Find the Right Balance to Meet Your Financial Goals

Tip #289 - Find the Right Balance To Meet Your Financial Goals. There are many ways you can meet your financial goals. Some ways work well at different times in your life. And some ways work well for different people and their circumstances. But in many cases, a combination of three main methods may be the best way to meet your goals such as increasing your savings. You can earn more money. You can decrease your expenses or you can make more return on your investments. Each of these singly will increase your savings. But finding the right balance among all three of them will work better to maximize your savings.

Let's look at an example. You are a family of three - husband, wife, and an 8-year child who will go to college in 10 years. You have $100,000 saved in a retirement account that is earning 5% per year and $20,000 saved in a college account for your child, earning 4% per year. You hope to retire in 25 years. Suppose your household makes $60,000 per year after taxes. Mortgage, utility, and food expenses add up to $30,000 per year. Health and wellness expenses add up to $6,000 per year. Automobile, gasoline, and clothing expenses add up to $8,000 per year. Lastly, entertainment and travel expenses add up to $6,000 per year. This leaves you with $10,000 per year for savings. Out of that savings, you put $8,000 toward retirement each year and $2,000 toward your child's college account.

After you sit down and crunch the numbers, you realize that you will not reach your goal of saving $100,000 (in today's dollars) for your child's college fund. In fact, you realize that you will need to save a total of $4,500 per year (about $2,500 more per year than you are currently saving). Then you look at your retirement numbers and calculate that in order to earn $1,000,000 at the time of retirement, you need to be saving $14,000 per year ($6,000 more than you are saving now). And you also realize that you will most likely need to buy a car in about 5 years and need to save $5,500 per year for that. All total you figure you need to increase your savings by $14,000 per year to reach your goals. How should you go about that?

One way to increase your savings is to cut down on expenses. However, you already live a frugal life and don't have much that you can realistically cut without making dramatic changes in your life. After scrutinizing your budget, however, you calculate that you can save $1,000 per year by using coupons and shopping at less-expensive grocery stores. You decide that your family can forgo your annual vacation and cut $2,000 of your entertainment/travel budget. And by shopping at thrift stores for clothes and riding your bike instead of driving places, you think you can cut another $1,000 off your budget. So you have come up with $4,000 more money that you can put toward savings. However, you are still $10,000 short of your goal.

Another way to increase your savings is to improve your investment return. Suppose your child goes to school in 10 years, and your investment toward college is earning only 4% return. After speaking with a financial advisor, you realize you can take on slightly more risk with this investment and think you can earn an 6% return on your money. This means you need to save $4,000 per year for college (an extra $2,000 per year). For retirement, you know you can take on more risk and can probably earn an 8% return on your money. In this case, you only need to save $5,000 per year toward retirement to meet your $1,000,000 goal, which actually frees up $3,000 per year for savings elsewhere. By this example, you only need a total of $14,500 in savings to meet your goals. But you are still $4,500 short of your goal.

Realizing that there is only so much that you can cut your expenses. And while the return on investment you can make is technically infinity, it is unlikely that you want to undertake that kind of risk, you know you can increase your income to bring in more money. If you have a school-age child, perhaps you can take on a part-time job 20 hours per week earning $10 per hour. In one year, you can make about $10,000 per year ($7,500 after taxes), $6,500 short of your goal that you needed.

Now let's combine all three strategies. Increase your return on investments, and you only need to save $14,500 total per year. Combine that with cutting expenses of $4,000, and you are now only $500 short of your goal. Mix in the $7,500 you can make with your part-time job, and you now have an extra $7,000 to play around with. Add back in that vacation? Cut down your work hours to 15 hours per week? Reduce your retirement risk? It's all up to you. Find the right balance of all three strategies. By utilizing all of them, you can tailor your desires with your needs to put hold on to more money and meet your savings goals.

In Real Life (IRL) - I have been out of the workforce for 4 years. Other than selling on eBay which nets me a few thousand per year, I haven't brought in a steady paycheck of any kind since early in 2007. In order to live on my husband's income, our first line of defense was to cut back on spending. When we had two good incomes, we had extra money flowing to go out to eat when we wanted or to go on a quick weekend jaunt somewhere fun. But when I stopped working, all of that changed as we had very little extra money above our expenses. But at that point in time, staying home with my baby was more important to me than eating out in a restaurant (as if I had time. Ha!). So in order to cover our expenses, we lowered them. We cut out restaurant meals. We cut out weekends away. We cut back on shopping.

And while I was always a good saver for the future, there is something about having a baby that makes you feel a huge responsibility. Will we have enough for her schooling? Who will care for her if something happens to us? Do we have enough money for the future? In that regard, we researched saving for college, I took out life insurance, and we increased our retirement savings. We also analyzed how much risk we were willing to undertake to meet these goals.

Then child number 2 and 3 came, and we suddenly had more expenses - preschools, activities, more health insurance and dental insurance, an addition to our house. Fortunately, my husband's salary increased, which covered some of our increasing expenses. We stuck to our budget and stayed with our investment strategies. But the expenses kept coming - car expenses, braces, higher college costs, Bat-Mitzvahs in our future. And at that point, we realized, we did not want to cut out any of our other expenses or take from savings to pay for these new ones.

We live as frugally as we want to. We don't want to cut out any more restaurant eating. We don't want to stop going to the beach every summer. And we are comfortable with our investments. We don't want more risk. We weathered the economic downturn a few years ago pretty well since we mixed in low-risk investments with our high-risk ones. Sure we may be able to make more on our investments, but not without more risk and sleepless nights that we are not willing to undertake. And with our children getting older and going to school for longer hours, it makes sense that at this point, increase our income is the best way to increase our savings account.

Last week I went on my first job interview since leaving my job four years ago. And I am starting work in two weeks just three miles from my home! I am excited that with my income, we will be able to cover the expenses we will have, while still maintaining the savings that we want to do and keep our investments at our desired risk level. At this point in time, increasing our income makes sense, along with our level of frugality and investment risk that we are comfortable with. It is the right balance for us. When our children were younger, fewer expenses and less income made sense. When I was younger and single more risky investments and higher income made sense. How do you maintain your lifestyle, keep your savings and be comfortable with your investment risk? What kind of balance is right for you at this stage of your life?

Be Content With What You Have

Tip #224 - Be Content With What You Have - Strive to be happy with the things you have. If you are not content with what you have, then you will spend money on things that you think will make you happy. Having the latest and greatest of anything - whether it be kitchen appliances, fashion, or electronics - will only cost you money. And wanting to have the latest will only set you up for a cycle of buying and discarding to upgrade your possessions every few months or years. Years ago, when families made a big purchase, the purchase was usually a thought-out, planned purchase. In addition, the things they bought were intended to last a long time. A kitchen appliance was bought to last a decade or more. The same could be said for a television or telephone. Today the life expectancy of a product is much shorter, and not just because it might not be built as well, but because the features on them are imporoved upon much more quickly.

It is these features or styles that many of us feel that we need to have. Last year's model isn't good enough for us. Black kitchen appliances? So 1990's. We need stainless to make us happy. A cell phone larger than our fist? How can we lug around such an outdated electronic? Two-year old car? We need one with the latest gizmos on it. This discontent with older models of items are costing us lots of money.

I find that the less you watch "Home and Garden" shows, the less you want a big, fancy home. The the less you watch t.v. about upscale families, the less you want the fancy cars and and expensive appliances. The less you read fashion magazines, then the less you think your things are shabby or out-of-date. The less you read electronics magazines, the less you want the latest t.v., GPS, IPhone, or other gizmo. Let's stop thinking about our purchases as short-term products, and let's learn to be content with older models or not the latest styles. Be content with a car that allows you to drive from point A to point B. After all, that is the function of the car, not the latest GPS unit inside. Be happy with classic styles; you don't need to look like you are walking down a Milan runway when you go out to dinner. Be content with a kitchen that has appliances that do their job. It is unlikely that you need professional-grade ones unless you are opening a restaurant. When we learn to be content with what we have, we will spend a lot less.

