Monthly Archives: November 2008

TGIF Link Round Up: Countdown to Thanksgiving Edition

Photo by dongkwan

Thanksgiving dinnerLess than a week until Turkey Day! I can’t tell you how excited I am for four days of cooking, eating and relaxing. I absolutely love Thanksgiving.

We have pretty much everything we need for our no-stress frugal Thanksgiving for two. We bought it all in advance. We might have to pick up a thing or two at the grocery store this weekend, but for the most part all that’s left to do is cook and eat! Yum!

For those of you who haven’t finished menu planning and shopping for the holiday, I wanted to share some Thanksgiving recipes/ideas from my Reader this week:

Happy Friday! Yay for a three-day week next week!

What was the poorest time in your life?

Photo  by larimdame

empty wallet

This month, the Extended Group Writing Project at PFBloggers asks a very interesting question: What was the poorest time in your life? It made me think. A lot. So I decided to chime in.

I want to begin by clarifying that I’ve never fallen into the category of genuine poverty. To me, poverty is the point beyond budget cuts when you can’t just cut the budget to make ends meet, because you’re already living with so little. When you’re truly poor, you’re not worried about debt and savings. Your main concern is keeping a roof over your head and food on the table.

Thankfully, I’ve never been there, and I’m certainly not comparing my experiences with debt and low income to genuine poverty. That being said, it’s definitely possible to FEEL pretty poor even when you’re not living in poverty.

My first inclination was that a year ago, right after we moved here, was the “poorest” time in my life. Tony’s teaching job didn’t pay nearly enough to make ends meet, and I struggled to find a job for months.

Technically, we had more money in the bank than ever. We’d spent a year saving $10,000 for moving and living expenses. But with very little income, we sure felt pretty poor. It’s a really scary thing when your bank account is dwindling with very little coming in.

The more I thought about it, though, the more I came to realize that my first inclination was wrong. Last year was not the poorest time in my life.

Our living expenses may have been much higher than our income, but our circumstances motivated me to get serious about personal finance. Even though our financial situation was bleak, I felt more empowered than I ever had before. I started budgeting, cutting unnecessary expenses, and tackling debt. Despite our low income, we managed to get through the year without adding to our debt. We even paid off a huge chunk of my credit card debt.

Because I was making the decisions about where our money went, I didn’t feel deprived or scared about money. It was exactly the opposite. When we stopped spending money out of choice rather than out of necessity, we suddenly felt incredibly rich. We realized just how far the money we had could go if we weren’t blowing it.

We made smart choices to make our savings last. For the first time, I was paying my bills a month ahead of time instead of waiting for a paycheck at the last minute. We didn’t have money to buy a lot of stuff or eat out, but we didn’t have to worry about paying our rent or buying groceries. When I think about that, I realize that I didn’t feel poor at all a year ago. Quite the opposite, actually.

On the flip side, I lived pretty opulently in college. I went out to eat a lot. I bought a lot of “stuff.” On the outside, I appeared to be anything but poor. But I never had money in the bank. I blew through what I had so quickly that I often came dangerously close to overdrawing my account. As soon as I got a little money, it was gone. I was stressed every time I swiped my debit card, because I wasn’t sure there was enough in my account to cover it.

One night, my gas tank was so low that my car started sputtering. I knew I had to get gas, but I also knew that I had less than $5 in my bank account. I pulled into the gas station and put one gallon in my tank to make it home. When I got home, I had to check my account to make sure I hadn’t overdrawn it.

That’s the poorest I’ve ever felt.

Sadly, that wasn’t an isolated incident. Stuff like that happened to me a lot in my college days. I had no control over my money, so I didn’t feel like I was making the decisions. Obviously, I was just making the wrong ones. But every time my account balance dipped that low, I didn’t think about all the things I spent my money on. I only thought about what I couldn’t afford.

I still hesitate to refer to that as being “poor,” because it was my own fault. If I hadn’t spent my money on pizza and movies, then I would have had enough to pay for gas. The point is that feeling poor isn’t about the stuff you have or money in the bank. Some people feel “poor” if they can’t afford all the things they want. For me, feeling poor is stressing about whether I can afford the things I need.

