Tag Archives: Frugality

Gifts from a yard sale master

When we first announced that I’m pregnant, Tony’s incredibly sweet grandmother asked hesitantly how I felt about used items. Apparently, she didn’t want to offend me by giving us used baby stuff if we weren’t into the idea. Pfft. Of course, I told her we LOVE to buy used things and that we’d be incredibly grateful for any gift she bestowed upon us. If it’s used and she can get it for a good price then all the better.

Tony’s grandmother spends a lot of her weekends in the summer hopping from yard sale to yard sale. She finds used items in good condition and haggles the seller down to an even better price. If it’s an item she needs or she knows someone who needs it, she keeps it or gives it away. Otherwise she resells it at her own yearly yard sale for a profit. She’s a smart lady!

Last weekend when we visited Tony’s family, she told us she’d be bringing over all of the baby stuff she scored at yard sales for us this summer. I told her we’d love to see her, but if she’d like to wait until the baby shower to bring the items that would be fine. She said no, she’d rather bring it before the baby shower because she wasn’t sure we’d have room to take everything back home with us in addition to any baby shower gifts.

I assumed she’d picked up a few outfits here and there. Imagine my surprise when Tony and his dad carted in three enormous boxes packed full from his grandparents’ car.

Behold:

Included in the stash:

  • A metric ton of baby boy clothing in various sizes from newborn to 12 months, including sweaters, onesies, jeans, and pajamas. (The clothing is stacked by size in the photo, so each visible outfit is covering up a ton of other outfits.)
  • A bag full of baby socks in various sizes.
  • Several bibs.
  • Two snowsuits.
  • At least 25-30 cozy blankets and receiving blankets (Maybe more. I didn’t count.)
  • A set of crib bedding with a cute jungle theme.
  • A jungle-themed musical mobile for the crib.
  • Some cute stuffed animals.
  • Not pictured: A bouncer seat, walker, and three strollers.

All of it is in excellent condition (some items even still have store tags on them!) She even pre-washed all of it for me, so the newborn and 3-6 month stuff is ready to be folded and put into his dresser for his arrival home. The rest has been organized by size and stored for future use.

I am absolutely blown away by her generosity and incredible thrift. I’m definitely going to need to get some yard sale-ing tips from her!

We still have TWO baby showers coming up (one for each of our families since they live several hours apart). I almost feel like we’re set for baby clothes, but I know there will likely be more clothing from our friends and family members who attend the baby showers. I have a feeling I’m going to be writing a post about creative storage solutions for small apartments in the near future.

Hidden costs of small-town life

When Tony accepted a teaching job at a community college in a small town in Indiana, we planned to move to Fort Wayne — the closest major city about 40 miles away. I wasn’t crazy about the 1-hour commute for my husband, though, especially since we share a car. When we started hunting for apartments, we also weren’t crazy about our choices — prices were high for the nice areas, and everything in our price range seemed run down.

When we found an apartment about five miles away from Tony’s job at almost half the price we were going to pay in Fort Wayne, we were ecstatic. Lower rent, no commuting costs, and it would be easy for me to drop Tony off at work in the morning if I needed the car for the day.

Two months later, I don’t regret our decision. I’m pretty happy in our little apartment, and there are definite financial perks to small-town living. We’re not spending the fortune on gas that would have been required if Tony was driving 2 hours round trip every day. We’re not as tempted to go out to dinner, because our restaurant options are bleak. And our favorite places for recreational shopping (mainly Target) require advanced planning since they’re 30 minutes to an hour away depending on which city we visit, so we don’t browse once a week and spend more money than we intended.

Unfortunately, I’ve also discovered some hidden costs. Some of them are financial. Most of them are a matter of convenience.

Cell phone reception stinks.

I’ve resorted to using Skype for 99% of my calls, because my cell phone is basically useless in my apartment. I have better luck when I’m not home, which is really what cell phones are for anyway, but the poor cell phone reception is SO annoying. We don’t have a landline. I considered installing one, but since all of our family and friends would be long distance calls, a landline wouldn’t be financially practical. So I’m dealing with the hassle of choppy reception on Skype and dropped calls.

