Why do we feel the need to eat out?

I mean really. Of course there are the advantages like no preparation or clean up. But is it worth the extra expense?

For example. I called my wife about 5:30PM yesterday to let her know that I’d be coming home from work in about 30 minutes. She then mentioned that we didn’t have a meal readily available in-house and that she wanted to take her younger sister who’s staying with us out for a meal. Being in a good mood, I said, “No problem. You girls decide where you want to go and I’ll be home shortly.”

Due to health conditions, my sister-in-law has a very strict diet that excludes many types of food. So they decided on seafood and off to Red Lobster we went. Since crabfest is going on, my wife and I both ordered a pound of succulent snow crab with about a dozen shrimp scampi. The food was enjoyable. My 10 month old loved the crab.

But then the bill came. Seventy-three dollars later, I’m sitting there thinking, “Why did we do this?” The effects of cognitive dissonance were beginning to set in.

Cognitive disso-what?!

Better known as “buyer’s remorse”, cognitive dissonance is what we experience when our actions don’t fall in line with our beliefs. Our brain raises a red flag saying, “Why are you doing this? This action goes against what we believe about the world or ourself.”

And yet, we as consumers are so well trained to ignore that mental alarm and act in contrary to our beliefs and desires. I believe that fundamental to the issue is the habit of instant gratification that has been nurtured by the “me” or “now” generation. Our grandparents, the people who survived the Great Depression, are skilled ninjas in the art of waiting. And yet, that crucial skill seems lost on many Americans.

What are your beliefs about spending, budgeting, and frugality?

I propose a simple, yet potentially life changing exercise. Sit down this afternoon with a pad of paper and answer three questions.

1. What did your parents teach you about money?
2. How do you currently view money and its affects on your lifestyle, goals and dreams?
3. What actions, such as eating out, are currently in contrast to your views?

From this simple task, you may discover that your attitudes are what they should be. Or that your behavior does not reflect your beliefs. Also, you may discover the root of the issue – your childhood (said slow and deep).

So how bad is eating out and what can you do to change your habits?

Here’s what a few of my colleagues have to say on the topic:

Lunch Savings Calculator provided by Mortgage-calc.com allows you to input what you’d spend making a homemade lunch versus eating out, for how many years, and the investment rate you could yield with the savings.

Saving Money Not Eating Out by Me Financially Free outlines how he estimates an annual savings of $2,340 by not eating out for lunch.

How Much Money Can You Save by NOT Eating Out over at OutOfYourRut.com not only addresses the potential savings, but gives you eight suggestions for spicing things up in the kitchen.

Save Money by Not Eating Out for an Entire Month presented by Les O’dell at Good Financial Cents talks about some of the non-financial benefits in addition to the financial benefits from not eating out.

What tricks or tips have you used to avoid eating out? For more information and commentary, fan us on Facebook!

You probably already pay a lot for your utilities.  With electronics galore cluttering up your house, old appliances draining precious energy, and summer temperatures soaring (necessitating the dreaded switch to AC), you’re beginning to feel the crunch on your finances from summer utility bills.

However, there are a few simple tricks you can try to cut down on your utility bills through the hot summer months.

1. Upgrade to energy star. Trade in your old appliances for new energy-efficient models.  True, there is a hefty initial cost, but between government tax credits, rebates or cash back from utility companies, and a reduction of 25-30% in your monthly bill, they practically pay for themselves.  Along these lines, you can also consider low-flow toilets, tankless water heaters, and a more efficient AC unit and furnace.  Bonus: you’re making the planet a little greener.
2. Stop leakage. Nobody likes a leaky…well, anything.  You certainly don’t want to let out the “bought air”, so think about hiring an auditor to come out and assess areas that may be leaking.  If an audit is out of your price range, you can try it on your own by running your hands along the edges of doors, windows, baseboards, outlets, etc. to determine potential problem areas.  Then you can simply fill them in with foam weather stripping or caulk (both can be obtained pretty cheaply at your local hardware store).
3. Get smart strips. These work in much the same way as the sleep mode on your computer.  When electronics are not in use, the smart strip cuts off power to the devices plugged into it, relieving you of the burden of paying for idle current or alternately, the constant annoyance of unplugging everything in your house.  Most of these strips claim to pay for themselves within six weeks of usage.  Not too shabby.
4. Use a grill. Summer cooking can overheat your house and put your AC on high alert.  So get outside and enjoy those nice evening breezes.  In addition to keeping your temperature cool and controlled indoors, cooking outside cuts down on electricity or gas needed to run your stove.  And BBQ is delicious!
5. Plant a tree. Yeah, it’s for your tomorrow, but that doesn’t mean you shouldn’t think about it today.  Having leafy trees that soar above your rooftop will help keep your house cool throughout the summer, so even if it doesn’t get tall enough for a few years, it’s an inexpensive way to make your house more efficient in the long run and add a little natural beauty.

