Category Archives: Frugality

A change in perspective

Our no spend summer has resulted in the lowest balance on our checking account in, well, as long as I can remember. I was paid Friday, and after paying our bills and buying our groceries, our checking account balance is now $250.

I know there were times when I was in college, and even after I graduated, when my balance dipped well below $50. There were times when I overdrew my account. I remember these times vividly. But this is the first time since we started living frugally that I’ve seen a bank balance this low.

Don’t worry about us. We have more money in savings than we’ve ever had in one lump sum in our lives. We’re doing fine. Keeping our checking account balance low is a defense mechanism. It protects us from ourselves, and prevents us from spending more money than we want to spend.

But looking at that balance stresses. me. out. Especially since we’re heading on vacation this weekend.

I have access to our savings through my ING checking account just in case we need money immediately. Our low balance doesn’t pose us any threat since every penny is accounted for these days.

I still just don’t like seeing our balance that low. It makes me feel out of control, just like I did a little over two years ago when every penny wasn’t accounted for. When I still had bills to pay and food to buy with that $250 balance, and I was trying to make a dollar out of 99 cents.

I’m tempted to move some money around just to make myself feel better. I don’t like looking at that balance. But then the sadist in me wants to keep going, to see how far we can go this summer without dipping into our savings. After all, that was the point of the challenge. If I move $100 into our checking account just to make myself feel better, that’s technically cheating. So I’ll probably keep going, and it may even dip lower before the summer is over and Tony starts getting paid to teach again.

But it’s made me think about those days 2 years ago when low balances were a fact of life. Back when my bank balance rarely went above $500, and there was no separate account where I kept my savings because I didn’t have any savings. Back when I spent every penny I earned almost immediately. I felt out of control, and I never knew where my money went.

It’s times like these when I’m proud of what we’ve accomplished in such a short time, and I remind myself that I don’t ever want to go back. It’s amazing what frugality has done for my perspective.

A year of the frugal life

I can’t believe it’s been one year since I started Living Well on Less!

So much has happened in the past year, and yet it feels like it’s flown by. Looking back on my initial goals when I started this blog, I’m thrilled to see that we’ve already accomplished two out of three of our main goals and then some. We’re still working on that student loan debt, but this is only the beginning!

We’ve accomplished so much more than I ever through we could. This blog has been so encouraging to me, and reading about other people’s financial journeys has helped me think up new ways to save and grow.

As I head into my second year of blogging, I’ll be changing the direction of my blog just a bit and focusing more on living well than just finance.

To those of you who read me every day, or even just once a week or once a month, thank you! Your encouragement and ideas have been so important to us as we struggle to start our lives together.

Any suggestions for me as I start out my second year? What would you like to read about on Living Well on Less?

Credit card companies are watching your purchases

While I don’t recommend using credit cards to rack up debt, the unfortunate truth is that maintaining a credit history can be an important part of good finances. After all, your credit history is what determines interest rates and credit-worthiness for even “good” debts like mortgages and (sometimes) car payments. Even if you have a zero tolerance policy when it comes to all debt, your credit history can affect your car insurance rates, job search, and your ability to rent an apartment.

As the economy worsens, credit card companies are looking for excuses to cut spending limits or close accounts. Both of these actions can negatively affect your credit history.

Even if you’re a responsible credit card user, you may be using your card on monthly purchases or charging things just to maintain your credit activity and avoid account closure. Well, it turns out credit card companies could be watching even responsible purchases to weed out users who they deem a poor risk.

Last week, I read an interesting article outlining the top 10 purchases not to make on a credit card. According to the article, credit card companies are watching statements closely to look for “red flags” that may indicate borrowers are in trouble. The most surprising item on the list: bargain shopping. It turns out that using a credit card at a bargain store like Wal-Mart signifies to credit card companies that you may be in financial trouble. Also on the list: tires and other big ticket necessities, marriage counseling, and income taxes.

I don’t know about you, but we’ve definitely charged big ticket items like tires or plane tickets on a credit card just to keep the account active. Even though we have the cash, we make the purchase with a credit card to keep the account active and rack up rewards points, then pay it off immediately when the statement arrives. I had no idea that could lead credit card companies to take action that could negatively affect my credit score.

To me, this is just another reminder of why credit cards stink. On the one hand, they’re necessary to build and maintain a good credit history, but I absolutely hate being at the mercy of a credit card company even now that I don’t carry any consumer debt.

Can we afford an extended trip to Europe?: Part 2

eiffel tower
Photo by stevenvanwel

A few weeks ago, Tony and I started doing the math to see if it would be possible to stay in Europe for two months. We decided to think about it, see if we could save the money, and go from there. After looking at all of our options, we’ve decided to go back to our original plan for a two-week trip in May 2010.

