Looking after the Pennies...

Times are pretty hard at present, price rises and unemployment are forever occupying the headlines and so its quite natural most of us are concerned about our money. Never has there been a better time to give your finances a complete service and save a little cash in the process.

Monitor your Spends.

The first thing you should do is analyze exactly what you spend your money on. The best way to do this is by creating a spending diary which you can update at the end of the day with exactly what you bought and what it cost. After about a month, sit down and review your months spending and identify areas savings can be made. Believe me, this simple little exercise will throw up some surprising results and may save you a fortune on its own.

Review your Subscriptions

Okay, you’ve decided to keep your gym membership as you do go once or maybe twice a week but make sure you’re getting value for money. I visit the gym once a week and so a membership is wasted on me as I pay per visit. Work out if paying per visit is better for you and don’t just consider the gym you are at, look at all of them.

Perhaps you have a contract cell phone with 1000 free minutes but only use 300. Question all your outgoings with “am I getting value for money?”

Keep a Close Eye on Your Accounts

This doesn’t mean check them every waking hour, you just need to know how much you have at any given time. If you know this, you are more likely to make better spending decisions instead of throwing caution to the wind. You will also be less likely to use unwanted credit which will be very expensive.

Get Saving

Even if you have nothing in mind to save for, get some money in the bank every time you get a paycheck. Life has a funny habit of throwing up some unpleasant little surprises every now and then and when it does, you will be much better prepared with savings to fall back on. You don’t have to put hundreds a month away, just whatever you can manage.

Spend a Little

This may seem to be going against the whole post but you have to allow yourself a little time to unwind. If you restrict your spending too much, you run the risk of not sticking to your plan, so be realistic and have a night out.

A lot personal finance problems arise when people neglect their money and spending. By spending just an hour a week organizing your cash flow, you are likely to save a fortune in the long run.

More Financial Information and Resources:
Think Money
Debt Consolidation Care

photo credit, r-z

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Refurbished Cellphones

Just about a year ago, my mother-in-law bought from a store selling refurbished cellphones. She got a Samsung which looked so beautiful, it looked like it was still brand new. On top of that, since it was already a used cellphone, she got it at a very low price. She was very delighted with her purchase, until several weeks later when problems started to happen one after another...

First, her battery died on her. So we had to buy a brand new battery for it. Then, just after a short time, her refurbished cellphone just wont turn on. We brought to the repair shop to have it fixed. It turns out that the problem was the actual motherboard, where all the electronic components are attached. The cost of the parts and repairs, combined with the new battery and the cost of the intial phone purchase, was actually close to the cost of just buying the same model but as brand new.

We learned a big lesson that day. We decided not to have it repaired anymore. What we actually thought was a good deal at first, was actually too good to be true. Refurbished cellphones don't have the warranty and the seal of quality from the original manufacturers. So that means you can get lucky, but you probably won't.

How about you? Have you ever bought refurbished cellphones? Did you have the same experience? Drop me a line.

photo credit, Oracio Alvarado

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Compact Fluorescent Light Bulb

As soon as our kitchen and dining room lights went busted, we went ahead and bought a Compact Fluorescent Light Bulb to replace them. CFL costs more but is more energy efficient and lasts longer than the ordinary incandescent light bulb.

What are the advantages of choosing a Compact Fluorescent Light Bulb?

1. They use a very small amount of electricity compared to incandescent lighting (13 watts vs. 60 watts for the same light output).

2. They have a much longer lifetime (8-15 times longer than an incandescent light bulb).

3. They are much cooler so they contribute to less heat load in a room.

4. Of course, all of these result to more cost savings!

How to select a Compact Fluorescent Light Bulb

1. Find out how much light you need for your room or any other area in your house. Too little output will not be enough to light your area, while too much output is a waste of energy.

2. If you want to imitate the shade of an incandescent bulb, check the "temperature" range. CFLs with 2700 kelvin range gives just right shade of pale yellow white.

3. Higher "temperature" values provide white shade (3800 Kelvin), and even higher values provide daylight shade (around 5800 Kelvin). These cost more but they are more close natural lighting.

