Since I am currently in the market for a “new” car, I thought I would share with you how I do not nor have I ever had a car loan. It’s quite simple if you start from the beginning but wherever you are in your auto ownership journey you can start at this moment and work your way up and out of car loans for good. What’s wrong with car loans you say… isn’t financing a car the “American way"? Who doesn’t have a car loan? Well I don’t, for one, and I would wager a guess that every “Millionaire Next Door” doesn’t either. And yes, you’re right it has become the “American way” but which Americans are benefiting from that? Hint: It’s not you, the proud recipient of the car loan. It is the almighty bank (or sometimes the car dealerships) that are winning in this drive-now, pay-later arrangement. And the amazing thing is that they have you hoodwinked into believing that they are doing you a favor by getting you into the best car they can for low money down and easy monthly payments. Wow! What a nice guy… NOT! Believe me, car dealers are not in the business of doing you a favor. The only thing they are interested in is their own bottom line. The biggest best car they can sell you lines their own pockets, and getting you to take a loan from them (instead of the bank) is just more icing on the cake. And if you have ever been car shopping lately you will notice that they (subtly or maybe not so subtly) will start touting the glories of leasing a car. This is like taking a car loan on steroids (for them). Think about it. You pay a down payment (maybe $1,000) and then “easy” monthly payments of $299/month, and at the end of the three-year lease you are out $11,764 and you own absolutely nothing! You can now either give the car back and start all over again or pay some exorbitant fee (on top of the almost $12,000 you’ve already paid) to now own the car. You could have bought a (used) car for $11,764 three years ago and still had plenty of life left to it for years to come. And if you financed your car, let’s look at one example of how much you are actually paying for that car by the end of the loan period: If you take out a loan for $25,000 at 4.5% for a 60-month term, your monthly payments will be $570 and at the end of the term you would have paid out $27,364. A total of $2,364 lining the pockets of whoever held your loan. Nice! … For them. How do you feel about giving them all that “free” money? Would you like an extra two thousand in your bank account? But, you tell me, “I don’t have the money to just purchase a car outright.” Well, I can tell you that on a modest income I have never taken out a car loan to buy a car. How did I do it? Well, I bought my very first car for cash and from that point forward I was saving the money (that most people are paying out for car loans) to purchase my next car for cash. Most of the cars were used, at least a few years old, but I did make the mistake of purchasing two of them brand new (all for cash). No loans. If you can afford car payments you can afford to save up for a car! Now I have instructed my kids to follow my principles. They each saved up for their first car (with a little help from me at times) and bought them (used) for cash. Then I told them to pretend (like many of their peers) that they have car payments, but pay them to themselves. And now through the magic of online bank accounts it was easy for them to set up a “car account” with $200 or $300 a month being automatically deposited into it from their checking account. And with that very modest “car payment,” if they take good care of the cars they have, in 10 years-time they will have between $24,000 and $36,000 towards the (cash) purchase of their next car. And even more than that, really, because instead of paying interest to a car loan, they are making interest on their bank account. It may be only 2% at the moment, but it sure beats paying out at 4% or more! But if you haven’t done that from the beginning and you are currently saddled with a car loan, then the best thing you can do is keep the car after your loan is up for as long as you can, and here’s the important thing: Keep paying those monthly car payments but pay them to yourself so that when you are ready for your next car you will have a chunk of change sitting there for your purchase. And why do I say I made the “mistake” of buying a few of my cars brand new? Because the depreciation curve is enormous in the first year or two of car ownership and the bulk of that depreciation takes place in the first 5 minutes of car ownership. The minute you drive that sparkly new car off the lot you have dropped a couple of thou off its resale value. Ouch!! Let someone else take that depreciation (thanks first car owner!). Save yourself a couple of thousand dollars and buy a car that’s at least a year or two old. So, now I will head out to the dealerships. You can buy a car from an individual for less money, but I like the assurance of having the dealer in case something goes wonky with the car a short time after I buy it. And even though I am paying cash I will still keep in mind that (friendly as they are) the dealer is not my friend.
I will do my homework and check out any cars I am considering online, for any issues and the prevailing price for that year’s model. You can try Kelly Blue Book or Edmunds for this info. Then I am prepared to bargain (with the mysterious “manager” in the back, that my dealer will be consulting). I may walk away from the deal two or three times before I am satisfied that I am getting a rock bottom price. Of course the dealer has to make some money on the deal. I don’t begrudge him that. I just want to feel that I got a fair deal. Wish me luck as I head out in search of my next set of wheels and I hope you too will someday enjoy the joys of owning your own set of wheels without those pesky loans dragging you down.
