How to Cash In Your Pennies for More Than a Cent

If you want a collecting hobby that could yield a financial profit, collecting coins and old pennies is a win-win choice.

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Did you know that those hundreds of pennies lying under the couch cushions and on the car floor could be a source of income?  You have several options that are far more favorable than rolling and cashing them in at the bank.

Recycling pennies may sound a bit like a late night infomercial, but there is some merit in the concept.

Pennies minted before 1982 are comprised of nearly 95% copper. As of the date this post was written, recycled copper was selling in my area for $4.13 per pound (and the price has been rising steadily for several months thanks to a crappy economy).

You’ll need about 151, pre-1982 pennies to make a pound of copper. Yep, your $1.51 could yield $4.13 for the work of sorting through a few pennies and driving to the nearest scrap yard.

“But wait! Can I just bag my pennies and haul them in?” Nope, there are a few catches:

1. Since most of these copper pennies are only 95% copper (and 5% zinc), technically they are considered brass in recycling terms.

Brass is currently selling for between $2.61 and $3.03 in my area (depending on the quality of the brass), not nearly as high as $4.13 for copper.

2. The majority of scrap yards will NOT take a bag of pennies for recycling because it’s against federal law to deface U.S. currency (see USA Today’s article for more information).

While I’ve heard stories of people melting down pennies and separating the copper to place in extruders or molds and make it look like copper wire or scrap pieces, this is still highly illegal and most scrap yards question where you got the scrap.

If they think the origin is fishy, they’ll refuse it on the spot and may call the authorities to investigate. Melting your own pennies is NOT recommended.

Looks like recycling pennies is a bust at this point, but you do have options to still cash in on your old pennies. Here are two viable options for getting more value from your pennies:

David’s Note: Doh! Reading this got me excited there for a moment!

1. Sell them on Craigslist or Ebay.

Many people are hoarding these old pennies in bulk. Some of them believe these stashes will be an asset when the economy collapses, some are waiting for federal laws to change to allow the melting of coins for recycling, and some of them just like old coins, but most will pay high dollar for small to moderate quantities of old pennies.

2. Check out your pennies for rare and valuable coins.

Many of us have probably held a valuable coin at one time in our lives and never even noticed. Making a habit of studying up on what coins are valuable and sorting through your pocket change every night could prove to be a wise financial move.

A good place to start learning about valuable coins is the Professional Coin Grading Service or Heritage Auctions.  When I went through a small pile of old coins given to me by customers when I waited tables, I found six “silver” dollar coins that were worth a total of $90.

If you’re going to start a collecting hobby that could potentially yield a financial profit, collecting coins and old pennies is an obvious win-win choice.

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Are You Prepared for Retirement?

One of the best things you can do for your financial future is to start preparing for retirement as early as you can. Unfortunately, not very many Americans are getting ready for retirement. Indeed, according to a report from the Federal Reserve, 31 percent of Americans have no retirement savings at all. Not only that, […]

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One of the best things you can do for your financial future is to start preparing for retirement as early as you can. Unfortunately, not very many Americans are getting ready for retirement. Indeed, according to a report from the Federal Reserve, 31 percent of Americans have no retirement savings at all.

Not only that, but less than half of Americans have even assessed their retirement needs. Are you one of those with no retirement savings and no idea of how much you need to retire? (Here are some suggestions that will help.)

This is a serious issue for many people right now, and it’s important that you prepare as early as you can – or you might be stuck without sufficient assets later on. Inflation, health care costs as you age and other issues can slow your finances down. Now is the time to prepare for retirement, or you could be in trouble later.

Figure Out What You Need

Too many Americans aren’t adequately preparing for retirement. In fact, an alarming number don’t even know how much they will need in retirement. As a result, too many people probably aren’t setting aside enough money for their retirement needs.