4. Different CFL shapes are ideal for different lamps. Some lamps have their light concentrated on the front side so those are best for lamps and fixtures that are recessed or partially covered.

5. There are special CFLs that are three-way or dimmable. They have to be used with a three-way socket or a dimmer.

5. Check the Energy Star Web (energystar.gov) for more information about these and other energy saving products.

Good luck in buying your first Compact Fluorescent Light Bulb and saving money in the process!



photo credit, tallfoot

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Tips Straight from the Grocer

My wife and I will go to the grocery this afternoon. We actually do not set a regular day when to go. We just find a common time and we just go. And our grocery list contains only the most important stuff to make through to the next trip to the grocery. We don't list items that we don't need, but that does not mean we don't buy them...

Recently, we found out that the most popular grocery is not necessarily popular because of its price. We were shocked when we discovered that for exactly the same items, the biggest supermarket here in the Philippines (clue: initials S and M) actually has far higher prices than the other lesser known supermarkets.

We think location and convenience are big factors for most people in choosing which supermarket to go to. But for us, we obviously go to the one with the lower prices. The small differences in price accumulate into a huge amount when you look at it in the long run.

Readers Digest has compiled some Tips from the Grocer that would help us become smarter at the supermarket. It is written from the point of view of the grocer, addressing the shopper how to make their grocery trips more effective.

13 Things Your Grocer Won't Tell You
Get smarter about grocery shopping. These tips could change your family eating habits.

By Adam Bluestein and Lauren Gniazdowski
From Reader's Digest

1. If you hate crowds and lines, shop at dinnertime (5 to 9 p.m.) or even later. Only 4 percent of shoppers hit the aisles between 9 p.m. and 8 a.m. Least-crowded day of the week? Wednesday.

2. Go ahead and reach way back for the fresh milk. Everybody does.

3. Coupons with a bar code are easy to scan. The other ones take an eternity. But if you're willing to wait …

4. That star fruit has been here a lot longer than the broccoli. Familiar produce turns over more quickly than exotic things.

5. "The more products you see, the more you are likely to buy," says Marion Nestle, author of What to Eat. "That's why the aisles are so long and the milk is usually in the far corner."

6. Like employees with a good attitude? Shop at chains that are employee-owned, suggest customer-satisfaction surveys. When employees have a stake in the profits, it shows in their attitude.

7. The "grazers" order food at the deli, eat it as they're shopping, and get rid of the wrappers before they check out. We also call that stealing.
8. I'm not just selling groceries, I'm selling real estate. Look high and low-literally-for good values from smaller manufacturers who can't afford to stock their products in the eye-level sweet spot.

9. We're marketing to your kids too. That's why we put the rainbow-colored cereals and other kiddie catnip at their eye level.

10. Be wary of "specials." When people see signs with numbers-"8 for $10!" "Limit: 5 per customer"—they buy 30 to 100 percent more than they otherwise might have.

11. The baby formula is locked up because thieves resell it on the black market. Ditto for the cough and cold medications, smoking-cessation products, razor blades, and batteries.

12. Driving your Ferrari to the Piggly Wiggly and want to avoid shopping-cart dents? Park far, far away.

13. You'll end up tossing 12 percent of what you buy.

Sources: Maurice Nizzardo, former supermarket executive in Connecticut; David J. Livingston, an industry consultant; Brian Wansink, author of Mindless Eating; and others. Interviews by Adam Bluestein and Lauren J. Gniazdowski.


16 More Tips From Your Grocer
Get smarter at the supermarket with these tips from grocers.

From Reader's Digest

1. "Don't buy anything with more than five ingredients (too processed), with ingredients you can’t pronounce (too processed), with anything artificial (tastes bad), with a cartoon on it (direct marketing to children), or with a health claim (misleading)," says Nestle.

2. Paper? Plastic? We don't really care. But asking us to double-bag…that's just wasteful.

3. Dig and reach for the freshest produce. Older merchandise gets pushed to the front of the bin and spread across the top to encourage customers to take it first.

4. This isn't a social service agency. "The purpose of grocery stores is to get you to buy more food, not less," says Marion Nestle, author of What to Eat (North Point Press). Only 14% of consumers overall stick to just the items on their shopping list.