In Real Life (IRL) - I am not one to be on top of the latest fads. I am driving a 2002 car. I have white appliances in my house along with 50-year old cabinets and a laminate floor. My cell phone is two years old and cannot access the Internet or take any pictures. My clothes consist of jeans and pants and simple shirts. I am okay with all that. Do I ooh and aah when I see a home on t.v. with granite counter-tops? Sure I do. Does my husband dream of owning a car that has fold down seats and the latest tracking devices? You betcha! Do we talk about replacing our cell phones with a fancy Blackberry or Iphone. Of course, we do. But we will do those things when our current products are no longer working. We are happy that our cars are running, our appliance help us cook our meals, and we have a cell phone to use in emergencies. While all of the upgraded features would be nice to have, they just fulfill a temporary need for the latest and greatest and becomes out of date when the new "latest" comes along.

Our items generally get replaced when they wear out, not when we tire of them. So we learn to be content with what we have. Doing so keeps us from spending money needlessly on products we don't need. How about you? Are you happy with what you have? Or do you want to spend mony on the latest and greatest products?

Keep Your Vacations Cheap

Saving Money Tip #223 - Keep Your Vacations Cheap. A vacation is a chance to get away from your normal, everyday life. It could be visiting another town, pitching a tent in some nearby mountains, or staying at your parents' or friends' house for a week. It does not have to mean a 7-day guided tour of Paris, or a week-long Disney cruise, or a visit to an all-inclusive resort in the Caribbean. The latter three options are all expensive vacations options. And vacations need not be expensive. They just need to be "away" from your regular routine.

Transportation - if you own a car, then driving to your destination is often the cheapest means of getting there. This may not be true if you are only one or two people and there are fabulous specials on the airline or trains. Buses are also cheap options. However, the larger your brood, the cheaper it is to take the car.

Eating - having food in a new location is often different enough to make it fun. Having a picnic in the park, bringing your favorite meal to eat around a friend's table, or simply eating on paper is a great way to save money on vacation while still keeping it frugal and fun. Or, eating out in cheap, local places are great treats, especially when your normal routine is to eat in.

Activities - Free fun can be found almost anywhere. Watching people, observing scenery, taking hikes, exploring a new town on foot are all fun and free. While walking around your neighborhood for the 100th time can get old, walking through new-to-you ones is fun. Any change of pace from the normal routine is a fun activity.

When choosing your vacation, try something different. If you live in the city, visit the country. If you live in the country, go visit a big city. If you live near mountains, go to the beach. If you live near the coast, visit the mountains or the plains. If it's winter, drive somewhere warm. If it's summer, drive somewhere cooler. Explore a different region of the country. New England is picturesque to someone who has never been there. The midwest is unique to someone from a coastal city. The south is charming. The west is scenic, and the mountain states are beautiful. Just by visiting a place that is different that your home, you will enjoy new experiences that make it a vacation worth taking whether it costs a lot or not.

In Real Life (IRL) - I mentioned that we recently took a car-trip to Florida. We specifically picked Florida for a vacation because we have family living there, the climate is different than ours, and there are many free or cheap outdoor activities to take advantage of. So even though it is farther than we would have liked to travel by car, the other elements made the trip frugal and fun.

For us the fact that the temperature was 30 degrees or more warmer than where we traveled from was one of the best parts of the vacation. Just being able to play outside in moderate temperatures was a huge welcome change for us. For 9 days, the activities to entertain our family cost less than $75. Quite a bit less than 9 days at Disney World would have cost! And my children were entertained, educated, and challenged. Here is a rundown of what we did to entertain our family so cheaply:

Day 1: We took a long walk through Wakodahatchee, a nature preserve. While we were there, we saw several alligators, including baby alligators. We saw iguanas in the trees. We even saw a chameleon who had made himself blend in with a spotted tree - very neat! We also saw numerous, turtles, fish, and birds. Our children got exercise, observed nature, learned about tropical reptiles, birds, and fish, conversed with grandparents, and enjoyed tropical weather. Cost of our outing? Free! This nature preserve is a project of the city and open to everyone for no cost.

Day 2: Spent the day at nearby beach, Deerfield Beach. What more can I add? Sitting on the beach at the end of December, building sand castles, finding seashells, and playing in the water was just what our family wanted in a vacation. Cost of a day at the beach? $3.75 for parking meter.

Day 3: Drove down to Miami and Miami Beach. Spent the afternoon in "Little Havana" the Cuban section of the city and enjoyed traditional Cuban food at Versailles. Observed all of the lettering on buildings and signs in Spanish and absorbed the culture of the city. Drove through a car wash to clean the salt off our car - what a fun and entertaining experience! Afterwards, we walked up and down South Beach and played on a playground on the beach alongside children of many nationalities and cultures. Cost of our outing? $2.99 for the carwash, $4 for parking, and $6 for Cuban pasties. (Grandmother treated for Cuban food which would have cost about $30 otherwise)

Day 4: Spent the day at a local playground. It was not dissimilar from the one just blocks from our home. But this one wasn't covered in snow. Cost? Free

Day 5: Went to our local beach - Delray Beach. Other than playing in the ocean, we did the same activities as our other day at the beach. Cost? $3.75 for parking

Day 6: Went to the Gumbo Limbo nature center with both indoor and outdoor activities. We got to test our knowledge of tropical birds and flora and fauna. We climbed a 40-foot tower, saw tropical trees, watched turtles being fed, walked through a butterfly garden, and saw a replica Indian Chickee hut. Cost of our day? $10

Day 7: Went to The Girls, a "u-pick" hydronic strawberry patch where we picked strawberries, saw banana trees, watched giant turtles, talked to parrots, smiled at the swans and saw the miniature donkeys. We learned about hydroponics (growing plants using mineral nutrients in water, without soil.) and saw all kinds of neat things in the garden. Cost? $15 for the experience and 3 pounds of strawberries.

Day 8: Went to the most amazing playground I have ever seen (see picture above). This playground called Sugar Sand Park is the work of the city of Boca Raton. It is a HUGE maze of tunnels, slides, ramps, that reaches high in the sky. In addition there are swings, a sand box, a water feature, a carousel, and a science center. Children of all ages can be entertained here - you just need to keep a careful eye on them! Cost of the day? $3 (for three children to go on the carousel). The science center is $2 more per person, but we are saving that for another visit.

Day 9 - Went to a very nice Children's Museum called Schoolhouse Children's Museum in Boynton Beach. There we learned about life in turn of the century south Florida. My children got to experience running a farm, running a home, riding a train, being a postman, a doctor, a merchant and more. Afterwards, we got to play on another wonderful playground behind the museum. There was a steep slide that lands you right in a sandbox. Cost? $19

Nine days of wonderful entertainment, culture, learning, and experience all for less than $75!

This type of experience can be replicated in any town or city. Any good new-to-you experience is a vacation from the ordinary. It need not cost a lot to get away and have fun. For other ideas to save money, check out Frugal Fridays.

Take Baby Steps

Saving Money Tip #188 - Take Baby Steps To a Better Financial Future. In our quest to become millionaires or at least to get out of debt, it is often the case that we want to reach our goals yesterday. But that is just not possible. Getting out of debt, building up your savings, and learning about finances take time – lots of time. That’s why it’s important to set goals. When you have written goals and a plan, you can be realistic about how long it will take to pay off that $6,000 credit car bill or how long it will take to save $50,000 for a down payment for a house. Since most of us will not win the lottery to help us reach our financial goals, we need to learn how to achieve them slowly.

If you want to cut back your grocery bill by cooking more and eating out less then start out buying some prepared food from the grocery store or frozen meals that are costlier than cooking yourself but cheaper than a restaurant. When you’ve gotten used to eating at home, start trying to cook semi-homemade meals with ingredients that are a mix of convenience foods and basic ingredients. Then try cooking from scratch using just raw ingredients. Then you can look into cooking in bulk and freezing for future meals. You are not going to go from eating out 3 days a week to cooking from scratch in a week’s time. There is a learning curve to learning how to be able to cook your meals from scratch and to stop relying on restaurant meals. Take it slowly.