It’s tempting to think that the $200 you’re setting aside each month will be enough to fund your golden years, but the reality is that it probably isn’t going to cut it. You will likely need to set aside a lot more for retirement – unless you happen to be a teenager right now.

So how do you know how much you need?

First of all, you need to set time aside to figure it out. This calculation is different for everyone, depending on individual choices and lifestyle preferences. How much you need to retire will depend on what you want to do, as well as your current situation.

Think about how much you spend now, and whether or not you will spend the same amount in the future. You should also consider whether you will downsize, or if you will move to a different location. Think about how long you plan to work, or whether you plan to get other types of revenue during retirement. All of these factors are important details to know about when you calculate how much you will need during retirement.

And be realistic when you evaluate where you stand right now. You will need this information to be as accurate as possible if you want to create a strategy that allows you to set aside what you need for the future. That’s why a budget, even though it’s boring to maintain, is a great tool. It allows you to quickly see how much money you are spending and which spending categories your cash is going to so you can estimate much more easily what your retirement needs will be.

Start Saving

Don’t wait for another day and start putting money aside for retirement now if you haven’t already done so. Even if you haven’t performed a needs assessment, you need to start saving. Then, once you have gone through your retirement needs assessment, you can make adjustments (and chances are that you will need to make changes).

And consider the whole family in your plan. If you have a life partner, you should consider setting aside money for him or her as well. Figure out how much you need to set aside each month to reach your goals, and then work up to that level of contribution.

Remember to make good use of retirement accounts.
Open a tax-advantaged retirement account and start putting money into it. It’s even easier if you have an employer-sponsored plan, like a 401(k) or 403(b) at work. That way, you have a chance to have the contributions automatically taken care of.

These types of accounts are great, especially if you use some sort of automated type of investing. However, you still need to be careful. Once you set your account on automatic, it’s easy to forget to invest more later on. As you receive raises, or if your household income grows because of a partner’s new job or your new side business, it’s easy to forget to increase the amount that you are saving.

If you haven’t increased your retirement account contributions to keep pace with your income growth, you probably aren’t saving enough for retirement. You need to re-evaluate your savings each year. If you get a three percent raise, you should also make a three percent (or more) increase in the amount of money you set aside for retirement. At the very least, your retirement contribution growth should mirror your income growth.

Be Careful of Compound Growth

Compound interest is powerful, but it’s dangerous too because it’s not a miracle. You need to give interest something to work with. This means you need to keep adding capital. Compound interest works better over time, so if you start much younger, you can get away with setting aside a couple hundred dollars a month for retirement.

The truth for those who are well into their careers, though, is that it doesn’t work quite as nicely. You aren’t going to meet your goals if you set aside $200 a month. You probably need to set aside much more a month if you are getting a late start. The closer you are in retirement, the more you’ll need to “make retirement.”

Don’t expect your investments to “save” you. Plan on a conservative annualized return of between five and seven percent, rather than optimistic projects of between 10 and 12 percent. You’ll have a more realistic idea of what to do, and realize that you probably need to save more.

Once you face reality and get started with your investment plan, you will be more likely to accomplish your retirement savings goals.

And don’t be discouraged. Even if you can’t put in as much as you would like to right now, don’t be one of that 31 percent who doesn’t have anything set aside. Start today to save for retirement, and as your finances improve, you can boost your contributions. Over time, you will improve the size of your account, and you will be happier – and better prepared financially.

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How to Recover from a Blown Budget

Have you ever had a week (or maybe two) when your spending got out of hand? My last two weeks have been like that. I had major family obligations to deal with, I started helping more at my dad’s business, and I took on another small freelance job — all within the same week. Life […]

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Have you ever had a week (or maybe two) when your spending got out of hand? My last two weeks have been like that.

I had major family obligations to deal with, I started helping more at my dad’s business, and I took on another small freelance job — all within the same week. Life got crazy.

Needless to say, I let overwhelm take over, and my money pretty much flew out the window.

