Pinching the Pennies

The alternative to working at home, and the companion to working at home, is frugality. Saving where you can.

The trick to pinching pennies is figuring out where your family is willing to make compromises. TVP (Textured Vegetable Protein, or meat substitute) may in fact be a reasonable compromise for some families, but out of the question for others. The key is finding what you CAN do, and not feeling guilty about others who do differently.

Budget Spreadsheet Download

Self calculating budget to customize. Has multiple months, so you can plan well into the future. WARNING: Do not change any numbers in the Balance, Subtotal or Total rows unless you know how to modify equations! They are calculations, and if you change them the budget may no longer self calculate. You can change the amounts of your bills, the amounts of your income, the kinds of bills and income, and the dates of paychecks. The buget will automatically recalculate for you. This is an Excel spreadsheet, created on a Mac, so you may have to open your spreadsheet program and then use the Open command in the File menu to open this.

Grocery List Download

This is a self calculating grocery list to help you shop less often. You can put in how many of an item you want to buy, and the dollar amount you expect to spend, and it will total up your anticipated grocery budget. WARNING: Do not change the amounts in the Sub Total or Total boxes unless you know how to modify equations. Those numbers are calculations, and will automatically change when you change the amounts above. You may change other amounts, and even change categories and item names to get a list that helps you get what you need. And because it self calculates, you can plan your grocery shopping around the amount you have to spend more easily, and make decisions about what to cut more carefully instead of in the pressure of the grocery store.This is an Excel spreadsheet, created on a Mac, so you may have to open your spreadsheet program and then use the Open command in the File menu to open this.

Lynda's Shopping List Download

Lynda says: This is probably my most used form. I made a list of all the foods we buy on a regular basis. Now as we run out of that food I just check it off and when I am ready to go to the store I quickly check to see if we're out of something and nobody marked it - then run to the store with my list already made. I only shop once a month except for fresh produce and dairy so this really helps me not miss things. This way I am able to feed a family of 5 (including 2 teenage boys who don't eat - they GRAZE all day long eating everything in their path!!) and stay under $400 in a month. This also includes toiletries and the quick $25 runs to the neighborhood grocery store for milk and produce.

Tip #1

Buy Less Frequently

If you can do nothing else, this tip will save you money. Every time you go into a store, you spend $10 to $50 on things that are not strictly necessary. If you decrease the amount of times you go into the store, you can save 10-20% on your grocery budget. Shopping every other week, or once a month seems to result in the maximum savings for most families. People who shop less often can take advantage of bulk buys that they would miss if shopping often. Shopping less often also makes people more organized about shopping, so that they can make it from one trip to the next without having to pick something up. Usually you buy a little more than you need, just to make sure you get by, and this helps you build up a reserve so that you can use it when you have an especially tight month. I have seen this happen time and time again, that someone goes to a less frequent shopping plan, and gets more groceries for less money. This is my #1 money saving tip, I rate it as the most significant one. The Members Area has a sample grocery list for shopping this way.

Tip #2

TVP (Textured Vegetable Protein Meat Substitute) really is an option for some people. We mix flavored TVP half and half with meat for a significant savings. When we get desperate, we use the flavored TVP by itself in mixed dishes. If you add condiments to the Taco flavored TVP, it makes a good taco or burrito. The sausage TVP makes an acceptable sausage gravy, and the Ham TVP goes well in a country breakfast with potatoes and eggs. TVP ends up being about 1/4 the cost of meat, and even if mixed half and half, saves you a significant amount. It comes in a lot of different flavors (available through our Bulk Food Website if you can't find it elsewhere).

Saving on Auto

Consider driving an older car. People cry, "But I need a reliable car, and besides, the costs of keeping a car on the road are the same, whether you pay for a new one or maintain an old one!" Not always true. We have done it both ways, and find that to really be affordable, the choice is really one of two: Buy New, or Buy a Used car that you can pay for outright. The most expensive option is buying used that has a payment, and then having repair costs heaped on that. We bought a used Kia Sephia with 100,000 miles on it. We also bought a Jeep Cherokee with 170,000 miles on it. We paid $4500 for the Kia, $3500 for the Jeep. Over the course of the last year, we spent $1650 on vehicle repairs. Even if we have a major repair, over the course of 5 years ownership, ($900 per year in original cost for the Kia, $700 per year on original cost for the Jeep), we could absorb $2400 per year per vehicle in repair costs before it would equal a monthly car payment of $275 per month for the Kia, $259 for the Jeep. Those are modest amounts for keeping two cars on the road with each of them accumulating 30,000 miles (Wyoming EATS cars). Our solution is that since we absolutely NEED one reliable car, we keep two older ones instead. This gives me a car also, unless Kevin's car is down. We expect this will happen a couple of times a year. You have to choose the car carefully, and you have to keep them maintained well in order for this to work. Another option may work for other people better than this does, but this is a valid option for those who need.

