Debt Consolidation Blog

Posts Tagged ‘frugal living’

Putting aside money every month is a must for everyone. Frugal living is the key to creating more wealth through monthly savings. Frugal living is not the same as depriving yourself of every luxury; it simply refers to living below your means and being conscious of how you spend your money.

Here are some simple tips that can help you save money:

Coupons and Discounts

Before you go shopping, look for a coupons, special offers or discounts. However, you do need to compare prices because sometimes a discounted item can still be bought for cheaper elsewhere.

A lot of people think that always looking for a good bargain is cheapskate behavior so don’t take it to extremes. You should definitely not take out a coupon when you are eating at a restaurant with your boss, for example. On the other hand, if you are buying some new furniture, there’s nothing wrong with getting a great price on these items.

Reduce Debts

One big reason to adopt a more frugal lifestyle is to reduce debts. You will realize that you have been living beyond your means once you have difficulty paying off their credit cards and bills.

If you can’t afford to buy something outright, don’t use your credit card or borrow money just to buy that item if it is not absolutely essential. If it’s something that you really want then all you have to do is to save money and buy it when you can.

Do It Yourself

DIY is the way to go if you want to save money. There are tons of DIY shops around and it’s not too hard to do simple home repairs or improvements yourself instead of hiring contractors. You can save up to thousands of dollars in labor costs if you DIY the more labor intensive but les difficult projects like painting the walls or hanging new wallpaper.

Plan Your Trips

Save on gasoline costs every month by planning your week in such a way that you can reduce the number of times you have to drive somewhere to run errands. Switch to stores that are nearer your house if you have to. You can also try shopping online to save on gas money.

Smart Shopping

When it comes to your personal needs, shop for the best value for money. This does not mean always buying the cheapest items. What you should do is consider both the cost of the item and its usefulness.

To illustrate, when choosing between cheap shoes and expensive shoes, it might actually be better to buy the costlier ones if they are of good quality. People do notice cheap footwear and cheap shoes do not last as long as quality shoes. If the good quality shoes cost twice as much as the cheap shoes but last thrice as long then it is still the better bargain.

Saving Money through Frugal Living

Remember, frugal is not the same as cheap. A cheapskate always goes for whatever costs less but a frugal person knows how to spend money wisely and always gets the best value for his money. Frugal living helps you save money for your future in an intelligent way.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

Your Money Tapes
The Dollar Stretcher Blog
by Gary Foreman
I’ve often heard it said that the longest distance is between the human head and the human heart. What is meant is that there are many things that we know intellectually. We understand them and have no doubt that they’re true. But, we still have trouble acting on them. In other words, our heart doesn’t know the same truth.

How many of us suffer the same thing in our financial affairs? We know we should budget or begin saving for retirement. But we can’t seem to do it. Intellectually we know what we should be doing. But we just can’t get going on it. Our heart isn’t in the program.

One way to identify when our minds and hearts aren’t in sync is to notice what financial decisions make us uncomfortable. What financial activities make our palms sweat? Our hearts beat faster? Make our stomach quesy? When we feel uneasy about a financial event that’s a clue that it’s an area that we need to examine.

So I invite you to keep a brief log. Notice those financial events that cause discomfort. Include the date, time and any circumstances that seem like they could be relevant. Don’t try to analyze it now. All we want to do now is capture the moment and make note of it and how we feel at the time.

Once you’ve assembled your journal (after a few days to a week) it’s time to study the entries.

First, were you able to recongize what tape was playing in your mind during the event that made you uneasy? For instance, I’ve often heard “You shouldn’t be spending this money. Not on some luxury.” Or “Go ahead and buy it. You’ll never find it again this cheap.” There are many messages that our minds play when we’re considering making a financial decision. Each of us has our own set of tapes. Almost like an Ipod full of messages that you frequently listen to.

Some of the messages are good. It’s true that I shouldn’t be spending money on unneeded luxuries. And I should look for bargains.

But we need to be careful about the application. For instance, if the ‘luxury’ is buying a steak to cook at home and I do it once a month is that a luxury? Sure, it’s more expensive than cooking a chicken. But, a steak with baked potato and veggie eaten at home isn’t an outrageous expense. And, perhaps that little luxury is enough to keep me from being tempted to eat at a restraurant that evening. So maybe the money tape shouldn’t apply to this situtation.

Or the bargain purchase. If the item I may buy is used and well worn, perhaps it’s not such a good purchase. Especially if it’s something that I’ll use often. Maybe it’s worn so that it is likely to break when I need it. Perhaps spending a few more dollars could buy something that’s dependable and will last much longer. In that case being the cheapest isn’t necessarily a good thing. Again, finding a bargain is good. But it isn’t always the only thing to consider.