Goodbye, free TV.

Remember last year when I shut off the cable? We loved our antenna reception back when we lived in a reasonably big metro area. But now? We hooked up our antenna, and we get nada. We live about 40 miles from the broadcast towers for all of the channels. Outdoor antennas aren’t allowed in our apartment, and our indoor antenna isn’t strong enough to pick up anything. Most of the shows we watch are available at Hulu.com or the network’s website, and there’s always Netflix, but my husband is pretty sad about missing out on football this season. We’ll also miss other live broadcasts, like the Oscars. Boo. We’re considering opting into the basic cable package for network channels, but the tightwad in me hates the idea of paying $18 a month for something that used to be free.

We use more gas.

We’re not using nearly the amount we would have if my husband was commuting every day. But driving 25-40 miles away “into the city” every other week or so adds up. The nearest midwife is about 25 miles away, and now that I’m in the final stage of my pregnancy, we’ll be driving there every other week.

Sharing a car is more difficult.

In North Carolina, the public transportation system wasn’t perfect, but it worked for us. We chose an apartment on a bus line, and my husband used the bus to get himself into campus for class. There’s no public transportation here, and because the area is pretty rural, it’s also not very walkable. Since I work from home, and my husband’s job is pretty close, I’m able to drop him off and pick him up if I need the car for the day. It’s not a big enough hassle for us to get a second car, but I do miss public transporation.

Making friends is tough.

In North Carolina, we made some friends through Tony’s graduate program. I also joined a book club through Meetup.com. I wanted to meet some other young moms in the area when we first moved here. The closest meetup? The same town where my midwife is — 25 miles away. I joined, and I plan to attend some of the events, but I imagine it will be harder to make the trip on rural country roads when there’s snow on the ground and I have a newborn. Not to mention, when your friends live 25 miles away, it’s not as easy to pop in for a visit.

When we make our next move, we’d like to stick to the suburbs. I don’t want the cost or the hassle of big city life, but living in a small town is more of a hassle than I expected.

Photo by tonivc

Adjusting to our new lifestyle

This summer has been terrible for our finances. We haven’t had any income since May. Thankfully, our bills were drastically reduced for the first, oh, 6 weeks of summer while we stayed with Tony’s family. But we still had car insurance, health insurance, student loan payments, my health insurance deductible, and other expenses.

We moved into our own place in the middle of July, and ever since then we’ve been hemorrhaging money from our savings account. I try to remind myself that this is why we saved. We knew moving was going to be hard, and that Tony wouldn’t start work until August. And of course, when you start a new job, it’s always a few weeks before you receive your first paycheck.

Tony is scheduled to be paid for the first time today, and this month marks the first when we’ll be utilizing our new budget. Up until now, the name of the game has been Spend as Little as Humanly Possible, but I didn’t create a zero-based budget because we didn’t have a monthly income.

When Tony was first offered his adjunct teaching position, his salary wasn’t going to be enough to cover even our bare bones expenses. But they offered him additional classes (he’s now teaching 6), and the extra income took us barely over the edge. Thankfully, they’ve already offered him 6 classes for the spring semester, too, so we know we’ll be set until May. I’ve spent a lot of time crunching numbers, and it looks like we should be able to hang on to our savings if we can keep our budget very tight.

Unfortunately, there’s no room in our regular budget for savings. However, our regular budget is based only on my husband’s income. Any income I make through freelance work or blogging will be reserved for savings. So we’re hoping to replenish the $2,000 we spent from our emergency fund over the summer.

Our new monthly income is about 1/3 lower than our previous combined income. Our monthly savings budget took the biggest hit since we’re no longer including it in our regular budget (for now). But there are other shifting expenses. Our rent is much lower here, but we’re now paying about $500 a month for health insurance (and that will go up when the baby comes. Ugh.) We’re also spending money here and there buying things for the baby (diapers, clothing, etc.)