What else hav you tried in order to save money during the summer months? For more money saving tips, sign-up for Rabbit Funds’ RSS Feed!

Author Info: Thomas Warren is a content writer for Go College, one of the oldest and most trusted resources to guide students on how to finance and succeed in college.

For the purpose of this post, I am assuming that you already believe in budgeting. Meaning, I intend to review Mint.com as a budgeting software solution and not attempt to persuade you that you should be budgeting (though you should be).

Before detailing my experiences, let me start by saying that I love Mint.com. I had been a hardcore Microsoft Money user for years and was devastated to find out that they were discontinuing the product. Looking for a cheap, straightforward alternative, I decided to attempt Mint.com.

Here’s a brief outline of what I like and don’t like.

Likes

1. Free – If you are just starting to budget, then Mint is a good way to get your feet wet with a strong tool that is user friendly and free.
2. Auto-updates my accounts – This feature is fairly standard to most budgeting software but still worth mentioning. You use an obscure bank or credit union, then auto-updating may not be possible.
3. Offers – Mint.com makes money through third party offers such as credit card companies and brokerage firms. First, the “advertising” is not obtrusive to the user experience and you usually have to go looking for the offers (“Ways to Save” tab). Second, although I am opposed to credit cards and the like, I believe that consumers with credit card debt may benefit from lower interest rates or better terms. So I believe there is value in helping compare offers.

Dislikes

1. Only simple reports – Having used Microsoft Money for years, I had fallen in love with being able to quickly and easily create custom reports to analyze just about any part of my financial house. With Mint, you are restricted to a small set of non-customizable reports.
2. No debt management tool – Ok, so that statement is a little misleading. Until the recent addition of Goals, Mint offered no way to systematically eliminate your debt using techniques such as the debt snowball. Though, I outline my experience with the tool below.
3. Does not take into account savings – I really like the Budgeting feature. It is straightforward and easily accommodates custom budgets and helps you save for non-monthly expenditures (i.e. it tells me how much to save each month in order to pay for my wife’s salon trip every 4 months that always costs more than she says it will). However, I tried to add a budget for what I stick into my Roth IRA account, which is tracked by Mint, and the budget disappeared. Meaning, that investment amount isn’t subtracted from my spending and it appears that I have more money to spend than I actually do (see image to the right). I tried adding a ‘dummy’ Savings budget so I’d know not to spend the money, but then the investment isn’t tracked correctly.

The new Goals feature

Let me start by saying that it’s about time!

I’m honestly a little surprised that it has taken the team at Mint.com this long to add a goals feature. Either way, we have it now. When you click on the Goals tab, you are presented with a number of “off the shelf” options or a create your own goal option.

“Get out of Debt” goal

Excited to see how the debt elimination feature worked, I decided to see how I could payoff my mortgage sooner. To my surprise, the only debt I was allowed to eliminate was my one credit card (which has a balance of $176). Dismayed, I selected my credit card and hit Next. Mint then analyzed my discretionary income (or extra income after expenses), the minimum due on my credit card, and the interest rate. Mint’s advice was to pay the minimum, only $15, for one year despite sufficient discretionary income to pay it off much sooner. Like now. Simply put – Mint’s debt management program failed.

“Take a Trip” goal

Though, I believe everyone deserves a fair chance. So I attempted to create a different goal. My little family will be headed out to Washington D.C. next Spring to see her family. Below is what I entered. This time, I felt everything worked very well. We were able to give the goal our own name and upload a pic to motivate ourselves – very cool.

Despite the drawbacks of the debt reduction goal, I definitely give the Goals feature two thumbs up.

