What I’m Doing Right
Published on - August 2nd, 2007 (Modified on - August 7th, 2007) (by J.D. Roth) Today’s guest post comes from M, a blogger and writer living in San Francisco. She keeps a fascinating personal blog, as well as Bay Area Love Letters, a site devoted to San Francisco and Northern California.
Decide how much to save in an emergency fund…Research how to determine amount of life insurance coverage needed…Brainstorm ways to save on health insurance costs…Increase 401K contributions to take advantage of company match…
All these items and more are on our financial to-do list. You know what I’m talking about, right? Whether you are just starting to try to control your finances, as my husband and I are, or you are a seasoned pro at personal finance, you probably have a list (written or mental) of how you can improve.
But in the midst of all this progress, it’s important to not lose sight of the things you are doing right. So often, we turn our attentions toward what we need to improve and forget to acknowledge what we’ve been doing well along the way (and thus need to continue doing).
Here’s to an end to that pattern: a post all about my longtime personal finance and frugality habits that I’m happy with and proud of. Because what we do well is just as important to recognize as what we can improve.
Though I am still learning about personal finance every day and always finding new ways to improve, there are lots of things I already do right and have managed to do right all along. For example:
- Dye my hair with drugstore brand dye. No salons, ever (except for occasional cuts. Come on, I’m a girl, and I have curly hair).
- No mani/pedis, except done by me at home.
- No regular spa or massage sessions.
- No gym fees. Exercise at home or outside for the cost of a pair of running shoes (replaced once or twice a year).
- Share one car between two people.
- Rely almost exclusively on public transit for commute to work and many other trips.
- Save on hotel costs and other travel expenses by taking mostly day trips instead of overnights.
- Take the Greyhound instead of a train/plane for short trips (4-5 hours).
- Live in cheapest housing available in decent neighborhoods. (Two people + large dog + small studio apartment? Check.) This makes a huge difference to the bottom line at the end of the month and allows for a little more discretionary spending without guilt.
- Used furniture for most of my adulthood. (Only recently did we buy some new furniture — all at good prices, though).
- No — or close to no — vacations except short road trips or, occasionally, places where we could stay with friends instead of in hotels.
- No trips abroad, no major vacations.
- Stay at lower cost hotels when traveling, except for a few special occasions (such as wedding anniversary). And recently, we have been leaning toward skipping pricey hotels in any circumstances, even on special occasions.
- Bring packed lunch daily.
- Make coffee at home every day rather than buying out.
- No microwave, and no frozen foods (which are usually costlier than making a meal).
- Eat at home regularly. Make meals mostly from scratch. (This is good for health, too.)
- Split one meal between two of us when eating out.
- Mostly order (free) water at restaurants instead of other beverages.
- Quit smoking.
- Rarely drink alcohol.
- No/few concerts and other expensive entertainment. Find low cost entertainment, such as watching videos at home, and, on occasion, attending low price community theater and dance performances.
- Make special occasions cheaper by sharing dessert or appetizers instead of having a full meal. We may go somewhere pricey that we’ve always wanted to try, but we’ll have just a drink and an appetizer there, instead of a full meal.
- Free/cheap recreation such as hiking, swimming, galleries, etc.
- Make own popcorn for movies. Bring candy and drinks to avoid paying high theater prices.
- Limit junk food.
- Miss weddings and other occasions (unfortunately) due to travel costs.
- Return items we don’t like/use/need (in unused condition).
- No expensive beauty services: waxing, eyebrow shaping, highlights, etc. All but cuts done at home. Husband cuts own hair.
- Drink filtered tap water. Avoid buying bottles of water. Bring own water when going out.
- Keep lights off when not needed.
- Rarely use heat or air if not absolutely needed.
- No expensive hobbies or collections.
- Buy used books.
- Make own protein shakes, no Jamba Juice, etc.
- Buy only what is really needed: Skip high-priced electronics and trendy, new gadgets. Buy necessary items with only the features we need. Don’t splurge on luxury add-ons.
- Keep items for as long as possible (I’ve had, for example, the same comforter and TV, and more, since high school. More than 15 years later, I still use these items regularly).
- Buy quality (doesn’t have to mean pricey) and keep it. Save on having to buy regular replacements.
- Make greeting cards instead of buying.
- Planned low-cost wedding without compromising quality and preferences.