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Do you need a vacation? And can you afford one? Well those are two very different questions. The answer to question one? Hmmm . . . need? I would say in Maslow’s hierarchy of needs it would be pretty low down on the list. But do you want a vacation? Well, that’s an entirely different question! As for the second question, the simple answer is if you have the money to pay for it upfront (and are not taking this money from a more pressing need), then you can afford it. If you need to finance the cost, then no, you cannot afford it. So what can you do to make it more affordable? Ahhh… well that’s where I come in! A thoughtfully planned out vacation does not have to break the piggy bank. If you are aware of your budget up front, which you are, since you have put the money aside for it, there are many tricks and tips you can use to keep it affordable. If you are going to whip out the plastic to book it and then again all through the trip you can easily lose track of how much your spending is racking up to. Once the vacation is over, is that one week of relaxation worth the stress of having to pay it off until the next round of big spending at the holidays? So, that said, you will start by planning a vacation that you can realistically afford. The purpose of vacation time is to relax and enjoy yourself. Personally I find that life is more relaxing and enjoyable when I staying in control of my expenses and living below my means. I think you will too. Here are some step by step tips to make any vacation more enjoyable and affordable, starting with planning and throughout the days of your trip. ,Planning: Of course the first step is to be realistic about what kind of vacation you can afford on your budget. If you have $2,000 to spend, you are not going on a six week trip around the world. But can you do something fun on a smaller budget? Absolutely!! Take a little time to think about your priorities? What is the best thing about vacation time for you? Sightseeing? Beach time? Activities? Relaxation? Time with the kids? You may not be able to do everything, but you should be able to hit a few of your priority choices. Half the fun of a vacation is actually in the planning stages. Talk about your vacation dreams with the people you will be vacationing with. Have fun with it! Which of them might you be able to actuate on your next vacation? While you’re at it, daydream about future vacations. There is great pleasure to be had in just the dreaming alone! Accommodations: The time to book is as early as possible, again keeping your budget in mind. If you can’t afford a motel, camping might be the way to go. If you can’t afford to travel, keep it close to home. See if you can lock in a good deal as early as the summer before. Keep your eye out for specials. There are so many travel and discount websites now, you just have to go to your favorites and watch for them. If it is feasible, try to find something with a kitchen to save on meal expenses. Or you can try a house swap, or hostel. Don’t forget to check out Airbnb for some offbeat affordable options. If you are very flexible about where and when you go (retirees for instance) here is where you may be able to snag some great last-minute deals if you keep watching! Transportation: Again, keeping the budget in mind. If money is tight this is not the year to be flying off somewhere. Keep it closer to home. If you have a little more leeway, then maybe this year you can take it further afield. Don’t feel you need to fly away to get away. Remember, some people are flying to wherever you live to “get away.” Again, starting at least 6 months out, keep your eye on the flights. When you see a good deal, book it. Don’t wait to see if there are last-minute specials. The airlines don’t really do that anymore and you may very well end up paying more for a last-minute flight. There are also apps and websites that will alert you to a drop in price, and some airlines will send you a refund for the difference. You can save some money by flying on any day except Friday or Sunday, the two most expensive days to fly. And also by booking at less than optimal times and flights that have layovers. Remember to watch for add-on expenses (checking in luggage, etc.) The best thing to do is learn to pack very light. One carry-on bag and you’re done. I’ve done this on several two week trips with no problem whatsoever. You don’t need a lot! You can wear things over and over with no dire consequences. If you are driving, remember to factor gas prices into your budget, also tolls and parking expenses. If you are renting a vehicle get the smallest (cheapest) vehicle you can make do with (it will also be more fuel efficient). It may be a good idea to just go with mass transit at your destination if you can. Meals: Here, as I have alluded to earlier, the more you can avoid eating out the better. It’s great to have a place with a kitchen. But even if you don’t, always bring a cooler to keep stocked on meal options. Try to get a room that includes free breakfast. Eat up on that!! This way a light lunch will do. Keep things in your room for that. Sandwich bread, peanut butter (or other “fillings”), fruit, yogurt, cheese, crackers, nuts, etc. Don’t forget to bring your water bottle. Now you can eat in your room or take your lunch out on the road for a picnic wherever you go for the day. Dinner does not have to be a fancy affair every night. A quick deli meal or some tacos will do. Also remember to share meals if you go somewhere with big servings (or bring a “doggie bag” home for the next night’s dinner). And for the adults, try not to go out for “drinks” every night. You can have “cocktail hour” on your balcony sometimes, with a bottle of wine (or cocktail ingredients) brought from home (or purchased locally) Activities: These can run the gamut, from those pricey theme park vacations or expensive activities to a (free) hike in the woods or making s’mores around the campfire. You should “limit” yourself to what your budget dictates. Why do I put limit in quotations? Because there are so many beautiful experiences you can have for free that I hardly think this is a limiting factor. It fact I might argue here that the best things in life are truly free! Get the local papers and look up free events in the area. Bring along (or rent) bikes, boats, balls, rackets, etc., etc. Bring board games for those rainy days. The things that bring joy to you and your family are the fun and pleasure of spending time together. You cannot buy relaxation or happiness. If you can’t afford a vacation, you can’t afford a vacation, but you can still enjoy yourself and share good times and laughter with your family and friends. And whatever your vacation budget is you can still have a quality vacation and make memories to last a lifetime for you and your family. It’s all up to you!