Last question, is it safe?

Let’s be honest. If I am sharing my account information with a site, I want to know that it’s safe. In a video posted to YouTube, Mint’s CEO Aaron Patzer explains how Mint approaches security. I’m pretty paranoid about my identity being stolen and take a good number of precautions. So far though, I have felt completely safe using Mint.

My recommendation is that if you are not currently using any budget software or if you are unsatisfied with the one you are using (this includes Microsoft Excel), then check out Mint.com.

For more tips and reviews, subscribe to Rabbit Fund’s RSS Feed!

To celebrate the birth of our nation and the freedoms that we are afforded, I am writing three posts this week with a twist. Each post is based on an influential document which has given us rights.

So far this week, I have posted the Financial Declaration of Independence and Financial Bill of Rights. Today’s post, adapted from President Lincoln’s declaration which challenged slavery head-on, is the Financial Emancipation Proclamation. Without further ado:

Financial Emancipation Proclamation

On this second day of July, in the year of our Lord two thousand and ten, all persons held as slaves within any State of Debt or living without the benefit of a Budget shall now be in rebellion against Credit Cards, Living Paycheck to Paycheck, and Overspending, and shall be now and henceforward, and forever frugal; and the people of the Unites States, banded together, will recognize and maintain our own freedom, and will do no act or acts to enslave ourselves, regardless of marketing schemes and any efforts creditors and stores may make to entice us to empty our wallets and bank accounts.

That the people will, on this second day of July, by proclamation, designate the debts, if any, in which we the people shall use the Debt Snowball Method to speedily eliminate said debts; and heeding the call by Dave Ramsey, and other financial experts, shall on this day cut, melt, or in other words destroy by any means the credit cards by which we have amassed the greatest consumer debt on record; in the absence of credit cards, we will institute budgets based on our available cash, after fair taxes, charitable donations, and savings contributions, that will allow us to control overspending and live without fear of eminent bankruptcy.

Now, therefore we, the People of the United States, by virtue of the power vested in us as citizens of a free nation and granted by Nature’s God, do, on this second day of July, in the year of our Lord two thousand and ten, and in accordance with our money saving purposes do publicly proclaim, from this day forward, to commit to solemnly live by, resulting in peace of mind and financial independence, the following, to wit:

Refined Budgets, Sound Cash Management, Adequate Life Insurance, Sufficient Auto and Home Insurance, Debt Avoidance, Frugality, Bargain Hunting, Retirement Account Funding, College Savings, Stock Speculation Avoidance, Affordable Home Owning, Index Mutual Funds, Estate Planning, and Tax Planning.

Signed this 30th day of June, 2010,

Adam Williams and the Rabbit Funds team

Sign the Financial Emancipation Proclamation by leaving a comment in the comments section below and follow Rabbit Funds on Facebook for more great financial planning info.

To celebrate the birth of our nation and the freedoms that we are afforded, I am writing three posts this week with a twist. Each post is based on an influential document which has given us rights.

On Monday, I outlined the Financial Declaration of Independence. Today’s post, based on the United States’ Bill of Rights, is the Financial Bill of Rights.