Homemade hot cocoa

Photo by kevinmarsh

homemade hot cocoaTonight is the first genuinely cold night of the season. I’ve spent the evening bundled up in multiple layers under a big comforter on the couch. And you know what goes best with a cold night? Hot cocoa.

When I told Tony I was craving it, he offered to run up to Starbucks with the gift card we’ve had since the wedding. I didn’t want to go out in the cold, though, and I knew he didn’t either. No, I said. We’ll make it at home.

A quick look in the refrigerator, and I realized we were running low on milk. If we made hot cocoa tonight, we might not have enough for cereal in the morning, which would mean a trip to the grocery store tonight.

I started rummaging around in the cupboards to see if I could find something else to satisfy my sweet tooth. Nothing. But I did find some powdered milk that I bought a little while back for homemade bread.

Tony found this recipe for homemade hot cocoa mix. Amazingly, we had everything on hand — just barely. The recipe pretty much tapped out our supply of cocoa, powdered sugar, and powdered milk. (Note: We didn’t have any cayenne pepper, so we left it out. Instead, we used cinnamon. Ours turned out delicious, but if we had cayenne we definitely would have used it!)

We filled a huge Mason jar with the homemade mix, so we’ll have hot cocoa to last us all through winter. Just add water! Every bit as delicious as any hot cocoa I’ve ever had, but so much cheaper than regular milk (and definitely cheaper than Starbucks)!

Why pay more for lean ground beef?

Tony and I don’t eat a lot of red meat. Occasionally we’ll grill a nice lean steak, but we eat more chicken than beef. It’s mostly because when we do buy ground beef, we like to buy very lean beef, usually about 90-94% lean. Have you seen the prices for lean beef? It rarely falls below $4 a pound. We’d just as soon cook with chicken, which is healthier and only $2 a pound.

This week, Tony had a craving for Shepherd’s pie. We were picking up our Thanksgiving turkey and some steaks on sale. We needed beef for the pie, but I wanted to save some money. I decided for this week that the extra 10% fat in the $2 a pound ground beef wouldn’t kill me.

I was shocked at how much extra fat cooked out in the pan. We’ve been cooking with lean beef for so long that I’ve gotten used to seeing very little fat in the pan.

We cooked all of the fat out, drained it completely, and patted it down with paper towels to remove the excess fat. And you know what? It was basically the same. Obviously, I can’t say for sure that it was just as lean as the 90%, but it sure seemed like it once it was drained well.

I know, this one seems like a no-brainer, but it’s a revelation for me. I’ll never pay $4 a pound for ground beef again. That works for me!

My favorite frugal fall pleasures

Photo by emzee

In North Carolina, fall comes late, but it’s worth the wait. The leaves are finally changing, the sun shines every day, and the temperature has fallen to perfect sweater weather. This is my favorite time of year, and I decided to take some time to reflect on why I’m thankful for fall.

Here are my favorite things about the most beautiful season. The best part? They cost nothing.

fall leavesHot cinnamon apple oatmeal for breakfast.

Long walks on brisk mornings with the leaves crunching beneath my feet.

The sweet anticipation of family and holiday tradition.

Bundling up on soft sweaters and my warm winter coat.

Healthy, comforting soups and stews that stretch our grocery budget even further.

Cozy nights at home cuddled up in sweaters and blankets.

More time to work on my handmade flannel quilt.

Comfy socks and slippers.

Hot chocolate and tea before bed.

Sleeping soundly in a chilly room under my down comforter.

What about you? What’s your favorite part of fall?

Frugal ways to give back this holiday season

As tight as our budget has been, I’ve always recognized how good we really had it. Even when our financial situation was at its worst, we always managed to make ends meet. We never came up short for rent, there was always plenty of food on the table, and most importantly we had our health and each other. Life has been pretty good to us so far.

