January was a busy month for my family, between a transmission problem with the car (which was covered under our warranty), worries about the status of our jobs (which as yet is still in somewhat of a questionable state), and some new endeavors.

Still, I’m happy to say, I was able to be frugal in some areas although some other areas need work.

Where I did well:

• Groceries: came in under budget. Spent $260.xx, and I had planned to spend $375. That did not a trip to Sam’s Club for which I used cash we received as a Christmas gift.
• Thrift stores, freecycle: got some great clothes for Natalya and a new spring coat for me

What needs work:

• My basement is terribly disorganized. There is simply too much stuff in there
• I haven’t been doing a good job of updating my budget spreadsheet with actual expenditures. I’m doing well on the groceries worksheet and the CVS worksheet but not on the rest of it.

And no, I do not mean to have yourself a shopping spree on Ebay or Amazon.  Sorry!

What I mean is to shop from your own stockpile at home.  This works well for consumables like cleaning or hygiene products and boxed, frozen, or canned food.

For example, if you are the parent of an infant or toddler who is still in diapers or training pants, it makes sense to purchase a few extra bags when they’re on sale and you have coupons. Not only do you get the best deal, but you save yourself from the aggravation of running out at an inopportune time.  Likewise, feminine products. If you are a woman with a husband like mine, or if you are a guy, the last thing you want to be doing is going on a tampon run at  10pm on Saturday night.  It could save your relationship to have an extra box in the closet!

Use caution when stockpiling items with short expiration dates such as liquid medications, or items that may be grown out of before they are used or might not be the right size for the season, like children’s clothes. While you might find a fabulous deal on a box of 100,000 aspirin, if they expire on 1/1/2010, chances are good you won’t finish them before the expiration date. If you have to throw it out due to expiration, spoilage or because it doesn’t fit, then it’s wasted money and time.

One of the best ways to be frugal is to arm yourself with the information you need to make wise choices. Most people do their homework before they purchase a car, but many do not. Most people do a little investigating before buying their houses (a home inspecition, termite inspection and the like) but some people do not even do that.

When my husband and I purchased our home five years ago, we prepared ourselves months ahead of time by reading about mortgage options, home buying concerns, and how buying and selling a house works. Likewise, when buying cars, we investigated Consumer Reports and other independent sources of quality information. By doing this, we likely saved ourselves thousands of dollars, though by my own admission, we could have done better (hindsight is 20/20, isn’t it?).

Educating yourself before you make a purchase can not only save you money, but save you time as well. Time not spent repairing something that broke before its expected lifetime is well-saved.

Finally, educating yourself beforehand is not only financially safe, but physically safe as well. Avoiding recalled products (childrens’ products especially) is important and could literally be a life-or-death situation. The Consumer Product Safety Council and the Food and Drug Administration have free public listservs and send out email updates on recalled products from baby cribs to peanut butter and everything in between.

By educating yourself before you buy, you can save some money and maybe even save your life or the life of someone you love.

It’s quite easy to spend money when you leave your house. A latte here, a candy bar there… and suddenly there’s empty space in your wallet.

One way to avoid these “hidden” money drains is to simply stay home.  Obviously, this is not always going to work, but it can be a strategy to add into your frugal toolbox, if you will.

 So when will this work?

Let’s say you have many errands to do. Post office, ATM, grocery store, library, drop off donations at Goodwill, pet store, office supply store. Imagine that you do one or two of these each day after work. It’s all too easy to run through the drive through for a coffee, or to throw a candy bar onto your order at the convenience store. While one 99 cent candy bar or 3.99 coffee shouldn’t break you, they do add up. Especially if this is a frequent habit. I know many people who not only do this daily, but even multiple times a day.

While those errands still need to be done, one strategy is to do it all in one big trip. You may save some gas in the process, and even if you still get that coffee and candy bar, doing this just once a week rather than five or six times could save you $25 to $30 a week (or even more, depending on your personal vice)!  Multiply that by 52 weeks in a year, and you’ve just saved another $1k without even trying too hard or committing to a huge sacrifice.

A second way to add this strategy into your life is staying home rather than shopping for recreation. Alas, I do understand that there is this thing called the Internet that is available 24/7, probably from your own dwelling. Don’t give in! Don’t browse on Amazon or Ebay or any other retailer. Only visit them when you have a specific need. “Browsing” retailers on the internet is just the same as browsing at the mall. You’re much more likely to find something to buy if you’re looking, than if you’re not looking.