1. First Amendment – Freedom from debt, credit cards, and HELOCs
   We shall take out no unnecessary debt living beyond our means, which prohibits free exercise of other rights; or overspend through the use of credit cards; or enslave ourselves through the use of HELOCs; rather save the necessary sum to pay cash for wants and needs.
2. Second Amendment – Right to keep and have savings
   A well regulated Automatic Savings Plan, being necessary to the security of a financially free Family, the right to an Emergency Fund, shall not be infringed.
3. Third Amendment – Protection from bank failure through FDIC insurance
   No Investor shall, in time of peace place cash savings in any bank, without FDIC insurance, nor in time of war, but use multiple banks as necessary.
4. Fourth Amendment – Refusal of Interest Only and Adjustable Rate Mortgages
   The right of the people to be secure in their houses, condos, and town houses, against needless foreclosures and bankruptcies, shall not be violated, and no Interest Only or ARMs shall be issued, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.
5. Fifth Amendment – Health, life, AD&D and LTD insurance
   No person shall be without Health insurance, or adequate Life insurance, sufficient for final expenses and income replacement, except in cases when no financial means to purchase insurance exists, while actively seeking new employment or other income source; nor shall any income producing person be without Accidental Death and Dismemberment insurance; nor shall any income producing person be without Long Term Disability, sufficient to replace 60% of the normal wage.
6. Sixth Amendment – Right to steady, growing mutual fund returns
   In all mutual fund investments, the investor shall enjoy the expectation of steady, growing returns, by careful fund selection based on principles of positive alpha, fair management fees, consistent performance, and passive management where appropriate; each fund consistent with a target asset allocation plan; to have compulsory purchases avoided and decisions based on sound investing principles.
7. Seventh Amendment – Consistent asset allocation by rebalancing
   In accordance with a predetermined asset allocation plan, where the values are determined through evaluation of your risk and investing objectives, the right of rebalancing, or realigning investments which have deviated from their allocation, shall be exercised, and no given investment, shall be allowed to overwhelm the returns of other investments, which may result in large, unexpected losses.
8. Eighth Amendment – Abolishment of excessive management fees
   Excessive management fees shall be avoided, nor 12b-1 fees paid, nor front end or back end loads paid.
9. Ninth Amendment – Protection of rights not specifically enumerated in credit card agreements
   Where credit cards are used, the enumeration in the Agreement, of certain rights, shall not be construed to deny or disparage others retained by the credit card account holder.
10. Tenth Amendment – Powers of spouses and family councils
    The powers delegated to the Head of Household by the Family, are reserved to the Spouses respectively, and decisions discussed in family council.

Signed this 30th day of June, 2010,

Adam Williams and the Rabbit Funds team

Sign the Financial Bill of Rights by leaving a comment in the comments section below and follow Rabbit Funds on Facebook for more great financial planning info.

If you’ve been plagued by an ugly kitchen since the day you moved into your new home (the ’70s called and they want their ochre tile and avocado wallpaper back) or you’re disappointed with the limited or largely unusable storage space provided (not even a lazy susan can help those deep corner cabinets), then maybe it’s time to think about a remodel.

“But wait!” you may say, “We’re in a recession!  How can I possibly consider a remodel right now?”  There are several good reasons why now is the perfect time to remodel.

1. We’re in a recession!  This is terrible news for most people, but not for those who are looking to re-design on a dime.  Businesses are hurting and as a result, you stand to take advantage of outrageously low prices.  Many stores are willing to price match or haggle just to get your business, so don’t be afraid to ask for concessions.
2. Contractors need work, too.  Not the DIY type but you don’t think you can afford a contractor?  Not true.  Construction jobs are on the DL during any recession, so the market for contractors (and laborers) is flooded.  Now is the best time to capitalize on grade A services for way less money.
3. The internet is a great resource.  It’s no surprise that you can find better prices by looking online, but ecommerce is booming right now and because many sites do not have the overhead of running a store-front, they can afford to give you the same merchandise for half the price.
4. People are selling stuff.  If you need it, you can find it online for cheaper.  From eBay to Craig’s List, people are dumping all kinds of home items that you can pick up for a fraction of the retail cost.  Used flooring, cabinets, hardware, appliances, and even piping can be picked up and put into your home, saving you a ton of money if you’re willing to do a little leg work.  And the best part is, you’re doing your part to make your new home green by selecting recycled items.
5. It pays to go green.  If you work a little green into your remodel, you stand to save a lot.  Replacing outdated appliances with energy-star compliant alternatives could equal cash back from the electric company (along with lower electric bills).  And tankless water heaters can also save you a ton of money because they only heat the water you use.  In some cases, there are even government incentives for using eco-friendly products.  So look into green options to keep saving even after your remodel is done.

The beautiful, new, workable space you’ve been dreaming of is not out of reach just because we’re in a recession.  If you shop smart, you can have it all for less and even continue to save after the fact.  But don’t forget that the best reason to remodel is a return on investment.  If you spend wisely, you stand to make all that money back (and possibly more) when it comes time to sell your house.  And in a market flooded with foreclosures, a newly remodeled space could mean the difference between a quick sale and no sale at all.

Let us know in the comments how you’ve saved money doing a remodel!

Written by Jennifer Kardish, who is a communications coordinator at Kitchen Cabinet Mart. Check out their free design tips for your kitchen and home.

