new card. The bill would allow for $7,500 for the first three months, $5,000, and $2,500 for the next three months. Is this what will jump start the car industry again, or will this just add to more consumer debt? If GM, Ford, and Chrysler continue to give out incentives the actual price of a 2009 model car could drop significantly with this new tax break. Would you be tempted to buy a new car if this bill passed? More can be found on the AP article here.

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photo credit: Chad Crowell

Are you considering a move, but your current home value has made that impossible? What home improvements can you do to your current home that will freshen up the look and give you some additional living space? A U.S. News and World Report article compares several options and what would be a better investment for your families castle. You might want an extra bathroom, but would that be the best investment for your home? Even if you lost 50% of your cost of a bathroom remodel, you might argue that it could save your marriage or get those kids out of your throne room.

So what is a better ROI? A bathroom addition, family room, or a deck? Turns out the deck is a better return on investment, with a 85% return rate when you go to sell the home. A deck might now sound as glamorous as a new bathroom, but it will increase your outdoor living space and make your home seem larger. Decks are great for entertaining and can provide space for an outdoor bbq and patio furniture. Also, if maintained properly, decks can last for years.

A bathroom remodel will bring you back 78% of your costs when you sell, but an updated bathroom can be priceless. We just remodeled our guest bathroom and I can tell you that it has brought tremendous value back to our home. The bathroom was used more than our master bathroom, and everyone comments how clean and fresh it makes our home look. The total cost was under $3,000, and I personally think we would get back 100% of the cost.

The current downturn in the real estate market can be an opportunity for homeowners to negotiate construction costs with builders. If you received a quote a year ago, or even a few months ago, you might want to call the company back and try and negotiate. I was buying many of my supplies from Home Depot and then decided one day to stop in a small shop that sold molding. The molding company not only carried the exact same base molding and crown molding I was using, but they offered a weekend discount. On Saturday they give customers a 15% discount, and Sunday’s 20%. I asked the owner why the 5% difference between Saturday and Sunday, and was told football. Guys watch football on Sunday, and they need an incentive to get out and buy molding. I just laughed and enjoyed the 20% discount.

Do you have any home projects planned for 2009?

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Want to make your neighbor think you deserve the citizen of the year award?  I just received a letter from our County Tax Board and they are going to lower my tax assessment for the 2008-2009 period by $1,500.  I don’t plan on keeping this news to myself and have already started calling friends that live nearby.  I live in California and the sluggish real estate market has caused housing prices to fall between 20-35% is some areas.  The letter I received from the county tax collector stated that the property values are reassessed in January of each year.  The sad, but realistic outlook is my property tax bill may decline again next January due to housing values.  Housing continues to struggle with two foreclosures around the corner from my house.

What can you do if you think your property value has decreased? Call your county tax board and tell them your property value has decreased from the previous year.  You will be asked to document your home value and provide a letter to the county tax board.

I utilize Zillow.com as they have an easy interface that will allow you to search for homes sold within 1-2  miles of your home. Find several homes that sold within the last year and attach them to your letter.

Doesn’t everyone in your county receive a property tax decrease letter automatically? I found that two friends had received a letter, but three did not know what I was talking about. I wouldn’t assume that you would be receiving a tax break this year and you should be proactive and contact your local property tax agency.

Will the special county assessments be decreased as well? I reviewed my 2008-2009 property tax bill and noted that the special assessments for emergency services, city lighting, storm drains, mello roos, county trails, and 911 remained the same. I would call you county tax office and find out if your special assessments would be impacted by your decreased real estate value.

I don’t like my neighbor so why should I tell him about the decreased property tax letter? Well, if you’re like me, you might need a new fence soon. A common fence shared with your neighbor can easily cost a few thousand dollars to replace. Maybe your neighbor needs new landscaping and always complains that he doesn’t have enough money. Here’s your chance to help him out and tell him about the property tax adjustment.

What to do with your new money? Hopefully you have already budgeted for your 2008-2009 property tax bill so you will be able to put the money in other investments.

1. Apply the tax reduction towards your mortgage. Apply the savings to your principal and decrease the amount owed on your home.

2. Establish an emergency savings account. Dave Ramsey recommends at least $1,000 in an emergency account. You might be more comfortable with more for your families needs.

3. Payoff a car loan or credit card balance.

4. Rainy day fund. Put the money in an ING Orange account or high interest savings account. Do you have a Christmas fund or birthday fund you like to utilize?

5. Start a 529 college plan for your children. You can start with $50 or $100 and start to seed your child’s college fund.

Sending a letter to your county tax board could save you a few hundred dollars and be easier than finding an emergency money source. Have you written a letter to your county tax office? I’m interested to hear what you heard back and if you neighbors are doing the same.

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photo credit: ILoveButter

I would like to thank everyone who has left a comment on this post, as your ideas are fantastic! It would be wonderful to see the list grow to 25. If you have a unique idea to make your stuff feel new again, just leave a comment.