So don’t look!

I need this. I need that. And that. And that and that and that!  Pick up any magazine. Walk through any mall. Everywhere we go, we are convinced that we cannot possibly go on unless we have this. And that. And all the other things too.

 So how does one determine a need from a want? 

One strategy I read about recently was asking yourself, “Did Grandma have it?”

So, you want that new 6 oz laptop that records dvds, turns your lights on as you come in the door and makes toast for you each morning at 6:04 am?  Well, did Grandma have one?

Or what about that nice, shiny new car?  Imagine yourself in the driver’s seat. Some beautiful member of the opposite sex will be racing to sit beside you in the machine of art.

Did Grandma have one?

Your friends tell you, you must have this and that and this and that too for your new baby. Your baby cannot live without the latest Brainy Einstein ExerBouncer and ThingAMaBop.

Did Grandma have one?

This strategy would work well for people like me, who don’t have interest in gadgets or cars (although, I just LOVE yarn and I KNOW my Grandmas had it!!)– but, this is just one strategy. Check back throughout the month for more ways to resolve to live frugally in 2009!

Many New Year’s resolutions include becoming organized, staying within a budget, paying off debt, losing weight, and improving oneself. Today I am starting a series that will run for the month of January, on resolving to be frugal for 2009!

 Today’s resolution is: Get Only What You Need.

Now, why is this a good resolution to make for 2009?

First of all, if you don’t need it and don’t buy it, you’re saving money simply by not purchasing it. Second, if you don’t buy it, you’re saving  your dwelling from more clutter. Third, you’re saving yourself the time of cleaning it and maintaining it. And finally, you’re saving the hassle of upgrading it, repairing it, and eventually, disposing of it.

Let’s say the “it” is a stand mixer. It’s a beautiful, shiny work of art. It would look glorious on your countertop. It costs just $279.99.  What else could you do with $279.99? Could you add it to a debt payment? Or put it into a savings account? What about making a gift to a reputable charity? 

 Where will you put the mixer? Will it always stay on your counter, even if you use it just once per month? Will it get in your way? Is it likely to collect dust more often than dough? 

 Sitting there on your counter, you will need to wash the bowl each time you use it. Likely, you will collect the other implements for using the mixer- dough hooks, various beaters and attachments, spatulas and so forth.

Now what happens when a newer, prettier mixer debuts? It’s red, your favorite color. Much more stylish than stainless steel. It matches your decor. Oh, and the old one? Well, it got some scratches. One of the hooks broke. You can’t find a beater. You might as well dump it in the trash, but alas, your city prohibits throwing out appliances. You have to haul it to a special waste center and pay a fee for its disposal.

 Is it worth it?

On this, I do speak from personal experience. I love to cook and bake. I thought a stand mixer would be a great addition to my set of tools, even though I have a small kitchen with very little counter space. My parents purchased the mixer for me as a Christmas gift two years ago. I can count on one hand and have fingers left as to the number of times I’ve used it. I find it is more of a hassle to set the thing up, dig out the beaters, and get it going. By the time I do all that I can have it mixed by hand and burn a few calories to boot.  Do I still have it? Yes, somewhat out of guilt in that it was a huge gift for my parents to get me and somewhat out of hope that I will have more time to use it or that I will get a house with a more functional kitchen than I have now.

2009-01-06

I’m Jessica, and I’m proud to say that I am frugal by choice. For me, frugality was borne of necessity in the home where I grew up. Those lessons stuck with me as I went to college and graduate school, married, bought a home and had a child. 

As partners, my husband and I choose to live frugally because it is simpler, there is more peace of mind in not having debt and not competing with others, and is more respectful of our environment.

We are lucky in that we have the option to choose to live frugally. Others, like my parents, do not have the luxury of choice. For many (too many), frugality is the only way they can exist, and they know no different. They certainly see the difference, but in their own lives, they do not have that freedom. As my parents would say, “It is what it is.”

I will use this blog to introduce ideas and strategies that can broaden horizons, get you thinking outside the box, and encourage you to step outside of your comfort zone to adopt and maintain a frugal state of living.