Last summer, I wrote a post titled, “Stop lying, 5 ways to stop overspending.” It has been one of my most popular posts. So I’ve decided to revisit the topic and expand the list.

So here are 6 more suggestions to help stop you from overspending from some of the top financial planning bloggers on the web.

#1 Get rid of disposable money

Financial Samurai say, “The very best way to stop overspending is to “go broke” by always flushing absolutely all disposable income after expenses out of your checking account and into a different bank.  The money must be flushed out in the first several days once the money is deposited, preferably automatically.  Clearly you must figure out your expenses beforehand.  Once you do, and go broke every paycheck, you’ll be controlling your spending and saving in no time!”

#2 Challenge yourself to reduce spending in specific areas

Sit down with your spouse and list the top three categories where you overspend. Then create a list of ideas on how you can reduce spending. For example, if you find yourself dining out too often, then create a list of inexpensive or free date night activities (e.g. picnic at the park and a free museum). Over the next month, work on changing your habits in those three areas. The next month, rinse and repeat.

#3 Surround yourself with frugal-minded people

Phil at PTMoney.com suggests, “Surround yourself with frugal-minded people. It’s easy to avoid having to keep up with the Joneses if you aren’t spending your time with them. Hang out with people who inspire you to be efficient with your money, and who know you don’t need to spend a ton to have a good time. It also doesn’t hurt to have a thrifty spouse. I’m lucky in that my wife is much cheaper than I am. She motivates me to spend less. My advice to the single people out there is to look for a spouse who knows how to spend wisely.”

#4 Go to bed already and stop buying stuff

Besides getting more sleep, you’ll avoid wasting electricity watching TV and you’ll avoid falling into infomercial traps. I sometimes can’t believe what they are selling on TV, but someone is buying. I can’t count how many times I’ve never called and ordered Ronco knives. Fortunately, I always realize at the last second that the knives I have work just fine.

#5 Two words: Duct tape

Len Penzo just posted a list of 4 Ways duct tape can fix your Personal Finances. Here’s an excerpt to make you salivate, “Believe it or not for the past ten years Duck Brand duct tape has held an annual contest known as Stuck at the Prom where they give away college scholarships to high school prom couples who are judged to have created the best prom attire made entirely of duct tape.  I’m not kidding.”

#6 Put a picture in your wallet over your debit or credit card

I sold security systems the summer before I married my sweetheart. To help push everyone through the last two months of the summer, we all listed how much we wanted to earn by the end of the summer and what we wanted to do or buy with that money. The next day, our manager’s wife had printed out our names, how much we wanted to earn, and a picture of our reward. We saw those images everyday before we began knocking doors.

Try putting a picture of what you are saving for in your wallet so each time you go to spend money, you have an image staring you in the face as a reminder to put your wallet or purse away and go home.

Conclusion: Try something

Each of the suggestions above has the potential to help you stop overspending. But none of them will work unless you try something. Don’t worry about getting it all right immediately. So pick a method from above and go at it with all the energy you can muster.

Also, let others know what has or hasn’t worked for you in the comments below. Thanks!

Our Sprint contract is up in June. So my wife and I are currently considering what we should do with our cell phones. The big question is, should we upgrade to a smartphone and pay for the data plan?

Since I like to be well informed when making a decision, I checked out the iPhone app store for apps that would make my financial life better. Below is a list of 12 financial planning related apps that I think every person should consider.

Quicken

This little app lets current Quicken users manage their finances right from the iPhone.

• Rating: 2.5 / 5.0 Stars
• Cost: Free
• Click here for more info or to download

Mint.com

If you are a Mint.com user, then this app is a must have. You can update your account balances and manage your money from anywhere you have a connection. No more being tied to a laptop or desktop.

• Rating: 4.0 / 5.0 Stars
• Cost: Free
• Click here for more info or to download

Bloomberg

For up to the minute investing news, download the Bloomberg app. Use one of the most trusted names in the industry to help analyze stock trends and make investment decisions.

• Rating: 3.5 / 5.0 Stars
• Cost: Free
• Click here for more info or to download

Morningstar

If you invest in mutual funds, which I hope you do, then Morningstar is a leader in funds information and reviews. They also offer information for stocks and ETFs.