- Pay bills on time. No late fees.
- Good credit = good interest rates, better luck with housing and other areas.
- And, a new habit: Once-a-week “meeting of the minds” with my husband about our finances.
What do you think of my frugal habits? What good financial habits do you have that you’re happy with and proud of?
Addendum: M dropped me a line to say that she’s posted two responses to this discussion at her personal site: We are so much richer than you may realize and Response and thoughts on my Get Rich Slowly post.
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I agree with Rika. How spoiled are some of you people that you consider most of this stuff extreme deprivation?
Most of the stuff in the original post is stuff I’ve done all my adult life out of necessity to be able to live within my means and still do the things that make me happy. Now, at 37 I’ve done plenty of things that most of my debt-laden peers who wouldn’t dream of taking public transport or not getting their nails done haven’t done and will probably never get to. I’ve traveled the world, lived in Japan, lived on the equator, hiked through the jungles of Borneo, been to Fiji, been to Australia, got an education, been privileged to meet amazing people from all over th world who have changed my perspective on many, many things …. and I am debt-free.
Now I am saving for a modest apartment or small house and living below my means. Eschewing the luxuries that most consider ‘necessities’ – going top shows every month, getting spa treatments, eating out constantly – will eventually enable me as a single on an below-average salary to save the very large deposit I will need to get a mortgage in a country where housing is beyond the reach of many dual-income families.
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People are so spoiled, it blows my mind. As Michel says, the original post is not a recipe but a menu. You don’t have to do everything on it (I don’t, and I’m pretty frugal). But none of these items in and of itself signifies a deprived life. Contrary to what marketers would have you believe, you do not need to spend lots of money to have a good time.
Oh, and a word to Beth in particular: “Once in a while, I deserve to have someone buff and polish and massage my feet.” Honey, just like Clint Eastwood said in Unforgiven, “‘Deserve’ ain’t got nothin’ to do with it.” Pedicures are a luxury. Learn how to do them yourself or go without. Otherwise, don’t whine to everyone about how little money you have.
Really, schools ought to teach Aesop’s Fables again. Specifically, The Ant and the Grasshopper. So many “live today, to hell with tomorrow” types are the same ones who continually whine about not having enough money to pay the rent and hit their “friends” up for it.
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Great list of your ‘frugal’ endeavors. There is much that others can draw from.
I would also like to see us add which of these lifestyle habits add richness to our lives.
I am always confused by the really big home concept. Unless a person loves to clean, a lot of extra rooms are just dust collectors and places to store more ‘stuff’. Also the wider hallways seem to be just more to heat and cool.
At the same time a home that sufficiently supplies the spaces one needs is also important.
As our home became empty with children leaving the nest we have rented out a room. This has usually been for short term tenants from an organization in our city that teaches English as a second language and brings in folks from all over the world.
We have added the richness of spending time with folks from Korea, France and Spain while providing them with American family experiences (probably not typical American Family experiences) and they have paid rent while here. (also a great experience for the kids still at home)
http://www.livingreal.net
Steve
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Hey M, I just want to extend some support & props for what you’re doing. If you are meeting life’s challenges without going into debt and enjoying life’s gifts without going into debt then kudos to you! You should be proud of yourself. I’m off to check out your blog. . .
Lisa
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You probably HAVE to be that frugal- you live in the Bay Area!
I bet I would be FLOORED by what you spend on housing. And PLEASE don’t tell me you’re renting. Outrageous housing costs with no equity = pure stupidity.
I eat natural, healthy “organic” foods, too. They’re called “fruits” and “vegetables”. Dummies who are conned into buying “organic” labels are just as frivolous as people who have to have designer clothes, IMO.
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Annie,
There’s no need to be nasty. Comments like “dummies who are conned” and “pure stupidity” are not civil discourse.
“Organic” does not mean “fresh fruits and vegetables.” It means that chemical pesticides, herbicides and fertilizers were not used. (I’m sure there’s a more scientific explanation, but that’s the gist of it.)
For some people, that’s an important personal decision. Obviously, M is willing to balance the additional cost of organics by being frugal in other aspects of life.
I’m curious as to why her PERSONAL decisions — i.e., she isn’t telling the whole world to live this way — are so irritating and apparently so threatening to so many people?
Get a grip, folks. M isn’t coming to your house to take away your credit cards and pay-per-view. She’s just writing about what works for her.