There were a number of reasons, and I wanted to share them with you:

Money.

We’re on track to save enough money for our emergency fund, moving expenses, and the extended Europe trip. However, we’ll also be moving across the country and searching for jobs as soon as we were to return from our trip. As much as I wanted to take this trip, I think it’s safer and smarter to hang on to as much money as possible in case we need it during our transition.

Timing.

This factored into our decision even more than money. The fact is, the only time we could take this trip would be early spring 2011. Tony graduates in December 2010, so we’d be moving out of our apartment, moving our stuff back up north, and preparing for life in the Midwest at the same time. When I think about planning a big move while simultaneously planning a huge trip to Europe, I feel more stress than I’m comfortable facing.

Ease of planning.

Trying to plan the most frugal way to stay in another country for two months was overwhelming. It’s much easier to plan for two weeks. Short term hotels are easier to book than long term rentals. We’ll be able to afford to see and do more in two weeks of vacation than we could in two months living frugally. Trying to plan a huge trip for our first experience abroad seems a little over my head. And of course, two months is a very long time to leave our dog, even if he is with family.

Stress.

As fun as this trip would be, thoughts of what would face us upon our return to the States could spoil the trip. If we head to Europe before we secure jobs or decide where we’re going to live, I know I would stress throughout the trip about our next steps. Separating our vacation to Europe from our move and going on the trip when I have a secure job with paid vacation time will allow us to focus on having fun. We’ll have six months after the trip to plan the move and decide what to do after Tony graduates.

In the end, all of these factors combined made us decide to nix the extended trip. I’m not saying it was a bad idea. It was an idea — one that I’m really glad we considered.

If every time we wanted something big we thought to ourselves, “There’s no way we can afford that. We shouldn’t even consider it,” then we’d be limited by our decision to live frugally. Instead, I choose to weigh all of our options, think things through, and balance our wants and needs.

I love that frugality allows us to dream big. We can often accomplish these big goals. But sometimes after weighing the options, we decide on a different course. That’s okay. To me, the ability to make these choices for ourselves is one of the best parts about frugality.

Looking for something to read? Join my frugal summer book club

I’ve mentioned before that Tony and I have been spending a lot of time reading this summer since our entertainment budget is so limited. We’re lucky, because we have access not only to the public library, but also to the much more extensive library at Tony’s university. Because it’s connected to other branches of his college throughout the state, we’re able to borrow from 4 other libraries by requesting books that aren’t available at his school. A few days later, we just pick them up at the circulation desk.

I’ve always wanted to start a book club, but because of time constraints I’ve never been able to get a group of people together to join me. So I thought I’d post my reading list for the summer to see if anyone wants to read along with me. Most of these books are older, so you should be able to borrow them from your library.

As you can see, I have an affinity for non-fiction, particularly memoirs. I love reading about other people’s lives and getting an personal perspective on their experiences. I have a feeling a lot of people who enjoy reading blogs feel the same way. :)

I also recently discovered a really cool social network for readers called Shelfari. It allows you to organize, categorize and rate books you’ve read or plan to read. For the first time, I have an organized reading list. There are many other books on my list, but I’ve decided these are the five I’m going to try to finish by the end of the summer in this order more or less.

If you decide to join me, let me know! If anyone is at all interested, I’ll post short little reviews of my thoughts on the books as I finish them, and we’ll be able to discuss in the comments section. If you have a blog and you’d like to post your own reviews, I could even put up a Mr. Linky so we can share. I’m also open to suggestions from your own reading lists. I’m always looking for good books to read. I do hope you’ll participate.

Healthy eating is frugal eating

Photo by nataliemaynor
Photo by nataliemaynor

One of the biggest myths I hear when it comes to dieting and healthy eating is that it’s too expensive to sustain on a frugal budget. This absolutely isn’t the case. In fact, many of the eating habits that are good for your body are also good for your budget.

Despite being on a limited cash budget, I’ve lost 7 pounds this summer using these frugal, healthy habits.

Eat at home.

It’s a no-brainer, but honestly, the best thing you can do for your health and your bank account is stop going out to eat.

Shop smart for whole foods.

One of the biggest reasons I’m not a big couponer is that we don’t buy processed foods, and coupons aren’t available for things like produce and fresh meat. While we could get processed items for next to nothing with coupons, I compare nutritional value. You’ll get more nutritional bang for your buck by shopping for fresh produce and meats.