The same principle applies to saving money. You will not save $10,000 overnight. If you make $40,000 per year, set a goal to save $300 per month. After one year’s time, you will have $3,600 saved. After three years, you will have your $10,000 and then some. Building up your savings account will generally not be quick. Be patient.

If you want to start putting some of your savings in high-earning investments, then it is a good idea to learn about the different types of investments that are available and what its risks are. Investing in a “sure thing” or a “hot” stock is not a good idea unless you have done your research. Learn about the different investment types. Start out by learning why your money may not keep up with inflation if all of it is in a savings account at the bank. Then learn what a mutual fund is and how it can benefit you. Then move on to stocks and what the risks are with investing in them.

You will not become a millionaire overnight. You will not get out of debt overnight. You will not learn how to be a great stock picker overnight. But taking the time and having patience to cut back, learn, and put away money by starting out with baby steps and building up from there will get you where you want to go.

In Real Life (IRL) – I have always been one who looks toward the future. When I was young, if my dad gave me $20, I usually put it away in the bank to spend it sometime in the coming months or years rather than that day. I don’t know what makes me that way. I just am. I know for others it’s not so easy. However, this formula of taking baby steps really does work. I took baby steps building up my savings. I used to save my allowance. Then when I had a job at summer camps, or McDonalds or as office help, I always put away part of my paychecks for the future. When I got my first “real” job out of college, I started putting away a couple of hundred dollars per month toward a mutual fund. It wasn’t much. And I’m sure friends of mine spent the same amount of money on beer, or a car payment, or going out per month. But after 10 years, that little bit of money built up to thousands of dollars – enough to put a substantial down payment on a home in a nice neighborhood. Did I do something special to buy a home in a nice neighborhood? Did I inherit the wealth or suddenly come into money? No, it took years and years of savings to get to the point where I could afford one. As far as buying real estate, it wasn’t until I has bought my own home that I considered looking into buying a home for investment or vacation. I was able to build on what I had learned in the home-buying process that I was willing to take the risk and buy an investment property. Same thing with stocks. I was never comfortable buying stocks on my own, so I joined an investment club where the risks were less and I was able to learn more about stocks over a period of several years. Once I had that experience under my belt, I was comfortable enough to buy on my own.

As far as being able to live frugally, I am learning in that area all the time. Learning how to garden is a great way to cut down on expenses on food. But it takes time to learn that skill. We have started slowly on a home garden in our yard. And each year we’ve been adding to it. I can’t expect to be an experienced farmer overnight but we’re learning.

I know that most of us when we finally put our mind to something we want to make our changes instantly or reach our goals right now. But that is just not feasible. Taking baby steps is really the only way to reach your financial goals – whatever they may be.

Take A Vacation At Home

Saving Money Tip #145 - Take A Vacation At Home. One of the buzz words in the media this past year has been “staycation.” I know some people are sick of hearing it. But I am a big proponent of taking a vacation where you live. How many people only go to their city or town’s tourist attractions when they have guests visit them? And how many have gotten ready to move out of a town or city only to be sorry that you never got to visit such-and-such place?

If you are among these people, this year might be the chance for you to do some exploring in your own town. Get a guide book for the city or town you live in. If you belong to the American Automobile Association (AAA) or the Canadian Automobile Association (CAA) you can get travel books as part of your membership. Or check a tourist book out of the library. Or Google online the name of your town along with the word “tourism” and you will find websites that list attractions in your town or city. If you live in a small area, look for places up to two hours away from you. Two hours is a reasonable drive to do each way in one day. You are sure to find plenty of attractions within two hours of your house. By not paying hotel fare, you can splurge on things that you normally wouldn’t do on a given weekend. After all, this is your vacation. And even splurges near your house would be cheaper than a complete vacation.

Spend a few days doing vacation things – eating out, going to museums, swimming at water parks, hiking on trails, going to tourist attractions, and treating yourselves to vacation-type extras such as ice cream or fun souvenirs. By not paying travel expenses such as airfare, gasoline, or train or bus fare and by avoiding having to pay hotel costs, you can do a vacation at home for a fraction of the cost of one farther away. And you get the added benefit of sleeping in your own bed at night!

In Real Life (IRL) – Every Memorial Day Weekend, people up and down the East Coast flock to the seashore for a long vacation weekend. I love the shore, but I don’t like the crowds or traffic. And the expense of a holiday weekend doesn’t do much for me either. Instead of going away each Memorial Day Weekend, we stay in town and enjoy a relaxing, stress-free weekend. We treat ourselves like we are on a pseudo-vacation, doing fun activities with our family and treating ourselves to special things. Because I am a numbers geek, I like to figure out how much we spent on our holiday weekend.

Here is how weekend stacked up. Friday afternoon we set up the moon bounce (that I bought for $25 at a thrift store five years ago) in our backyard. We invited a friend over for a sleepover and set up our pop-up camper for the girls to spend the night in our yard. In the morning I treated everyone to Dunkin Donuts ($7). On Saturday, we drove to Maryland 30 miles away (estimate of gas cost $7) to a pick-your-own farm. We spent a couple of hours there picking strawberries for a total of 9 ½ pounds (cost $19) and sliding down some big slides on burlap bags that the farm has set up. In the afternoon, the younger children napped, while my husband and our oldest daughter took a bike ride to the festival they had in our town. They enjoyed some amusement rides (with a few complimentary tickets my husband had), some musical concerts, and games ($5). On Sunday, my husband and the girls biked back to the festival in the morning for more fun, while I watched the baby. They got some face painting done and enjoyed walking around looking at the different vendors ($5). In the afternoon we went to a friend’s house for a barbeque. We brought a few pounds of strawberries that we picked as well as some brownies that we made. On Monday I enjoyed a couple hours of solitude shopping at a sale day at a local thrift store ($10). That was my vacation! Then we spent the rest of the day at the festival. We bought a package of ride tickets for $20 and a bag of kettle corn for $5. In the evening I took our two daughters out for ice cream with some free birthday coupons we had for my younger daughter. We ate at home for our meals because we had lots of leftovers. For less than $80 we had a great, fun-filled weekend filled with rides, treats, fun, sleepovers, games, exercise, relaxation, and togetherness.

Had we gone anywhere for our vacation, the gas alone probably would have cost $80, not to mention the hotels, the meals out, and the other entertainment. Instead we had a wonderful weekend full of fun for a fraction of the price and without the stress of driving or crowds. Check out your town or nearby communities and find out where you can take you next vacation.

Check Out The Library

Tip #140 - Check Out The Library. We all know that the library is great for checking out books. You can save hundreds if not thousands of dollars by borrowing books from the library rather than buying them from a bookstore. But the library has become so much more than a place for borrowing books.

--It is a place where you can borrow movies - Most libraries have an extensive DVD or VHS collection, potentially saving you quite a bit of money on rental fees or movie subscriptions.

--It is a place for lectures – At least twice a month there are talks at our library ranging from gardening, to travel, to actual books. The topics are varied and would attract a wide range of people.

--It is a place of book clubs – There are adult book clubs and children’s book clubs. Once a month the group gathers to discuss a book that they have all read. And then they choose another book for the following month.

--It is a place for kids’ story times – About once per week there is a story time in the library for young children. The librarian reads a few books to them and then they often do a related craft afterwards.

--It is a place for entertainment – In addition to story times; there are puppet shows, musical performances, and magicians for kids’ to do about once per month at the library. Sometimes there are even adult entertainment events.

--It is a place for meeting space – Have a Moms’ Club, garden club, investment club or something similar. You can sign up for space at the library and meet there.

