Category Archives: Smart Shopping

Save instead of spending this Black Friday

Open an ING checking account today, and you’ll get a $121 bonus!

If you’ve been thinking about trying this great online bank, now is the best time. I’ve written before about just how happy I am using ING as my primary bank. They offer some of the best interest rates out there, and the customer service is phenomenal. Here’s how to take advantage of this deal:

Open a checking account today and use the promo code EOSAVE
Use your new debit card to make 3 purchases in the first 45 days of your account. Do not debit these transactions. Make sure you run it as a credit and sign for it.
On the 50th day, your bonus will be automatically deposited into your account.

If you decide to open a new account and make an initial deposit of at least $250, would you use one of my referral links below? I’ll get a $10 bonus for letting you know about this great deal!

Start saving now!

Happy deal hunting today! I’ll be cozy at home avoiding all the madness. :)

What are you frugal weaknesses?

To most people, the holiday season is synonymous with family, spirituality, and tradition. Unfortunately, it also means we’re surrounded by marketing messages and inundated with consumerism.

No matter how firm you are in your frugality, this is one time of year when you’re likely to fall off the wagon. Whether it’s shopping for family or for yourself, holiday advertising combined with great deals can make it difficult to resist the urge to spend.

The easiest way to avoid it — or at least minimize the damage — is to be aware of your own weaknesses. It’s different for everyone. Whether you’re addicted to high-end shoes, high fashion, or just expensive gifts for friends and family, self awareness can help you avoid situations where you’re likely to give in.

Here are my top frugal weaknesses:

Electronics

Computers, televisions, gadgets, camera gear … I love all of it. So when I see a great deal, it can be very difficult for me to resist.

How to avoid the temptation: I don’t browse electronics stores or websites unless I need to make a very specific purchase that I’ve planned in advance. And on the day after Thanksgiving, I won’t be anywhere near an electronics store.

Gourmet Food

I’ve written before about my husband’s expensive taste in food, and I would be lying if I didn’t admit that I like pricey, specialty foods myself.

How to avoid the temptation: We make a specific grocery list every week, purchase only the essentials, and avoid browsing as much as possible.

Books

Once upon a time, my husband and I spent our weekends browsing at Barnes and Noble and rarely left without bringing home something new for the bookshelf.

How to avoid temptation: Browse the library or a friend’s bookshelf instead of the bookstore.

Gifts

Every year I’m tempted to spend way more than I can afford on the people I love.

How to avoid temptation: We already set a budget for how much we can afford to spend on holiday gifts, and we’re making a list now of the best gifts for everyone on our list within our budget. By planning ahead, we reduce the chance of panicking at the last minute and spending more money than we have to.

What are your frugal weaknesses, and how do you avoid them?

Photo by mallol

Live like you’re broke — but don’t forget that you’re not

Last week, my $2.50 flip flops that I’ve been wearing all summer bit the dust and one of Tony’s two pairs of shoes started to fall apart. I realized over the weekend that I haven’t bought a new pair of shoes in almost two years (aside from the running shoes I bought in January), and it’s been a year since we last bought Tony sneakers with birthday money from his parents.

I looked objectively at what Tony and I were wearing on our feet. We looked like a couple of college kids with some tattered shoes. I suggested to Tony that we should go shopping for some shoes, and he looked at me like I’d grown another head.

“Should we really be spending money on something like that right now?”

When I outlined the facts for him, we both realized how ridiculous it was not to buy new shoes.

We each have only three pairs of shoes — Sneakers, dress shoes, and gym shoes.
It’s been over a year since either of us bought shoes.
Our sneakers are falling apart.
We are not broke.

It’s kind of silly that we had to remind ourselves that buying one pair of new shoes each year isn’t unreasonable. We may not make a lot of money, but we make too much to walk around in shoes that are falling apart.

We spend so much time trying to convince ourselves that we’re broke because it makes it easier to resist overspending, but every once in a while we have to put things into perspective.

Don’t deprive yourself of basic necessities in the name of frugality. Walking around in tattered shoes or clothes to save money isn’t frugal — it’s cheap, and you deserve better than that. Frugality is about conserving, making the most of each dollar you spend, and shopping for the best deals. It’s not about depriving yourself.

We spent Saturday shopping for new shoes, and we ended up picking up two pairs of Converse sneakers on sale at Shoe Carnival for buy one, get one 50% off. Not only did we get a great deal on comfortable shoes, but we reminded ourselves that we are not as broke as we let ourselves believe.

Oh, organic food. Why are you so expensive?

foodinc Weekend before last, Tony and I saw the documentary “Food Inc.” for free on his campus. It was an incredibly well produced, enjoyable film, even for people who aren’t into documentaries. But it scared the crap out of us.

I won’t go into gory details here. I do recommend watching it, but if you’re squeamish you might want to read about the issues on the website instead. The scenes inside the hatcheries and “farms” are pretty brutal. I’m not particularly squeamish, but it was hard for me to take.

I’ve never really liked the idea of something dying so I can eat, but I’ve never been a vegetarian either. This movie almost pushed me there, not just because I feel guilty, but because I have serious concerns about the sustainability of current farming practices, the effects on our environment and our health.

So. Where am I going with this? I have a point, I promise.

My husband and I decided to try a halfway approach to organic and sustainable food. We’ve always bought organic produce when we can. We shop in season and try to buy locally, which is good for the environment and for our budget. Organic meat is just so expensive. Our solution is to buy the expensive organic meat — only less of it.

This week at the grocery store, we bought a whole organic chicken (marked down 25% because the sell-by date is tomorrow) that we’ll cook tomorrow and use in three meals. We also bought a pound of organic ground chicken that we’ll use next week because it was on sale for half price.