You’ve all heard the expression “April flowers bring May Flowers” I’m sure. But what does it mean? Well in its literal sense of course, we need the rains of early spring to give us those beautiful flowers to enjoy in May. But what is the deeper meaning of the phrase beyond that? When we say it we are talking about how we are willing to put up with some less desirable weather in April because we know it is necessary so that we may delight in the lovely blooms that follow. But we can also apply the phrase to other situations in life. Very often it is easier to endure a less than pleasant circumstance because we know it is essential for something better to come. The financial guru Dave Ramsey has a great saying “Live like no one else so you can live (and give) like no one else later on.” In other words, if you have a future financial goal in mind you will be willing to make the sacrifices that it takes right now in order to attain them. You appreciate the showers because you know they will result in a richness of flowers. Are you a grasshopper or an ant? The grasshopper will ignore the future and just live for today only to be surprised when winter comes and he has nothing put aside to get him through the cold snowy months. Meanwhile, the ant has been working throughout the summer to build up a stash to sustain her throughout those food barren months. Does this mean that the ant has no fun while he is preparing for the future? Absolutely not! There are a great many ways that that little ant can have fun while also taking the time to put those resources away for that rainy day. But the wise little ant always keeps in mind that winter is coming and does what she needs to do to be prepared. So, yes, enjoy yourself for today. There are any number of ways that you can enjoy life for very little cost or for free. But if you are a wise little ant you will always be stocking up for the future so that (unlike that silly irresponsible grasshopper) when the future comes you will have an abundance to enjoy and your winter will be more like a gorgeous phantasmagorical riot of spring blossoms. Because you, my little friend, prepared for it.
Ah Amore! The month of love. Hallmark, Brachs, Godiva, florists, and all fine jewelry stores, even those romantic getaways and restaurants are eagerly awaiting it! How much do you love your sweetie? Open up your wallet and show them! The ads make it abundantly clear. As James Taylor crooned, “Shower the people you love with love. Show them the way that you feel.” In our society of commercialism, stuff and abundance, it’s just another occasion to sucker you in to buy even more. This one carries a particular guilt trip. If you love your honey how can you not show them through valuable merchandise? What kind of a heartless cad are you? And, of course, Hallmark, et al, went beyond just your particular heartthrob to include the whole dang family in the celebration. From the kiddies all exchanging valentines in school (which, through the years, went from homemade hearts to purchased cards to candy and treats), to cards and gifts made for every one of your beloved family members. Don’t leave anyone out! And just a card (which now can run upwards of $7)? No way! What about the candy? The flowers? The stuffed animals? The jewelry? Showing everyone in your family that you love them can run a pretty good chunk of change! So … my challenge to you is this: Why do we have to spend all this money (mostly on crap that will someday become part of the landfill) to “prove” to our families that we love them? Just because Hallmark told us to? Because companies want to make money selling us their products? Where does it all end? It escalates year after year, holiday after holiday. The only place it can end is with you and me. We must all realize that how much you spend on a person does not equal how much you love them, especially when what you spend on them is for meaningless junk. If you are married or in a committed relationship with someone, you should be working together to make the most of your money, live below your means and save. Work together to make the holiday special. Make a special meal together, go on a sunset stroll somewhere, watch a romantic movie at home (free from the library!) Surprise your spouse with a heart-shaped cake you baked. A heartfelt letter written to them about how much you love them and why would certainly be more appreciated than something some greeting card writer came up with. And as for the kiddos, yes you can shower them with gifts. In fact, you can shower them with gifts for all of the many Hallmark gift giving occasions that have sprung up throughout the calendar year, but what exactly are you teaching them? What are you creating? Perhaps you might want to think about what kind of adults you would like to raise them to be. What kind of expectations are you setting up for them? If you really feel you must note the occasion, how about making some heart shaped cookies and having fun frosting them together? Keep it simple. Resist the impulse to go overboard. That impulse is what got us into this overspending mode in the first place. Yes, Amore! Love is a many splendored thing. We should tell our love ones that we love them, not just in February but always. And finding special ways to show them that we love them is a very sweet thing to do. Little love notes and special surprises are always cherished and appreciated, and go a long way towards keeping the love alive. But the danger comes in equating how much we spend, especially on things dictated to us by outside forces and advertising, with how much we love them. Make love, not debt!