With new expenses and lower income, we’re trying to make major changes to our spending habits. Here are the biggest changes:

Groceries/Household Goods

I’ve jumped onto the drugstore game, and I’m doing pretty well. Unfortunately, my pregnancy has wreaked havoc on our food bill. When I go to the grocery store, I end up with tons of extra food in the cart. When I send my husband alone, our bill is lower, but I spend the week feeling like I’m starving and there’s not enough food. Sometimes I even send him out to pick things up. Harumph. I’m not sure how to get around it. I was never a big snacker before I got pregnant, but now it seems I need several snacks a day. And snacks are expensive. Hopefully my drugstore deals are offsetting our overspending on groceries. I’ll have to wait until the end of a full budget cycle to know for sure.

Entertainment

We’ve cut cable and most entertainment spending from our bill for now. I haven’t missed going out much since most days I don’t feel well enough to do anything but lay on the couch anyway. Now that we’re living in a smaller town, we’re also not tempted by recreational shopping trips that result in $50 worth of stuff from Target that we don’t need, and that definitely helps.

Utilities

This apartment is much more energy efficient than our last place. So we’re saving money on our electric bill without even trying. Yay! We tend to keep our place cooler by default, so I’m anticipating lower energy use in the cooler months — at least until December when the baby arrives.

Our goal is to make it through the year with our emergency fund intact. The really ambitious goal is to replenish what we’ve spent and save a little more on top of that. We’re still working on cutting our spending to free up more money for savings. I’ll let you know how it goes!

Photo by purpleslog

Luxury vs. necessity: Are Americans confused?

Over the weekend, I found this interesting study from Pew Research on a blog I read. Survey respondents were asked to rate how necessary different household devices are to their lives and whether or not they consider them to be luxuries.

Respondents answered the question “Do you pretty much think of this as a necessity or pretty much think of it as a luxury you could do without” for the items on the right. I find the results shocking.

I wasn’t surprised to see that 86 percent of people consider their car to be a necessity. Depending on where you live, it can be pretty difficult to get around without a car. It’s sad to me that more communities haven’t embraced public transportation, but since I now live in one of them, I have to admit that our (one) car is pretty much a necessity for us. Without it, my husband wouldn’t be able to get to and from his job, which pays the rent and buys us groceries.

I was surprised, however, to see that more than half of respondents rated their home air conditioning and clothes dryer as a necessity. Really? Don’t get me wrong, I love air conditioning as much as the next person (especially now that I’m pregnant), but I also recognize that it’s one of the most decadent luxuries we enjoy in this country.

I’d say the same for my clothes dryer. Is line drying convenient? Not always. But it is something that everyone can do. And if you’re not willing to line dry, chances are you live near a laundromat.

I’m equally shocked that 47 percent of people think their cell phone is a necessity, 45 percent of people don’t think they couldn’t live without a microwave, 42 percent think their television is a necessity, and 21 percent even consider their dishwasher a necessity. And don’t even get me started on the 23 percent who think cable TV is a necessity or the 10 percent of people who can’t live without a flat screen TV. That is insanity.

These numbers show just how confused a lot of people in this country are when it comes to what they really need. I’d consider pretty much everything on this list a luxury. Do these things make life easier for us? Yes. By definition, that’s what luxuries do. They make life easier and more comfortable. But we don’t need them to survive.

It’s scary to think that so many people are confused about the difference between what’s necessary and what’s convenient. For necessities, we have no choice but to find a way to afford them. Things like food, clean drinking water, shelter, and medical care. But when you believe that things like air conditioning and clothes dryers and cable television are necessities, it’s harder to give up these luxuries when money is tight.

What do you think? Do you find this poll as shocking as I do?

Chart courtesy of Pew Research

Assembling a home from scratch

Last weekend, Tony and I finally moved into an apartment in the city where he’ll be teaching this fall (and hopefully spring). We were very lucky to have lots of help from both of our families.

We’ve only been married for a little over two years now, but in that time we’ve built a frugal collection of furniture and other items to fill our home. I was so proud of the compliments we received as our parents helped us unpack and arrange our furniture.

“I love this table.”