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It’s not threatening to me.
I was just trying to point out the blatant hypocrisy of someone who extolls the virtues of frugality while living in one of the most expensive cities in the country.
I find that quite amusing.
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Annie, if you feel the need to call people names, perhaps a comment board on a site for teenagers would better suit your impulses. As to the perceived ignorance of being a renter, some of the greatest financial minds of our time espouse this choice. You can find indepth analyses of the dollars and cents drawbacks of owning one’s own home on the Morningstar financial website (you must be a paid subscriber to access some of these articles) and also in books by money guru Robert Kiyosaki, for instance. Do some reading before exposing a common ignorance. It looks shabby in print, and very ungracious.
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The guy who advocates real estate investments? I know how real estate generates a passive income, your RENTERS pay your mortage, plus.
It’s a pretty sweet deal.
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I fail to see what is hypocritical about living in a high-cost city and espousing frugality? It’s not M’s fault that prices are high.
I guess by that logic it’s hypocritical for the Japanese to be better savers than US citizens, since Japan is so expensive to live in.
???
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db, that’s a lopsided comparison. Japan is an entire country on a rather limited amount of land. An American does not have to get a passport in order to move from an expensive city like SFO to a cheap rural setting like, say, Alabama.
It’s not always easy to pick up and move house, as moving costs money. But I would tend to agree with Annie that if you want to cut your costs, you move somewhere affordable.
Oh, and I also agree with Annie that organics are overrated. They’re a class marker; if you can afford high-priced wilted greens and foo-foo frozen dinners at Whole Foods (a/k/a Whole Paycheck), you can look down your nose at those of us who aren’t too good to go to the local Market Basket or whatever and get Bird’s Eye frozen veggies.
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Annie:
I recommend really being an expert in a topic before passing judgment on the financial decisions of others. There will always be a better informed person who will see through the ignorance of didactic condemnation. Even the less informed instinctively see through such posturing. Really, there is no shame in simply apologizing for comments that have so obviously offended others. Why stick to an untenable position when it is far easier and more grown up to simply say, “I overreacted. I stand but my views, but perhaps expressed them tactlessly.
Sorry for any offense.” If you are a first time poster who is surprised by how we care for our own and defend them, why not be charmed by that and simply budge a little? The writer of the original article is a real person, with feelings, as are we all. In the online world that can be easy to forget, but we are all willing to make allowances when someone makes a mistake.
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Annie:
I recommend really being an expert in a topic before passing judgment on the financial decisions of others. There will always be a better informed person who will see through the ignorance of didactic condemnation. Even the less informed instinctively see through such posturing. Really, there is no shame in simply apologizing for comments that have so obviously offended others. Why stick to an untenable position when it is far easier and more grown up to simply say, “I overreacted. I stand but my views, but perhaps expressed them tactlessly. Sorry for any offense.” If you are a first time poster who is surprised by how we care for our own and defend them, why not be charmed by that and simply budge a little? The writer of the original article is a real person, with feelings, as are we all. In the online world that can be easy to forget, but we are all willing to make allowances when someone makes a mistake.
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I didn’t overreact, and I stand by my views.
I don’t go around leaving rude posts (I don’t think that was rude, either, but that’s only my own opinion) on random blogs that I just happen across. I had no idea who “M” was until she came to MY blog and drew my attention.
If she can dish out her opinion to me at my blog, then she can have a little dose of ME in return.
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I do a lot of what’s listed in the original post, and more. And I do them for many reasons: to save for early retirement, to live more ecologically/ethically, to have the fun of using my creativity. When I read a post that makes me want to attack the person, I try to stop and ask myself what it is I am really upset about, and it is usually me–there is some unconscious guilt, self-esteem issue, etc., that I am trying to take out on others. I suggest everyone make this self-assessment when you’re feeling judgmental. It can be very revealing and helpful. Billions of dollars are spent to convince us of what we “deserve” and what is “happiness” “deprivation” “beauty” “necessity.” The most powerful thing any of us can do financially is to decide these things for ourselves. If you are angry at someone else for “depriving” themselves, it might mean you are beginning to sense that the happiness you are buying is not making you so happy after all, and that’s a good beginning.
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MDC–
I appreciate the first point in your comment because for some, moving somewhere cheaper is a very good solution to saving more and being more frugal.