My 2002 Toyota Prius is starting to look worn and tired inside and out and it’s only 6 years old. The carpets are dirty with several coffee stains from sudden turns, the paint is a little faded and several french fries are still lodged between the seats. I’ll be honest, the temptation to take it to the Toyota dealership and trade it in for a new 2009 Prius does exist. Does it make financial sense to trade-in a perfectly good 2002 Toyota Prius with low miles and HOV stickers for carpool lane for a brand spanking new $25,000 2009 Prius? Nope.

My front lawn never looked lush and green this summer as it never recovered from my daughters 4th birthday party bouncy house. Back in February we rented a princess jumpy house with our neighbors and celebrated two birthday parties on our front lawn. It was rainy and wet and the weight of the bouncy house was too much for my front lawn to handle. It’s a small lawn and I wondered if now is the time to rip it out and put in new sod? It would only cost $400 to have new sod put down. Did I do it? No way!

It’s tempting to buy new cars or replace items around the house, but how can you make your older car or house shine like new again. For some items on this list it will take a few dollars to make your stuff shine like new. In the end I think it might be worth it and save you from new sticker shock or buyers remorse.

1. Professional car detail. This is not a frugal option, but still thousands cheaper from buying a new car. Check craigslist or your local yellow pages for a professional car detail center or private individual that has a mobile car detail business. Prices can range from $100-$300+ Sounds like a lot of money, but your car will look and smell new. All those french fries will be removed from between the seats and your carpets will look new again.

2. New diamond ring for your wife. I’m not talking about a new diamond from Harry Winston or Tiffany, but a newer shinny diamond ring. If you’ve been married a few years, your wife’s diamond ring may have some soap scum or scratches in the setting. Make an appointment and take your wife’s ring to your local jewelry store. They will clean and even replace smaller diamonds for very little money. My wife has a very small diamond ring with two small baggetts on the side. For under $100, I had the ring cleaned and one missing baggett replaced. My wife was thrilled to have her ring look new again.

3. 1 hour massage. Want to feel relaxed and energized? My wife and I bough each other a 1 hour massage several years ago, and it was amazing. I’d never had a massage and it was more relaxing than 1 week in Hawaii and a lot cheaper. $50-$100 and you’ll feel like a new person. Extra bonus points if you buy one for your spouse and surprise her/him.

Money Grubbing Lawyer tip: Check your health plan to see if your massage is covered under insurance policy. He also suggests signing up for a couples massage class and learn how to give a massage. Great idea!

4. Paint your front door and trim. Tired of looking at your same house and want a cheap way to make it look new again. Our friends bought one can of Benjamin Moore mocha paint ($45) and painted door and front trim around windows. They left the existing house color the same, but now the house looks like it belongs in another zip code.

5. Curb appeal. Another way to make your house look newer, pressure wash your driveway and front entry. My neighbors replaced the driveway and walkway and spent $10,000. Sure, it looks nice but for $50-100 I bought a pressure washer and made my cement look new again.

6. New dining room table. Replace table chair seats and change the look of your dining room with new fabric. Visit your local fabric store and buy a few yards of cloth, remove the old and use a staple gun to fasten the new fabric. Total cost $40-$100.

You can do the same for an older couch. Buy a slip cover and change the look of your outdated or old stained couch. If you have kids, you know the look I’m talking about. A new slip cover can range from $50-$150 depending on brands.

7. Paint a wall. Want to make some brownie points with your wife and update the look inside? Have your wife pick out a color and paint one wall with this new color. She may just love the new accent wall color and you don’t have to paint the entire room. Maybe she likes red or mocha, whatever it is will change the look of the room and make it look new. Cost $25-50

8. New toys for your kids. This one is easy, fun, and it works. If your child has several favorite toys and they are younger, put one of them away in storage for a few weeks or months. You can introduce the toy back to them and they will get just as excited as the day they opened it. We have done this with a train set for my son. He received another smaller set and we put a bigger one up in storage. One day we brought the train set down and he jumped up and down and ran around the house in excitement.

9. Fertilize your lawn. Don’t buy new sod or seed, try a good fertilizer first. You can buy name brand like Scott’s turf builder or you can buy generic ammonium nitrate for $10. Follow instructions and you will have a front lawn that rivals those on Sunset magazine.

10. Hire a gourmet chef. My wife received a gift certificate for 10 meals to a company called Sous kitchen where you prepare fresh family meals. They were recipes that we would never cook ourselves including some meats we have never even tried. I recall having a shepherds pie that was amazing. These can range in price considerably $50-$200, but are cheaper than eating out and will also help inspire your next grocery store list. You can freeze the meals and break one out when you have nothing else to eat, or you crave going out to eat.

11. Free From Broke tip: This one is free and only requires some elbow grease. Spend the weekend removing clutter from garage, office, and house. This would be a great spring cleaning project that would make your house feel larger.

12. Anthony’s tip: Have your old leather shoes polished and make them shine like new again. Great idea! I used to go to Nordstrom and have them shined for a couple dollars.

13. Miranda’s tip: Another way to relax. Get a pedicure. This is probably a cheaper alternative to a massage. I’ve never had a pedicure or a manicure. Has your husband?

14. Tyler @ Building Camelot suggested: Hiring a maid service to help clean your house. A cheaper alternative would be to have a maid service come every few months to do a spring cleaning special. It would be a nice treat to have someone give some extra shine to the floors and cabinets.