If you’re still with me as I lead you on this years-long journey toward getting on the road to financial solvency and freedom, then you are well on your way. Congratulations for sticking with it! If you are just joining me and are new to this blog, it would be a good idea to go back and read the monthly posts for 2018. They will give you a good foundation for learning how to gain control of your own financial journey, alleviating debt if you have it, and how to start saving for your own bright future. It’s not as hard as you might imagine and I hope you will come to find the frugal life to be as fun and satisfying as I do. I know you will enjoy seeing your savings grow as a result of the lifestyle changes I am recommending. This month the holidays are behind us. Hopefully you had a frugal celebration and did not overspend. If you have, then your best bet is to concentrate on getting out from any debt you have incurred as quickly as you can! This may sound counterintuitive, but if you have gotten a good handle on your spending, and are staying out of debt… January is a good month to SHOP the sales! There are the after-Christmas sales of course, if you need any of that (I rarely buy any of that stuff anymore, as you will read about next December). But there are many other reduced ticket items to be had in January. First of all, this is when the winter clothes (and other winter items) start hitting the clearance racks. NOW is the time to buy these items for next Christmas! You can get half your shopping done at a fraction of the cost of waiting until next December. And if there are any winter clothing items you need, keep an eye out on the clearance racks for that too. The operative word here is “need”, of course. This is not a time for recreational spending. In fact, no time is a time for recreational spending. It should not even be a thing. Certainly not if you want to live below your means and get ahead. Other things that go on sale in January are bedding and towels. If yours are getting threadbare, now is the time to think about replacing them. (They're also another holiday gift possibility.) Again, not just because you’re tired of the color of your perfectly good sheets, towels, etc. And don’t forget to keep the old ones as rags (eliminating the need for buying paper towels). If you having been saving up to replace some big ticket items (think furniture and appliances) there are often sales in those departments too at this time of year. But if you don’t have the money saved, a sale is not an excuse to put it on a credit card! One year our fridge went on the fritz in October or November, but the freezer was still working, so we patched together a system of using coolers in the cold outdoors, and froze water bottles to put in the defunct fridge to use as a giant indoor cooler. And this system got us through the holiday (spending) season, until the appliances went on sale in January and we got ourselves a sweet deal on a new refrigerator (which we paid cash for, of course!) So there you have a few examples of spending money to save money. There are times when careful spending will actually save you money in the long run. And I am not talking here about telling people that you “saved” $100 by buying your new ($500) wardrobe on “sale”. I am talking about some well- spent money now that will save you from going into a shopping frenzy next Christmas and buying those same items at three or four times the clearance price you are getting them at now.
Wishing you all a Happy New Year and (rare to hear from me) happy shopping! Tis the season …for exuberance, generosity and joyful abandonment. It’s so very festive and fun, but oh so easy to get carried away with it all. And temptations to spend are everywhere you look. Deep discounts! Drastically reduced! Prices slashed! The more you buy the more you save! …. Or do you? It certainly doesn’t seem like it when the bills roll in come January … right around the time when you’re making those New Year’s resolutions, it seems. You know, the ones about getting on a budget and stopping the overspending? So, what are some strategies that you can employ to obtain that simple peaceful holiday season and reign in the excess spending? The first thing you can do is pare down those lists. Of people to buy for, indulgences, activities, and, of course, presents to buy. Well, now is the time to stop and think about that. Take a deep breath, have a cup of tea and sit down and contemplate a quieter, simpler, less hectic holiday season. One that you won’t regret when the new year rolls around. One that you’re not paying for until next August. Does that thought bring you joy? Do you feel your blood pressure dropping already? Sometimes the amount of people we exchange with can become out of hand. What starts out as a nice gesture one year, exchanging with this friend or that relative eventually morphs into a yearly obligation. You may be surprised to find that the other person in this exchange feels the same way and is more than happy to drop the yearly gift swap. Talk to them. Often we also have auxiliary people in our lives to favor with a gift, from teachers to work-related people to babysitters and hairdressers, etc. Many times these people are also swamped with all those many little gifts at holiday time, and though the thought is appreciated they would rather not deal with the deluge. Sometimes a kind and heartfelt note of appreciation is most welcome. If you feel you must give something, make up a big batch of your holiday specialty (cookies, candy, fudge, whatever) and parcel a little out to each of the people in your life that you need to thank. One and done. And edibles are often more appreciated than extra objects to clutter up their lives. Besides paring down the list of people that you exchange with, it is also a good idea to pare down the amount of gifts exchanged. This especially applies our beloved and cherished little offspring. I know it can be so fun to spoil them and see their happy faces when they open that pile of gifts, but is it worth going into debt for? And is it really good for them in the grand scheme of things? ‘