I also want to add to your point, as there are some cases where I feel that approach may not be feasible or even beneficial.
First of all, affordable is a relative not absolute term. Each person must determine for himself or herself what is affordable.
Second, I’m sure you’re aware that many people are tied to certain parts of the country due to their careers. Moving to a new region can often mean switching to a new (and possibly much lower paying) field.
Switching to a new field can mean wasting one’s former education and experience. It can cost one much of their future income, since any seniority in position will usually be lost when starting in a new field. The cost in potential new training required for the new field as well as years potentially needed to gain experience for the new field, can be very costly and take years.
All of this is costly and the move, even if housing is ends up cheaper, may very often end up losing one money rather than the other way around.
Of course, besides just the cost of living with salary taken into account, there are many other factors that go into deciding where to live. Moving somewhere with cheap housing as the only reason for it tends to overlook all factors aside from current real estate prices.
For many people staying where they are, even if it’s in what’s considered a pricey area, pays off due to the many jobs in their field and higher salaries and other factors.
Additionally, many factors (such as access to certain medical care, nearness of family, one’s mobility issues, availability of top universities, good schools in the area, and much more), besides just housing costs, go into the decision of where to live. Money is not the only issue.
For those for whom housing costs are the only factor, choosing a home based on money alone (taking jobs, salaries, and other cost of living issues into account, of course) makes sense. But for me and I’d guess many, many others, many factors, including job availability, salary, quality of life and other issues go into these types of life decisions.
Since for me, living at the cheapest price possible no matter what the other costs is not a priority–and was never stated as such–I don’t have to worry about moving to Alabama or about changing my diet.
It would be absurd to only expect those in areas considered “affordable” to practice any degree of frugality and to expect that those in pricier cities might as well just spend, spend, spend! We can all benefit by being frugal in the areas where we are able to be and choose to be, no matter where we live. There is no all or nothing requirement on frugality, that says we must practice it in every area of our lives or no area at all.
We all make choices with our money and most of us spend on the things we value and spend less or not at all on the things we value least. If we value where we live, then we may save in other areas to be able to live there. Or, we simply may be able to live where we wish without having to sacrifice in other areas.
That doesn’t mean we can’t still make frugal decisions in the areas we want, just because we may not have to be frugal or just because we may spend more freely in some areas of our choosing.
Additionally, I’d venture to say unless someone has specifically told you their housing costs, you can’t have any idea how much they pay for housing. Many in the Bay Area live frugally, including when it comes to housing. That’s exactly what makes frugality so wonderful; it can often allow us to live comfortably even in some of the world’s most expensive areas.
In the Bay Area, there are plenty of people who don’t pay much for housing–for example perhaps because they bought small condos and saved a decent down payment, or because they bought more than a few years ago, or because they obtained their home through inheritance, or because they have several roommates, because they rent out part of their home to tenants, and because of many other reasons.
Just because someone lives here does not tell you one thing about how much they pay for housing. And even if some do pay a lot for housing and less on other things to compensate for the housing, that is a legitimate choice and valid trade-off, and only they have to live with the consequences of that decision.
In general there are many factors that go into people’s financial decisions. And many of the terms used here, such as frugal and affordable, are relative terms that one person cannot define for others anyway.
There is no one way that works or should work for all, but your suggestion is a good one for people who are looking to cut housing costs and have a lot of flexibility about where they live. Though I am not looking for help in that area, I’m sure many readers may be. So thanks for sharing.
As for your final point where you state: “If you can afford high-priced wilted greens and foo-foo frozen dinners at Whole Foods (a/k/a Whole Paycheck), you can look down your nose at those of us who aren’t too good to go to the local Market Basket or whatever and get Bird’s Eye frozen veggies” . . .
I’d venture to say that the one who calls other people’s food “foo-foo,” and “overrated;” who creates derogatory nicknames for where others shop; who depicts people he/she doesn’t know as paying high prices for “wilted” food and as thinking of themselves as “too good” compared to others is, in this case, the one turning their nose down at others, and not the other way around.
***And thanks to the many who shared productive, thoughtful comments to the discussion!***
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M., I am sorry that you chose to take offense to my comments. However, your touchiness does not oblige me to sugarcoat them. The same goes for Annie. “Thoughtful and productive” does not necessarily mean “coddles other people’s easily hurt feelings.”