5. Very few people really like the "loyalty card" program, and it's expensive for us to run.

6. Attention, shoppers: Don't start your shopping just as we're closing. We just want to leave. It's been a long day.

7. Watch out for gimmicks. They are intended to get you into a store more frequently and to keep you away from competitors.

8. The person who supervises it all has a tough job; they're just a big babysitter.

9. Thanksgiving is our least favorite holiday.

10. Bring back your recyclable cans and bottles, but please rinse them out first. Leaving soda inside is unsanitary and we find it disgusting.

11. Signs of a store in trouble: Stocking fewer perishable items, storing non-perishables in refrigerated cases to make them look full, and "dummying up" shelves with empty boxes. If we were offering the best prices and highest quality, wouldn't there be more people shopping here?

12. I'm not getting rich here. After-tax net profit for the grocery industry is less than 2 percent, and by the end of 2013, the Food Marketing Institute, an industry group, predicts annual average wages will be just $18,000.

13. If you get in the 10 items or less line with 25 items, don't be surprised if you are asked to leave. If you have 12 items, not many people will care.

14. Watch those shopping-cart handles. They're covered in bacteria, says food-safety consultant Jeff Nelken. Use a sanitary wipe if the store provides them. Finicky shoppers can even patronize supermarkets that send their carts through a cart wash.

15. Skip the center aisles. That's where you'll find the junk food, like sodas and snack foods.

16. Check sizes. "Manufacturers are constantly trying to repackage things to make them sound like a better deal," says David Livingston, a supermarket industry consultant. "Some new peanut butter containers may look the same, but look closely and you'll see they actually have less peanut butter inside. Ninety-five percent of customers don't watch this kind of stuff."

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Online Loan Calculator

Need an online loan calculator that is simple to use and understand? Being an average guy, I really don't know all the formulas when it comes to loans and interests calculations. So having an online tool for this is really a plus for me.

Loanscalculator.org has free loan calculators for every type of need:

Use the loan calculator in case you want to know how much you need to pay for a given principal, interest rate and term.

Use the prepayment calculator to know how much you need to pay given the term, or how long you need to pay given your desired monthly payments.

Use the annuity calculator to determine how much to put away tax deferred to get a certain amount of money in the future, and how much you could expect to draw out of that money.

Use the APR calculator to enter the interest rate of your loan, the points and costs and the loan amount. Use their

Use the balloon loan calculator for balloon type mortgages. Balloon type loans have the advantage of lower interest and monthly payments.

Use the auto loan calculator to get details about EMI or pending amounts for your new or existing car loan.

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Supplementary Credit Card

I just had my wife's supplementary credit card canceled. When the credit card company first offered me a supplementary credit card, they waived the membership fee for 1 year. But now that the membership fee is no longer waived, the supplementary credit card became a non-essential expense and therefore canceling it is an opportunity to save some money.

When you look closely, there are similar products out there which offer similar marketing strategies. The free 5-day trial for a premium membership website. The free workout session to checkout a gym membership. The idea is you will like the product or service and you won't mind paying later. So you quickly sign up and enjoy the promotion. But you soon forget that there is a catch and you will end up still paying the price.

But are you really willing to pay? In my case, I guess I'm not.

Next day update: The Credit card company already canceled my wife's supplementary credit card after the customer service agent spent several minutes trying to convincing me not to. They also refunded me the membership fee for the supplementary card. I hope this becomes a lesson for me that I need to be careful in accepting these kind of promotions.

I still have my primary credit card active and I still want to keep it for my online transactions and for emergency needs when I do not have the cash. But now I'm also having second thoughts on this as well, since the annual membership fee might still be too heavy for my pocket...

What do you think I should do?


photo credit, SqueakyMarmot

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Low-Cost Strategies to Maintain Health in Hard Times

MONDAY, Jan. 19 (HealthDay News) -- Everyone needs to make sacrifices during hard economic times, but you don't have to shortchange your health.

Experts with the Dana-Farber Cancer Institute in Boston say people can live healthy and cut their risk of cancer without breaking the bank by following several free and low-cost strategies.

