There was an article in Time the other day about energy efficient light bulbs may actually cause consumers to spend more on their electric because the perceived savings makes people keep the lights on longer. The phenomenon was likened to dieters who over-indulged in reduced calorie treats. Too much of a good thing can actually be bad or negate the benefits. Energy efficient furnaces, light bulbs and other items are beneficial to saving energy but can also make people think since they are saving money they could have the lights on longer or crank the furnace up.  Then they are spending more money rather than saving money.

It is nice to have energy efficient bulbs. When the electric rates increased in Illinois I did notice a slight increase but as I changed more of my bulbs to energy efficient ones my bill didn’t increase dramatically, they remained about the same. I didn’t change any habits but I did think that it was better to save money and the need to change the light bulbs less frequently.

The amount that I saved kept my energy bill in check. If the savings were large enough, I probably could have indulged in something more tangible but keeping my bill relatively the same amount was good enough for me.

This video speaks volumes. I have long held that greed is one of the great motivators in the world. The love of money makes people do things that hurt others. If you trust a company and find that the only reason they were doing things was because of the company’s sole purpose of business was the love of money instead of wanting to help people… what would you do?

Would you rather have a company raise the price and decrease the size of the product they are selling or just increase the price?

Prices have increased not only because of the price of materials to make the products but to increase the profits. In some cases this has amounted to nothing more than greed. As the prices have increased the size of the products have decreased. Finding ice cream that is sold in a half gallon container or a five-pound bag of sugar is akin to winning the grocery lottery.

Today, I saw a half liter bottle of balsamic vinegar selling for 2.29. The liter bottle used to sell for $3.99. Buying two would mean for the same amount there is a price increase of 15%.

No one really wants price increases but reducing the volume of products also contributes to waste if you need a certain amount for a recipe or family’s needs. If you have to buy a larger container or a multiple smaller ones to get the amount you need, then there is the chance that some might be wasted.

Toilet paper rolls have been shrinking as the price remains the same. Some things that we cannot live without such as food and personal hygiene items are being sold in packages that are more “profit friendly” for companies yet take more out of the consumer’s bottom line.

My preference would be to have the product size remain the same and increase the price moderately. When you have grown accustomed to a certain size and know how long it will take you to use an item, only to have the size reduced by 20% it seems like a crime. When the price stays the same, but there is less in the package, this is still a price increase, subtle yet still an increase. For some items you just can’t make do – while eating less may work for your waistline – using fewer personal hygiene products may not be good for your social life.

The enactment of the new credit card regulations has people griping about changes in their interest rates. Another way to look at this would be to treat a credit card as cash. Paying the minimum perpetuates debt. Using a credit card in the absence of cash (or the ability to use cash) does not mean the debt does not have to be repaid. This leads otherwise money savvy people to spend what they don’t have in order to make sure they have the necessities.

For those with no balance on their credit cards or a small balance, check out this calculator from the FTC to see how long it will take you to pay off your credit card debt. If you have little or no debt at all and enter in your credit card rate with a fictional amount: pretend you went on a spending spree. The amount of time that it would take to pay off the bill would be enough to keep you on the straight and narrow. Pass it along to friends who need assistance in their finances. It might shock them enough to see how much they pay in interest by paying the minimum.

If you are only spending a small amount and a coupon is burning a hole in your pocket then use it, but don’t just use a coupon when you are making a small purchase if you know you will return to the store before the coupon expires. If you have a coupon and are going to use it anyway… wait until there is a better sale so you can get more mileage out of your coupon. If you have a 20% off coupon and use it for one item that is not on sale that is less than $20 you won’t maximize your savings. Use the coupon when items you want are on sale and get an additional discount. Combine coupons with gift cards and rewards purchases and you can really save a bundle.