When it comes to budgeting, falling off track is a common problem. Here’s how I’ve recovered from my overspend, and how you can do the same:

1. Stop Dwelling

I ate out almost every night for the past two weeks. The house remained a wreck, and I stacked my unopened bills on the corner of the kitchen table.

Going over budget sucks, but it’s not the end of the world. Life happens: you can’t be perfect all the time.

Acknowledge that you messed up, then move on. Obsessing about it isn’t going to bring your money back.

2. Get Back in Your Old Routine

After recovering from a couple weeks of burnout, I started getting my financials back in order by returning to my old routines. I also played a little bit of catch up: paid my bills, balanced my checkbook, and took care of some transfers.

Sometimes when you fall off track, it makes you want to stay off track. It takes more effort to jump back on the bandwagon than it does to remain on the same path. That’s why it’s important to get back into your old routine as soon as you have the chance.

Get everything caught up, map out a plan for the remainder of the month, and immediately return to your former routine.

3. Temporarily Cut Expenses

These past few weeks, I’ve earned a little extra money. My overspending, therefore, didn’t get in the way of paying my bills — it just prevented me from saving the extra money like I’d planned.

I still desperately wanted to add a little extra to my savings this month, so I decided to temporarily cut back on my expenses.

If you need to cut back, consider the following tactics:

• Eat at home until you’ve cleaned your shelves out
• Have “no-spend” days, when you don’t spend a single penny
• Skip paid entertainment and opt for board game nights or free concerts

If you’re still facing a budget discrepancy, you may have to look for extra ways to earn money for the month. Consider selling something or picking up extra hours at work.

The point is: if you’ve blown your budget, don’t beat yourself up too badly. We all make mistakes. The important thing is to pick up where you left off and get back to your budget as

soon as possible.

When’s the last time you blew your budget?

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Are You TOO Cheap? 4 Ways Cheaping Out Could Cost You in the Long Run

Many people tend to focus too much on upfront costs, and not enough on the long term costs sometimes. Cheaping out right now could actually end up costing you quite a bit. Sure, you want to save money and look for the best value for your dollar. But if you are too cheap, you could […]

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Many people tend to focus too much on upfront costs, and not enough on the long term costs sometimes. Cheaping out right now could actually end up costing you quite a bit. Sure, you want to save money and look for the best value for your dollar. But if you are too cheap, you could end up paying more in the long run. Here are 4 ways being too cheap could cost you big:

1. Postponing Maintenance

Many people postpone the maintenance on different items, or pay for cheap half-measures to “get by.” It’s important to understand, though, that this can be a costly mistake. If you fail to properly maintain your car, it will be prone to bigger and bigger — and more expensive — problems down the road. The same is true of maintaining your home, major appliances and other items. Spend a little more up front to properly care for your things, and they will last longer and cost you less in the long run.

2. Purchasing Poor Quality Items

I have a pair of $75 hiking shoes, bought on sale, that have lasted me 10 years and numerous camping trips. These higher quality shoes have been better for me than the $30 shoes I used to buy — every couple of years. If I had to buy these shoes every other year, after 10 years (and five shoe purchases) it would have cost $150. Cheaping out would have cost me twice as much in the long run. Consider the quality of the items you buy. In some cases, paying a little more for something higher quality can mean savings in the long term, since you won’t have to always be replacing items that break or wear out sooner.

3. Neglecting Health Care

My brother-in-law put off having his tooth looked at, because he didn’t want to pay for the visit to the dentist. By the time the pain became unbearable, a $500 problem had ballooned into a $1,500 problem that required a “procedure.” Putting off visits to the doctor, and taking proper care of yourself, can lead to bigger problems later. The same is true of food. Highly processed, pre-made meals can be very inexpensive, and fast food is a great value for the number of calories you get. But if you spend a little more money and time on better ingredients, you can avoid a lot of the costly health problems that come with a high sodium, high sugar diet.