--It is a place for using the computer – Libraries often have computers on the floor for use by patrons. There may be one or two or there may be dozens. Usually, there is a set amount of time you can use the computer but sometimes if no one is available you can use it for longer. It usually has Internet connection. Also, many computers offer WiFi if you have a laptop and want wireless connection.

--It is a place for summer reading programs – Most libraries have a summer reading program to encourage children outside of school. Many have a set number of books a child is to read, and when he is done he gets a coupon book for free ice cream, pizza, watermarks or many other local activities or products that businesses have been generous to donate.

--It is a place for learning – Surely all the research you want to do is available at the library – whether it’s from books, microfiche, microfilm, the Internet or other sources, you can learn a lot from the library.

You are already paying taxes to keep your libraries afloat. Why not take advantage of all that they have to offer? While there is a cost associated with libraries, it is through taxes and contributions so most events and resources are offered to the community at no cost. Instead of paying to go to a concert, why not check out the one at the library? Instead of taking your child to an expensive class, why not check out the library’s weekly story times? Instead of browsing Barnes & Noble, why not browse the library instead? There are a great number of activities to keep you and your family entertained at no additional cost to you. Check it out.

In Real Life (IRL) – I’ve always been a big fan of libraries even when it wasn’t cool. I think it’s cool now that we’re in a recession. I don’t know. Either way, I love libraries. I love to read and enjoy the quiet and the atmosphere of the library. I spent lots of time there – alone or with my children. If I added up the amount of benefits I got from that place, I would probably be amazed. We used to go once a week for story time or an entertainment event of some sort. Now that my children are older and in school (except for my youngest who won’t sit still for story time), we usually go once a week to look at books and check some out.

Last week my older child went with a friend and her mom for a lecture about backyard birds. It was held in the evening and included a nature walk on the libraries beautiful grounds. They have also done PJ’s and books evenings where they wear pajamas and listen to bedtime stories. They’ve had PJs and movie nights also. When my oldest turns 9 she is eligible to join the children’s book club – what a great group to get involved in! My children always do the summer reading programs and often enjoy the fruits of their labor all summer long – free ice cream, discounts at the water park, a free book, etc.

But the one activity that blows me away that my library system offers is a Murder Mystery Night Series. About 4 times per year, librarian staff offer a Murder Mystery Night where they come in costume and in character from a Murder Mystery Play. The attendees mingle with the actors (librarians) trying to figure out clues to solve the mystery. There are two rounds to the evening, along with time to get with your team to try to solve the mystery. Refreshments are served and decorations in the story’s theme adorn the library. The evening lasts 3 hours. Cost for the show to guests? $O! The cost is covered by Friends of the Library. The program is so much fun and is a great evening out for this Stay-At-Home Mom. I love mysteries and enjoy spending time with fellow mystery lovers as well as a friend or two.

Now I know that not every library offers this event or every event listed here, but there usually are a plethora of educational and entertaining events available at most libraries. Check out the schedule for the next month or two and see what fun things you can find. These events fit into everyone’s budget!

Keep Parties Warm And Meaningful (And Cheap, Too!)

Saving Money Tip #135 - Keep Parties Warm And Meaningful (And Cheap, Too!) In today’s busy day and age with on-the go coffee, take-away meals, and portable offices, it seems like parties have become packaged like a fast-food dinner also. Pay someone a couple hundred dollars and they will do the work for you – a magician hired to entertain a group of partygoers, a restaurant package lunch party where guests go to eat and then leave, or a gymnastics event where children are herded in like cattle, do a few moves, are fed a piece of cake, and are ushered out before the next group of children arrive. What ever happened to the days where parties were actually occasions when people got together to socialize and celebrate in a simple, personalized atmosphere?

With families earning two incomes, and everyone seemingly in a rush these days, it seems that the idea of a party has changed from a nice time to get together and hang out to an event where some people try to find a way to dazzle their guests with entertainment or impersonal activities. By succumbing to this type of party, people end up spending hundreds of dollars to entertain, and the event often falls flat compared to a warm, well-thought out party thrown by the hostess.

Why not bring the parties back home? If you want to celebrate a girlfriend’s upcoming nuptials, then instead of a fancy luncheon in an impersonal hotel, hold a tea with sandwiches in your home and plan simple activities to honor the bride, such as sharing recipes with her, giving warm advice on married life, and simply sitting on a well-worn couch and talking. In ten years, the bride won’t remember what she ate at a fancy hotel luncheon, but she will remember sitting among friends and family listening to great aunt Ethel tell how she and her husband lived happily for over 50 years of marriage.

If your son is turning 5, don’t be tempted to pay the local pizza and laser tag parlor two hundred dollars to entertain your son’s whole first-grade class, instead invite a few close friends over for lunch, and make up your own activities. Plan a treasure hunt or a dinosaur dig in the backyard. Your child will remember helping mom and dad hide dinosaur bones in his backyard more than he will a laser tag day where several of his classmates held parties as well.

The advantage of holding a warm, personal, at-home party, in addition to them being meaningful to guests and hostess, is that they are usually at least half the cost of a pre-planned package party. A simple brunch in your home served on grandma’s fine dishes will cost a fraction of a fancy brunch at the city’s nicest hotel. A day of playing pin-the-tail on the donkey, having sack races, and eating ice cream in the backyard will cost pennies compared to the amount a packaged kids’ party at the local tumble and play place costs. Not only will it be cheaper, but the memories the guest of honor has from her special day will not be blended in with all of the other packaged-to-go parties that are the norm these days.

In Real Life – I am a big fan of parties at home, which I have mentioned in the past. I am constantly looking for ways to put a personal stamp on things, and it’s even better when it saves me money in the process. My just-turned 4-year old daughter was counting the days until her birthday for about 3 months, or at least asking how many more days until the big day. When it came time to plan the birthday party, I opted to invite some special friends over our home for fun games and dinner, instead of inviting her whole preschool class to a local gym or Chuck E. Cheese.

Without berating my friend for her choice of having her daughter’s party at an outside venue, I want to compare costs of a packaged party outside the home and an at-home party and also figure out whether the professional one was any more enjoyable. My friend held her daughter’s party at a gymnastics center three weeks ago. The cost was $140 for up to 10 children, which included using the gym led by an instructor for 1 hour, and using the gym’s tables in the entranceway for cake and snacks for 30 minutes. The instructor led the children through tumbles, balance beam activities, and a few other gymnastics moves for about 30 minutes, and then the children were free to jump on the trampoline or do other things until the hour was up. Afterwards, the mom put out a store-bought cake ($20) and ice cream sandwiches ($5), some snacks and juice boxes (about $10) and handed out goody bags (about $15). She set up and cleared the things herself and also served the food herself. The total cost of the 1 ½-hour party for the 8 children, including the birthday girl was $190 or $23.75 per guest plus the cost of paper goods and invitations.

We did a party a couple of weeks later for my younger daughter in our home. My daughter, along with nearly every other 3 and 4-year old girl, loves princesses. So we did a princess-themed party. She invited 7 girls plus her big sister and another guest’s big sister, for 10 children total. The party lasted 2 hours and included dinner from our favorite mom-and-pop-owned, local pizza place. During those 2 hours, the girls dressed up as princesses with dresses, wands, crowns and shoes from our dress-up collection ($0), made a craft of jeweled bracelets ($11), ate dinner including pizza, fruit, and juice ($27), played a homemade game of pin the princess in the castle ($0), made ice cream sundaes ($10), ate homemade cupcakes ($2) and played in our backyard until it was time to go home ($0). Goody bags were an additional $10. The total cost of the 2-hour party for 10 children was $60 or $6 per guest plus the cost of paper goods (I used leftover princess ones from my older daughter’s party) and invitations.