“What a lovely lamp.”

“This bed is so nice.”

In our culture, it seems that pride in the things we own most often comes from the expense. Many people collect fancy, overpriced items to fill their homes, and the things they own become a status symbol for their financial success.

I was proud for the opposite reason. Each time someone commented on a piece of furniture or some other item in our home, I was struck by the fact that we’ve assembled all of these things from a hodgepodge of resources — and most of them were very inexpensive or free.

  • The full-sized washer and dryer that were given to us after helping some friends move into a new home.
  • The couch that I bought second-hand for $30.
  • The bed that was passed down to Tony from his grandparents.
  • The coffee table and side tables that were given to me in college by the older couple who owned the bowling alley where I worked.
  • The chair and ottoman that were given to me instead of being dropped off at the thrift store after I saw them in the back of a co-worker’s truck.
  • The television that we bought second-hand from a friend.

The prospect of furnishing a home can be overwhelming when you’re first starting out. Furniture stores prey on newlyweds and new homeowners with 0% interest deals. It’s easy to walk into a furniture store and spend thousands on brand new furniture and appliances. But with a little imagination and ingenuity, it’s just as easy to assemble a beautiful home for next to nothing.

If you’re planning a move, now is the time to start scouting out yard sales, browsing Craigslist, and letting friends and family know that you’re on the lookout for gently used home furnishings. Look at each piece you find with a creative eye. It may look old and worn, but ask yourself if it would benefit from a new coat of paint or an inexpensive couch cover. You’ll be amazed at what you can find for drastically lower prices than in stores. And each well loved item will add a little extra character and history to your home.

More expensive isn’t necessarily better

I’ll be 19 weeks pregnant tomorrow. That’s halfway to full term. I’ll also be finding out the sex of the baby if he or she cooperates (fingers crossed). We could be moving to our new place as soon as this Saturday. Which means I’m out of excuses. It’s time to start shopping for baby stuff.

Yes, we have friends and family who will likely want to gift us with various baby items that we’ll need. But the last thing I want to do is exploit anyone’s generosity. Furthermore, our families just aren’t very big, and money is tight for everyone right now. Ultimately, the responsibility to provide for this baby is ours, and we’re trying to do it as frugally as possible.

Over the weekend, I started researching cribs and car seats and various other musts for the baby. I found some pretty incredible deals on cribs at Wal-Mart. This one was particularly compelling, and I really liked this one, too. (No one is paying me to stay that, either.)

I checked out the specifications. Both of these cribs meet safety standards dictated by the Consumer Product Safety Commission for cribs. They do not feature drop sides as many of those models have been recalled due to the safety concerns. There’s no reason to believe that these cribs are any less safe than the fancy ones that retail for $500-$600. So why do I feel guilty for considering a basic crib for my baby?

I know that this baby isn’t going to care if the crib has a fancy finish or if it scratches easily. I certainly don’t care about those things. I just want to make sure that the baby has a safe place to sleep, and I want to choose a crib that complies with all of the current safety standards. These cribs do at a fraction of the price of fancier models. And honestly, when it comes to recalls and possible problems, expense doesn’t seem to be an issue. Even the most expensive cribs can be recalled.

Over and over I’ve read about how having a baby doesn’t have to be expensive. And I don’t believe that it does. But as parents, especially first-time parents, we face an overwhelming amount of pressure to spend a lot of money for the baby, and we feel guilt for attempting to cut costs. But why? After all, I don’t believe the baby will be happier in an overpriced crib if it means we have less money to provide other necessities, like a place to live or health insurance.

I’ve realized that shopping for the baby is going to be a intricate balancing act. For things like cribs and car seats, safety is my top priority. If I can’t find a car seat with high safety ratings at a low price, then I’ll have to spend the extra money. But safety is my only concern. If I can find an off-brand item that’s just as safe for a lower price, I’m not going to feel guilty about it.

The consumer culture constantly pushes us to believe that more expensive is better. Sometimes that’s true, but not always. We have to be smart consumers, and we have to learn to balance price with quality. I’m not going to spend twice as much for some unnecessary bells and whistles if I can find a product that will do the same job for half the price.

