While at the grocery store the other day, Kris and I witnessed an act that crossed the line from frugal to cheap. We were in the toiletries aisle, shopping for toothbrushes, when a man wandered up to the deodorant. He picked a can of aerosol then sprayed under each armpit. When he had finished, he continued on his merry way.
Kris and I looked at each other, amazed. That, my friends, was not frugal. That was cheap. Here, however, are a few stories about frugality in real life:
First, USA Today says that cooking newbies are turning to home dining to cut costs. Market research firms report that people are eating at home more often. No wonder — making your own meals is a great way to save money.
Donna at Smart Spending profiles some real people who do without in their 20s — by choice. This article contains a lot of great tips from young adults who have chosen the frugal path but still know how to enjoy life.
Good Morning America recently visited a family that spent a month using cash instead of plastic. They spent 24% less than the previous month. Experiments like this are interesting, and the stories offer great lessons, but I think one month is often too short to pick up any meaningful information. I’d rather read about a family who does this for three months. (Or longer!) With just a month, you can fudge numbers. That’s harder to do over a longer period of time.
Finally, Madison at My Dollar Plan shares 29 steps she took to leave the workforce at age 29. Even if you have no desire to retire early, these points can serve as a checklist for building your financial future.
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This article is about Spare Change
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Okay, using products that are explicitly for sale without paying for them is theft. By definition.
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Love the “29 Steps I Took to Leave the Workforce at Age 29″ link. I have posted a 5 part series articles on money saving tips. Here is the 1st link – various Money Saving Tips – http://adawnjournal.com/2007/07/05/money-saving-tips-part-1/
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Haha that was cheap. I see loads of people going into those big department stores and putting on perfume and then just walking out. If they work near the department stores then they will do it everyday.
One of the keys to not being cheap is making more money…but even then you can still be cheap. You need to be generous as well. That is what I am trying to do and what I amtrying to teach people to do
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Good articles. Retiring at 29? For me that is way to early. I think I would be bored somewhat due to lack of challenges.
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Me and my fiancee have always attempted to live below our budget, from the moment we moved in together. We weren’t even in our twenties yet at that point. We kept a budget sheet on our fridge and tracked our money closely. Now, we live with roommates, so it’s harder to track expenses, but we still watch our money. We don’t have credit cards or, in fact, any debt at all, excluding a very small outstanding student loan.
I think a lot of young people assume that they should meet the standard “college student” stereotype and furiously party their way into debt that they’ll be paying into their sixties. Not to say they feel obligated to do so, but rather than they dismiss it as typical. More and more of us, though, recognize that we are adults and that we can start saving our money now.
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There have been formal psychological studies of this, and people DO spend consistently less when using cash. Here’s an abstract: http://www.medicalnewstoday.com/articles/120615.php
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That’s beyond cheap — it’s theft.
However, it makes me think of the flipside of being frugal. Frugal is about getting the most for your money — not just getting the lowest cost right now. I live in an area where I tend to wear dress boots (instead of dress shoes) 8 months out of the year. My last pair of brown dress boots lasted 3 seasons & are now shot. I was hesitating to get a new pair from a *good* brand… that’s over $100.
But… at 8 months out of the year & lasting 2-3 years, I’m down to around a cost of 60 cents for each time I wear them. I’ve that “cheap” shoes that I’ve only worn a few times because they were fun or uncomfortable that cost me quite a bit more by that metric.
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Correlation does not imply causation. There are plenty of reasons why the total amount spent might vary when forced to use only cash versus only credit cards.
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Nice, Sarah. I’ve been looking for such a study for a long time. I hear this argued all the time, but I’ve never actually seen research to support it. Now I have. In fact, I think I may write about this for the morning. (Assuming Kris and I don’t play Dance Dance Revolution too long…)
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It’s funny that you mention that about the man and the deodorant. When shopping, once I have decided on a product/brand, I reach to the back of the shelf and get the item from the back. I reason that it has not been handled by other customers and has a later “better if used by” date. It kinda grosses me out to think that someone might have handled the personal hygiene products that I purchase.
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i’ve been seeing more of these “articles” that are basically summaries of forum threads and they drive me nuts. nothing personal, i just don’t like them.
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That’s not only cheap, it’s illegal. He stole deodorant.
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Sorry, not cheap.