That’s why even during our toughest times, we’ve always looked for ways to give back, particularly to those less fortunate that we are.

I know how it is, though. When you’re struggling to get by, it can be really hard to make room in the budget for charity.

Frugality is about finding ways to live well and give more to the world around you without spending a lot of money. There’s no reason that charity should cost a lot of money, either. Using the same principals you use to stretch your income, you can find frugal ways to give back.

I hope you’ll consider contributing to one of these worthwhile charities or programs in your area this holiday season. Here’s how you can do it without breaking your own budget.

Shop smart for canned foods.

Frugals are masters at stretching a buck in the grocery store. Consider using your coupons, circulars, and grocery know-how to get a bargain on canned food and non-perishables for a local food drive.

Clear some space in your coat closet.

What better way to clear the clutter from your coat closet than by donating to a coat drive? Your gently used coat could make a huge difference for a homeless or impoverished family this year, and it costs you nothing.

Volunteer your time.

If you’re really struggling this season, consider making time to volunteer at a soup kitchen or any charitable organization in need of your help. Giving a few hours on your day off costs very little, but it could make a big difference.

Make it a team effort.

Many churches, schools, and community groups work together for adopt-a-family programs, bake sales, and other fundraisers. The expense isn’t that great if you’re one of several people contributing. If your church or community group doesn’t already participate, volunteer the time to organize a program yourself.

Remember: No donation is too small.

Don’t assume that what you can afford to give isn’t enough. Even if you can only spare $5, I guarantee that no charitable organization will balk at your gift.

If you’re wondering where to send it, here are three of my favorite charities:

Ronald McDonald House

American Cancer Society

Doctors Without Borders

Did I leave something out? Please leave a comment with your favorite charitable program or organization! Let’s all find a way to give back this season!

Menu Plan & Grocery Round Up – 11/15-11/21

Our total for the week was $62, which is $2 over our maximum budget. I’m not complaining, though. We walked out with a TON of food.

We shopped this week at the pricier store in our area, because they were offering turkeys for 49 cents a pound with the purchase of $25 in groceries.

We were originally going to buy just a turkey breast, but I haven’t seen them on sale this year for under $1.60 a pound. I couldn’t resist 49 cents a pound for turkey, especially since there’s only a week and a half until Thanksgiving. We also picked up potatoes for Thanksgiving as well as whipped cream for our pumpkin pie.

We also got four New York strip steaks, which we’ll freeze and use for dinners later. We split one steak between us, so we’ll stretch those steaks out to four meals.

This store takes some of the discounts off after everything is completely rang up. I was expecting to go over our budget since our cart was so full. I cringed when the total came to $90. But then she took off the discount for the steaks and the turkey, as well as a 5% discount since my husband is a student. We saved almost $30!

For our menu plan this week, we’re raiding our pantry and freezer to make the most of what we have since some of our grocery budget this week went toward our Thanksgiving meal. Most of our meals are coming from a whole chicken that’s been in our freezer for a couple weeks. Here’s what we have planned:

Saturday: Film festival dinner party (We got free tickets! Woo hoo!)
Sunday: Roasted chicken and potatoes (We need to make stock this week, so it was time for a chicken.)
Monday: Chicken fajita tortilla soup
Tuesday: Leftovers/sandwiches
Wednesday: Chicken quesadillas
Thursday: Shepherd’s pie
Friday: Homemade pizza

Now head over to OrgJunkie for more menu plans!

TGIF Link Round Up: Film Festival Edition

This weekend, Tony and I are getting out of the house. I was able to get free tickets to an independent film festival through my work, so we’re spending the weekend watching movies. Usually this type of thing isn’t my cup of tea, but I knew my movie buff husband would love it, so we picked out some movies that look good to both of us. I’m just excited to get out of the house without spending any money.

At some point between film screenings we’ll have to fit in our regular weekend errands, including groceries, the last of our Christmas shopping, and cleaning. Hopefully we’ll have time to get it all done!