So how do you cut costs on whole foods without coupons? Shop in season and shop on sale. Fresh fruits and vegetables can get quite pricey, but each week there’s something on special. Plan your meals around these items to maximize your grocery dollars without eating unhealthy processed foods.

Plan your meals and avoid mindless snacking.

Those snack foods will kill your budget and your waist line! When you’re finished with your menu, take a serious look at your grocery list. Eliminate anything that won’t be used for a meal.

Snacks aren’t off limits, they just have to be planned like meals. I buy fruits that are on sale or sometimes cheese if the price is right to eat in a small portion and keep my metabolism up. But the important thing is these snacks are part of my menu plan, and I buy only what I need for the week. Throwing snack foods into the cart because they look good and snacking throughout the day without thinking about it is a good way to pile on dollars and extra calories.

Buy only what you need.

If you’re throwing away a lot of food at the end of the week, you’re not only spending too much, you’re also giving yourself too many options. One of the biggest mistakes I made is buying a huge variety of foods to allow myself a lot of options. However, studies show that when people are presented with lots of options, they tend to eat more. Eliminate the temptation and the waste by making a menu plan and sticking to it.

Eat less.

Two years ago when I lost 40 pounds, the first big realization I made was just how many extra calories I was consuming each day. The truth is, a lot of people are eating much more than is necessary to stay healthy and fuel their bodies. You may have to spend more on whole foods, but if you’re not snacking on processed foods in between and you’re eating the right amount at meals, it will even out.

Guest post: 12 essential tools for your frugal kitchen – Part II

kitchen
Photo by quintanaroo

(Here’s the second part of my husband Tony’s guide for 12 essential (and multi-tasking) kitchen devices that will help cut down on the clutter coming in and the dollars going out.)

7.) If you are only willing to buy one knife, make it a good one. But good doesn’t necessarily mean expensive. Cheap knives can be unsafe; the simple truth is that the money you save on an $8 Chef’s knife might end up going to a hospital bill later. If you only buy one knife, make sure it’s in the 8- to 10-inch range, full tang (that is, the metal runs through the handle), and non-serrated (because serrated knives can’t be honed and sharpened). The cheapest and best quality knife I’ve ever found runs for less than $30 on Amazon. If you have it in the budget to get a few more, get a paring knife for small jobs and a relatively inexpensive serrated slicer for breads and tomatoes.

6.) Heavy wooden chopping block. If you’re going to buy a good knife, you might as well get something proper for it to cut on. You’ll be surprise how often you genuinely use it. A heavy wood cutting board will help keep your knife in good condition, and is ideal for cutting vegetables, fruit, and just about any non-meat related item. Use a cheap, food-grade, dishwasher-safe plastic cutting board for chopping, cubing, or cutting raw meat.

5.) Wooden utensils. They’re cheap, kind to your non-stick pans, dishwasher safe, and won’t melt.

4.) A pizza slicer. Not just for homemade pizzas: use to portion brownies, quesadillas, etc.

3.) Glass storage containers. Pyrex, for example, won’t stain or hold smells; it’s safe for the freezer, the oven, or the microwave; it’s durable and difficult to break; and it’s dishwasher safe. Although slightly more expensive than plastic, when you buy your second or third round of plastic Tupperware after marinara or chili stains the interior, think of how you wouldn’t be buying another set of glass.

2.) Crock-Pot. The appeal of the Crock-Pot began as a device of simplicity and convenience, but most recipes call for few or common ingredients and it has become a worthy tool of the frugal kitchen. In reality, it performs many of the same functions as the cast-iron dutch oven (except direct contact heat), but it also doesn’t require your presence, nor does it require the power and energy generated by an oven, either on the burners or from inside.

1.) Cast-iron skillet. One of the cheapest and most reliable kitchen materials is cast-iron. It involves some annual seasoning, but it holds heat like a volcano (perfect for making a steak if you don’t have a grill). Cast iron is about as indestructible as cookware gets, so it has the potential to last forever. A 10- or 12-inch skillet is a must-have for any kitchen; typically less than $20, it can be used for searing, baking, frying, braising, or practically any other task. With time it develops its own natural non-stick coating, and you can’t beat cornbread made in cast iron.

Tony is my husband, an excellent cook, and a grad student. If you want to read more from him and you like movies, check out his movie review blog.

Guest post: 12 essential tools for your frugal kitchen – Part I

kitchen tools
Photo by photoartist3

(This is a guest post from my husband, Tony, an amateur chef who cooks professional-quality dishes. As the primary beneficiary of his culinary talents, I can absolutely attest to his abilities in the kitchen. Here are his recommendations for the only 12 tools you need to make pretty much anything without cramming your cupboards or breaking the bank.)