Frugal – buy it on sale, buy it with a coupon, try a cheaper brand, buy a cheap brand on sale with a coupon and then send for a rebate on it, use baking soda or alcohol instead, scrounge some from the trash can
Cheap – use some with a scent you can’t stand, just because it’s the cheapest; don’t use any even when you know you’re going to get smelly and be around people, just because you don’t want to spend the money; use a kind that really doesn’t work for you even though you know there’s a kind that does work just because you don’t want to pay the extra
Theft – use your roommate’s, your kid’s, some from the store, some from a donation box
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just wanted to clarify, my complaint was about the smart spending article- i have been seeing more articles lately that are basically a summary of a forum discussion, and i really don’t get it.
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Okay, you all are right: not cheap, but theft. It never occurred to me to call it theft. How do you steal spray on deodorant?
By the way, what could possibly motivate a person to do that? I’ve been thinking about this for days, and I just don’t get it.
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We made the decision to only use cash as a way to keep us on budget. Our budget is our Grand Plan and was the only way we could look forward at our spending rather than backwards and keep track of expenses. We use Billpay for the few bills we have but using plastic for groceries and household shopping was out of control. For example I can’t tell you how many times my husband and I would walk out of a grocery store and I would say “So, how much was all of this?” and my darling husband would have no clue. (shopping with small children will cause amnesia too) By this time the receipt is guaranteed to be stuck to the milk jug in a bag and we wait until the transaction shows up online from where we would track expenses (the past). Using cash forces us to anticipate spending and project forward.
We now drive by the ATM on payday every other Friday and take out grocery/household money for the next 2 weeks. It was so easy to drop $200+ just on a trip to large club/warehouse store and pay with a swipe of plastic and then find we already had a giant bottle of red wine at home and an unopened 12 pack of kitchen towels in the basement because we would use it eventually after all. Using cash forced us to think differently. We still go to club store on payday but having spent a lot less.
I noticed this post is in the ‘Spare Change’ category so I’ll just add that we have been successfully selling all kinds of things from our house for cash too. Just 3-4 items per week but enough to cover daughters music lessons and school lunches for 2 children, husbands lunches out at work plus movie date night at home for us once in a while (redbox + takeout). We had no room in budget for these things and it is amazing how using cash makes spending it and finding it so much more fun.
Our Grand Plan depends on it. While we focus on cash in hand our credit cards and bills are being paid on time and savings are growing too. All the best, to everyone!
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It’s probably some weird kind of self-entitlement mixed with not being brought up with as many social graces as others?
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Going out and spending money can be fun, and the problem is, it’s all most people know how to do for fun. I’ve often felt like my options were go out and spend money with friends, or be alone. I’ve usually chosen the latter option. I always hope these online articles will just say, “It’s lonely, it feels crappy sometimes, but you’re doing right by yourself.” Instead, they’re just always so smug and self-righteous that I feel alienated from that crowd, too.
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I take issue with the “29 steps” article. I get that she works for herself now, running a personal finance website, which leaves her more time to spend with her kids…but she consistantly refers to herself as “retired” in the article, which she is clearly NOT. I think it’s deceptive for her to imply throughout the article that she managed to have two children, build a house, and “retire” by 29 all by careful savings. The fact is, she still makes money off her website, and she doesn’t make clear whether her husband is still working – “we chose to theave the workforce at different times.”
Of course everything she says is good advice, I just found the “personal story” aspect of the article to be somewhat misleading.
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Yes, if you read more of the website, you see that in addition to running her own business, her husband “Scott” is still working. She may call it semantics, but calling that a “retired lifestyle” as she often does on the website is just plain untrue.
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Abbott, I totally hear you! “Go to the library” is not great advice for someone in their 20′s who wants and needs a social life. When I was 24, I got laid off from a good job, which was a wake-up call for me because I had some credit card debt which I really didn’t need to be carrying. I decided to make some drastic changes and that meant that I just couldn’t afford to go out with my friends and do whatever without considering the cost. I started getting my friends together at a local pub on Wed. nights to listen to live blues music and hang out. I just paid for a soft drink and a tip, and the pub made money off of my friends! I also had people over to my apt. for cheap entertainment, like playing board games. I had an air popcorn popper and could make popcorn for a crowd very inexpensively. Athletic pursuits can be a lot of fun too — how about frisbee football? Frisbees are cheap. If you can find those things that connect with your social group, you can have fewer weekends at the library and make some fun memories along the way. Good luck.
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Why steal/take deodorant? Obvious! Because you were rushed/an idiot and forgot to use any that morning!!
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Over here in Denmark, with our Danske Bank account(s) at least, it’s cheaper to use the card than cash.