So what does your money journal tell you? What tapes were playing when you were uncomfortable about a financial decision? Take a look at them in light of the choices you were facing. Was the tape appropriate to the situation? Or were you hearing something that could lead you to the wrong financial outcome?

Remember that these money tapes almost always have some truth in them.
But, it’s important for us to know whether the tape is true in this specific situation.

One final thought. Since these money messages have been in our heads for years and feel true to us we often accept them without any questions. We jump right to making a decision based on them. If we’re applying them to the wrong situation that can be bad. And, if we don’t stop to think before making the decision we won’t even recongize that we could be making a mistake. In fact, we’ll congratulate ourselves for making the ‘rational’ choice.

So the next time that a financial decision makes you queasy, stop for a moment. Listen to the tape in your head. Ask yourself if the message is true in this particular situation. And, only after you’ve completed these steps, then make a decision.

By doing so, you’ll move your head and your heart closer together. Close enough so that your heart will feel good about the logical decisions your head is making!
Keep on Stretchin’ those Dollars!

Gary

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Gary Foreman is the editor of The Dollar Stretcher.com website <www.TheDollarStretcher.com> and various enewsletters including Financial Independence <http://www.stretcher.com/subscribe/subscribeFI.cfm> Financial Independence is designed to walk step-by-step with you as you take control of your finances and achieve financial freedom!

Frugal Fatigue
The Dollar Stretcher Blog
by Gary Foreman

Recently I was approached by a reporter. They were doing a story on people who were tired of the effort it takes to control their spending. What suggestions, she asked, did I have for people who were struggling and thinking of just giving up?

A little time brought to mind some of the things that I’ve seen people do who continue when the easiest course was to quit.

The first is to make a decision. Once you’ve decided to pursue a goal, do not question it. Unless you have significant new information, you have no reason to doubt your original decision. So don’t trouble yourself with questions. Just continue along the path you chose to follow.

The second involves breaking big goals into smaller pieces. They say that success breeds success. I believe that’s true. Dividing a big goal into smaller goals allows you to have some smaller successes along the way. Each one helps to motivate you to strive for the next small goal. Pretty soon you’ve accomplished the big goal.

Rewards are the third tool to accomplish financial goals. Most of us want to know “what’s in it for me?” That’s only natural. So put something in it for yourself. If you’re paying off a credit card, treat yourself to a small reward at predetermined points along the way (i.e. after $2,500 has been paid down or when the balance is reduced by 25%). Looking forward to the reward takes your mind off of the struggle.

Reminders can also be helpful. If you’re saving for a vacation, you’ll find that a picture of the campgrounds on the refrigerator can be a great motivation. Some people put a card in their wallet to remind them of their commitment to reduce debt. They see it every time they reach for cash or a credit card. It can help you resist needless purchases.

Finally, it’s helpful to have friends to encourage you and share experiences. Most long journeys are much easier if we have one or more people to walk with us. So find a frugal living partner at work or in your neighborhood. Or join an online discussion group. Not only will you find help, but you’ll become stronger when you encourage others. In fact, we have one specifically on Frugal Fatigue.

So don’t let the length of the journey discourage you. The total distance is not that important. All you have to do is to stay on track for today. And, that’s something that all of us can do.

Keep on Stretchin’ those Dollars!

Gary

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Gary Foreman is the editor of The Dollar Stretcher.com website <www.TheDollarStretcher.com> and various enewsletters including Financial Independence <mailto:subscribe-fi@hub.thedollarstretcher.com>
To check out The Dollar Stretcher Forums, click here <http://community.stretcher.com/forums/> To join the discussion on Frugal Fatigue click here <http://community.stretcher.com/forums/t/15819.aspx>

Frugal living has become a very popular concept this past year. People are beginning to realize that the credit card crisis was mainly due to spending above our means.  For those of you that are new to frugal living, let’s go over some basic ideas.

       First, frugal living is not about going without.  It is simply being conscious of how you spend your money.  If you are going to spend it, spend it wisely.  Think of frugal living as stretching your money’s worth.

       Second, frugal living is not giving up all your extras.  It is chooses those extras that matter the most. If you are an avid movie lover, you still can enjoy your Friday night flick.  Just from  your living room instead of the theater.