And while I may be biased, I think my daughter’s party was a lot more fun than my friend's for less than 1/3 of the price. Not to mention that it lasted longer, included dinner, and served more guests. We didn't have a minimum number of guests we had to pay for - whether they showed up or not. Plus we were able to be more flexible - one guest had to be dropped off early, while another stayed late. No one got ushered out the door, while the next birthday group showed up. The birthday girl’s baby brother was able to nap in his crib during the party. If the girls got bored, I could have found another game from our house to fill the time. But frankly, dressing up, doing crafts, and playing in the backyard was the most fun for these girls who really just like playing together without too much formal instruction. Fun and frugal plus pizza and ice cream sundaes. Can’t beat that. For more Frugal Friday tips, check out Life As Mom.

Change The Attitude

Saving Money Tip #125 - Change The Attitude. It seems that many of us have come to expect things in life that we had when we were younger or that others seem to have today. If we have this attitude, then we think we can buy whatever we want, take whatever trips we are used to going on, and drive any type of car we think we need. But changing this “entitlement” attitude will go a long way to putting more money in our pockets. Just because we had things in the past, does not mean we deserve to have them now or in the future. As times change or circumstances change we have to change our spending habits, too.

I have seen some people who have an attitude that they deserve certain things because they work very hard. “I deserve this new car because I kill myself every day at the office.” I know other people who think because everyone else is going on a trip to DisneyWorld means that they need to be going, too, even if they do not have the money or if the husband has recently lost his job. And I have friends who insist that they cannot lower their standard of living because it is beneath them. If they grew up in a big, modern home, then they are entitled to a big, modern home now, regardless of the circumstances.

Where did people get this attitude? And can they change it? I think so. I think most of us just need to realize that we don’t deserve anything just because we had it before, because we work hard, because we want it, or because everyone else has it. Our attitude needs to become, “this is what I can afford, so this is what I will buy.” Period. What others are doing, what we used to do, what we want, and how hard we work is inconsequential. Trust me when I say that having an attitude of buying only what you can afford will go a long way in having money saved up so you can do or have those other things you used to think you deserved.

I’m not saying that everyone has this entitlement attitude, but I think enough people do that they were going into debt buying things they couldn’t afford, helping to lead to the current credit crisis. If you think you are guilty of thinking you deserve more, can you change your attitude?

In Real Life (IRL) - Growing up, I lived in a brand new 4-bedroom 2,500 square foot colonial home in suburban Philadelphia. Relative to the rest of the town I lived in, it was on the nicer, larger side. My parents were about 33 or 34 years old when they bought the house. They paid $42,000 for it at a time when my dad’s salary was probably about three-quarters of that. When my husband and I went to buy our first home, I was also 33. However, times had changed. Real estate had gone up quite a bit, and we were looking in the Washington, DC area, which is a bit pricier than Philadelphia. We ended up buying a 3-bedroom 50-year old 1,800 square foot ranch house – a far cry from the home I grew up in. And it cost more than twice as much as my husband and I were making combined.

My sister kept telling me, “I can’t believe you are buying such a small house.” But it really didn’t bother me that much. I actually liked the idea of a cozy, older home. But more importantly, I did not have an entitlement attitude, that I deserved a big 4-bedroom colonial because that is what I grew up in. This is the way things are now. Real estate is more expensive relative to our incomes. And DC is more expensive than Philadelphia. And of course, most importantly, this is what we could afford. Period.

I have a fair amount of money saved in the bank. I am pretty comfortable with our financial position even with the economic crisis around me. It’s not because I come from a fabulously wealthy family or because I have or ever had a superpower job. The truth is, I do not and did not ever have an attitude that I deserved anything. I buy only what I can afford, without overextending myself and so that a portion of our income always goes into savings as well. I do not have an attitude of entitlement. And because of this I am satisfied with where I am and with what I have. If others changed their attitudes, they could improve their financial positions and I think this would lead them to being happier, too. For other frugal tips, check out Frugal Fridays at Life As Mom.

Consider The Alternatives

Tip #54 - Consider The Alternatives. We are given so many choices these days. If you go to the store to buy cold medicine, there are about 15 different varieties to buy. If you want to buy soda, there are about 8 different choices just for one brand. Have you bought bread recently? There must be at least 10 varieties of that, too! We are making decisions all of the time for the simplest purchase. Would I like the white with a bit of wheat? The whole wheat? The light wheat? Do I want soda with 1 calorie with caffeine or soda with calories and no caffeine? Do I want to buy the non-drowsy medicine that will help my aches or one that will put me to sleep and help my stuffiness?

Our brains are now wired to put lots of thought into every purchase we buy. Why not put that wiring of our brains to our advantage and use it to save money? Let's consider each purchase we make as if it's cold medicine and consider the alternatives. Some alternatives will be great and will save you lots of money, while other alternatives will leave you wishing you didn't have to save money. But you won't know which are the good ones until you consider them. Here are some ideas:

--If you usually take a trip to the seashore every summer, why not consider a trip to the mountains with a lake?

--If you eat out pizza every Friday night, why not make the pizza yourself?

--If you usually drive to work by yourself, why not try doing a carpool or taking a bus?

--If you usually go the movies every Saturday night, why not consider renting one or even better trading with friends or borrowing from the library?

--If you usually set your thermostat at 70 in the winter, why not try lowering it to 68 and putting on a sweater and using warm blankets?

--If you usually join a swim club, why not consider going to a county pool?

--If you usually do a getaway to the Carribbean every winter to escape the cold, why not go to the Southern part of the US instead?

--If you usually buy your lunch at work, why not bring your meal?

--If you usually drive your kids to school, why not try walking them there instead?

--If you usually use expensive shampoo, why not try switching to a no-name brand?

--If you go on vacation every summer, why not try going in the fall or spring instead?

--If you use a towel only once after a shower, why not try using it twice?

--If you usually put your dog in a kennel, why not consider asking your neighbors to watch her instead?

These are just several areas I came up with where there are alternatives to consider when spending your money. Some of these you would probably never do to begin with, and others you would never consider doing the alternative. Everyone has to figure out for themselves what they are willing to do to cut down on spending. But remember, there are almost always alternatives out there. There are often cheaper ways of doing things. Before you spend money, think about how you can accomplish what you want to do using a cheaper method.

In Real Life (IRL) - I seem to always look for a cheap way to do things. I borrow books at the library instead of buying. I buy used clothes for my children instead of new, and I eat in rather than eat out. I try to get the most for the money I do spend. So anytime I make a purchase, I try to consider how I can get the same satisfaction for less money. If I can't get the same satisfaction, then I stick with my original plan. I'll give some examples of alternatives I have tried in an effort to save money. Some worked, while others did not.

--My husband loves the Outer Banks, which is a beach in North Carolina. Since he moved away from North Carolina when he married me, I figured the least I could do is keep him happy with occasional beach weekends in his favorite state. Last summer he said we should plan to take the kids and show them his favorite seashore. But when I looked at the prices -about $150 per night for a basic hotel - I told him it wasn't in our budget. But he threw it back at me that we visit my favorite beach resort with my family ever summer in New Jersey, the least we could do is visit his as well. And he had a point.

So I thought about it and remembered that my daughter's school has a two-day break in early November. And the North Carolina beaches usually still have pretty warm weather that time of year. So I check the prices for the same hotel in early November - $65 per night! Best of all, we could cancel the reservation up to the day of arrival, if the weather was bad. It turned out that it was in the low 60s and sunny for the whole weekend. We had a great trip for about 1/3 of the price of the summer. This was a great alternative!

--We keep our heat on 70 degrees in our house in the winter. Our house is old, so it heats unevenly - with some rooms being warm and toasty and others being quiet cold. But of course I had to try the alternative that every money-saving article suggests - lower the thermostat a degree or two to save on our heating bill. And I did it. And I hated it. Then I tried it a few weeks later and I hated it again. Then I tried the following year and I hated it a third time. I really just hate being cold. So to me, this alternative was a flop, but for some people, it's worth a try.

