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?

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.

If you didn’t know already, people hide things thinking that no one will come looking for the items later. Look around for what you want and you might find it, mis-shelved. I found one of my favorite sweaters hanging on a rack in the mens’ section in Filene’s basement. Maybe someone decided they didn’t want it at the last minute or put it there so they could come back for it later. It happens. Many times when there are items that are in limited quantity or the last one on the shelf, salespeople might squirrel it away for themselves. Since people are at risk of losing their jobs if they do that, they resort to hiding items in the wrong place (where an interested party is less likely to look for the item) or walking around carrying it on the pretense of re-shelving the item.

Looking around in the wrong place for an item takes luck and a little skill when trying to find something. Generally mis-shelved items are not too far away from where they should be, either by chance (or your blind luck) you may find an item that a person has put aside for themselves.

People who hide things aren’t really too ingenious when they put things aside, because if they move things too far out of place, they will be noticed and snapped up by someone else.

If there are items that are on sale at a price that is too good to be true – some stores will have a special sale aisle. Check there first since the regular shelf may have a limited quantity. Featured items may be on display in a place where you would least expect to find item.

Wal-mart recently announced that they would be stocking fewer brands on their shelves. This isn’t a new issue. Last year, the Wall Street Journal described how retailers were reducing shelf space for different items. There were other retailers mentioned, over six months later when Wal-mart mentions that certain brands would be discontinued from their stores, then more people take notice.

Consumer choice is a good thing. Generally when the consumers stop buying items then that is a sign to the manufacturer that consumers don’t like their goods. Instead, since the market has become so competitive, it is important to cut the losses. For big box stores, items that sell the fewest units are discontinued. They may still be made by a company but not available to consumers. Where does that leave a person who really has “fallen in love with” a particular brand that has fallen out of favor because other brands are better advertised. This doesn’t mean that certain brands are necessarily better because they are available in a store, it just means that the greater the brand recognition – through marketing, then the greater the response by sellers.

Some of the choices that consumers were offered were not real choices but repackaged versions of the same. When items that are truly different aren’t being carried anymore where will a consumer turn? The internet. The are extraneous that choices will go away -think the different varieties of soft drinks – Cherry Dr. Pepper, Coke Zero, vanilla flavored?

Since consumers are holding on to their purse strings a little tighter, the additional options aren’t as enticing as they used to be which means that we will have to get used to fewer choices for some items and greater choices for others. We will survive this. Prior to the late 90s cars came in a wider array of colors and styles from the factory. Now there are fewer than 10 for most makes.

Reducing the choices offered to consumers allows us to focus on the important things (e.g. does the product really work). Then we can shift from the extrinsic value we are encouraged to believe a product has.

Economists and others look for indicators to show that the economy is improving. A personal indicator that I can see is that more people are tossing change again. During the lowest point of the economic downturn it was nearly impossible to find coins on the street, not even pennies. As the economy is slowly improving, more people are dropping change or throwing away their pennies again. What indicators, if any, do you see that shows you the economy is improving?

For those who have a valentine and wish to take him or her out for a special evening. There are still many options available. Restaurants are promoting prix fixe meals for dinner.

Restaurants are still an option for those who do not want or can’t cook a meal for their beloved. Many of your favorite places may be offering a Valentine’s Day special for under $80 per couple. Restaurants are looking for customers too. There is still time to check around and find a place and also to make reservations. Since Valentine’s Day is on Sunday as a part of a long weekend for some, there are options other than dinner.

Another way to save money would be to go to lunch at a nicer restaurant rather than going out for dinner. Many restaurants have similar entrees for their dinner service but they charge less for lunch.

As I was watching tv in a cozy robe in the midst of a snowstorm last evening I thought about a talk show host who wasn’t originally from Chicago saying that you really needed more than one coat for the winter because the weather isn’t just one temperature in the winter.

The same could be said for the workhorse of indoor clothing – the robe. The robe serves multiple purposes, it can be worn after a shower to keep you warm, but also works as a buffer against the chill. Heavy terry cloth robes may be too warm when the temperature outside is above freezing and there is very little wind. If you live in a drafty home or are trying to save on heating a robe is a must.

There are fans of the Snuggie but if you want something that allows you to be more mobile and will serve more than one purpose a robe will do the job. Having a heavy robe and a medium weight robe that are long allows you to have some mobility. People who say that a regular robe won’t work because it doesn’t keep your feet warm, if you your feet are cold, you can cover them with socks, although if you are sitting or are curled up on the couch a robe can be pulled over your feet.

Being warm without breaking the budget for heating means being constructive. A warm blanket or a robe or a blanket with sleeves will keep you warm. There are more expensive versions of the blanket with sleeves – the Blankoat made of Icelandic wool which costs a about $350.

Depending on how much you want to spend on a blanket or robe having more than one will most likely cost less than $350 though this will probably last the longest.

Yesterday, I received a notice from one of my banks letting me know that my once “highest interest rate around” which was why I decided to sign up with the bank in the first place was now offering 1.20% interest on my savings account. This is the second decrease in about 3 months.

The low interest rate should be of no surprise to anyone to see why people are shunning banks for saving. Since this is an online bank the only way to make a deposit I had to deposit money into an account and have it transferred since there is only one branch of this bank in Chicago.

Still 1.20% is better than nothing but not enough to make me transfer cash that I am saving for short term goals. When the interest rate was 3.55% about a year ago transferring cash that I received for my birthday or Christmas into the account until I decided what I wanted to buy made me feel as though my gift givers were giving me a little extra. Moving the money around for less than a dollar a month wouldn’t buy a coffee from 7-11.

The additional income which amounted to less than $12.00 for 2009 could be used for something else. Yet, moving the money around just to earn less than $12.00 or less than a dollar a month isn’t worth it. In a month, I find more in spare change (and will pick it up) and don’t have to report it as taxable income.