       Let’s consider some very basic ways to start living more frugally:

       Food. This is probably the easiest way to stretch your dollar. Clip coupons and make a list when grocery shopping.  Pay attention to prices, you might even choose to shop at a cheaper store.  If you have the time, shop around for the best prices on your regular products. Cook your lunch at home and brown bag it to work.  Make a large meal and eat it throughout the week.  If you have a large family, plan out your meals a week in advance based on the deals at your local supermarket.

       Entertainment. Rent instead of going to the movies, use services like Netflix if you rent. As long as you actively use a service like Netflix, it is an amazing price saver. Other ideas for entertainment include having a couples night in.  Make a regular date night for couples you know.  Play fun games instead of hitting the town.  You will help your relationships while keeping your pocketbook full.

       Gas. Carpool, ride a bike, make a strategy about your errands.  Whatever keeps you in the car and spending gas the least is best.  If you need to go somewhere within walking distance, take a brisk walk instead of the car.  Your lungs, and the environment will thank you for it.

       Plan Ahead. Your car, your pets, your house all need yearly maintenance type items.  Plan ahead for things like flea control, a new car battery and the like.  You are going to buy them anyway, why not consider them early on and look for ways to save.  Research the best time of year to buy appliances, electronics or a new car.  Frugal living has been around for ages and there is plenty of information available for you.  Take advantage.

       Make it Yourself. The recipes and instructions are endless. Research online or at your local library how to make everything from your own cleaning products to furniture.

       The key to frugal living is to gain the support of those around you.  If you are a single person, find people in your neighborhood that are like minded.  If you are apart of a large family, grow a garden in the backyard.  Do whatever you can to incorporate frugal living into your everyday.  As you learn more and more about it, you will find the easier it becomes.  And remember, frugal living is not about going without.  It is about making the most of your money!

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

So, you’ve decided to start living frugal and begin saving more of your money. You may not know this but frugal living and having fun go hand in hand. Let me show you exactly what I mean in 10 simple ways:

1. Visit Your Local Library: An easy place to start when learning how to be frugal is to use your local library. Here’s the deal: Instead of purchasing books and buying DVD’s, consider taking advantage of your local library. You’ll have access to best selling books, and the latest movies all free of charge. Simply return them on their due date and you won’t owe one red cent.

2. Cut coupons: In no time flat you can cut your grocery bill almost in half. Nowadays, you can clip coupons for items you purchase regularly.

And if you pay close attention, your local grocery store will often offer to double and even triple your coupon savings. There are many sites online that will give you access to an even larger number of coupons for greater savings.

3. Eat At Home: No doubt eating out is fun and convenient. But the problem is that it really puts a dent in your wallet. A family of four could spend $30 or more eating at popular restaurants.

Living frugal means cooking meals at home and even taking left over’s for lunch. If you do decide to splurge and eat out, remember that many restaurants provide coupons for patrons. Double check to see if there’s a coupon that you can use for yourself and your family.

4. Use Online Bill Pay: Frugal living ideas like paying bills online can help you avoid late fees and save money on buying stamps every month. Plus it’s simple to set up.

5. Slash Gas Costs And Insurance Premiums: When learning how to live frugally, it’s a good idea to plan your errands and group them in a way that you are not driving unnecessarily. Map out where you need to go and then stick to it.

You may even want to start riding a bike or walking to places that are close to home. You can also enjoy the frugal life by contacting your insurance company and finding ways to lower your auto insurance premium. There may be discounts you’ve been missing out on.

6. Create Your Own Cleaners: If you are ready to learn how to live a frugal life, then you’ll be glad to know that you can save money on store-bought cleaners by making homemade cleaners.

Basic cleaning agents include vinegar and baking soda so make sure you stock up on these two items and you’ll be well on your way to frugal living. But that’s not all, there are frugal living recipes for powdered laundry detergent, dryer sheets, and homemade fabric softener.

7. Go Green: Anyone who is serious about how to live frugal must consider using green energy. By using solar energy to power your home, you will slash energy costs drastically.

Frugal living tips for harnessing the power of solar energy includes building your own solar cells to power your home and swapping out old appliances for energy efficient ones.

Time and time again, you can see that living frugal doesn’t mean you have to give up all the things you enjoy in life. In essence it means finding a way to have the things you want and do the things you love the most cheaply. Put just one of these tips into action and before you know it, your financial picture will look a heck of a lot better.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

Families are turning to frugal living as a way of surviving tough economic conditions. This article seeks to dispel the myth that frugal living means a life of deprivation, tinned food, and endless nights in front of the television, just to save a few dollars here and there? If you’re prepared to discover what a frugal life really could do for you and your family, then read on and find out.

