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.

Is that coupon taunting you? Yesterday without any trouble I tossed some coupons in the recycling bin because I knew I would never use them. Yet, there are still a couple of coupons that I am holding on to because they haven’t expired yet and I still might use them. The coupons that I am recycling I don’t know anyone who would use the product and don’t know where the product is even sold so the next time I went to the store I could put the coupons on the shelves near the time. That was too much work since I don’t know where to buy the product.

Coupons, like cash or credit cards can burn a hold into you pocket if you are not accustomed to them. Who really wants to pass up a great deal? If the item is free but you won’t use it, then why would you want to use a coupon promising you two of the same item for free with purchase?

Consumers spent an average of $811 on holiday gifts, significantly more than the $699 they initially planned to spend, according to a Consumer Reports survey expected to be released today. About 4 in 5 consumers bought gifts, and in a good sign for discretionary spending, many shoppers bought for themselves, the poll found.

While this sounds good for retailers, spending more than you intended to spend makes it difficult to stick to a budget for Christmas spending. The article continues to say that many people also used their credit cards for purchases. Spending $112 more on gifts than you anticipated can mean the difference between having money for the electric bill or a few tanks of gas. Still the results of the survey are for an average… This does not mean that everyone went over their budget or even those who went over their budget only spent $811. There still may be people who spent well over their budget but had no financial problems. If a person can afford to spend $811 or $5811 on Christmas gifts without causing problems for their budget it’s not an issue, which is where surveys such as these give the wrong impression. A person’s cost of living makes a difference in how and what they can really afford to spend. A free spender who became newly frugal or at least cut back on spending but with a higher income might see spending less than a thousand dollars a bit low for holiday gifts, especially if they have many gifts to buy.

Using a coupon doesn’t make you cheap. Not tipping when you use a coupon does. I am still reaping the benefits of free birthday meals from different places. Just because I used a coupon I still tip on the total amount. Just because I saved money, doesn’t mean that my server did less work.

Last night I had a free stir fry at a chain stir fry restaurant. The waitress was kind and was helpful when I was making my selection of a beverage. I told her I had a coupon and then at the end, she had to have a manager make the adjustment. My bill went from close to $25 to about $7.50. Now a cheapskate would have left a tip on just the drink and left. NO… I left her a tip on the whole thing. She was really happy.

The general rule even when using a coupon is to tip on the amount of the bill before the discount. This also goes if you were given a free drink or appetizer because you had an extra long wait. Still tip.

Tipping is something to consider when going out to eat. You don’t tip at a fast food restaurant but if you want to have a more memorable experience then you would want to remember to keep the tip in mind.

Also, tell your server that you have a coupon when you are ordering so that it will be easier to calculate the bill.

Happy Dining!

Remember when you got money as a kid and would think about what you wanted to purchase for a while before spending? Especially if you knew that you were paying for the purchase? Revert to your old ways as a kid thinking about every purchase before you make it.

My mother accuses me of being very tight fisted with my money as a kid. I did save and thought carefully about purchases before I made them. I had no credit card to use and no safety net so I learned to make good choices. I didn’t always make good choices but the ones I did make after some side steps were definitely good ones.

Spending like a drunken sailor on the other hand is what many people do when the credit card comes out. The sailor part is optional but have you ever been out with friends who set up a bar tab and then spend more than they thought since they were charging everything and not paying for their drinks as they were served? Many people spend way more than they think when they are not paying with cash.  A “couple” of drinks that would cost under $25 with tip generally ends up being more like $50 or so because the tabholder will keep buying and maybe buy a round for friends and lose track of what was spent.

It may seem easy to keep a tab open when you are drinking at a bar, but paying cash also helps you keep track of what is in your wallet. When you have to keep opening your wallet and see the cash dwindling then you are more likely to drink and spend less.