Have you ever noticed that the more gifts children get the less they are actually appreciated? If they open, open, open more and more gifts the presents themselves become secondary to the act of tearing into the innumerable presents. Is this greedy abandonment really the kind of “happiness” you want for your child? Just a few thoughtful gifts might instill a more genuine thankfulness in your child. My last gift giving tip comes too late for this Christmas, but is certainly something you can start for next Christmas. That is to prepare for the holidays all year, both in your spending and your buying. The old fashioned “envelope system” works great here. Just deposit a little bit out of each paycheck and let that be your holiday budget for next year. Pay cash for your presents and other holiday expenses, and when the money’s gone it’s gone. No more spending. And no credit card bills to fret over in January. You can also spread out your buying for the entire year. Look for those after-Christmas sales. Take advantage of clearance sales throughput the year. And one of my favorites, yard sales and thrift shops. I used to pick up gifts for my kids (often still in the box or with tags on) all summer at yard sales and my Christmas shopping was almost done (for dirt cheap) by October except for a few requested items to round out the list. This works especially well with smaller kids who are not as particular as older kids can get. You can sometimes score presents for the adults on your list this way too (keep them in mind when you look around). So, yes, Virginia (or whatever your name is), you can have a joyous holiday season without going into debt for it. In fact, I might venture to say that you can have an even more joyous and peaceful holiday when you keep it simple and take this time to relax and enjoy yourself with your family and friends without all that frenzied spending. Give it a try. You have nothing to lose and lots to gain! Wishing you all a warm and wonderful holiday and a peaceful and prosperous new year! Last month I discussed the topic of saving money on your school expenses. Now I would like to suggest that you think of every day as an opportunity to save money. Staunching the flow of money out of your pockets in your daily life you can really add up to some serious savings by the month’s end. And even more serious savings by the end of a year. Invest that money and just watch the pile grow larger year after year. All with a few simple changes in your life to save, well, some simple change each and every day. It really requires nothing but a shift in your mindset. When you start to look around at every purchase you make (or decide not to make) with an eye to saving a few bucks you will be amazed at how many opportunities to do just that will arise. Here are some key points to consider before making any purchase. It may seem obvious but first of all, do you really need it? A great deal of purchases are made for things that we don’t really need. Try to be more cognizant of this before parting with any of your hard earned bucks. From the blatant impulse buy (snacks, drinks, etc.) to the fancy gadgets. Stop and think. Do I need this? Do I already own something else I can use for this purpose? Can I borrow it? Can I wait until it comes down in price? Buy it used? If you decide that you really do need an item, do not buy it on impulse. Take some time to comparison shop, look for deals, bargain with the seller. If you take enough time you may even cool off and decide you don’t need it after all And remember the old expression “Waste not, want not” (or am I dating myself here)? Another (more modern?) way of putting it is “Use it up, wear it out, make it do, or do without.” These are excellent frugal words to live by. The less you waste your resources, the less you have to spend money replacing them. This applies to all aspects of life and everything you spend your money on, from food, to beauty products, to cleaning products, to clothes, to utilities (heat, electricity) and even to electronics, appliances, and cars. If you keep these expressions in the forefront of your mind it will help you to make wiser more frugal spending decisions in your everyday life. Speaking of utilities like heat, electricity, and also phones, internet, and TV, and insurance, do not leave them on autopilot. Revisit what you are spending on these things every so often. Are you really using everything you are paying for? Do some comparison shopping. Perhaps it’s time to switch companies? Sometimes even the threat of such a thing will get your existing company to lower its rates. Sometimes entertainment is a big budget drain. Keep in mind that there are a great many ways to be entertained for free. At home game nights, potluck suppers with friends, videos borrowed from the library, village festivals and events, picnics in the park, hikes, bike rides, free museums, and art exhibits, the list goes on and on. (And if all else fails you can always take one of my enlightening and fun courses or attend one of my Frugal Living meetings one night for a nominal fee) ;)😃😃 I would like to get up on my soapbox for just a moment with a little speech on the pleasure principle. Think about something that you really enjoy. Chocolate? Wine? A big juicy steak or lobster? Now imagine that you have unlimited access to said thing (since we’re imagining here, you might as well imagine that said thing will not do anything to your waistline or arteries). Now you can eat this thing as much as you want all day, every day. (I’m not sure what it says about