It’s been a great week in my reader. Here are some of my favorite posts to kick off the weekend:

  • J.D. at Get Rich Slowly has 34 do-it-yourself Christmas gifts. There are lots of great ideas here, and the best part is they seem easy enough that anyone could do them.
  • Trent at the Simple Dollar has a compilation of the 25 best money-saving tactics. This is a great place to start if you’re just getting started with the frugal lifestyle.
  • Lynnae at Being Frugal shared an interesting guest post from Amy at My Daily Dollars about how blogging helped her save $13,000 without bringing in any direct income. It’s hard to quantify, but I know blogging has helped me save thousands and given me the tools to save thousands more in the future.
  • Simple Mom cools off house fever with a long term plan. We’re already looking ahead to a house purchase even though it’ll be years before we can do it, and having a solid plan in place makes it easier to wait.
  • When Emily at Remodeling this Life wants to get away, she looks to her own town for fun tourist activities. Sometimes there’s a lot of frugal fun right under your nose.
  • Kelly at Almost Frugal shares a guest post from Nicole at Breaking Even about how losing weight can save you money. It’s amazing how much getting healthy can save, not just in food and bad habits but also in health care costs down the road.
  • Penelope Pince at Pecuniarities writes life is too short to sleep on low thread count sheets. I’m constantly asking myself where I should cut corners and what’s worth a little extra money. I think bedding is one of those things that’s worth a little extra money. Of course, if you shop around and look for a deal, you’ll be surprised at how little you pay for high-quality sheets.

Whew! Lots of great posts to read. I’m off to the movies (after work of course). Happy Friday!

Would you buy it if it wasn’t on sale?

Photo by theogeo

clearance saleThis time last year I was working in retail in a clothing store. I wasn’t making much money, but one of the “perks” of my job was an employee discount.

I bought a lot of clothing during this time. Not only did I take advantage of my 20% discount, but I scouted the sales and clearance racks. I never paid full price for anything. I thought I was getting a great deal. In all honesty, I really was. I usually paid about 20% of the original price.

As I look back, though, I’m reminded of the strange psychological effect of sale prices. Sale prices can turn a ho-hum item into something you must have.

Since I worked in the store every single day, I was in a unique position. Instead of stumbling on these great deals, I was aware of my changing perspective as the prices dropped. Many of the items I bought off the clearance racks, I didn’t even notice at full price. Though I stocked them, rehung them in the fitting room, and straightened the shelves after closing each night, I barely noticed them at all. But as soon as they hit the clearance shelf, I suddenly had to have them.

Looking back, I realize I wasn’t really shopping for clothes; I was shopping for bargains. It wasn’t that I really wanted the items I bought for such a great discount. I just loved the rush of knowing how much money I had “saved” compared to the original price.

Shopping for bargains is dangerous, though. If you’re not careful, you’ll go broke saving money.

Don’t get me wrong, there were items that I coveted from the day they came into the store. A beautiful cashmere sweater that originally retailed for $60 comes to mind. I absolutely wasn’t going to pay full price for it, but I kept a close eye on our inventory, hoping my size would be there when the sweater finally hit the clearance rack. It was, and I paid $8 for that sweater at the very tail end of the winter season in March.

For the most part, though, it wasn’t the price that deterred me from noticing full price items. It was that I just didn’t particularly like or want them. But as soon as the price dropped and it was a “deal,” my mindset changed completely.

Sale prices can be blinding. As the holidays approach and prices start to drop, it can be tempting to buy buy buy. I’ve said it before, though — if you don’t need the item, you’re paying too much (even if it is on sale).

Next time you’re tempted by a sale price, take a hard look at the original price. Ignore the sale price for just a moment. Try to ask yourself, “Would I want this if it was $60 instead of $10?” Regardless of whether you can afford to pay full price, would you even want it if it wasn’t on sale?

I absolutely wanted that cashmere sweater even at full price — I just couldn’t afford to pay full price. When I finally bought it for the clearance price, it was incredibly rewarding. It’s still my favorite sweater of all time. I can’t say the same for 90% of the clearance items I bought during my time working in retail.