Counting Pennies

If you think saving money is just about clipping coupons and giving up luxuries, think again. Those who know how to handle a budget understand that sometimes it’s the little things that can amount to much when trying to save. Here are some quick, easy ideas to get you started:

Memberships. If there’s a zoo, museum or park you frequent a lot, getting an annual membership will save you tons of money in the long run, since you won’t have to pay an entrance fee each time you go. This is especially good if you have children and want a quick and easy entertainment idea that last.

If you have a local YMCA, you could probably exercise, keep your kids busy and take classes for the same price that you would pay for just a gym membership.

Keep frozen pizzas at home for when the urge strikes. Bought at the supermarket, they cost an average of $5 (compared to up to $20 for delivery).

Reuse everything. Ziploc blags, empty containers, old clothes. If you can’t find a second use for them, give them to somebody else or exchange them in Freecycle. This will save money and the environment.

Avoid junk food. MacDonald’s may seem cheap, but junk food is usually loaded with fillers, which go through your system rather quickly, making you hungry again in just a couple of hours. Instead, buying whole, healthy food will go your wallet (and your body) good.

Stockpile. Buy when things are in sale, even if you don’t need them at the moment. Of course you should only buy thing you will eat anyway. The secret is just on buying a little more than you normally would (10 boxes of cereal rather than 2) when the store is having a special sale or you have a good coupon.

Shop during season clearances. The end of summer is a great time to buy not only summer clothes, but also water toys, umbrellas, large towels and foldable chairs.

Avoid buying clothes that must be dry-cleaned.

Visit your local library for free magazines, DVDs, toys and classes. Some even offer longer story time during summer so parents can drop off the kids for 2-3 hours.

Turn the lights off. Not only will it save you tons on the electric bill, but it will also keep the house cooler during summer. Use candles at night for a romantic (and cheap!) mood or install a dimmer (especially in the bedroom).

When I started planning my budget, I realized I was having a hard time going at it alone. I don’t personally know anybody on a strict budget, so I started looking on the internet for like-minded people I could share frustrations and ideas with. After trying and exploring a lot of places, I ended up sticking with a few websites that seem to match my goals and expectations. These are all people dealing with the same issues than me, so there’s always a good chance to find something useful, even when I’m not posting my own questions.

Saving Advice Forums: Lots of activity here, especially in the Personal Finance and Freebie sections.

Thrifty Forum UK: This is a new website, so there isn’t a lot of activity yet. Still, they cover subjects that I haven’t been able to find in other places, such as thrifty living for students and thrifty recycling.

Pinching Your Pennies Forums: This is my favorite stop. Lots of special categories and subdivisions. Many of the members here have been budgeting for years and they have a lot of great ideas. They even have a state-by-state brokedown of grocery deals, so you can find exactly what’s available in your area.

Are you still calling information to get the phone numbers you need? Do you know it costs anywhere from $1.50 to $3.49 to do that? Do it a couple of times a month and it will certainly add up quickly. There are actually several alternatives to the paid 411 calls. One is to go online and search for the information yourself. This only works in certain circumstances (it may not work, for example, for private phone numbers) and if you have enough time. Another great choice is 1-800-FREE411, which offers free directory assistance and step by step directions to over 20 million callers a month. It works exactly the same way as the traditional 411.

Like I mentioned before, I’m looking for additional ebooks to give away on the contest. I just secured an additional one: “How to Set-Up a Family Budget.” Not only is this a great ebook, but it’s currently being sold on eBay for $14.95 or more! And yes, you can get it here for free, along with my “Making a Living Without a Job” just by commenting on the blog throughout the whole month of June.

In the meantime, here are two great publications you can get for free to help you manage your money: 51 Ways to Save Hundreds on Loans and Credit Cards and Money Tips for All Ages (Your Finances at Different Stages of Life). Both are available in pdf format directly from the government’s FDIC Consumer News website.

Of all tips, this may be one of my favorites:

“Remember that investments can lose value. Investment products include stocks, bonds and mutual funds. Over the long term, investments might produce higher returns than bank deposits. However, investments are not deposits, they are not FDIC-insured — not even the ones sold through FDIC-insured institutions — and they can lose value. Because of the risks associated with any investment, always deal with a reputable, licensed salesperson and research the product before making a purchase.”

I spent some more of my $15 budget yesterday:

$1 bread

$1 bag of mixed frozen veggies

$1.30 dozen eggs

$1 tomato sauce

$1 large bag of pasta (I’m guessing about 3lbs)

I ran into a lot of good deals at this one particular market (the pasta is a good example). I’ve spent a total of $12.68 so far and I’m now beginning to think that $15 is actually quite a generous amount of money for a week’s menu. My meals have been ok so far but that might have something to do with the fact that I don’t mind repetition at all. It also has much to do with the fact I’m not counting in things I already had at home, such as coffee. I NEED coffee everyday so this would definitively be part of my food budget if I didn’t have it. I’m finishing the $15 week but trying it again later on with an even lower budget.