me that all the items I chose were food). Anyway, what do you think that constant access to your beloved treat would do to your enjoyment of it? I would wager a guess that it would no longer hold the same joyous appeal after a while. So what I am saying is a little self-deprivation of the things that you love can actually enhance your enjoyment of them. Good for your pocketbook, your waistline and your pleasure sensors! A win-win-win all around! And it goes without saying (or does it?) that you should always consider before you make a purchase whether this is a want or a need. Be honest. Many times what we call a need is actually a want. And what I like to do is make a game out of it. Challenge yourself. How low can you go with your grocery shopping this week? Can you skip a week and creatively make use of what you have in your pantry already? How long can you stretch that product? Always use everything to the last drop. How long can you go without buying clothes? Without getting a haircut? Save every $5 bill you get for one month (one year?) Make mini goals for yourself. If you usually spend $100/week on groceries, try to keep it to $80 this week (then $60 …). Can you put away an extra $200/month ($50/week) to pay for a nice vacation next summer? (without having to put in on the credit card). Once you get into the “mode” you will begin to discover many ways in your daily life that you can shave off a few dollars spent. And this success will spur you on to even greater savings. It’s a wonderful feeling to gain control of your spending and have your money work for you in a way it never has before. The joy of frugal living can be very addicting. And unlike other addictions this is a great one to have! People say having kids is expensive and while they are definitely an expense, much of that expenditure can be trimmed up dramatically with a more frugal approach. There are certain times in the child rearing when spending can skyrocket if you are not careful (the holidays for example) and back to school is one of those times. First of all, it should not come as a big surprise that in September the little sweeties will be heading back to the classroom. Therefore, it should not come as a big surprise to your pocketbook. This is an event that should have been included in your budget all along. When I was using the envelope system (see February’s blog) I put in a few bucks (maybe $10) out of each paycheck into the “School Supplies” envelope so that I would be ready when the time came without having to break out the old credit card and go into debt for a perfectly expected event. But the savings don’t end there. It is also in how and what you go about spending this school supply budget on. Obviously you will need supplies for the classroom. But take a good inventory first. How much can you reuse from last year? Does your child really need a new backpack this year, or might he be able to get by another year (or more) with this one? Take this approach with all supplies. Sometimes there are notebooks that only have a few pages written in. Rip out those pages and you have a brand new notebook for this year. And while it feels good to have that fresh pack of colored pencils at the beginning of the school year, does the old pack still have enough life in it for another year? Once you are sure that you are not buying “wants” for the new school year but actual needs, then it is time to replenish the supply. I am all for back to school sales. Know and watch your prices and comparison shop. Just because it is listed as part of a school sale does not mean the price is actually a bargain. If there is a really good price on something, (loose leaf paper for 17 cents a pack?) then by all means stock up on that item for the rest of the school year and even subsequent school years if there is no limit. And you do not have to give in to the desires of your children that just have to have that particular (insert popular character/name brand here) item. Remember there are other lessons to be taught to kids than the ones they learn at a classroom desk. And you as parents are obligated to teach them. Now we move onto another category of possible contention. School clothes. And while it is nice and fun to start off the new year with a whole new wardrobe it is not necessarily necessary! Once again take careful stock of actual needs. And once again refrain from giving in to entitled demands. Another point in question, is do these “new” clothes actually have to be new? I shopped for much of my kids clothing needs at thrift shops and yard sales and back to school was no exception. And I can guarantee you that no one could look at my kids’ wardrobes and tell me which items were purchased new and which were “preworn”. As the kids got a little older and more aware of their “wants”, I would let them make the choice. I would give them each an envelope with a certain amount of money in it for school clothes and off we would go shopping. It was entirely up to them as to whether they wanted to buy a nice “new” wardrobe with that money for a few bucks an item at the thrift shops or whether they wanted to take that same amount of money and just buy a few name brand (or whatever) new items at the stores, or shop a combination of the two. Of course, remember you are still their parent and retain final say on what is appropriate to buy and wear with “their” money, and what items they need to buy (socks and underwear might not be on the #1 “gotta have it” list, but a necessary expenditure never the less). And another non-classroom lesson learned here . . . budgeting their money! There are also year-long school related expenses to consider, like school lunches. Consider your budget here as well. Is it cheaper for them to bring their own lunch? (hint: Almost always) (another hint: This goes for adults as well). And although the