Get moving.
Moderate to intensive aerobic exercise, including brisk walking, are good for the heart and can help cancer survivors reduce the risk of recurrence. "The most consistent evidence we have so far for reducing the risk of several types of cancer is exercise and avoiding becoming obese," D. Jeffrey Meyerhardt, a Dana-Farber gastrointestinal cancer specialist, said in a news release issued by the institute. Activities can include taking the stairs instead of an elevator, using a stationary bicycle or treadmill while watching TV, or playing a team sport.

Eat healthy.
Keeping consumption of processed sugars, red meat and calories low, but fruits and vegetables high, helps you maintain a healthy weight and cuts the risk of certain cancers. "Many of the beneficial nutrients in fruits and vegetables are concentrated in the pigment or rich colors, which are often in the skins," said Stacy L. Kennedy, a nutritionist at Dana-Farber. An apple a day is a good start. The uncooked skin contains the cancer-fighting antioxidant quercitin. Pumpkin, sweet potato, squash (butternut and acorn), carrots and other orange fruits and vegetables contain carotenoids, cancer-fighting nutrients shown to lower one's chances of getting of colon, prostate, lung and breast cancer.

Quit smoking.
Kicking the habit will save you money later in health-care costs. "Even though there have been many recent advances in lung cancer treatments, the most effective way to eradicate lung cancer is to prevent it from ever happening," said Dr. Bruce Johnson, director of the Lowe Center for Thoracic Oncology at Dana-Farber, noting that smokers who stay off tobacco for at least 10 to 20 years cut lower their chances of developing lung cancer by 50%. Though smoking is the cause of 80% of all lung cancers, according to the American Cancer Society, it also increases the risk of oral, throat, pancreatic, uterine, bladder and kidney cancers.

Mind your Ps and Qs.
Obviously you save money by cutting out alcohol consumption, but you may also lower the risk of developing some cancers. For example, Dana-Farber researchers found one drink a day for postmenopausal women may raise their risk for breast cancer.

-- Kevin McKeever

SOURCE: Dana-Farber Cancer Institute, news release, Jan. 12, 2009
Copyright © 2009 ScoutNews, LLC. All rights reserved.

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Swap Mushrooms for Meat

by Maggie Vink

Grocery costs are a bit crazy right now. I was forgiving of it when fuel costs were also outlandish ... after all, food has to be transported so fuel costs directly effect grocery costs. But now the fuel costs are down and grocery costs are staying high. I don't know about you, but I think it's totally unfair.

In these tight economic times, we all have to be penny-pinchers. Since meat is one of the most expensive grocery items to buy, it only makes sense to cut back. Beans and tofu spring to mind as meat-replacements -- they're inexpensive, filling and high in protein. Another great option -- though not high in protein -- is mushrooms.

Swapping mushrooms for meat isn't only economical, it's healthful, lower in calories, filling and completely tasty. Try them in lasagna or grill up a marinated portobello as a burger. A recent study found that when participants ate meals where mushrooms replaced beef, they consumed an average of 420 fewer calories. Great news if you're trying to lose weight!

Article source: Thatsfit

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Setting Your Monthly Fitness Budget

Feel like exercising but haven't got the budget for it?

Mitch Felipe's article in the Philippine Inquirer about "Setting Your Monthly Fitness Budget" brings a good point that budget constraints should not hinder yourself from achieving your fitness goals.

Setting your monthly fitness budget
By Mitch Felipe

ASIDE from lack of time, another common reason for not exercising is lack of money to pay for gym membership and the like. But fitness is not only for those who can afford it—you can definitely enjoy it for free.

At the start of the year, plan how much time you will devote to work, family, yourself and health. Then check your budget. How much should be allotted for food, transportation, bills, recreation, clothes and wellness?

If you are just starting to exercise and are still unsure if it’s worth your money, start with free activities. Keep in mind that you can have the long-term benefits of physical activities only if you do your routine consistently.

Monthly budget: none

Walking:
Walking is a free activity, and you can do it anywhere. If you do it at least 30 minutes a day, you can maintain your weight, and if you try to maintain a moderate intensity continuously for at least 10 minutes, you can improve your endurance. Increase the duration to one hour a day and expect to lose weight at 1-2 lb a week, provided you maintain or gradually improve your food intake.