15. Asithi’s tip: This is another free idea. Wash curtains, tennis shoes, bath mats and make them shine like new. I used to wash my tennis shoes, but since I play a lot of tennis I usually wear out the soles first. This would be a great idea for shoes that still have lots of life left in them.

16. Mrs. Micah suggests polishing items in your house. If you have collectibles or even a coffee table lamp. A good dusting and polishing can make them look new again.

17. Laurel Plum’s tip: Take a workshop or seminar to acquire new trade skills. Base and crown molding come to mind and this can really make a room look fresh and new. Once you learn the basic miter angles, you’re all set and can replicate most cuts in a standard size room.

18. Virilitas has a great tip that will be a sure way to give you the extra jolt you need to clean your house or finish a project. Exercise.

19. LoriAngel suggested working with your existing clothes to create a new look. Lori recommends tailoring your favorite skirt, layer shirts for a different look, and work with existing accessories like belts and scarves. This sounds like a very creative way to stretch your wardrobe budget and give your clothes a fresh new look.

20. Prime Time Money suggests cleaning out your wallet or purse and organize your receipts. I’m guilty of keeping receipts and even expired insurance cards in my wallet. I also found a home depot card worth $50 that I forgot I had.

21. Laurel Plum had another great idea to move furniture around and trade small accessory items to change your color scheme. You might be able to trade smaller items at a consignment store and it would introduce a new item to your room.

22. RetiredAt47 suggests buying a slip cover for your older couch. Refresh the look of your living room or family room couch. Also, another idea to repaint to freshen a room.

23. Sasha at Debt Free Saver has a very frugal and cheap idea to buy new dish towels for your kitchen or bathroom. The new color will make your room look fresh and clean.

Do you have a tip you’d like to share that has given new life to your old stuff?

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photo credit: The Passive Dad
Today I was fortunate to have the grandparents come along for my Costco trip and assist with the kids while I did some shopping. I had my list, but also enjoyed having some guy time with grandpa and drooling over the new blue-ray dvd players. Prices are coming down and Costco had a Samsung, Sony, and Phillips blue-ray all for around $380. Still no reason to purchase one as the expense is not in the blue ray, but in the discs. I can imagine all of a sudden having the desire to watch Disney movies in blue ray. Not a real good use of savings right now.
I bought the usual boring items like milk, cereal, bread, and some batteries. My son loves the Costco hot dogs, so we decided to order some pizza and hot dogs and have lunch inside with grandma and grandpa. Since I’m usually knee deep in ketchup trying to catch falling hot dogs and wiping messy faces, I had some time to look around for a change. This must be what Costco wants to happen. In fact, they should offer to have employees feed your kids because I’m sure this would increase sales. I actually had time to look around and see what people had bought. Some guys had the boxes ripped open for some new cell phone or itouch and was reading the manual. Another lady was looking at her brand new purse that she just bought. When I looked at the purse, I also caught a glimpse of her watch. My light bulb went off and I remembered that my wife wanted a new watch as her last one was broken. The a-ha moment!
Since the kids were content with ketchup drenched hot dogs, I had time to go over to the jewelry case. Typically this case is never seen by myself or my wife as we are headed quickly to the back of the store. Today, I could look at all the ladies watches and find one that would fit her style and price range. Unbelievable how many gorgeous watches they have at Costco. I mean, my typical purchase is dog food and milk. Now I’m looking at Tag Heuer, a Bulova, and a Movado that range from $500 to $3,000. Wow! Further down they had some everyday practical watches that you wouldn’t feel bad about banging or having the dog scratch the glass. I settled on a pink Kenneth Cole watch that looked like something she would wear. If not, she can take it back and buy 30 hot dogs. Next time your eating your hot dog at Costco, be sure to just stare straight ahead and don’t look into another persons shopping basket. It could cost you $61.99 or more. Has this happened to you? I guess eating lunch or dinner in a mall could be just as dangerous.

Fortunately, the watch was a planned expense as my wife has been looking several weeks for a replacement and $61.99 was in our budget. This would have made a great Christmas present, but since she probably needs a watch before then she might get a nice surprise tonight. Do you have a category for watches or other personal items on your family budget?

The $61.99 hot dog could have cost a lot more if I had used a credit card with a balance. I would have broken my first rule of debt elimination if I had a card with any balance. In fact you could argue that I shouldn’t have had a hot dog in the first place if I had any type of CC balance.

Has the $1.50 Costco hot dog cost you $61.99 or more? I’d love to hear your story.

Also, check out these other great blog posts I found interesting about saving money at Costco and Costco discounts:

Money Saving Tip: Excellent Presents from Costco
I Figured Out A Way To Use ANY Credit Card At Costco (As They Only Accept AMEX Now)!
Shopping at Costco the Frugal Way
Buy Costco Gas Without Costco Membership
Wanna Save Money at Costco?
Another Way to Save Money At Costco
Is Costco Executive Membership Worth It?
Costco: Good Value for the Money, but Not Frugal
Does Your Costco Card Really Save You Money?
Retraction: Costco Doesn’t Save Me Money

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