Of course, as a new mom, that’s easier said than done.

Photo by caseysworld

Frugal survival mode: How we’re preparing for the lean times

It’s been almost two months since my husband graduated and I quit my job to move closer to family. So far, it’s been pretty easy for us thanks to the generosity of Tony’s family. We’re staying with them while we search for a place to live in our new city. We’re spending very little beyond necessary bills like health insurance and car insurance.

Next month we’ll move again, and our monthly expenses will swell to include rent, utilities, and soon after that, baby. My husband will be working, but our income will shrink to about 1/3 of what it was when we were living in North Carolina. So we’re planning now for how we can minimize our expenses, maximize our earning power, and survive the next year of low income.

Downsizing.

We’ve set a budget for rent that’s about $200 lower than what we paid in North Carolina. Unfortunately, our low budget combined with a number of stipulations for our next apartment has made the search pretty tricky. We have a dog, so pets must be welcome. Because we plan to cloth diaper, we’ll need a place with a washer and dryer in unit (or washer/dryer hookups since we own a set). I’d also like to have a small second bedroom for a nursery. We may have to go a little over our budget to find the right place, but housing is one area that I’m willing to spend a little more on. After all, the more comfortable we are at home, the less likely we’ll be to want to spend outside the home.

Earning while we can.

We’ll have about five months from the time we move until baby comes. Our plan is to earn and save as much as we possibly can in that time. I’ll be substitute teaching and earning as much money as possible from freelance work. Tony is looking for a second part-time job, which he’ll likely keep after baby arrives. We’ll have less time and energy once the baby gets here, so we’re doing all we can to earn money while we can.

Cutting non-essential budget items.

It’s amazing how much money you can cut from the budget by cutting out all non-essentials. We learned this lesson when we first moved to North Carolina three years ago. Non-essentials include most entertainment, eating out, cable television, junk food, soda and any extras that get thrown into the cart at Target or the grocery store. If you cut spending down to the bare essentials, you’ll likely be surprised at how much your budget shrinks.

Couponing and drug storing.

Now that I’m going to be a work-at-home mom, I’m giving couponing and drug storing another chance to save money. I’ve had little luck with these methods in the past due to my busy schedule and lack of motivation, but I’ll have more time to figure things out in the five months before I have the baby, and I think I can build a pretty good stockpile in that time.

Saving and investing are on hold for now.

Before we moved, we were saving almost 50% of our income. For the next year, we’ll be lucky if we can make ends meet, so saving and investing will have to go on the back burner until we can increase our income. My hope is that we’ll be able to start saving again with the next year, but for now, we need to focus on downsizing and surviving on a limited income.

Photo by spiderpop

Why I’m a money multitasker

Last week’s post about holding off on paying down debt sparked a little controversy in the comments. I wanted to clarify some of my views, because there seems to be some confusion about my financial philosophy.

First of all, I am not debt free. I have never claimed to be. Like most 25-year-olds, my husband and I both carry student loan debt. I’ve written about it before. I don’t regret a day of my education, but I do regret some of my financial choices during that time. But it’s done now.

My husband is a graduate student. I earn an entry level salary. We’ve been blessed with a few pay increases over the past few years, but our income remains pretty low by today’s standards.

When I started this blog, I was depressed about our financial situation. We had credit card debt, student loan debt, no savings, tuition to pay, and we still felt like we didn’t have any money left over for fun. I wanted to learn to save without sacrificing fun.

Since then we’ve adapted to spending very little money in our daily lives. We don’t eat out. We shop the clearance racks (when we do shop). We meal plan. We share a single vehicle. The result is that 30% of our income goes directly into savings. Another 10% of our income goes toward debt repayment.

As my husband prepares to graduate next month, and we prepare to close this chapter in our lives, we have been spending more than usual lately. After three years of frugal living and hard work to pay off credit card debt, build an emergency fund, save for our move, and save for our vacation, we are rewarding ourselves.