4. Less Insurance than You Need

Carefully evaluate your needs. You need some insurance to protect your assets and, while you want a good deal on the premium, you shouldn’t cheap out completely. Make sure that you have insurance to adequately cover your auto, home, and health. You should also get enough life insurance to help your family in case something happens to your income stream. Don’t skimp on coverage just because you can get it for less. Carefully review your needs, and then get a policy that provides you the protection you require. If you get a cheap policy, you might be unpleasantly surprised when it comes time to file a claim.

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4 Purposes for a Proactive Financial Calendar

I’m obsessed with organization. You know — one of those people who writes something down just so they can cross it off. While I’m overly organized in most areas of life, one area I could stand to improve in is financial planning, and one practical way I could do this is to create a proactive […]

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I’m obsessed with organization. You know — one of those people who writes something down just so they can cross it off. While I’m overly organized in most areas of life, one area I could stand to improve in is financial planning, and one practical way I could do this is to create a proactive financial calendar. After all, I have a daily/monthly/yearly planner and smartphone calendar for everything else… why not apply this to finances? Here are four key purposes this kind of calendar could serve in not only getting more organized, but getting ahead.

Help Remembering Time-Sensitive Tasks

This is perhaps the most obvious benefit of a financial calendar. Sure, you may pay the bills on time without reminders, but it’s easier to lose track of less frequent tasks like paying quarterly taxes, filing a yearly FAFSA, scheduling the appointment to have your taxes prepared, or signing up for medical benefits during open enrollment. All of these are time-sensitive, so plugging them into a calendar with built-in reminders will ensure you meet and beat deadlines without overtaxing your brain.

Breaking Up Overwhelming Tasks Into Smaller Segments

Some time-sensitive tasks like gathering tax documents are also notorious for inducing universal procrastination. The more overwhelmed we are at the thought of tackling a nasty financial project, the more likely we are to put it off until the last possible second. This is where a financial calendar can provide more than just an annoying reminder that you haven’t done it yet: it can actually help you break up a large task into several smaller, more manageable tasks. For instance, one chunk of a huge project might be gathering paperwork, making phone calls, printing statements, labeling files, or maybe just taking the time to purchase the organizational tools you’ll need. Of course, the size of these sub-tasks will depend on the amount of time before the entire project needs to be done (in other words, the sooner your start planning, the better).

Planning Ahead

This is what I need to work on the most, especially when it comes to vacation planning, holiday spending, and starting to set aside money for likely future expenses and savings goals. Planning ahead for vacation can literally save hundreds of dollars on plane tickets and hotel rooms; setting aside small amounts of money each month all year can make holiday shopping less of a budget-crunch…the list goes on.

Re-assessing

Looking forward is important, but so is looking back, especially when your finances change. Financial advisers recommend reviewing your credit report on a yearly or bi-annual basis; it’s also a good idea to re-asses your medical and vehicle insurance coverage. Another important thing to re-asses is your budget — at least on a yearly basis, in addition to whenever you experience a change in income or recurring expenses. Some of these won’t be anticipated, but most people know when they’ll be getting yearly performance assessments accompanied by raises. Not only does re-assessing all of these things on a regular basis keep you in tune with where you’re at, financially — it can save you a ton of money.

I think these are a few pretty good purposes for a proactive financial calendar. What are some things you currently put (or plan to put) on yours, and why?

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4 Tips for Planning for Financial Emergencies

We don’t always know when the unexpected will happen. That doesn’t mean we can’t plan for it though. In fact, one of the best things you can do for your finances is to look ahead and prepare for the inevitable emergency. Here are four tips you can use for your plan: 1. Start with Your […]

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We don’t always know when the unexpected will happen. That doesn’t mean we can’t plan for it though.

In fact, one of the best things you can do for your finances is to look ahead and prepare for the inevitable emergency. Here are four tips you can use for your plan:

1. Start with Your Rainy Day Fund

It’s old news, but the reality is that many Americans still don’t have the resources to handle a $500 emergency. That means you probably need to beef up your rainy day fund.