grocery stores are blasting you with back-to-school lunch items at this time of the year, these are usually not the best things for your lunch budget. For instance, do not be tempted by those cute little single serve packs of anything. Buy your own (pretzels, dried fruit, crackers, cookies, cheese, etc. etc.) and prepackage it yourself into Ziploc bags or even better reusable containers (P.S. aside here, I reuse Ziploc bags too). Have the kids participate in the preparing of their school lunches, making as much of it themselves as possible. The more they are involved in the prep the more they will be likely to actually eat it (and bonus, another life skill lesson learned!). I always told my kids to bring home what they didn’t eat rather than throw it away in the garbage. It drives me crazy how much perfectly good food gets thrown into school lunchroom (and all) garbage cans. If they bring it home, they can eat it as part of their after school snack or take it again the next day. So, I hope you can see that sending the little ones (and not so little ones) back to school does not have to be quite the piggy bank shattering event that it can become if you are not careful. Stretch your frugal muscle and save your dollars. Your piggy bank will thank you for many years to come. And who knows, maybe even your kids will thank you someday for all the (out of school) lessons learned. 😉
Living in such a materialistic society as we do, it can be hard to even detangle oneself from the mindset of constantly wanting and buying more and more stuff. We have been bombarded with ads from a very early age, from every possible media, telling us why we “need” this that and the other thing. We are told how each of these items will make our lives easier, fuller, more fun, etc., etc. Just the very act of “shopping” has become a leisure time activity in and of itself. We are trained to always want the bigger and better next thing. We compare ourselves to others based on if our stuff is as good, new, and shiny as theirs. We never reach the point of satisfaction because there is always that next best new thing coming out that we have to have, as evidenced by the lines for the newest model iPhone. Really??! Is it that much better than the previous model that you have to waste precious hours of your life waiting on line to have it a few hours (or even days or weeks) earlier than you would have been able to get it otherwise? To me, that represents the epitome of how deeply this materialistic mindset is entrenched in us. And once we get that new thing, how long does the satisfied happy feeling last? Not long apparently as evidenced by all the stuff put out at garage sales (many with tags still on), not to mention Craigslist, eBay, and even worse, into the ever-growing landfills. It is the thrill of the acquisition that is being sought. Once we actually own the thing the joy fades pretty quickly. This just sets us up for wanting more to experience that “high of the buy” once again. As you can see with this type of scenario one can never be truly satisfied and happy. Would you like to get off this unsatisfying and frustrating carousel? I know I do and I make a very concentrated effort in my life to buck the system. It can be hard to do when you are literally surrounded by it, but the better you get at recognizing the pattern and fighting to control being sucked in by it, the happier (not to mention less stressed and richer) you can be. It is when you get out of the “more and better stuff” mindset you truly start to appreciate the things that you have. And ironically the less stuff you have the more you appreciate it. And even more ironically the less you pay for each item the more you appreciate it. I take great satisfaction in having acquired an item for free or very inexpensively that has given me much use or added beauty to my life. The less I spend on something the more I appreciate it, because not only do I appreciate the thing itself, I am also appreciative that it did not take my hard earned money away from me. This can be especially true of items that we tend to collect a lot of, such as clothes. It feels much better to have a few shirts that you really like and enjoy wearing than to have your closets and drawers stuffed with them, many of which you don’t even wear. And if you spent a lot of money on those shirts that you don’t even wear that can make you feel worse. As they say, “Less is more”. It really is true! I take great pleasure in buying a shirt that I really like at a thrift shop for a few bucks (or even better if someone has given it to me for free) and I feel that pleasure each time I wear the shirt. The fact that our world is bombarded with stuff and we can go out to stores filled with it and buy, buy, buy, and now even at home we are bombarded with the urge to buy, buy, buy on our computers leaves us in a state of wanting constant instant gratification. All we have to do is have a thought of wanting something and it can be ours at the swipe of a credit card or click of a button. But has this made us any happier? I would venture to say no. What it has done is deprive us of the joy of waiting for our pleasure. For it is in that anticipation of pleasure that our excitement builds up. If we have to wait for something, then we appreciate it so much more when we finally do get it. Instant gratification has effectively deprived us of that very pleasure. Some people think of trying to live below their means as a painful way to live. They view it as deprivation. But it is all in the mindset of how you approach it. I find that living below my means gives me more pleasure than living the life of constant instant gratification through buying more and more stuff. It is a less stressful, slower, more satisfying way to live. It allows you to savor pleasure more deeply rather than to be constantly looking to acquire