• Rating: 2.5 / 5.0 Stars
• Cost: Free
• Click here for more info or to download

Personal Assistant Premium

This app helps you manage several areas of your life including: finance, shopping, and travel. Personal Assistant (the non-Premium version) is available for free. Reportedly, despite the $7 price tag, you will still be exposed to advertisements.

• Rating: 4.5 / 5.0 Stars
• Cost: $6.99 USD
• Click here for more info or to download

BillMinder

Just so you don’t miss another payment again, BillMinder allows you to keep track of all of your bills and when they are due. A handy calendar shows what days of the month you have bills due.

• Rating: 3.0 / 5.0 Stars
• Cost: $0.99 USD
• Click here for more info or to download

Grocery Gadget

This app is your all-in-one shopping list. Grocery Gadget is the highest ranking grocery list application in the app store. Also, Rachel Ray magazine recommends it. On a side note, there are no advertisements in the paid version.

• Rating: 3.0 / 5.0 Stars
• Cost: $4.99
• Click here for more info or to download

Coupon Sherpa

This app is loaded with 100s of in-store coupons that you can access through your iPhone or iPod. So before you buy something at let’s say Best Buy for example, check to see if there’s a coupon that could save you money.

• Rating: 2.0 / 5.0 Stars
• Cost: Free
• Click here for more info or to download

Gas Buddy

The official iPhone app of GasBuddy.com, this app helps you find the best gas prices near wherever you might be. One of the new features of the current revision indicates how “fresh” the price at a given station is.

• Rating: 3.0 / 5.0 Stars
• Cost: $2.99
• Click here for more info or to download

Road Trip

Road Trip purports to be the fastest and easiest app for tracking your car’s fuel mileage, maintenance history, and expenses. With 4.5 stars, users seem to be pretty happy with the quality and functionality of this app.

• Rating: 4.5 / 5.0 Stars
• Cost: $4.99
• Click here for more info or to download

iDonatedIt

This little beauty lets you quickly and easily keep track of all your non-cash charitable contributions. So come tax time, you can make sure that you deduct as much as you can.

• Rating: 4.0 / 5.0 Stars
• Cost: $3.00 USD
• Click here for more info or to download

Skype

Skype is an inexpensive way to talk to friends and family all over the world. Calls to other Skype users are free (no matter where they are) and very cheap to landlines.

• Rating: 3.5 / 5.0 Stars
• Cost: Free
• Click here for more info or to download

What other Finance or Money Saving iPhone apps do you like or recommend?

Over at Untemplater.com, J. Money issued a challenge to not spend any money outside of the necessary (e.g. groceries and utilities) for 30 days. Well, I’m taking him up on it.

Last year, my wife and I gave up TV and movies for 30 days. The result – we sold our TV afterwards and have loved being TV-free ever since.

So I’m anxious/curious to see what habits and mindsets change for us. This experiment could be a real paradigm shifter for us.

The Dates

We will begin on March 31st at midnight and end on April 30th at midnight.

The Guidelines

1. The following expenses are acceptable: mortgage, HOA, utilities, cell phone bill, groceries (see Guideline #2), auto and home insurance, and gas.
2. We have a $500 a month grocery allowance. Some of that $500 is on non-essential expenses. So, we are changing that budget to $450 for the month of April.
3. Exceptions: A birthday gift for my father and tickets to the Man Expo (I’m just not missing that)

I will report back weekly in a post about how well we are doing and how we are overcoming temptations, which I know there will be many. Heck, I added three books to my Amazon wishlist today.

So have you ever tried living off the bare minimum? Any advice? Let me know in the comments

I have a real treat today. Seth Risenmay, the founder of MoneyDesktop.com, answered some questions from me and also graciously offered a promo code for a free 3 month trial of his product.

About MoneyDesktop

For anyone unfamiliar with MoneyDesktop, it’s an online tool to track your finances, plan for the future, and most importantly get out of debt. What’s unique about MoneyDesktop in a world of sites like Mint.com of PocketSmith.com is that the software auto-generates a plan using a variety of methods to help you get out of debt the most efficient way.

So for example, the ever-popular debt snowball is built in. Also, the less well known mortgage checking account method is also available. You the user are able to select the method that you are comfortable with, tie it into your overall budgeting and finances, and get out of debt faster.