Body weight exercises:
Increase or maintain muscle mass, improve your strength and speed up your metabolism with just a towel or an exercise mat. The routine (crunches, lunges, push-ups) can be completed in 15-20 minutes. A full-body workout twice a week will tone and strengthen your body.

Monthly budget: P100-P1,000

Exercise videos:
If you can buy a DVD weekly, you probably can allot a budget for one to two exercise videos monthly. If you cannot commit to attend regular group classes, perhaps it’s more beneficial to exercise at home during your most convenient time. Benefits include improved endurance, strength, flexibility, body shape and balance. Choose exercise videos you enjoy most.

Dumbbells and exercise balls:
If you are not satisfied with using your body weight as resistance, buy a pair of dumbbells, which is less than P600, and an exercise ball you can use for exercise variety, for about P400. You can get a complete workout with these pieces of exercise equipment.

Outdoor running:
You just need to invest in a good pair of running shoes, from P2,000 to as high as P6,000. The activity can be done around villages or even outside malls. If you want to be a serious runner, join a race at least once a month. Registration fee costs P100-P500, depending on the organizers, location and event.

Monthly budget: P1,000-P2,000

Gym membership:
Choose cheaper gym memberships available around your area if your purpose is just to complete your weight training and use cardio machines such as the treadmill and stationary bike. Usually, such places do not offer group exercise classes, but there are available fitness trainers to guide and design an exercise program for you.

Dance and aerobics classes:
If you are motivated to do exercises in a group setup, at work or at home, hire a dance or group fitness instructor and share the expense with your group. Freelance instructors charge P500 to as high as P2,000, depending on their experience, qualifications and skills. Even if you do the classes thrice a week, you will not spend more than P2,000—even less if you can recruit more participants.

Sports:
You can rent a badminton court for as low as P250 per hour. If you do it two to three times a week, lower the cost by sharing the rental fee with your friends. Racquet sports can help you burn 300-500 calories per hour, and the best thing about it is you get a lot of enjoyment while doing it with your friends, which ensures long-term exercise commitment.

Monthly budget: P2,000-P5,000

A complete health club membership:
Health clubs charge more since they present state-of-the-art facilities and equipment, provide trained and qualified fitness professionals and offer all types of group exercise classes daily, from morning to evening. If you want to experience and learn everything about exercise, a health club is the place for you. You can request free trials forking over your money for membership.

Boxing and fitness martial arts studios:
Boxing studios with professional boxers will really give you the burn and the sweat you’re looking for. These boxers charge less than a trainer, and the membership fee is cheaper than a health club. For not more than P5,000 a month, you can use the studio’s boxing facilities and have a trainer at the same time.

Monthly budget: P5,000-P10,000+

Personal training:
Do you really need a personal trainer? Yes, if you have no idea about proper exercise execution and find it hard to commit to exercise by doing it on your own. The average rate of personal trainers is P800 per hour. If you do it twice a week, you can spend almost P7,000 (or more) a month for the trainer’s fee and an additional P3,000 if you pay monthly gym membership dues.

Yoga and Pilates:
If you’re bored by this time doing exercises in a gym environment and you want to try something different, work on your core, improve your flexibility, and relieve yourself from stress so you continue to adhere to an active lifestyle, you can try yoga and Pilates. Save more if you do the sessions in a class setup. One-on-one sessions with certified teachers can cost you an average of P1,200 per hour.

Combination of various fitness activities:
There are exercisers willing to spend more than P10,000 a month trying different types of exercises and hiring the services of fitness trainers and sports coaches. Exercise has been a part of their daily routine, and they can picture themselves doing it as long as they can lift weights and run on a treadmill.

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5 frugal fitness tips!

by Weetabix, Elastic Waist

Are you broke? I'm broke. Anne's broke. Kim's facing the brokety broke reality of unemployment. You all told us that you dream of a day when someone would pay you to work out, but why are you still paying someone to let you work out? If your budget is feeling the crunch, our old friend Stacy Berman will help you stop paying for that gym membership and find extra money that you didn't know you had.