It’s a Bank Visa card, also called ‘Dankort’. The money comes out of your bank account, rather than being a credit card, but it can be used where there are Visa signs – the Interweb, for example. It’s cheaper because you will often get charged to withdraw cash from a ‘hole-in-the-wall’ machine.
Just about every shop – from supermarkets, to cafes – has a little device at the check-out or desk, where you stick you card in (chip down) and once you’ve seen that you’re happy with the amount/it’s correct, you put in your personal 4 digit code, press (what amounts to) ‘agree’ and there you are.
You can get ‘cash-back’ by asking them to give you so much over the amount of goods you’ve just bought. So if your purchases came to 300kr, you say ’200 over, please’, and you get the goods paid for and 200kr in cash in your hand. Should you wish.
It’s funny, I was only thinking the other day that I haven’t had cash on me in any shape or form for something like 4 months now. The card units are every where, you’ve no need for cash (as for the bus; it takes pre-bought bus cards).
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Steve in Denmark @22 brings up debit cards — I suspect they work just like credit cards in terms of increasing what people spend. I think it is interesting that banks here in the midwest are pushing customers to move to web-based banking by offering higher interest rates BUT requiring a certain number of card and automatic transactions each month — which seems to me to be requirements that will lead to less saving, more spending.
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@ elizabeth (23). To be honest, I think – having come to Denmark 4 years ago from the UK – I spend less with the card. It is a debit card, so acts in exactly the same way as cash. Comes out of your account. I find I don’t buy anything that I consider costs so little – some sweets or anything for a couple of Kroner, for example – as I think it’s not worth the effort on my behalf, or the woman/man behind the counter. Whereas, with cash, I’d say ‘it only costs a couple of Kroner, I’ve got that much change in my pocket, why not?’. With the Debit card, that couple of Kroner stays in my pocket/bank account. And my waistline stays where it is…
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Ewwwwwww! I am totally grossed out by the deodorant thing!
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I think that it is the same idea with debit cards as credit cards. Out of sight out of mind.
@Steve in Denmark, yes we have those cards here, they are called Debit cards, as Elisabeth pointed out. Many places will offer cash back on purchases as well. Actually, funny that you mention ATM fees — in the US there is a push from some banks to offer a rebate for any fees that you may incur at ATMs.
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I’m just glad the deodorant was the spray kind. Otherwise the person that actually buys it… well, that’s just gross!
@ Becky: You are exactly right, I am still bringing in money. The great part is that I don’t have to anymore, it’s for fun. Kind of like the same way lots of older retirees pick up a side job or volunteer to have fun, keep busy, and do something they love.
I’m not the type of person that can sit on the couch all day, but I guess I could if I wanted to.
And yes, you are absolutely right, Scott is still working. That’s his choice and I support it. He has never really been into quitting his job like I have, but if he wanted to quit, I would support that too.
You’ve identified the exact problem that I have now when people ask me “What do I do?” Since it’s sort of a mix, I usually say stay at home mom:)
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Maybe the guy was traveling and took the 3 oz gel with him through security and they pitched it. He could be in a hurry and not cheap.
ThatGuy
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Lolz, 29 steps to retire at 29,
#6 involves getting an adjustable rate mortgage…no thanks…really.
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We’ve been trying to pay the monthly expenses entirely in cash – or more specifically I write and log a check or ATM transaction. Actual cash tends to melt out of my wallet so I just don’t put it there.
Credit cards are for carefully considered emergency expenses – like my daughter’s medications when she got sick last week.
It will be a great month when the credit card balance is zero. That hasn’t happened in a while, but then my husband is out of work.
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i realy like the 29 steps (mydollarplan) entry.. especially the “miss your target” step.. that one hits home
you don’t always have to reach your goal.. what is important is you have something to aim at
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Interesting that not one person has posted “lack of funds” as a potential motivation for this guy to steal the deo…not that that justifies the action, but sometimes cheapness and poverty have the same symptoms.
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@Abbot: Go out and volunteer
Find a good group out there. Though this may require some gas to meet up with other volunteers, once you start hanging out with the volunteers it’s possible to start carpooling. I used to volunteer often, and found I had no desire to spend mainly because a) was too busy volunteering to even think about spending b) interacting with those less fortunate really puts your mind in perspective and helps reinforce the thought about how much you really have. Then, add in the great friendships you can make from volunteering – you’ll be keeping your money in your pocket and doing something good for the community in return!
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Thanks for the links! I read the one about being in your early 20s and frugal. It had some very good tips!
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There’s a lot of other items I could argue similarly about…
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That’s not cheap, that is stealing.
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