Essentially, it’s a one stop financial wizard.

The Interview

RabbitFunds: Why did you decide to start MoneyDesktop?

Seth Risenmay: I started MD because I wanted to get America out of debt. We look at debt as THE greatest threat to the future of our country. When you think about it, our country has been able to defeat Nazism, Communism etc… and the one enemy that actually has a shot at bringing down our country is debt.

RF: Where did you come up with the idea for the feature set included in MoneyDesktop?

Seth: We had a database of 39,000 customers that gave us feedback on our product. We asked all of them this question; “What does this product need to be to give you the best chance of success?” From this market research we learned that America needed a product that did not then exist and so we set out to build it. It took 4 years and about $5 million to build but we feel confident that MD is the greatest debt and personal financial management tool in existence.

RF: What is different about MoneyDesktop as compared to Mint or PocketSmith?

Seth: The greatest difference between MoneyDesktop and any of our competitors is that it is first and foremost a debt tool. Other PFM’s are typically tools that help you track where your money went, but if that is all you do that would be like driving your car down the road backwards, you’ve only seen where you’ve been, not where you’re going. Some products and companies help you project the future and your debt payoff but since they don’t track where your money is going the projections are inaccurate. MoneyDesktop is the only company that looks to the past by tracking your spending, to help you project an accurate future for debt elimination, with real time in the present instructions in the form of text messages and emails. We also have systems to help people make decisions with financial intelligence, which no one else has. We also help people increase their discretionary income to help them get out of debt even faster. We do this by actually increasing their cash flow while lowering their bills and payments. All of this is unheard of to most PFM’s. I would say that we are one of, if not the only DPFM (debt and personal financial management).

RF: Are there any plans to make the service free like Mint?

Seth: We have thought a lot about offering our services for free like Mint. The problem is that we have found that if a person is not paying for a service they do not value it enough to actually implement it into their life and become successful. We wanted people to actually commit to their financial wellness. However, we also understand that there are a lot of people who desperately need MoneyDesktop who may need our services for free. Because of this, we have created a promotion called 3 for Free. If a user of MoneyDesktop is willing to help us in our mission to get America out of debt then we feel they have shown the commitment necessary to succeed and deserve to receive our services for free. If they refer 3 other people to MoneyDesktop our system will automatically track that and when 3 others have signed up the referrer will receive MoneyDesktop free for life!

As mentioned above, Seth was kind enough to offer a free 3 month trial to any RabbitFunds readers with a special reduced price of $14.95 afterwards. Just use the promo code “Rabbit” when you sign-up.

RF: What do you hope that users will achieve by using your site?

Seth: Total financial wellness. We want our users to become debt free, achieve financial freedom, gain financial intelligence, and become wise stewards of their money and wealth. And hopefully by using the 3 for Free feature they can help start a community of people committed to getting out of debt which will help strengthen our country and in a lot of preserve what we know as America for generations to come.

RF: How has using the software helped your own family?

Seth: I know where every penny goes, I know when every debt will be eliminated and I have piece of mind knowing that I am being a wise steward of the things I’ve been blessed with. It has helped me eliminate all of my debt with a little left on my home still to go.

RF: What upgrades or changes can users expect to see in the coming 6-12 months?

Seth: With tax season upon us we are adding features that will allow a person to easily organize their finances for tax season with their CPA. We are also adding added benefits of ID protection and Credit Monitoring. Other companies like LifeLock will charge you upwards of $10 per month for each of those services, we are close to having those services provided to our subscribers at no additional fee as an added benefit of using MoneyDesktop. We are also redoing the set up wizard for a more simple and effective setup to get people using it more efficiently.

For More Info

Thank you Seth for your time. If you have any questions or would like to see more then visit MoneyDesktop.com or follow them on Twitter at @MoneyDesktop.

Harris Interactive polled 2,576 Americans between January 18 and 25, 2010. Over the last six months, we have decreased our morning coffee purchases and increased brown bagging lunches, but still won’t give up our cell phones.