Frugal Fitness Tip # 1: Strength in Numbers!
With so many consumers cutting back on spending, personal trainers and gyms are feeling the burn. Stacy recommends quitting your one-on-one training sessions in favor of a group discounted rate. "Many trainers will accept a larger group of people for a lower individual rate," says Stacy. "It's a great way to reduce spending on fitness but keep the motivation factor there."

Frugal Fitness Tip #2: The Cheaper the Meat, the Bigger Your Waist
According to Stacy, many consumers will have to make sacrifices when it comes to consuming high-price items like meat. If you are a meat eater, Stacy warns you not to go overboard with cost-cutting. "Often the cheapest cuts of meat are also the cuts with the highest fat content. You may be saving a dollar or two, but it could add up your calorie content higher than it used to be," says Stacy. Instead, chose moderately priced lean cuts of meat and scale back on your side dishes. Stacy recommends whole grain, fiber-rich foods like rice and beans to compliment your meals. Do not skimp on these 10 foods at the grocery store.

Frugal Fitness Tip #3: Every Little Bit Counts
The world is your playground -- literally! Stacy is a big fan of using everyday activities to burn extra calories. She runs her out outdoor boot camp, Stacy's Boot Camp, in the public parks of New York City, and her classes use only their bodies and a few water bottles to get results. "You don't always need fancy gym equipment to get into great shape," says Stacy, "just a set of dumbbells and a chair can get you to your fitness goals without breaking the bank." According to Stacy, as the holiday season approaches, take advantage of calorie burning activities like raking leaves, building snowmen and ice skating. Play your way slim with this neighborhood park workout!

Frugal Fitness Tip #4: Be Prepared to Prep!
The place where money is wasted the most is in the pre-packaged food aisles, says Stacy. "Spending extra money on things like pre-washed and pre-cut lettuce, for example, is a huge money pit," says Stacy. "Buying whole foods and preparing them yourself will not only cut back on costs but it will ensure you are not eating extra preservatives or additives in packaged foods."

Frugal Fitness Tip #5: Use the "Dollar Menu" Wisely
Stacy admits there are times when you may have no choice but to eat at fast food restaurants. However, Stacy notes that many, if not all, fast food chains are offering not only healthy but appetizing options for those both on a diet and a budget. "When choosing to eat from a fast food restaurant, it's simple to stay on the health track," says Stacy. "I tell my clients to avoid the words 'crisp,' 'double' and 'big' at all costs." There are some great choices to be had at many restaurant chains -- including Wendy's Small Chili, McDonald's Salads with Grilled Chicken and Burger King's Whopper Jr. without cheese. Beat hunger (and the clock) with these speedy dinners.

[photo credit: Getty Images]

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5 Tips for Saving Money on Your Health and Fitness Goals

by Laurie Pawlik-Kienlen

If your fitness goals are clashing with your financial goals, I’ve got good news! Here are five tips for saving money and achieving your goals at the same time…

First, a quip about cutting calories:

“Another good reducing exercise consists in placing both hands against the table edge and pushing back,” said American journalist Robert Quillen.

Funnily enough, New York City Personal Trainer and Nutritionist Ariane Hundt just today said, ”When it comes to changing the shape of your body, exercise will only take care of about 30% of the change, the rest needs to come from proper nutrition and a positive sense of self.”

If exercise only takes care of 30% of the change, then you better believe that placing both hands against the table edge and pushing back takes care of at least another 30%!

Anyway, for some great tips on achieving your financial goals, click on The Smart Cookies’ Guide to Making More Dough, compiled by Jennifer Barrett (some of my tips for saving money on health and fitness goals are from this book). And, read on for the exercise and money saving tips…

5 Tips for Saving Money on Your Health and Fitness Goals

1. Take a break from the health club. Many gyms or health clubs fitness centers cost hundreds or thousands of dollars a year - and get this: ”Gyms count on the likelihood that most members stop going, at least regularly, after a few weeks or months but are still stuck paying monthly dues until the contract runs out,” write the money experts in The Smart Cookies’ Guide to Making More Dough. To achieve your financial and fitness goals, use municipal facilities. “Most cities have free or discounted access to tennis courts, swimming pools, and other sports facilities,” write these money experts.