the next best thing. I urge you to give the joy of slow acquisition a try. You will be surprised how much pleasure not spending money can bring you. Your life will be less stressful, more peaceful and richer than ever before, I promise! Here we are mid-summer, the height of “fun” season, with so many ways to enjoy this glorious time of year. And the myriad of activities at our disposal can run the gamut from free to ultra-expensive. How are you doing so far? Here’s a tip. The amount of money spent does not equate to the amount of fun had. It’s as simple as that. Let’s look at some ways you can have a great summer without breaking the piggy bank, and some alternatives to those activities you are currently forking over oodles of your hard-earned money for. We’ll start with kids who, as anyone who has ever had them in their lives knows, can be a huge drain on your pocketbook. But as the financial savvy among us know, only if you let them. The first thing that comes to mind with kids and summer is camp. This phenomenon alone can empty your piggy bank. The first question that comes to mind is “Do they really need to go?” At the risk of sounding like the old fart that I am, back in my day, we didn’t all get shuffled off to “enriching” summer camps. We just stayed home and played with our siblings and neighborhood friends all summer. And dare I say, used our imaginations and got plenty of exercise to boot. If you still have the need (or desire) to send your kid(s) to camp, there are less expensive, and yes, free options. Look into them. Your little Einstein can have just as much fun at a town or church camp, often run free of charge, then at a fancy “science” (or art, music, sports, etc.) designed primarily to relieve you of your money. Give it some thought before you sign on the dotted line. As for entertaining the little darlings at home (and may I add here that it is not necessarily our job as parents to “entertain” them?), there is no end to the fun things they can do for free or a small layout for materials. There is art (painting, drawing, sculpting, etc.), water play (small backyard pool, water balloons, sprinkler, etc.), backyard games (tag, soccer, hide and seek, red rover, etc.), indoor (board) games for rainy days. Or take them for a bike ride or a hike or a picnic. Get them involved in some gardening. Have them make a little fairy garden. Take them to the library to check out some books and videos or take part in the many free activities offered there. Have a make-your-own sundae party or a campfire and make s’mores. Look around for free family activities in your or neighboring communities. There are often free concerts in the park, street fairs, and other kid-friendly events listed in your local paper. The possibilities for free fun are only limited by your (and your children’s) imagination. Use it! And many of these activities double as adult entertainment too, even for those of you without children in your lives. Bike rides, hikes, picnics, games, campfires, s’mores, ice cream sundaes, and concerts in the park can all be enjoyed by you too. The library is not only a source of free reading material and videos but often also offers programs geared to adults as well, from book clubs to art classes to writer’s groups. There is something for everyone. Again, keep your eyes and minds open to opportunities in your area. Let’s look at some of those things that drain your pocketbook in the summer. I’ve already mentioned concerts. You can find many for free. Even the paid events will often have cheaper outdoor lawn seats available. I much prefer these “seats” anyway as it is very pleasant being outdoors under the stars enjoying the music.
Going out to eat can get costly in the summer months (and always). Why not take turns hosting potluck dinners with your friends at each other’s houses, or take it out to a park or beach? If you just can’t stay away from restaurants, try skipping the appetizers, keeping drinks to a minimum (one or none), sharing an entree, and/or a dessert, or having the dessert when you get home. At least this will keep the cost down to a minimum. And save the eating out for a special occasion. If you do it all the time it loses its specialness and joy anyway. And then, of course, there’s vacation. The cheapest thing to do of course, is not to go on one, or to opt for the ever-popular “staycation”. But if you must go away there are many things you can do to keep the costs down. Staying for a week at a place with a kitchen will cut your meals budget. Going in on a place like this with friends will cut the cost even further. And just as I suggested at home, look for free activities in the area. You can always go on their town’s website in advance to check out the calendar of events. If you don’t want to rent for the week, you can try house-swapping, either with people you know (to check out a new place with in-the-know references as to what is good to do), or through a house swap registry. Some other tactics to save money would be to go on a shorter vacation (do you really need a whole week away?) Try this midweek to save even more. And always be sure to use any discounts you have available, AAA, AARP, Groupon, discount coupon books, etc.) And as for those money intensive kids on vacation, make sure to give them a budget ahead of time. It might be a good idea to provide them with their own vacation fund (for treats, souvenirs, etc.) ahead of time. When it’s gone it’s gone. It’s up to them how long they make it last. This doubles as a good lesson for them for future budgeting (wink, wink). Here’s to enjoying the glorious bittersweet last month of summer. Keep the activities simple and on-budget and you can look back on your delightful summer with no regrets and no debt, only fond memories to treasure forever. |
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