Putting a teen behind the wheel. Our solution to this is to help each kid buy a very cheap car at about the age of 15. They then have one year to get it working and reliable. The only criteria for purchase is that it has to run to drive it home. After that, it is up to them to earn the money and make repairs. This is a tremendous benefit to our boys and girls both, as they learn to fix up the car. Our oldest son started with a 1980 Jetta, purchased for $150. He worked on it for a year, then sold it for $200, and turned around to put that money into a small station wagon, along with another $100. The wagon had major cosmetic damage, but did run well. Again, not a solution for everyone, but for us, with seven kids to help, this works as an affordable option.

Saving on Utilities

Weatherize. There are several ways to weatherize, some cheap, some expensive. Usually the greatest cost savings are realized not from the expensive things, but from the cheap ones. Caulk, to seal air gaps and cracks, weatherstripping around doors and windows, and plastic storm coverings for windows in winter are some of the cheapest things, which will yield significant savings. Do the cheap stuff first, then work up to the more expensive things, little at a time.

Use a Phone Card. Purchase carefully, and read the fine print, and you can often get cheaper long distance from a phone card than from regular long distance.

Keep your water heater cleaned out. Flush it once a year, or twice a year if you live in an area with a high sediment rate. Water heaters build up sediment in the tank, and over time this can cause your water heater to use more energy.

Saving on Clothes

Making clothes is not the savings it once was, but it can sometimes still save you money. If you compare custom tailored clothing with brand names, you can save. If you compare home sewn clothing to Wal-Mart sale items, then you are better off just buying the clothes ready made. For basic items, you can usually buy them cheaper. The exception to this is if you got the fabric on closeout. Thrift stores can also be a good source of clothing, if you live in an area large enough to have good thrift stores.

Saving Around the House

Buy in Bulk, Repackage for Use. Shampoo by the gallon is cheaper, unless you have kids who dump it out (accidentally or on purpose). So save a smaller shampoo bottle and refill as needed.

Build simple furniture. You can build furniture from pine boards and plywood for the same cost as pressboard furniture kits. The advantage is that pine and plywood will last much longer if assembled right. Simple furniture is easy to build, and looks good when finished.

Saving on School

Books, paper, and backpacks. The last year our kids attended school, the school sent home a list with each kid of what they needed to start the year. I went through the lists, and they totaled $75 per child! We left off half the stuff, and got just the essentials for the 4 kids attending that year, and still spent $150. There has to be a better way!

We now buy our school supplies only during sales, and stock for the year. We also haunt the local Dollar Store and look for goodies there, preparing ahead for the coming schoolyear.

  Between Friends http://www.betweenfriends.org/househol.htm

  BottomDollar http://www.bottomdollar.com/

  Cash Management: Prioritizing your Life http://www.thefrugalshopper.com/articles/cashmgt.html

  Cheap Living for the Frugal Wannabes http://members.aol.com/Moneymstr/cheap.htm

  The Dollar Stretcher http://www.stretcher.com/dollar/index.htm

  Emazing.com http://www.emazing.com/household/

  Frugal Family Network http://www.frugalfamilynetwork.com/

  The Frugal Life http://www.thefrugallife.com/misc1.htm

  Frugal/Mindful Living Resources http://www.econet.org/frugal/

  Frugal Moms http://www.frugal-moms.com/

 The Frugal Shopper http://www.thefrugalshopper.com

  A Frugal, Simple Life http://members.aol.com/DSimple/

  Frugal Street http://www.angelfire.com/biz2/alazzia/index.html

  Frugal Tip of the Week http://www.brightok.net/~neilmayo/

  Frugal Tips U.S.A. for Tightwads, Penny Pinchers, and Cost Cutters http://www.geocities.com/Heartland/Flats/2132/money.html

 Haley's Hints http://www.haleyshints.com/

 Hints from Heloise http://www.heloise.com/

  Miserly Moms http://www.miserlymoms.com/

  Mothers Online Thrift Shop http://www.motshop.com/

  Personal and Family Finance http://www.hec.ohio-state.edu/cts/osue/famfin.htm

  Right On the Money http://www.rightonthemoney.org/

  Suze Orman, author of The Courage to Be Rich http://www.suzeorman.com/resource.html

  Save Big on Your Little Ones http://protected.pathfinder.com/ParentTime/workfamily/savebiglitl.html

  Tight-Wadding with Doris O'Connell http://pages.prodigy.com/frugal_tightwad/

Newsletters:

 The Cheapskate Monthly http://www.cheapskatemonthly.com

 Frugal Living Newsletter http://www.livingfrugal.com/

 The Pennypincher Ezine http://www.AllThingsFrugal.com

 The Frugal Gazette Monthly Newsletter http://www.frugalgazette.com