First the good news….frugal living isn’t about depriving yourself of the things you enjoy or making massive sacrifices; it’s more about being smarter, so you have sufficient cash to fulfil the life you crave – the life that you imagine you’d live if you wealthy. Countless people who’ve elected to live frugally have made the choice to live debt free or at least to significantly cut down on their debt. By simply adjusting their spending behaviours they spend less than they make and have smaller debt balances and improved peace of mind. Think about it for a moment. How many days a week do you work just to pay off debt?

Frugal people shun the need to live in the “rat race” or “keep up with the Joneses” and they perceive no logic or rationale to purchase the latest “gimmicks” or “toys” that will only collect dust in the garage after being used only once. Frugal living for them means that life becomes easier and far less complex. They recognize that by living within their income levels they have a solid platform to one day be financially secure and in control of their retirement.

Living an uncomplicated frugal life, allows more freedom and choices to be had. Frugal living is after all a choice. And by living it, there are almost certainly many more opportunities on hand than to people who spend all their time earning their livelihood but never have time to spend it.

Choosing to live a more, simple, frugal life undeniably increases quality time with people that matter the most. It offers them more time to cultivate deep, meaningful relationships with their families and friends. I know people who have opted for this way of life to allow one parent to remain at home wit their children whilst the other parent works full-time; consequently providing more quality family time together.

Leading a frugal life keeps things simple and facilitates stress-free living. Stress is a killer and in today’s consumer driven world, more and more weight is placed on “living to work”. The frugal individual recognises this and “works to live”. So, now that you appreciate the advantages of frugal living and the relatively few sacrifices required, why wouldn’t you give it a go?

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

A few days ago I read an article which advocated a reduction in costs to a minimum – to get away from consumerism as humanly possible, renouncing any optional spending and essentially make a clean sweep and start from scratch.

Many people react negatively to such an idea, which is not surprising. I’ve seen comments like “I do not know whether I should be possible to waive the pay-TV and go around to bars, restaurants, etc.., At a time”. I needed to lean frugal living and save money.

In this modern society most of us function assumes that it is not possible to waive certain forms of non-essential spending. In other words, if you give up certain luxuries life ceases to be nice, so that ultimately resemble those essential luxuries.

Of course, I do not advocate a very frugal life to take you to renounce all the things you like. My vision is somewhat different. I think there are certain routines that we consider essential, and in reality we do not enjoy as much as we think.

For example, eating out. Many people do it because they think it is faster and more convenient to eat at home. They simply drive to the restaurant, sit, beg, chat with the people accompanying them, eat, pay and then go home. Easy and uncomplicated.

But when you start to add up the time you can invest in it, the thing does not seem so funny. Let’s say you took fifteen minutes driving (and parking) to a restaurant you like. Another five or ten minutes to ask. Ten or fifteen minutes to bring you food and half an hour or more to eat. Another five or ten minutes waiting until you bring the account, pay and leave. And another fifteen minutes until you get home. That is roughly one and a half just to eat.

If I’m home, you can improvise a meal in fifteen minutes. After about twenty minutes late and eat five or ten pick. The total is about three quarters of an hour – and of course, you can take longer if you want to prepare something delicious. Even so, do not spend so much time as you have to spend to eat out.

Considering that the cost of eating out is much higher and that the level of food quality that is comparable to prepare at home, you’re paying extra for eating out.

So this is an expense that can be reduced or eliminated. Personally, instead of going out to eat out several times a week, eat out four or five times a month – and just what we do when we plan to return home late.

Did you miss? Not really. I have not given up the part that I really liked, who was eating with my family. Once I gave him a chance to the idea of not eating out constantly, I started cooking more at home – and do better. Today, I prepare a tasty meal pretty quickly, and the quality of the food is excellent. Furthermore, we finished eating at least an hour earlier than when we eat out, so we have more time to do other things.

Where rio_bifurcacion to you? Our lives are like a river. They take a course shaped by priorities and assumptions that we set ourselves. If we begin to change these assumptions, if only slightly, sometimes the water will try to return to its old course, but most often simply be adapted to the new address and you may discover that everything flows serenely in this different manner .

Here’s another example: bookstores. I loved to buy books. I was going to a bookstore at least once a week to take a look, and it was not unusual to come out of it with one or two books under his arm.

At that time it seemed the most normal thing in the world, and I liked it. I could not imagine my life without having at hand a new book to read. When my finances hit rock bottom, even he could imagine eliminating this “habit”.