One’s choice of food, like anything else one purchases, is a class marker. I used to live in Boston, which is easily the most class-obsessed city in the U.S. I can tell you that there are any number of people who buy only organics and shop only at pricey yuppeterias like Whole Paycheck, but who aren’t as particular about their health as they would like everyone else to think. There are plenty of organic foods that are high in sodium, fat, and sugar (desserts, snacks, cheeses, pickles, sodas, etc.).
These same people will also buy non-organic foods at stores with a certain social cachet, like Trader Joe’s. They will also eat in (certain) restaurants without a clue as to where the food might come from. Yet they will turn up their noses at mainstream brands.
Such people derive at least part of their identities from buying items whose marketers stroke their egos into believing they are “progressive,” “socially conscious” consumers. In reality, they would be doing more for both their health and the environment if they bought staples in bulk and cooked most of their meals at home.
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MDC–
I am not offended by your comment. I do not agree with all of it and explained why in my previous response to you. Take care.
Commenters–
This post is old enough that I am canceling my subscription to this thread at this point and won’t be updated on any future comments (if there are any). I tried to respond to as many of you as possible and appreciate all who who added to the discussion and shared their lists and ideas.
Best,
M
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Again, this goes back to persons posting on things of which they are ignorant. In my area, farmer’s markets sell organics at a price comparable to that of supermarket non-organics. San Francisco is replete with farmer’s markets, and for those who are paying attention, “M” takes advantage of them.
Buying in bulk is not necessarily practical or feasible if you have a small family and small apartment.
At this point, seeing how unconstructive this thread has become and the absurd judgments that are passing as reason to find fault with whoever “M” is, I am going to follow her example and unsubscribe. It’s a time-waster, and that alone is a waste of money.
Rae
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Just a thought re: no more massage. As a massage therapist, I view massage as vital to everyone’s health regime; it’s not just a luxury. I know it can add up (I find it tricky to budget in a massage a month for myself).
Instead of going to a professional, why not check out massage schools in the area. They usually offer a student clinic at half the cost of your standard massage.
Also look into acupuncture schools. Especially helpful, if you are without health insurance. Or would you like a little more attention than the usual 15 minutes at your GPs.
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As I went through the list, I realized this is EXACTLY how I live. Deprivation? I don’t feel deprived in the slightest. This morning, I sat here, in the midst of my pine trees, watching and listening to the scores (underscore hundreds) of birds chatting nonstop as the sun rose. I was thinking how happy I felt to be surrounded by gentle winds, clean air, blue blue skies, greenery, no car sounds, and the smiles of happy birds. Last night, a friend called. He was stressed. He was refinancing his home for the third time. He was troubled by money. As I listened to him, I thought of a lady friend who this week told me she was sleepy because she’d been tossing and turning all night. Pool repairs had cost her 17,000. The new home she’s bought elsewhere before selling her current home is stressing her.
I’m debt free. I don’t have the things my friends have. Instead what I have is joy. Life is for living, one poster wrote. Yes, how true. And we American’s somehow have come to believe that living only occurs when money is passed over a counter.
When I was a wee one, I remember tingling with happiness as I watched clouds laying on my back, playing in streams with my arms stuck in mud as my fingers looked for crawdads. I remember spending hours raising butterflies from cocoons, drinking water from a hose and riding my bike as fast as I could. None of those things cost money and every one of them made me laugh and feel good.
If adults are having such a good time getting manicures, why do I never see happy people inside manicure shops?
I could go on. But, my point is that living an exciting happy life has nothing at all to do with spending money.
One of my most depressed friends lives on a trust fund. Every few weeks, he’ll fly to Australia, New Zealand, Italy. And every few weeks, he’ll tell me how life just isn’t what he thought it would be. Then he heads out to get a drink.
Smelling roses actually can be quite intoxicating.
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bterra: “As a massage therapist, I view massage as vital to everyone’s health regime…”
Never ask a barber whether you need a shave.
Also, acupuncture isn’t scientifically proven. I’ve tried it myself and found it useless. I’d suggest people save their money for much-needed medical treatments, rather than blowing it on “altie” mumbo-jumbo. Oh, dear, was I “rude” again? Oh, well.
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I’m so with you, M!
Being frugal, for me, is freedom from financial burden as opposed to a restrictive life. And it also allows me to make occasional splurges totally guilt free because I know I don’t spend that much elsewhere.