How many times have you bought something on the spur of the moment, only to go home and regret it? How many of those times did you actually go back and return the item rather than letting it gather dust in the back of your closet? Not too many? You’re not alone.

If you find yourself wasting money on things you don’t really need, here are three tips to help you fight the urge to overspend.

1. Marcia Brixey, an expert with Money Wise Women Educational Services, suggests asking yourself some questions before opening your wallet: Do I really need this? Do I really want this? Will I use this? Am I buying this just because it’s on sale? Do I really love this? This handy list, which I love, can be downloaded for free on a business card size (to carry on your wallet) from the organization’s website at www.moneywisewomen.net.
2. Before you buy anything that costs more than $100, wait 24 hours. If you still want it the next day, go back and buy it. Most of the time, however, you’ll forget what it was by the next day.
3. Keep asking yourself how many hours you will need to work to pay for this particular item. This is a question that works particularly well for me. Once I calculate the cost, working 10 hours for a handbag I don’t really need seems a lot less appealing.

I did some quick shopping today, mostly scanning for sales at my local outdoor green market and supermarket. So far, these are my food expenses:

Ramen noodles: $1 (6 packets)

Potatoes: $1.68 (4 lbs)

Cheese: $2.30 (1 lb)

Frozen meat cutlets: $1.4 (1 lb)

Frozen stuffed pasta: $1 (1 lb)

TOTAL: $7.38

Ouch. That’s almost half of my budget right there. I don’t eat meat, though (I just bought some for when a friend eats over), so that will probably save me some money in the long run. I’m spending the rest of this week’s money tomorrow, so I need to plan how to make the most of it. The cheese probably wasn’t a good idea, but I’m one of those people who believe “cheese makes everything better” so I figured I can stretch it out and use it as a condiment if the meals get too boring or bland. The Ramen noodles are not a normal part of my diet but they can work if I complement them with veggies or add them to a mixed meal.

Anybody dealing with an extreme food budget and willing to share some ideas?

If you’re trying to save money and live on a budget, you know how important it is to make the most of every single penny. That’s where this contest comes in. The person with the most comments during the month of June will receive a prize package to help him/her not only save but also earn. The winner will get a copy of my e-book, Making a Living Without a Job plus another ebook I’m working on getting and probably an additional prize or two (I will update as soon as I know the details). All you need to do to qualify for the prize is to stop by as much as possible and leave a comment.

Do keep in mind that spam comments and those that don’t contribute at all to the conversation (such as “thank you,” “I agree,” etc.) don’t count. Promotional links also won’t count, unless they’re part of a longer, more useful comment.

The contest officially starts on June 1^st, but stop by before that to get a detailed description of the prize package and to get tips on how to make the most of the posts.

Can you eat healthily and feel satisfied on only $15 a week? Join me to find out. Starting tomorrow, I will shop, cook and survive on just $15 for a whole 7 days. I’m starting with an empty pantry except for basic condiments (salt, pepper, butter) and I will report back as soon as I go shopping to let you know how well I’m doing. To make the challenge fair, I’m not allowed to take free food from anybody but I’m definitively allowed to find ways to stretch my money, such as drinking coffee at the office rather than buying some on my way there.

Curious? Stop by tomorrow for the first update.

One of the easiest ways to save money on vacation is to travel to cities with CityPass, a discounted ticket booklet to the top attractions in each city (and it also lets you skip the line!). There are currently 10 cities in North America that offer CityPass: Atlanta, Boston, Philadelphia, Seattle, Hollywood, Southern California, New York, Chicago, San Francisco, Toronto…and Houston will be the 11^th city and will launch on May 13. For details, log on to www.CityPass.com.  

Gerri Detweiler, the author of Invest In Yourself: Six Secrets to a Rich Life recommends swapping homes as a way to save money on vacation costs. “This past Christmas my family and I spent the week in a 4 bedroom home with an indoor hot tub in Columbia Missouri while a group of women from Columbia stayed at our home in Sarasota Florida. We even swapped cars!” Depending on the type and scope of your vacation, you could potentially save hundreds (if not thousands) of dollars this way. You can arrange home exchanges with people you know or use HomeExchange.com to get in touch with others looking for the same arrangement.

Always choose hotels that offer free food and drinks (you can save you an average of $10 per person per day this way). Most hotels that offer a hot breakfast buffet are very good and feature everything from eggs and bacon to assorted toppings, pancakes, waffles, and cereal.

Always check to see if hotels offer AAA Club rates. “Most consumers will find that if they ask about a AAA, they will most always get one,” says shopping and discount expert Shakira Brown. Make sure you have your club card with for check-in. “If you belong to a professional association or large corporation, check to see if they have special rates with select hotel chains.”