--When we go away, we used to put our dog in the kennel. It cost about $20 per night. Unfortunately, the kennel is closed on Sundays. And because we would often leave on Saturday and come back on Sunday, we would have to keep the dog in the kennel until Monday morning. So for a weekend trip we were paying about $40. Sometimes we would even have to put the dog in on Friday, since the kennel is quite a distance from our house and we often needed to get an early start on Saturday. Those times the cost was $60 for the weekend! We did this for about 5 years when my husband decided that our dog was getting too old for the kennel. So he asked our teenage neighbor if he'd like to earn $10 bucks a day walking our dog and feeding her. This boy and his sister and brother loved our dog because they didn't have one of their own. They are also very nice, responsible kids. The boy jumped at the chance, and we haven't looked back. Instead of paying $40 or $60 for a weekend trip, we pay $20. Plus the dog gets to stay in the comfort of our house, and our neighbor makes some nice side money. It's a win-win situation. This was a great alternative for us!

--I usually am happy with store-brand foods. I don't think I have very discriminating tastes. I can't tell the difference between low-fat and regular cream cheese or Philadelphia brand and the store brand. Although my mom swears the Philadelphia brand tastes much better. But I'm happy with the cheaper store brand cream cheese. So one day when I was out of ketchup and we needed some, I bought the store-brand in an effort to save money. And try as I might, I could not get used to the stuff. I realize now that I have a taste for Heinz ketchup and only Heinz ketchup. So, now I to stock up on Heinz when it goes on sale. Because I will just not buy any other brand even if it saves me money. Store-brand ketchup was not a good alternative for me.

--One last example. When I was single and living in an apartment in the suburbs, there was a free bus from the complex that drove us downtown where I worked. This was a great alternative to paying about $2 per trip on public transportation to get downtown. There were two problems with this bus - it got me downtown about an hour before I needed to be there and it dropped me off in the business district. And my office was not in the business district - it was about 10 blocks (or one Metro stop) away. I could have hopped on the Metro and spent $1.10 to travel that one stop. But instead I made the 10- or 15-minute walk every morning to save the money. After all, I had the time and I was young. This was a great alternative for me. I got free transportation to work - practically unheard of. Plus I got exercise and a close-up look at our nation's capital. I appreciate those days so much now because I don't work in the city anymore and I don't get downtown very often. I'm happy I did it back then when I had the opportunity and I saved money while I was at it!

So there you have it, money-saving alternatives that have saved us money and those that didn't work for us. What alternatives can you try to save money?

Bring Your Own Lunch

Tip #50 - Bring Your Own Lunch. This tip goes along with eating at home instead eating out. But I thought it deserved its own entry since some people don't consider buying lunch in the work cafeteria or in the school lunchroom "eating out." Heck, I don't blame them; the food is not exactly gourmet. So why waste money buying food in a school or work cafeteria when you can eat more cheaply and nutriciously bringing your own lunch? Because it takes more time. It does.

Let's face it, it's a pain to make a lunch every morning when you are trying to get ready for work or get the kids ready for school. It's so much easier to put a few bills in your pocket and worry about it later. Or nowadays, the schools have electronic lunch accounts so you keep a balance at school and your child just needs to key in a code. Easy! And when the money runs out, you can replenish the account with your credit card and for a small fee, of course. Instead of falling into this easy trap of buying lunches at work or school, how about if it were easier to make lunch? Then we'd be more likely to take it.

On Sunday evenings or whatever day works for you, decide what you will make for five lunches for during the week. Let's assume you are doing this for one child. You want to give them some variety - so try not to make the same lunch for more than 2 or at most 3 days. Possibilities include peanut butter and jelly sandwiches, lunch meat or cheese sandwiches or wraps, yogurt, hummus and pita, hard-boiled eggs or egg salad. We can make lunches for the week in 5 easy steps.

1. Assuming it's Sunday, then try to make as many preparations as possible for the upcoming week. Peanut butter and jelly sandwiches freeze very well. So make a couple of sandwiches - put them in a plastic container (or plastic storage bag) and throw them in the freezer. These are two lunches for later in the week (Wednesday and Friday) that you don't have to worry about. Boil an egg and put it in a container in the fridge. This will be lunch for Tuesday. Make a lunch meat sandwich for Monday. Then you can give yogurt for lunch on Thursday. This offers a nice variety and is very easy to do in about 30 minutes' time on a Sunday night.

2. For sides that go along with the main lunch, you can package them up and throw them in the freezer as you make them. If you are making banana bread during the week, cut up five pieces and put them in five small containers (or plastic storage bags) for lunchtime meals over the next two weeks. Again, try to offer variety so your child isn't eating banana bread every day. Two or three days during the week should be the maximum. Do the same for muffins or cookies. All of these items freeze well. Try to have about 10 items in the freezer in small containers for lunch for the upcoming two weeks. Tailor this to how often you bake. If you bake a few different items every week, then you can do this weekly and have five items in the freezer at all times. If you bake monthly, then you can put in a month's worth of individually-wrapped bread items for lunches.

3. You probably want to pack another side for lunch in addition to the main lunch and a bread item. Yogurt or a piece of cheese are healthy side items on days when they are not the main entree. Depending on how much your child will eat, yogurt may need to be packaged in smaller containers than the 6 or 8 ounce containers they come in. I try not to do this more than two days in advance. Or you can use yogurt tubes (which may cost more and has more packaging). Same thing for cheese, don't prepackage those more than two days in advance because it may get hard. Or use pre-packaged cheese such as string cheese.

4. The next item should be a fruit or vegetable. Some fruits don't do well when cut in advance. Others do. The ones that do not do well should be reserved for the next morning (Monday). On Sunday you can wash grapes or grape tomatoes and pre-package them in two individual containers for later in the week (say Tuesday and Thursday). Some melons also do okay pre-cut for a few days. Apples, not so much. You can probably cut one up the night before and put some lemon juice or orange juice on it to stop it from getting brown. Or you can include a small apple that doesn't need to be cut. Again, this would be good item for Monday. Bananas can be thrown in the lunch box as is on Wednesday and Friday. Again, try for variety, an apple one day, a banana two days and grapes or grape tomatoes the other two days.

5. Fill up a container with water, juice or other beverage. On the evening before work or school or even the morning of, you can pull out all of the pre-packaged items and throw them in your lunch box. Even if you put them in your lunch container in the morning, items that were in the freezer will thaw by lunchtime.

And there it is, lunchtime made easy. We'll talk about cost savings in the IRL section.

In Real Life (IRL) - My daughter brings her lunch almost every day to school. Being the frugal person that I am, I figured out that her lunch costs us about $1 or so per day to make versus $2.40 to buy at school. We save at least $1 per day when she brings instead of buying. She does buy when they have macaroni and cheese or grilled cheese, which is usually about twice per month.

These are the options I usually send her for lunch:

Yogurt (45 cents)
String Cheese (20 cents)
Crackers (10 cents) or a homemade soft pretzel (15 cents)
Banana (20 cents)
Water (Free) or Fruit Juice (15 cents)

Peanut Butter and Jelly Sandwich (50 cents)
String Cheese (20 cents)
Grapes (20 cents)
Homemade Cookies (20 cents)
Water (Free) or Fruit Juice (15 cents)

Egg Salad (20 cents) or Hard-Boiled Egg (15 cents)
String Cheese (20 cents)
Peanut Butter Crackers (15 cents)
Small Apple (40 cents)
Water (Free) or Fruit Juice (15 cents)

Hummus (30 cents)
Pita (30 cents)
Grape Tomatoes (20 cents)
Baby Carrots (10 cents)
Banana Bread or Homemade Muffin (15 cents)
Water (Free) or Fruit Juice (15 cents)

Mini Bagel (25 cents)

Cream Cheese (15 cents)

Banana Bread (15 cents)

Fruit cocktail (20 cents)

1/2 Yogurt (25 cents)

Water (Free) or Fruit Juice (15 cents)

Of course this assumes I buy things at the best price possible. String cheese is 20 cents per string only if I buy it at Costco. Same thing for peanut butter crackers. Yogurt is 45 cents at Costco or sometimes I get it for 40 cents if they are having a good sale at Safeway or Giant. I buy Apples when they are 99 cents a pound, crackers when they are on sale for a certain price, etc. Hummus and pita I buy at Trader Joe's. If I started buying things that aren't on sale or more convenience foods, then the price would go up, obviously. These are the items I generally stick with. In the springtime, I will buy fruits that are in season trying to get fruits that are on sale for 99 cents per pound. And I do mix these items around. I generally try to have a main item, a fruit, a cheese and one other thing like a muffin.

