Which man has more weath? The man driving the new 2007 Mercedes SUV or the man driving the used 1995 Mercedes diesel sedan? *
A. man driving 1995 diesel sedan
B. man driving 2007 SUV
(*Note: this quiz is for entertainment only and may not apply to all individuals, but rather is used to make a point)
If you are interested in living more frugally, the first thing to do is to figure out where does it all go?
This step involves a bit of work as you will need to track every cent you spend. Save all your receipts so you may track your spending at then end of each day. All expenditures should be listed in their appropriate catogories. Make them very specific! For example, you should have specific categories for groceries, restaurants, and miscellaneous treats (such as Starbucks). Please see Your Money or Your Life for a more complete description of how to do this.
This section is devoted to concrete ways to save money. Frugal living can become a type of "extreme sport" for some individuals. This may occur out of necessity or out of personal preference. I am not advocating that everyone use all the methods described here. Please read through it, and I hope you are able to find at least one useful idea! Also, remember if you experience prolonged feelings of deprivation, you will probably not maintain a frugal lifestyle. In order not to feel deprived, you will need to incorporate some creativity into your frugal methods
Utitlize your public library.
Books are very costly to purchase and you may only read them one time. Most books, many magazines, and some videos will be available through the metrolibary system, If the Edmond branch does not have what you want, they can order it from a different branch and have it delivered to their branch for your convenience. They can also help you with interlibrary loans. Ask a reference librarian about this. Let's do an example, if you spend $20 per month on books, this adds up to $240 per year. Also, books may contribute to clutter in your home as well using up natural resources to produce.
Pay bills without stamps.
You can arrange to pay bills on-line, pay by phone, or set up automatic payments for your monthly bills. As of May 14, the cost of a first class stamp will increase to 41 cents. If you pay ten bills per month using the mail, this adds up to $49.20 per year.
Find the cheapest gasoline in your area.
www.OklahomaCityGasPrices.com
Borrow instead of buying.
If you need an item that is used infrequently try not to buy it. This particularly applies to tools. Ask your friends and neighbors if you need an item for only a brief period of time. But remember to always be a "goodwill ambassador of thrift". This means returning the item promptly and in better condition than when you obtained it. Also, do something nice for the generous lender! Offer to walk the dog, water the plants, or bake something for them. If you can't find a friend or neighbor with that particular item, consider renting instead of buying. Make sure to compare the price of renting vs. owning. Another good idea is to consider starting a Tool Co-op in your neighborhood. This could benefit many of your neighbors.
Click on: Money Ideas
Click on: Saving on Groceries
Saving your Star "buck$"
Some people have developed a regular coffee shop spending habit. Figure out how much money you spend at Starbucks or your coffee shop of choice. Calculate how much you spend per week, per month, and per year. The answer may surprise you! One way to reduce your cost is to order plain old coffee instead of fancy coffee drinks. You can then put in milk or sugar yourself. We'll take the Starbucks example:
Cappucino Coffee
12 oz 2.65 1.55
16 oz 3.20 1.75
20 oz 3.50 1.85
Another possibility is to buy the coffee beans and brew it at home. They will grind it for you for free. Let's do an example. One type of their coffee costs $12.95 per pound (plus tax). According to their brewing instructions, it takes 4 tablespoons to make 12 oz. Measuring 4 tablespoons of coffee on my household kitchen scale, I found that 4 tablespoons weighs roughly 1/2 oz. Therefore, there are about 32 servings per pound. 12.95 divided by 32 = 40.4 cents per 12 oz cup. Compare this to 1.55 per cup if you buy it in the store.
Keep packaging from toys
If you have room, keep the packaging from your childrens' toys if you buy them new or receive as gifts. This way, you can resell them faster and for more money at a garage sale. The original packaging increases their value!
Be creative
If you find that you need something, think about it before you run out to the store. You may find a satisfactory substitute around your own home. For example, my child recently acquired a goldfish as a gift. Instead of buying a goldfish bowl or aquarium for $12-$40, I created a fish home by cutting off the top of a gallon milk jug. The next time I'm at the thrift store, I will look for a fishbowl that will cost a small fraction of the retail price. Being creative is how thrifting becomes fun!
For a comprehensive and highly entertaining resource on frugal living, see The Complete Tightwad Gazette. This book was written by the superhero of thrift, Amy Dacyczyn, who is an amazingly talented and creative individual!