2. Sweat outside. A 45 minute run or walk in the fresh air instead of a stuffy gym can burn more calories, improve blood flow, and keep your brain alert. Plus, sunshine increases your serotonin and vitamin D levels, which help keep your weight stable. Plus, turning off the treadmills, elliptical trainers, and stationary bicycles can reduce national energy consumption levels - which helps you achieve your eco-friendly goals!

5. Swap your exercise equipment. Dig out your exercise ball or old Wii Fit games and trade them for your friend’s yoga mat or Pilates video. Not only does this save you money and help you achieve your financial and fitness goals, it motivates you to try new activities, which will boost your metabolism.

3. Park your car far. To achieve your financial and fitness goals, lose your car keys. Your choice of transportation can burn an extra 500 calories a day! Riding the bus or subway gets you walking (and running), biking strengthens your calves and glute muscles, and taking the stairs instead of the elevator exercises your heart and lungs. In comparison, driving burns almost no calories - but it sure costs a lot more.

4. Exercise with friends. “Before you join a gym, consider organizing a group of friends for daily or weekly walks, runs, hikes, or bike rides instead,” write the money experts in The Smart Cookies’ Guide to Making More Dough. “This way you can be social and be fit - and working out with friends will give you added incentive to stick to your exercise regime.” To achieve your financial and fitness goals - and save time by socializing at the same time - round up your exercise buddies.

6. Stop buying labels! Lululemon and whatever else is trendy looks pretty snazzy, but why spend money on stuff you’re going to ruin with sweat? (and if you’re not sweating, then you’re not working out hard enough ). To reach your financial and fitness goals, work out in preloved clothes - yours, or ones you buy at a local thrift store.

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How Much for a Gym Membership?

How much do you need to pay for a gym membership? And what is the real cost? Signing up for gym membership is actually the easy part.

A couple of months ago I was listening to the pitch of someone from a famous gym in Manila. To avail of their gym's amenities, I had to pay for monthly dues on top of the initial membership fee. Although they said that they could waive the one-time membership fee for me (they're too kind), I still had to pay for a substantial amount on a monthly or quarterly basis.

That may be a good deal for some people, but in my case, I won't get my money's worth. First of all, I already know that due to the inconvenient location of the gym relative to my place, I won't be able to go there as often as I want. Assuming I only go to the gym once a week, I would end up paying for only 4 sessions per month.

Secondly, I also know myself well enough that I may not be able to be consistent in my gym sessions. Less frequent workouts may result in over exertions "to compensate". Which may result in soreness of the whole body. Which may result to even less frequent gym sessions due to physical and psychological trauma.

My advice for people who are thinking of getting a gym membership: Do not get easily persuaded by the salespeople in getting the membership just because it is the right thing to do for yourself. Logic is not the only consideration because we are human beings and we all have limitations

1. Physical limitations. If the gym is more than 1 hour away from your place (as in my case), I don't think it is sustainable to go there 3x a week. Sure, you can try and maybe you can successfully complete 1-2 weeks without breaking your routine. But in the long run it would be too much time investment from you.

2. Psychological limitations. You would need to be consistent in your visits and that needs a mountain of will power. Motivation is not enough. You need to make it a habit. There will be lots of times when something unexpected will come up in your life and will easily screw up your routine.

3. Budgetary limitations. You my need your gym money for something more important like house mortgage or utility bills (it is debatable if cellphone bills are really more important but hopefully you get my point).

Bottomline, you need to be realistic in assessing your fitness goals. Gym membership is only one possible option. Based on your current situation, you need to determine how much is your real Cost of Fitness.

reference: http://www.cnn.com/2008/HEALTH/12/30/procrastination.economics/index.html?eref=rss_topstories

In a study on gym attendance, published in the American Economic Review in 2006, DellaVigna and colleagues looked at people who chose $80 monthly gym memberships over paying $10 a visit. These monthly members actually went to the gym only once a week, meaning they wasted $40 a month because of excessive optimism about how often they'd go.

Moreover, DellaVigna found a spike in gym enrollments around the start of the new year, but the dedication didn't last -- the new subscribers tended to go to the gym more than others for a month or two, and then their attendance dropped off to the lowest.

Photo credit, Rick

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