I had read on many lists of financial tricks that the ideal was to replace the library by the library, but still I do not see it. I imagined the library as a boring place full of dust, and thought he would hate. So I forced myself to try just because I was willing to try anything.

Surprisingly, I left the library with two books I really wanted to read … for free!

And that’s how the river changed for me. I started to use the library all the time and gradually my visits to the library declined. Today only buy one or two books a month at most.

What was the outcome? Do not quit what I liked, which was read books. I still have on hand a bunch of new books to read. What I have given up is to spend on them a lot of money, which was a big relief.

For me, the benefits of frugal living do not go through renouncing the things I love, but to understand what is really not like to do and find ways to continue enjoying these passions spending less money. When people say things like “could not waive the pay-TV, why do you say? Are you concerned about not seeing any particular program? Or they do not want is to give up an evening with your partner huddled on the couch watching something they both enjoy?

If what you really would miss the latter, why not waive the pay-TV and try out the options offered by the Internet, or the rent? Thus, keep the experience that they really like – watch TV comfortably in your home – without the inconvenience of having to pay the bill every month.

In addition, you may find that spending money on these things that you think you should worry about (mainly because others do), but inside you would not really bother you. Eliminate those behaviors in your life. Making things that really do not like to get the approval of others only leads to unhappiness and, incidentally, an empty bank account.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

It’s a question that we all must answer. Even if some of us would prefer to ignore it! Because, with rare exceptions, we all have to deal with having just so much money to cover all our expenses. And, if we spend more than we take in for very long we get into trouble.

Let’s look at a “typical” spending plan. Then we’ll discuss it.

housing                  35%
food                         15
auto                         15
insurance                5
entertainment       5
clothing                   5
medical                    5
everything else    5      
Savings                 10

The first thing you’ll notice is that I didn’t include any taxes (either income or Social Security). You can choose to do that if you like (in fact, it’s a real eye opener). But for our purposes it’s easier just to deal with your ‘take home’ pay.

The second thing to notice is that this is a guideline, not a straightjacket. The truth is that very few of us will fit into this exact framework.

So if your spending doesn’t match, don’t despair! Analyze the situation before you panic!

For instance maybe your entertainment spending is closer to 10%. Is that a problem? Maybe not, if you’re young, single and sharing an apartment with 3 friends. In that case what you save on housing is going for entertainment. So overall you’re not spending more than you’re making.

Or you may be a city-dweller where housing is very expensive (think NYC). But because of public transportation you don’t own a car. So the extra you spend on housing is offset by the reduced spending on transportation.

You get the idea. Tailor your spending plan to your needs. And, adjust it as you go through life and your needs change.

One other thing to notice is that housing, food and auto make up the lion’s share of the expenses. That’s true for almost everyone.

It’s in those three areas that most families get into trouble. Most often by buying a home or vehicle that they cannot afford. But once the commitment is made it’s very hard to undo.

You might wonder where a certain expense goes. For instance, household cleaning supplies. Many people buy them at the grocery store. So are they a housing or food expense? The answer is: it doesn’t much matter. Put them whever it seems best to you. The key is always putting them in the same place, so you can compare results from month to month.

Another common question is what should I do with charitiable contributions. You can either take it off the top (like taxes) or create a separate category for it. If you believe that contributions should come before your expenses you’ll want to take it off the top. If you think that it’s part of your regular spending then include it as another expense category.

Finally, let’s look at Dee’s question about saving. There probably isn’t any single right answer. Because saving isn’t really an expense. It’s an investment for a better future.

So I prefer to think of savings in terms of priorities. Before I can put money aside for savings I need food and a reasonable shelter. Probably also need dependable transportation to get to my job.

But after those basic needs are met, it’s time to begin saving some money. Not necessarily the 10% in our guidelines, but 2, 3 or 4%. Enough so that there’s some money set aside for the so-called unexpected expenses that happen to us all (dead appliances, home and auto repairs, unexpected sickness, temporary lack of work).

One other comment about savings. Paying off debt (especially credit card debt) is a little like savings. Consider payments used to reduce the amount owed as if they were savings.

Finally, for those of you who don’t want to bother with any of this. I know what you’re thinking: I’m fine and don’t need any help monitoring my money. Just remember that most people who are in trouble today said the same thing when everything looked good to them.

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Gary Foreman is the editor of The Dollar Stretcher.com < http://www.stretcher.com/r/134.htm> website and various enewsletters including  Financial Independence. FI is a daily message designed to help people take control of their financial lives through achieving small daily goals. To find out more check out the Financial Independence page < http://www.stretcher.com/financialindependence/declaration.cfm >.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.