My top list:
1. buy used cars and/or drive your car for as long as possible.
2. Use the library! Request stuff online and pick up when ready. Books, movies, books on tapes. It’s amazing!
3.Don’t go shopping for leisure. If you don’t see it you can’t desire it.
4. Don’t read catalogs, turn commercials to mute if watching TV (or don’t watch TV).
5. Shopping should only be done when you actually need something…and then try online to avoid being tempted by other things in the store.
Glad to have discovered your blog, M.
And of course I love the GRS blog here too!
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Awful… use the list to pick a few items so you can enjoy some of the other items, but being cheap just for the sake of being cheap (i.e. cutting out everything) is a horrible idea.
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I’m with Garret (who commented back on Aug 2), this isn’t one size fits all, but it’s a good list of useful ideas. I do most of them already, and it amazes me the number of people making comments about how you are being miserly or how you can’t be enjoying life. Words from the consumer economy, where spending money on things the media prescribes equates to “having a life”. I especially liked the 3rd world traveler on 20$/day. Bay Area resident, no doubt. It is cheap to be a king amongst the poor and gives you the added cache of seeing their conditions. If s/he really wanted to help, s/he would donate that 20 (or a part thereof), or go and teach in the area, or join the peace corps for more than the 3 months they spent in Senegal or Utar Pradesh that’s on their resume they sent for that job at Global Exchange.
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FINALLY an excuse NOT to go to weddings!! I already do most of these things and appreciated the other ideas. I’ve never felt like I’ve missed out on anything and I’ve always been happy. The reason I never have any money is that I pay my bills and don’t live on credit.
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Going to the extreme with regard to frugality can become a disease if you do, in fact, deny yourself pleasures merely to “sock a little more (money) away.”
My Aunt and Uncle had made their first million 30 years ago. I can’t say they deny themselves any basic necessities, but they suffer serious stress if they find out they just spent $1.84 per bottle of Gatorade when they could have gotten it for $1.69 at a different retailer or wholesaler.
They were questioned and warned by police a few years back while dumpster-diving. They were loading up the utility trailer with crap my Aunt figured she could profit on by having a yard sale.
Over the years they’ve lost friends because of their obsession with money, and their only daughter hasn’t spoken to them in nearly ten years because of it.
Frugality? Fine. Obsession? I sure as hell wouldn’t want to lose my kid over it.
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Wow.
What if you took some of the time and energy you put into saving money and cleverly documenting your efforts here, into MAKING money?
I’m afraid your frugality mindset is sending the wrong message to your subconscious and setting up a scarcity loop in your life.
There is so much money available it’s a shame to live in a country with such opportunities and spend so much time and effort on defense instead of offense.
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I loved reading this post and all the comments. For me, the whole point is summed up in Eric Fromm’s book (long out of print) titled “To Have or To Be” Some items on M’s list I would say are “to be” items – family, vacations, and the like. To each his/her own.
For those who choose “have” (believe me, I am guilty) the rule of thumb is the length of satisfaction and an improved focus on things important. If that $100 pen increases the amount of writing you do, GO FOR IT
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On thing that has helped us is setting up what I call an envelope system. So each pay period we get a budgeted amount of cash out of the bank and put the cash in different envelopes. We have envelops for grocery, gas & oil, entertainment, hair & cosmetics, etc. Each envelope has a designated amount we put in. So when we go to the store, gas station, etc. we use cash. This way you only spend what you have. Secondly it helps when it comes time to balance your checkbook… a lot less transactions.
This has helped us a lot…. We haven’t perfected it yet but at least it’s a step in the right direction.
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¡Oye, Pablo! I thought they took you out, man!
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[...] I’m doing [...]
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I envy people who can wax their own legs
I don’t go to many exhibitions or concerts so I don’t miss the ones I’m really interested in.
I love cinema but I don’t have satellite, I record good films on tv and buy cheap dvds.
I work in publishing, so I can have some books for free and discounts at fairs. Hehe.
I find inexpensive merino and cachemire sweaters on eBay (can’t wear acrylic mixes). I swap clothes!
Unfortunately in Italy thrift shops are rare and garage sales don’t exist, but people sell old stuff at markets.
I’ve never had mani or pedi done and I don’t miss it. I don’t dye my hair nor do I smoke or drink alcohol (ugh).