Here’s a brief highlight of some of the findings directly from the study:

• Almost half (45%) say they are brown bagging lunch instead of purchasing it, with 8% having considered doing so; 34% say this is not applicable to them;
• Two in five (39%) are going to the hairdresser/barber/stylist less often and 8% have considered doing so;
• One-third of Americans (34%) have switched to refillable water bottles instead of purchasing bottles of water while 10% have considered doing so;
• The media is also taking a hit as 33% of U.S. adults have cancelled one of more magazine subscriptions, one in five (19%) have cancelled a newspaper subscription and 22% have cancelled or cut back on cable television service with an additional one in five (20%) having considered doing so; and,
• One in five Americans say they have cut down on dry cleaning (22%) and stopped purchasing coffee in the morning (21%).

What was amusing though, was that 52% said that they had not or would not consider cancelling their cell phone plan, while 15% have already done so.

Could you give up your cell phone?

I have to be honest, I’ve considered cancelling my plan at the end of the contract this summer. The challenge then though is that we don’t have a home phone and everyone I know has my current number. So I don’t think we’ll be cancelling.

Of course, a two year contract makes it difficult to cancel your contract without paying an exorbitant termination fee. I’m personally very interested in seeing the outcome of the FCC’s inquiries into Verizon and their new $350 termination fee.

Specific results

Harris asked respondents, “Have you done or considered doing any of the following over the past six months in order to save money?” Here’s how America responded.

They also dissected the responses by age group. Apparently, older or mature individuals have made fewer cuts.

So what are you doing to cut back? Are you returning to any of your old habits? Let us know in the comments.

I’ve encountered what is a most amazing phenomenon – people do not like to “buy” free stuff. I personally look for every discount that I can when making a purchase.

Yet, I have noticed a good number of individuals who when faced with the opportunity to receive something for free or at a discount, they chose to pay for it instead.

After observing this phenomenon on a number of occasions, I decided to compile a brief list of common reasons why people like to pay more than is necessary.

Reason #1 – Fear

We all know the saying, “If it’s free, then it’s too good to be true.” Unfortunately, that is sometimes a lie.

Example: Wirefly.com offers cell phones for free with a new two year agreement with any of the major US carriers. The phone is the same. The plan is the same. In fact, the agreement is with the carrier and not Wirefly. I have shown this site to many people. And yet, they always end up going to the carrier and paying for the same phone that they could have had for free because it’s scary.

I have purchased several phones form Wirefly without a single problem. In fact, we will be “buying” some new phones in the next few months and all we have to do is agree to a two year extension on our contract. I’m not leaving Sprint in the next two years, so why not?

Reason #2 – Pride

It’s one of the seven deadly sins.

And it will kill your finances if you are not careful. I have a friend who as a matter of pride will not use coupons, take advantage of discounts, or buy anything that is not full price. He is afraid that the vendor will think he is incapable of paying the full price.

My grandmother believed it was a matter of social status. She wanted to be able to tell others just how much she overpaid for the item.

Fortunately for both of these individuals, they have the financial means to always pay full price. But why not save some money to spend on something else (or leave in savings)?

Reason #3 – Laziness

Some people are just plain lazy.

The next time you are about to check-out online, try searching for the name of the retailer with the phrase “promo code.” You will be amazed how many discounts you can find online.

For example, I purchased a bunch of domains last year from GoDaddy.com. Instead of paying full price for each domain, I saved myself about $30 with the promo code I found online.

Or the next time you are in a retail store front, just ask for a discount. Sometimes they will say yes and sometimes they will say no. But at least try asking, you might find yourself surprised.

Reason #4 – Strings Attached

In all fairness, there are times that Free comes at a price. Even though the item may be free, some other obligation places a contingency on the item or service. While thinking about this reason, I became curious about what phrases Googlers use when searching for free stuff. Here’s a screen grab of what Google suggests if you type in “free stuff online.”

As you can see, most people searching for something free know that something is usually attached to the offer. Though life is full of trade-offs. You have to decide if the trade-off is worth it.

Reason #5 – Convenience

There are times that paying is just worth it.  For example, I can wash my car. I’ve worked as a lot boy at a car dealership and have washed a lot of cars. But my time is worth more these days. I’m happy to pay the guys at the car wash down the street to wash and dry my car in 10 minutes.

Conclusion

Many of us are trying to be frugal, but for some reason, do not take advantage of free goods. If you really want to spend less money, then take a little time to research and take advantage of authentically free goods and services.