I did not ask for permission. I don’t think any of you should ask for permission from anyone when you make decisions about how to manage your money. The point of my blog — from the beginning — was for my husband and I to learn to live on less than our already low income so that we could have enough money to pay debt, save, and enjoy life. Those are my priorities.

I have never subscribed to the Dave Ramsey philosophy. I understand that it’s worked for many people. I admire them, and would never ever judge their choices. I’m happy for them, because they’re happy. But putting every single penny of my extra income toward debt repayment doesn’t make me happy. I don’t want to wait until I’m debt-free to have children, own a home, or see Europe. So I’m using some of my extra income to save for these goals while I pay down our debt.

I admire the commitment to debt-free living, I do, but there is room in my budget for more than that. Dave Ramsey’s baby steps philosophy is focused on one thing at a time — save, then pay debt, then save some more. Only after you’ve saved and paid debt is there room for fun. I just don’t believe that.

I come from the generation of multitaskers, and I think if you’re smart about your spending, you can do a lot even with a very limited salary — without increasing your debt. You can save money, have fun, and pay down debt at the same time. It will take a little longer, but it’s worth it to me. I will eventually be debt free. That low-interest debt will be there waiting for me when we get back from Europe. And we will pay it off — on our own terms and our own timeline.

What Dave Ramsey takes for granted is that we have all the time in the world. But what happens if you spend your young life doing nothing but saving and paying down debt, and then your life is cut short by tragedy? You’re left with no time to enjoy the riches you’ve accumulated. I’d rather multitask now and know that I won’t run out of time before I can enjoy the fruits of all that saving and hard work.

When we get home, it’s back to counting every penny, just like we have for the past three years. It’s back to saving for our goals through very limited spending. We can’t forget about why we’re doing this, though. We want to build a better life for ourselves, and sometimes that means spending a little money.

The whole point of budgeting is making your money go further. If there’s something you’ve been wanting to save for, don’t wait for permission. Start saving now. I think you’d be surprised at just how far your money goes if you spend carefully.

Photo by amagill

Indulgences that are killing your diet & your budget

If you’re trying to lose weight and cut expenses, it’s no secret that the first place to look is your shopping cart. The idea that healthy eating is expensive is a myth. In fact, those pricey convenience foods driving up your grocery costs are probably sabotaging your diet, too. Next time you’re at the grocery store, check your cart and swap these no-nos for healthier, more frugal alternatives.

Soda

Sodas are not only expensive — they’re also full of sugar, artificial flavors, and empty calories. Studies show that even diet sodas can lead to weight gain. Considering its negative effects on your health, the cost of soda is outrageous. Just one 12-pack per week is likely to add $12-$20 a month to your grocery expenses. Instead of drinking soda, invest in a water filtration system like Brita or Pur. If you miss flavor, drink unsweetened tea with lemon instead.

Alcohol

If wine, beer or liquor are weekly staples on your grocery list, it’s time to take a serious look at how much it’s costing you — not just in dollars but also in calories. Alcohol is one of the least nutritious, most caloric things you can consume. Removing it from your grocery list and your diet is a must.

Fruit Juice

Fruit juice is full of nutrients, and it’s not an inherently unhealthy drink to consume. However, when you’re trying to lose weight, it’s not a good idea to drink your calories. A glass of fruit juice is likely to have as many calories as a small snack, but it will leave you feeling unsatisfied and craving more food. Considering most fruit juices cost around $3 for a half gallon, you’re better off sticking to tea and water. Fresh fruit offers the same health benefits as juice, but an apple is a more satisfying snack than a glass of apple juice.

“Low calorie” or “fat free” snacks foods

These convenience foods not only cost a fortune, but they may not be helping you lose weight. Not only are they full of artificial ingredients and sweeteners, studies show that you’re likely to eat larger portions of “fat free” and “low cal” foods, which may cancel out their benefits. Instead of buying snack foods, opt for fresh produce. Choose fruits and vegetables that are currently in season for the lowest prices. If produce prices are too high, canned fruits and vegetables are the next best thing.

Photo by B Tal