Stocking a frugal kitchen is a balancing act. Weighing the pros and cons of a particular tool and trying to figure out how much money you should put down for it is as delicate an art as cooking or baking. Depending on the situation, money either is or is not synonymous with quality, which is why the only rule you should ever have when buying a kitchen tool is this: is it a multi-tasker?

I don’t want to suggest a kitchen can survive with just 12 pieces. But these strategically purchased pieces can help cut down on the clutter coming in and the dollars going out.

12.) A 10- or 12-inch nonstick pan. I would never pay more for a non-stick pan than I would want to pay again in the next few years. Unfortunately, it doesn’t matter if you buy the cheapest non-stick pan or the most expensive non-stick pan: both are susceptible to that single nick that will cause them to lose their functionality. Although keeping a non-stick pan in pristine condition for multiple years is certainly not impossible, most of us don’t store it in a museum display case and will have an accident that will begin to ruin the pan. Look for a pan in the low-middle cost range; something that has a little heft to it (to hold heat and allow for even cooking, which the cheapest ones don’t) but won’t make your bank account cry if you chip it.

11.) A thick rubber-handled manual can opener. Cheaper than an electric variety, easier to clean, and if the handle is rubber, it can moonlight as a jar opener.

10.) A large pot, 8 to 12 quarts. Perfect for soups, stews, and stocks. (Every frugal kitchen should be making its own stocks!)

9.) In most cases, buy plastic instead of metal. It’s cheaper and it lasts longer. Metal, particularly stainless steel, looks beautiful — but cheap metal measuring cups can bend at the handle, and cheap metal measuring spoons can rust. My mother still uses the same simple plastic measuring devices she received at her wedding. And if you’re looking into plastic utensils (particularly flexible-head spoon spatulas), it’s worth the extra dollar or two to buy something that is safe to high temperatures; melted plastic is never a tasty ingredient.

8.) Tongs. They’re like a third hand. If you can only buy one, get the ones with heat-resistant plastic on the ends so they won’t ruin your non-stick cookware.

Tony is my husband, an excellent cook, a grad student, and a movie reviewer. Check back tomorrow for the second installment of his guide to essential tools for the frugal kitchen!

Rediscovering frugal fun on a cash budget

cards
Photo by qisur

Back when it was easy for us to head out and spend a little extra money on entertainment, we neglected all the free entertainment we have available. Since we started living on a cash budget, we’ve had to get more creative about how we entertain ourselves on the weekends. A lot of it isn’t really creativity, though, as much as it’s rediscovering all of the entertainment right in front of us.

Here are some of the things we’ve rediscovered:

Card games

We picked up a pack of cards on our frugal camping trip last month, and we discovered a website with a huge directory of card games. We’ve been playing together and learning new games ever since. I hadn’t played cards since my dorm room days, and even then it was rare, so this is a really fun new activity. Aside from the $3 we paid for the cards, it’s absolutely free! :) If cards aren’t your thing, you might like to play dice games. My family loves to play an old fashioned dice game called 1000, and all it requires is a pair of dice and a scratch pad for keeping score.

Board games

We have a stack of board games in our coat closet that hasn’t been touched in several years. Scrabble, Monopoly, Trivial Pursuit … we’ve rediscovered all of them. Chances are you have some neglected board games lying around somewhere. Dust them off for some free fun tonight!

Crossword Puzzles

We have a book of New York Times crossword puzzles that we bought a few years ago for a road trip. I think it was about $4. Lately we’re been solving them again. Lots of fun if you like words and puzzles! You can also find free crossword puzzles online.

DVDs

During our college days, we both amassed a pretty good sized collection of DVDs. We often neglect them in favor of rentals, which isn’t too expensive with Netflix and Redbox. But lately we’ve been dusting off our old collection and rewatching some of our favorites. It’s been long enough since we’ve seen some of them that they feel almost new.

Reading

Between the library and our personal collection, Tony and I have been making a pretty good dent in our summer reading list. Books are another thing we both spent a lot of money on once upon a time. It’s a good thing they can provide so much entertainment! We don’t buy books anymore, but we’ve been going through the book shelf reading each other’s collections and checking out a ton at the library.

Nature

Now that we’re looking for free entertainment, we’ve found ourselve venturing outdoors a lot more. Whether we’re hiking or heading to the beach, we’re appreciating all the frugal fun that nature has to offer.

I’m actually surprised at how much fun we’re having with these simple frugal activities. They feel brand new, and enjoying them together has brought Tony and I that much closer!