I left the movie feeling pretty powerless. We spend all this time trying to make the right choices for our health and the environment, and yet so many decisions about our food are made before we even have the option to buy it.

Unfortunately, this won’t change unless we’re willing to change our lifestyles — and our budgets. It means shifting the grocery budget to allow healthier food without spending a fortune. The only uplifting part of the movie is that it reminds us how much power we have as consumers. If we demand healthier food from producers, then they will deliver. And as the movie says, “We vote three times a day.” Every time you make a choice about what to eat, you’re telling food producers the type of food you want to buy. If you choose healthier foods, they’ll get the message.

After finishing our grocery shopping this week, we felt empowered. Our grocery bill was only about $5 more than normal, but we bought all organic meat and more organic, local produce than normal. By making smart choices (like buying higher quality meat only less of it or stock piling organic foods when they’re on sale), we can minimize the impact on our budget and still eat a healthier, more eco-friendly diet.

If you want to get involved, you can sign a petition here asking that school lunch programs serve healthier, more nutritious food to children. Or you can also learn more about how to change the food system.

I usually try to keep politics out of my blog, but I really believe this is a bipartisan issue. It affects our environment and, most importantly, our health and the health of our children.

Sales tax increases are another reason to be frugal

Last week, the state where I live (North Carolina) increased its sales tax from 4.5% to 5.5%. With local taxes, that means our total sales tax has increased from 6.75% to 7.75%. A 1% increase may not seem like a lot, but it can add up for big purchases. On a $1000 purchase, that’s an extra $10 tacked onto your total cost.

I’m not sweating it, though. Paying less money in sales tax is just another perk of frugality. Here’s why:

I don’t buy a lot of stuff.

Since we live frugally, we just don’t make a lot of purchases that are subject to sales tax. Most of our expendable income goes to groceries, which is subject to a 2% sales tax in North Carolina. Our budget only includes about $100 a month for entertainment and household expenses like toilet paper and cleaning supplies. That means at most we’ll be paying an extra $1 a month with the increase.

Secondhand items are usually subject to 0% sales tax.

When a friend or family member gives you a piece of furniture or other item, guess how much sales tax you pay? 0%. The same is true if you shop at garage sales or Craigslist. In some states, you don’t even pay sales tax at thrift stores, particularly if they’re affiliated with a church.

If you’re worried about sales tax increases, think about ways you can live more frugally overall. After all, the less you spend, the less you pay in taxes.

Things to consider when making a big purchase

canon-xs Last weekend, I made a huge purchase. I bought a camera that cost almost a whole paycheck. Yikes.

We’ve been thinking about it and saving for months. I planned to wait until we saved enough, but I realized that I could buy it now with the money I’ve earned from this here blog (thanks for reading!) in addition to my savings. We felt ready to make the purchase. We thought it through, researched, and decided to finally take the leap.

Despite all of this, I still woke up last night in a cold sweat. We spent $750 on a camera. Holy cow. I thought about all of the things we could do with that money, especially since we’re still saving for our emergency fund and Europe and moving and eventually a house.

I calmed down when I reminded myself of all the steps we took to ensure this was a good purchase:

Ask yourself why you want it and what it will add to your life.

If you don’t need the item, then think about why you want it. I love to take photos, and they’ll be even more important when we have a baby. We have a point-and-shoot camera, but I want more control over my pictures. Photography is a hobby I’ve always wanted to pursue, but my lack of proper equipment was holding me back. This camera will allow me to pursue photography as a hobby and take high quality pictures of our memories.

On the flip side, several months ago we considered buying a TV. We have an old TV that works fine, but we considered getting an HDTV. We decided that it wouldn’t add enough to our lives to justify the cost. Our TV works, and we don’t care about the difference in picture quality that much, so a new TV wasn’t worth the money.

Do your homework.

Before making a major purchase, make sure what you’re buying will last and perform the functions you want. I thought about the type of photos I like to take, made a list of functions I needed, talked to some photographers I know, and read forums to determine which camera would be best.

I decided I needed a digital SLR camera to get the speed and control I want and a telephoto lens for the portraits and close-up shots that I like to take.

I chose the Canon Rebel XS. There are newer, pricier models, but the XS is suitable for me, so upgrading to a newer model isn’t worth the money.

Start making price comparisons.

I looked at used cameras, but resale value is so high that buying used in good condition would only save me about $50.

I could get the camera and an 18-55mm lens on Amazon for $500 without the telephoto lens. Adding a Canon brand telephoto lens added another $250, bringing the total cost to $750.

I found an amazing deal on eBay for the camera, three lenses (including a Tamron 28-80mm and a Canon 75-300mm) and a ton of equipment like memory cards, carrying case, digital card reader, tripods and other things that I don’t really need but may use as I learn more about photography. The total cost is $750.

I considered buying the camera with the 18-55mm lens for $500 and getting the telephoto lens later, so I broke it down by value. I needed a high capacity memory card ($25-$30) and camera case to protect the camera ($30). Ignoring all the other extras, that brings the cost of the lenses alone to under $200. There’s no way I’ll find two digital lenses, especially not a Canon telephoto, for under $200. Considering the huge list of extras in addition to the lenses, it was best to spend the extra $250 now. If I don’t use all of the extra equipment, I can always resell it to get some of my money back.

Don’t choose a bargain over quality.

For major purchases, it’s almost always worth it to spend a little more for the best possible quality. I hope to have this camera for years to come, which means the additional cost will be worth it in the long run.

I can’t wait to share my photos with you!

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.

Healthy eating is frugal eating

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

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.

Living Well on Less

Simply Frugal. Simply Healthy. Simply Happy.