Over the course of a year, I figure we save about $200 by doing lunch this way. And I think she eats healthier options. When all three of my children are in school, we will be saving even more money by having them bring their lunches instead of buying.

Looking Ahead to 2009

There is an article on Verizon's website that nicely summarizes what I've been writing on this blog over the past few months. It talks about being frugal in 2009 as well as other ideas for saving money. If you get a moment, read what it has to say.

Being Frugal Without Being Cheap

Tip #43 - How to Be Frugal Without Being Cheap. Being frugal is different than being cheap. Being frugal is not going to restaurants because you are trying to save money. Being cheap is going to restaurants and not leaving a tip even though you got good service. Being frugal is giving a special birthday gift that you bought with coupons for a great price. Being cheap is giving a birthday gift from the dollar store when you can afford more. Being frugal is going to a party and giving a present that you can afford so you can enjoy in the celebration. Being cheap is going to a party so you can eat dinner there for free. You get the point. There is frugal and there is cheap. There is nothing wrong with being frugal. Cheap...well that's another story.

It's okay to try to save money. It's okay to cut back on eating out, to not buy drinks when you do eat out, to skip souvenirs when you travel, to give a birthday present that you bought on a great sale. It's not okay to try to stiff your eating companions with the bill or to eat out at a fancy restaurant at dinner time and share one appetizer. It's not acceptable to give your parents a dollar store present for their 50th wedding anniversary when you have $50,000 in the bank. It's not okay to chip in $10 for an office wedding gift when everyone else is chipping in $20 (unless you really cannot afford it).

There are times when you do just have to go along with the crowd. And if you don't have the money to do it, then you shouldn't be there.

In Real Life (IRL) - I am frugal. I try not to be cheap. I try to save money. I have shared with you many ways that I do that. I buy my children's birthday gifts on sale. I get them things at yard sales. But if someone comes to my daughter's birthday party and gives a $25 gift card, I cannot give them a $5 t-shirt that I bought on sale. I think that is cheap because I can afford to give a $25 gift. If you cannot afford $25 then I do not think it is cheap.

This week my daughter's class was collecting money for a Christmas present for the teacher. My daughter was sick and I never made it to school to put in any money. So I called the woman in charge and she told me that they gave $100 and signed the whole class's name to it so I shouldn't worry. I asked if she collected the full $100 or if she needed more money. She said they collected $100. Well, I could have gotten away with not giving my daughter's teacher a Christmas gift. After all, she'd never know since the whole class's name was signed to the group gift. But to me, that is cheap. So I gave her a separate monetary gift that I would have donated to the group gift and told her I wasn't able to contribute to the group gift. So it wasn't frugal, but it wasn't cheap either. Merry Christmas. Happy Hanukkah. Happy Kwaanza, and Happy Holidays.

Practice Moderate Frugality

Tip #38 - Practice Moderate Frugality. I think there is such a thing as being too frugal. There are millionaires who never buy themselves a new pair of pants. There are families who have created wealth who refuse to eat out - ever. There are people who try to save money and elimate everything. I don't think this is a wise way to practice frugality.

For those people who are trying to save money, cutting out your daily cup of coffee at your favorite coffee shop is very smart. At up to $3 per cup, you may be spending $90 per month on coffee. But cutting it out all together may mean that you can't keep up with your frugal lifestyle. It may be too much of a drastic change for you. How about becoming moderately frugal? Why not allow yourself a weekly cup of coffee at your coffee shop? Instead of spending $90 per month for your favorite java, you will be spending $12 per month. It's still a big savings, and you can still enjoy what you like. It becomes a treat, though, and not an everyday need.

For families who have already adopted a frugal lifestyle and have saved a lot of money, but still deny everything, I think you are going too far, especially if you have children. I am not one for keeping up with the Joneses, but I do think we can keep up with the Smiths. The Smiths are not overspenders. They don't belong to a country club that they cannot afford. They don't buy the latest designer labels. And they don't have their kids buy school lunches every day. But the Smiths are smart. They make wise financial choices and get good value for their money. They join the affordable swim club. They allow their children to buy one pair of designer jeans per school year. They allow their kids to buy school lunches once a week. They don't always take the cheapest choice, but they don't have to. They have saved and spent wisely in the past. It is okay for them to enjoy some of life's treats. Parents who have some money saved but deny their children from ever buying a school lunch or from ever wearing an expensive article of clothing have set their children up to become exactly opposite of them when they grow up. They may become people who buy everything in sight because they were denied so much as children, even though their parents could afford it.

And as for the millionaires who won't allow themselves to buy a new pair of pants. I say, what are you waiting for? It's okay to live frugally. That's probably how you became a millionaire. But you should live a little, too. Or your inheritors will do it for you.

In Real Life (IRL) - There was a woman I knew in college who was never allowed to eat sweetened cereal or Pop Tarts. Ever. They were denied in her household. It probably had more to do with the nutritional value of the items rather than the cost, but the concept is the same. When she was on her own in college, she went crazy every morning in the cafeteria for breakfast. She ate sugared cereal every day. When they had Pop Tarts, she would eat four at a time. "We were never allowed to eat these at home," she would say. Because she was denied them completely when she was younger, they became forbidden fruit to her and she had to have them when she was allowed to. I think the same thing can happen when you completely deny anything - no t.v., no candy, no designer clothes. I truly believe that being moderate when it comes to frugality is best. Of course, I'm not saying that you should buy your children a $50 pair of jeans if you can't afford to buy groceries. I'm just suggesting that when you cut back your lifestyle you should leave a little wiggle room in there for treats.

I know another family who were very frugal. They were my friend's family. Everything was budgeted out. They had a school clothes budget. Every year, they did their school clothes shopping and only spent the exact amount that was in their budget. If they bought something extra over budget, they had to decide what to return. They carpooled with neighbors to events. The agreement was that the person who drove would provide snack for all of the kids that week. Every other family would stop for ice cream. When it was my friend's family's turn, they would bring in a bag of pretzels for everyone. Ouch. I'm sure my friend was embarrassed. I'm not necessarily advocating that they should have bought the ice cream if they couldn't afford it or if it wasn't in their budget. But this family became known as being very cheap. If they couldn't keep up with the Smiths, then I think they should have gotten out of the carpool situation. Everything this family did was planned, written down, and organized. Play dates always started at 1:00 after lunch. Vacations were always for two weeks via a drive somewhere. Programming of the VCR was always done precisely.

I admire that this family had a budget. I know they lived within their means while still doing fun activities. But they went too far. They had to always be exact. They were never spontaneous. They never gave in. And you know what? When their daughters grew up, they both moved away - far away from their parents. They weren't moderate in their frugality and I think it affected their children.

My mother always said, "Everything in moderation." And I believe when you practice frugality, it applies, too.

Frugal Isn't Always Frugal

Tip #30 - Sometimes Being Frugal Isn't Frugal. We all know the saying "Better an ounce of prevention than a pound of cure." Well, that is true in the frugal world, too. Sometimes you have to pay money today to save money down the road. To relate to the original quote would be flu shots. They cost about $25 or so. Someone might think it's frugal to skip the shot and save $25. But if the shot saves you from having the flu down the road, you are saving the cost of a doctor's visit, the cost of medicine, the cost of being sick, out of work, etc. by putting out $25 at first. Now, I know not everyone believes in flu shots, this is just an example. It's not frugal if you will have further costs down the road.