Get started even if you feel like you can’t set aside a ton. Every little bit helps. Set aside money each week that can be used for a rainy day.

This also includes paying attention to what’s happening with your expenses. While things do happen unexpectedly, the truth is that we often get clues that something is about to break down. The washing machine behaves erratically, or you notice something about the fridge. Once those signs appear, start setting money aside.

2. Plan for Routine Costs

You know that the oil needs to be changed in your car every so often. There are plenty of other maintenance milestones that come with owning a car too. You need to plan for these items. From home maintenance to the fact that your kids need to get clothes for school every year, there are routine costs in your life.

Make a plan to save a little bit each month for these routine costs. You can use a system that helps you prepare to meet these challenges when they arrive, preferably a system where savings are automated. That way, you won’t have to rely as heavily on your emergency fund or (worse) your credit cards.

3. Perform an Insurance Audit

When was the last time you checked your insurance coverage? Do you have the right amount? Will it cover your situation? Double-check your coverage.

Make sure your home is covered. What if you’ve recently bought some expensive items? Are they covered against loss? Look at your health insurance coverage. Will it be enough if you end up in the hospital? Is the deductible affordable? On the other hand, are you paying for too much coverage and not freeing enough money to save?

The right insurance coverage can go a long way toward helping you out when you’re in a pinch. And don’t forget the life insurance to cover your family, just in case you pass on.

4. Know What You Can Cut

Finally, make sure you know what you can cut from your budget in an emergency. Which items are the first to go? Which items, when cut, could result in immediate savings? This exercise can help you spring into action once a financial emergency strikes. It’s a good way to stay on top of things.

Plus, looking at your spending with a critical eye can help you now. If you take the time to review your spending and identify areas of waste, you can plug those leaks now. Divert the money toward other goals, like building a rainy day fund or preparing to buy a new appliance.

As you get into making these plans, you are far more likely to see good results and boost your ability to handle almost anything that can come up. How prepare are you? Would a $500 emergency cripple your finances? Or is it more like a small bump on the road?

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3 Ways to Stop Wasting Money on Children’s Toys

Here are a few suggestions to help you spend your toy dollars wisely.

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I’m going to make a confession here. My house is full of toys that don’t get played with very often. Between my five boys, a mountain of toys comes in every Christmas and birthday. While they do appreciate every toy when they open it, only a few are actually played with more than once or twice.

Over the years, I learned to be more savvy with my choices through experiences with toys that prove to be a good value for the money. Here are a few suggestions to help you spend your toy dollars wisely.

1. Look for Versatility

My youngest child is still playing with his oldest brother’s old Lego and wooden blocks. We’ve been adding to our collection over the years and now we have enough to build a city that takes up half the living room floor. The funny thing is, although we do have “real” Star Wars toys, my boys will still build their own Star Wars scenes out of blocks. I can remember doing the same thing with my Barbies.

In general, the less gimmicky a toy is, the more ways children can find to incorporate it into their play. Look for toys that rely on a child’s imagination rather than batteries. I don’t rule out toys based on popular characters like Star Wars or Spiderman altogether, but instead of say that web-blaster that lasts 3 minutes and then needs a pricey refill (we made that mistake once!), I’ll choose a simple action figure or vehicle.

2. Quality is Worth Paying For

Super cheap toys from the dollar store do have their place, but more often than not, they break and don’t work the way they are supposed to. Not only is it a waste, it can also be a safety risk.

We’ve also found that toys with lots of fiddly pieces and moving parts are usually destined to break early. These might be suitable for older children, but for younger children, simple toys that can stand up to rough play are best.

It’s better to buy fewer toys that are well made. Not only will your money be well spent, but your child will also become less frustrated and be able to enjoy his or her toys for a long time to come. I try to read a wide variety of reviews for toys I’m considering buying, since it’s hard to gauge the quality of a toy when it’s sitting on a box on a shelf.