All in all, buy less and buy more quality items is a golden rule!
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This is my first time reading your blog cause it sounded up my ally. As per this list, I was like wow you are frugal. I don’t know if I would miss my friend’s wedding or stop getting my manicures but when I read some of your replies to comments I guess everyone has to decide what they are going to do without in order to save money. I am a big believer in saving by the way. I do a lot of things to be frugal (like only get a manicure once a month and do my own nails the other three weeks in the month)to meet my financial goals. Good blog. I will check back regularly.
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My frugal habits:
I use our public library.
I don’t have cable or internet access at home, although I can tether to my Blackberry for access.
I carpool to work.
I use the bus as often as possible.
I ride my bicycle.
I walk.
I keep my 1985 Mercedes well tuned and in nearly perfect condition and only drive when necessary.
I have no debt other than my rapidly decreasing mortgage.
I fund my 401(k) to the maximum allowed.
I fund a Roth IRA.
I take well-planned vacations.
I spend many weekends at our family’s mountain house (a mini-vacation!)and am an avid hiker.
I also reuse baggies (much to my sweetheart’s chagrin…LOL!)
I Freecycle, passing good useable items onto others and often receive things I need.
I got my address removed from direct marketing lists, so I’m not tempted by mail-order catalogues.
I recycle as much as possible, and have cut my trash removal costs to the bare minimum.
I buy good quality clothing that lasts.
I care for my health by eating well, exercising, and getting a monthly massage. As a result, I haven’t had a cold or flu in over 8 years.
I buy quality furniture and appliances that last.
I successfully encouraged my neighbors to share gardening equipment and tools rather than everyone buying their own.
I carry high deductibles on my home and car insurance.
I am grateful for the abundance in my life; I have everything I need and am exceedingly happy.
All days are good days…some are better than others!
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For 29 years my husband and I have always managed to save. The secret isn’t what you give up or sacrifice, the secret is to live within or below your means, put a little away every month and stay out of debt.At the beginning, we got into that saving a lot to pay the gas or electric bill. We ignored raises and put them into a savings account. We paid cash or used credit only when necessary. When the children were little, our vacations consisted of visiting family in other states. Now we go on cruises. When my husband retired (e-7) from the USN we had no debt and a large savings account. This allowed us to transistion into a new life and job more easily. Many of our collegues had much debt and no savings. We did not feel deprived, but neither did we have the latest model car or the large screen TV. Each must set their own priorities. Organic veggies for one is a HDTV for another. As long as your goals are being met, you have planned for the future, and you are enjoying today, life is good!
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ITA with M. I think she’s almost exactly like me and I’m glad to be in good company!
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I forgot to say what I do:
I buy nonperishables in bulk on sale;
reuse/recycle/redo…you get it;
thrift shops;
ebay/half.com;
cook and put leftovers in ziplock bags, flattened, for the freeezer;
keep a price book so I know who has the best prices at grocery stores;
shop yearround for holidays;
make appointments for doctor, dentist for yearly/maintanance visits so things don’t get out of hand;
rent books/cds/dvds from the library;
dye my own hair;
no haircuts, trim because it’s long;
cook at home and bring out when I’m working;
do all personal maintenance;
buy reading glasses at the drug store;
clean/maintain/repair all housewares;
write on used envelopes for notes and shopping lists;
I also am broke because of several operations and bouts of unemployment. I have a reprieve healthwise now and am grateful for my health and my marriage.
I couldn’t have done so much without my husband.
Best to you, M. Keep on keeping on.
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That sounds like my list! A couple of things I’d add to it:
* Vocational beauty colleges are a great way to get a professional cut/dye job at really low price. The downside is that it’s slow b/c it’s somebody who’s doing it under the guidance of a teacher. But we’re talking usually $15 for a haircut or $35 for dye job.
* Same for massage training programs. Again, slower b/c it’s a student and you won’t be in a fancy spa setting. But the basic service (minus fancy candles and bathrobes) is the same and costs a lot less.
* I don’t buy a book unless it’s something I’ll get a lot of use out of, like a travel guide. Otherwise you can find almost anything you need through your public library. If they don’t have it, ask if they have an interlibrary loan department. I think I’ve probably bought 5 books tops in the past year.