Suppose you try to save money by not changing the oil in your car. You save $14.95 by not changing the oil. But then your car's engine breaks because it has been using old oil and you have to buy a new engine. Well there goes a couple of hundred dollars. Being frugal and saving $14.95 wasn't really frugal. So, the main point here is to think about what you are doing to be frugal and whether is will really be worth it in the long run. Sometimes it isn't.

In Real Life (IRL) - I bought some thank you cards for my daughter's birthday party at a thrift store. They were only 50 cents! I was excited because they matched the theme of the party and they cost very little. After the party, my daughter started writing them out. We try to do a few per day. She did three the first day and I mailed them out. The next day we got them back in the mail with a request for more postage. Apparently square envelopes cost more - 20 cents more! - to mail than regular envelopes. Since there are 10 girls we need to send notes to, that will cost us an extra $2.00! Not so frugal after all. Luckily since my daughter didn't finish writing them out, we are going to save them for notes that we don't have to mail and use different cards that we have. Here I was trying to be frugal. I think I know why they were at the thrift store!

Buy Fewer Disposables

#12 Saving Money Tip – Buy Fewer Disposables. This country has gotten disposable crazy. Everything is disposable – diapers, plates, cups, bathroom cleaners, mops, rags. and food wrap. Not only is it bad (VERY BAD) for the environment, it is expensive (VERY EXPENSIVE). It is a bad habit to buy disposable products. Yes, it’s quick and yes it’s easy, but it’s expensive. Did I mention disposables are expensive? I am not going to do a cost analysis of each product because it’s been done hundreds of times other places. Suffice it to say when you use products one time and throw them away, the cost is high. Products that can be used over and over again save money in the long run.

It pays to invest in some cloth rags or even better to use washcloths or old clothing that has torn. They can be used to wipe down the kitchen table, to clean the floor, wipe down the bathrooms, for dusting, etc. These can be thrown in with your regular towel load in the washing machine.

Paper products for meals are another area where costs add up. Using paper cups, plates and napkins can take a nice chunk of change from your pocket. Most people already own glasses and plates. Use those instead and throw them in the dishwasher when you’re done. You’ll still come out ahead in cost. Many people do not own cloth napkins. But this is another area where people can save money. The initial cost of buying cloth napkins or making them yourself will more than make up for the cost of paper ones over the long run. Again, you can throw them in with your towels that you are washing.

If you have a baby, try cloth diapers. They take a change in attitude, but the savings are significant especially if you have more than one child. The initial outlay costs vary depending on how expensive of a diaper you buy. But once they are bought the cost of washing them in your washing machine is small compared to the cost of buying disposables each week at the store.

Lastly, let’s talk about cleaners. I’m thinking of those mops, dusters, and toilet cleaners that are one-time-use products. These are expensive! I don’t know the cost because I don’t buy them. But any plastic gadget that needs to be thrown away after one use is going to cost big time. Use rags and mops or brooms instead. You can get your toilet bowls and bathroom floors just as clean.

Disposable products have become so commonplace that people don’t think twice about buying things for one-time use and throwing them away. Change your attitude toward disposables! The purpose of disposable products is not for use in everyday life. Disposables have a place in our society and that is for when you are on the go, on vacation, and on the run. Marketers of these products have convinced us it will make our lives easier to use them on an everyday basis. What it actually does is give the makers of these products more money and put much more trash in the landfill.

When you buy things for any use, think long-term. The longer something will last, the less cost per use it is. And save disposables for the times you really need them.


In Real Life (IRL) – I dislike disposable products in general. Mostly because I cannot stand to picture where all of these products are going when we dispose of them. Also, since I’m frugal, I like to get the best use for my money. So I mostly use items that can be reused. Mostly. I’m not perfect. For example, when our first child was born 7 years ago, I invested in high quality cloth diapers. I spent about $400. Gulp. By the second year of her life, I had spent less than my friends had on their disposable diapers. She was trained early, so they were put away for baby #2. Baby #2 wore the same diapers for her diaper wearing days. There was no cost involved other than washing them. When we were blessed with baby #3, I was excited about using them again. Some had worn out and I did buy some replacements. After 1 year, he is still wearing them. When we are done, these diapers will get sold and I will recoup some of my initial cost. We have used some disposables along the way – when we go on vacation or away for a long day. And my second child took a bit longer to get potty trained then my first and she outgrew the diapers. I knew she was close to being potty-trained so I didn’t invest in the bigger sized diapers, using disposables for a few short months instead.

One area I haven’t been great in is using cloth wipes. I don’t know why. I try to keep a spray bottle of water and cloths near where we change diapers and I do use it when it’s there. But I also use disposable wipes. I’m bad, I know. I’m trying to get better at it.

In real life, we don’t use paper cups or plates unless we’re having a birthday party. Even for barbeques with friends, I try to use my regular dishes or outdoor ones. I don’t use cloth napkins, though although I am thinking of changing that. In reality, I don’t usually even give my kids napkins with their meals and I wash them off with a washcloth when we’re done. I’m going to try to start using cloth napkins for me and my husband, though.

I don’t use paper towels very often. I own them and use them sometimes, but I keep washcloths in the kitchen and use them for spills and to wipe down counters and floors. I usually just put these with our other towels to be washed. Very easy. I do the same with cleaning other parts of the house. I mostly use washcloths.

I do own a Swiffer. I admit it. And I like it. My mother-in-law gave it to me when we moved in and I didn’t give much thought about it. I don’t use it too often but when I do, I use the rags a few times and then turn them over and use the other side. They’re not the best thing for the environment, but not the worst either.

When wrapping up leftovers or giving my daughter lunch for school, I always use containers that can be used again. I very rarely use plastic bags or aluminum foil. I don’t think I’ve bought aluminum foil, plastic wrap or bags in over a year. Yes, it’s a bit more work to wash through them each day, but the cost savings are great.

Overall, when I’m buying a product or looking to buy one, I do think of the consequences of what I am using. Can it be used more than once? What will happen to it when it’s done? Even though I am a big believer in cutting down on waste because of environmental impact, the cost savings is greater too. So even if you don’t give a hoot about how the earth will look in a hundred years, it will save you money to cut down on the number of disposables you buy.

Walk, Don't Ride

#1. Saving Money Tip - Walk Where You Need to Go, Don't Ride. That means when you open up the door to your house, apartment, or townhouse, walk past your car and keep on walking. With gas prices at $4.00 per gallon, it's easy to figure out cost per mile for driving. My car gets about 20 miles to the gallon city driving. $4.00 gallon/20 miles to the gallon = 20 cents per mile! Everytime I drive 1 mile I spend 20 cents. Eek! That 1-mile drive to the grocery store - 40 cents roundtrip. The 1/2 mile walk to the park - 20 cents roundtrip. Now I know that you can't walk everywhere and it's not always feasible - it's too cold, it's raining, there's not enough time, etc. But when you can, WALK!

In Real Life (IRL) - We try to walk anywhere we can. We can walk to the library, preschool, the supermarket, the playground, the drugstore, and other stores and restaurants. All are within one mile of my house. We TRY but we don't always succeed. As mentioned above, it's not always feasible. Sometimes we wake up too late to make the one-mile walk to preschool before 9 am. Sometimes the baby is napping at pick-up time. But in the past 3 weeks that school has been open, we have walked just about every afternoon to pick up my daughter at preschool and once in the morning to bring her there (we like to sleep late!). Yesterday we walked to the library. It's about 3/4 of a mile away. So I saved myself 30 cents by walking there, not to mention the exercise and fresh air my kids and I got (oh and the free books to borrow but that's another post!). After we were done at the library, we stopped at the drugstore to pick up a prescription for my daughter. That's an additional 1/4 of a mile away, so we saved another 10 cents! A total of 40 cents saved today! It's not going to make me rich overnight but when combined with my other saving money tips that I'll be writing about, the savings add up quickly. What's within one mile of your house? Where can you walk to?