3. Find Toys That Encourage Activity

My 9 and 7 year old have been playing non-stop with a set of Nerf swords since they got them last Christmas. They love taking them to the park and meeting up with their gang of friends and having glorious boy battles and adventures. While it’s a bit unnerving for us parents to watch, they are having a blast and getting some much needed exercise.

Children need a chance to run around and move their bodies. I’m a fairly lax mom when it comes to video games and television, but I’ll take every opportunity to get them outside and moving. Toys that encourage this are priceless. Even if you aren’t crazy about the idea of sword battles, balls, bikes, scooters and jump ropes are all timeless classics that will provide hours of play for your child.

On this note, I’d like to add that probably the best toy you can give your child is completely free: the great outdoors. We thought about buying a backyard play-set then quickly realized that our children would much rather go to the playground to meet up with their friends and make new ones.

Right now, the group of boys my sons play with have constructed a spaceship out of an old tree trunk and materials they’ve found in the park (some seashells, pine cones and acorns, bottle-caps and some bits of broken glass until it was confiscated). They make up wonderful story-lines and dash around the playground as they perform their missions.

Toys are wonderful for children but playing outside with friends and getting to exercise their bodies and imaginations is some of the best fun to be found. As a bonus it helps them develop their social skills and will get you out of the house to boot!

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Starting a Quilt Retreat: What You Need to Know

Test your business idea with small steps: starting a quilt retreat

Uniontown, Washington, (population 300) has a strong base of arts, artisan and craft entrepreneurship. When I toured Uniontown, a woman spoke up who wants to start a quilt retreat, a place for people to come and quilt together. More than a local quilting bee, she’s imagining a full retreat space. She owns a historic home.

Want to host a quilting retreat? Take small steps to get it started. USDA photo by Bob Nichols

Uniontown, Washington, (population 300) has a strong base of arts, artisan and craft entrepreneurship. When I toured Uniontown, a woman spoke up who wants to start a quilt retreat, a place for people to come and quilt together. More than a local quilting bee, she’s imagining a full retreat space. She owns a historic home that was the site of an old convent in the 1890s. There’s an outbuilding that would be a great retreat location.

Uniontown, Washington, is home to the Artists at the Dahmen Barn, a shared arts and crafts gallery and studio space. The whole town has a strong cultural scene. Photo by Becky McCray.

The old way: Build it and expect them to come

The old way to get started would be to do all the costly renovations first. Then she can organize the first event all herself, and then market it to attract people. If no one or only a few people are ready to sign up, the failure is all on her. She didn’t market it well enough, she didn’t design it in the way that the market wanted or she just didn’t work hard enough.

New way: Idea Friendly

The Idea Friendly way is to build it together. Give as many people as possible a small but meaningful role in designing and creating the event, the space and the community. Here’s how to apply the Idea Friendly Method to her quilt retreat business idea.

Gather Your Crowd

Since she has connections with other quilters online, she could start with a virtual quilting event to gather people to her idea.

Could she start a virtual quilt project that gave more people a small but meaningful role?

Could she hold online sessions to gather people around the idea?

Each conversation with others will bring her new ideas and inspiration. It will draw more people to be part of the project.

If no one is interested, she’ll find out early, before all the expense and risk.

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Build Connections

She could ask her newly-gathered crowd for ideas and for help finding the resources she needs.

Rather than buy enough quilting equipment for all the participants in future retreats, could she find connections to borrow equipment just for the first event?

Do some people want to play a part by helping with marketing, or travel arrangements?

Take Small Steps

Rather than wait to design and build the ultimate retreat space, she can start with these small virtual steps and community building. Then she can step up to hold a very small first test retreat, and keep building from there.

The Idea Friendly Method helps you test your ideas in tiny, temporary ways, often together with another business.