* Consignment/thrift store for all clothes. Unfortunately with the economy going into the toliet, you’re getting a lot more competition for good scores at your local thrift store. But you’ll also be surprised as the items people give away w/out ever really wearing them. Probably 80% of my wardrobe is thrifted and my jewelry is from estate sales. I always get compliments on my outfits and it feels great knowing that I did it w/out blowing a lot of money.
* This tip may not work anymore because of the cost of petroleum and the sad state of the airline industry, but frequent flier miles. My credit card is linked up to AAdvantage, so between that and travel on AA and Alaska, I had a nice line of miles for the past 5 years. It managed to get me two free RT tickets to Mexico and a free ticket to Brazil. These days I have about 10,000 miles left, so it’s paying for my subscription to the Economist.
* Eating out. Some people have called me a food snob, but I have no appetite for spending a lot of money for some overpriced/boring chain. My big love is Vietnamese food, which is cheap, healthy, and totally yummy. Probably the only places I ever eat out are small mom & pop ethic joints, like noodle houses or taquerias (sometimes taco trucks if there’s one in the neighborhood). I even got my afraid to try anything new mother hooked on pho and bun cha. Which taste is more yummy when you realize it’s never more than $8 for a take out order.
I’m sure that there are people out there who’d think that I was cheap or wearing gross clothes/eating gross food w/these habits. But I’ve managed to have a pretty good (note, not lavish) lifestyle because my goal is always figuring out how to get X without having to pay a (usually overinflated) price. The biggest thing I’m proud of is paying for almost all of my (prestigious) grad school through scholarships and multiple jobs. I had one small student loan and have it open at this point just so there’s an open line of credit on my account. Second biggest is that thanks to these habits, I have a very nice emergency fund set aside in a HSBC online account, accruing interest, and an equally large Roth IRA. So again, not a lavish lifestyle, but I’m not really missing out on anything and have managed to get a great education (and several nice trips abroad) within my means.
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I am a 33 year old single female in New York City. By far my biggest expenses are rent and international travel. Having my own apartment and going abroad (to see family and to see friends and new places) are the two things that make me very happy, so they are worth the disproportionate expense. But earlier this year I started practicing some frugal habits:
SUPERMARKET
- I shop sales at the supermarket.
- I also comparison shopped and discovered there’s a much cheaper supermarket just down the block. The produce isn’t very good, but I go there to stock up on grains and dry goods.
- I make a list before going and try to stick to it (unless there’s something on sale that I use often and can store, such as dishwasher detergent or pasta)
TRANSPORTATION & TRAVEL
- I live in NY, so I don’t have a car. I stopped taking taxis to the airport (I travel often) and instead pack lightly and take the subway. Saves me around $40 each way every time I travel.
- Instead of buying snacks and reading materials at the airport, I try to always pack my own — granola bars, box of crackers and editions of the New Yorker that have piled up because I don’t have enough time to read them thoroughly
FOOD
- I stopped buying expensive cheeses, except for a weekly dose of crumbled blue cheese for salads, and cut down on buying wine
- With very rare exceptions, I stopped buying breakfast at the bagel store and tea & snack in the afternoon. Instead I buy my own tea bags and use the hot water at the office. For breakfast I keep bread in the freezer and toast a piece or two in the morning with light cream cheese. I probably save over $4 daily on the “latte effect” alone — that’s $120/month, or around $1400/year.
- I’m trying to be better about eating at home more often (I have a full-time job but can also work from home). I still have lunch out about twice a week, dinner twice a week, and brunch once or twice. That’s not too bad for New York City, I think.
VANITY
- I found a hairdresser in my new, immigrant-heavy neighborhood who cuts my hair for $12 (including tip). That’s a far cry from the $45 I used to pay each time. I only go about 3-4 times a year and have never dyed my hair/
- I stopped buying fancy products (Aveda shampoo, Clinique makeup) and found substitutes at the local CVS. I’ll break the rule for essentials, such as mascara, but otherwise I’ve found that there are adequate substitutes for a third of the price.
- I’m trying (not so successfully) to buy fewer clothes, and to buy higher-quality items rather than quantity. I had a mixed experience buying on ebay so will probably not do much more of that.
CASH
- I sold a few items on eBay and put many of my books for sale on Half-com — I get a little pocket change every month and open up space on my shelves
- I increased the amount that I save monthly to $600 and have become much more systematic about transferring the amount from my checking account
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