"Got my mind on my money and my money on my mind." - Youngbloodz
Yup, I just quoted old school rap lyrics. That's how we roll around here. Anyway...my last post was a long winded essay on why budgeting is worth your time. I thought since we've been at it for over half a year now, I'd share with you some of our best tips for being frugal and making your money work for you. The art of telling every penny where to go (in my pocket of course..."find a penny, pick it up, then all day you'll have good luck" and an extra penny!).
1. Generic brand food actually tastes the same on the majority of products. Try it, you'll be surprised and save a bunch of money on your grocery bill. I avoid generic tuna, am picky about hotdogs, prefer real maple syrup (or at least some large % mix) and have a couple of brand name cereals I really like (because I make a serious midday meal out of cereal...I need it to stick to my bones longer...and I'm picky). That said, we buy pretty much everything else generic. In fact, we are lucky to live near a store that sells SOOO many products in bulk bins, we save a ton of money shopping there and just store in our own containers.
2. Math is your friend. When you are shopping always compare price per unit of measurement. You are looking for the best ratio of most unit of measurement for lowest price. Some stores post this on the labels on the shelves. If they don't, do a rough estimate in your head. Does math hurt? Use a calculator (your phone probably has one).
3. Sell anything you can part with and you really don't need. When you start evaluating things, how often you use them, if you use them, if you are tired of them, if they are valuable, if you can easily replace them etc. you will start to realize you can live without a lot of the stuff you've been dragging around for years. My husband and I are constantly selling stuff. It is really satisfying to get a little money for something that is no longer useful to you and taking up space. Especially in a small apartment with no storage. Have a yard sale, list in the online classifieds. Post it on your facebook. Easy! We just made $150 at a yard sale this weekend and still have lots of stuff left to sell. Use this money to pay off debt! Good way to get the snowball rolling.
4. Cook! Making meals at home will save you so much money. It's also healthier and a good way to have some family time without everyone realizing that's what's going on :) . We go out to eat maybe once or twice a month. It comes out of our regular food budget and means that we get to buy that much less in groceries if we eat out. Also, bringing your own food for lunch is a huge way to save money! Leftovers reheat really well, cut down on waste, and are an easy way to have a healthy, filling lunch.
5. Look for free entertainment. We save so much on entertainment by looking for things that are going on for free. Our local art museum offers a free admission night once a week. Many museums do; check out their websites. Summer is a great time for free music and outside festivals. We have been going to as many of these as possible. We also try to get out and just enjoy the small things more too. An outing to feed the ducks? Sitting outside at the local coffee shop people watching?
6. Volunteer. You may be surprised that volunteering will actually save you money. It is entertaining, it is social, it feels good. And in some instances, if you volunteer for an event, for example a music festival, you can get free admission. My husband and I volunteered for the local folk festival. I will be doing site cleanup and he will be bartending and we will save $100 on the event!
7. Follow your budget. Don't cheat yourself. Once you have spent your valuable time, energy and brain cells on planning a budget, stick to it. This seems obvious, but it can be harder than it sounds. Don't forget to budget in some blow money for yourself. It helps. We each get $25 a month to spend on anything we want, no questions asked. My husband has a hard time limiting himself on this, but I feel like I am doing really well and sometimes have extra money left at the end of the month to roll into the next month.
8. Use envelopes with cash to manage things like food, entertainment, gas and your blow funds. We have noticed a huge difference in the months we used the envelope/cash system vs. the months we used debit. We let $1000 walk away one month using debit because we told ourselves "oh we're fine, there is plenty in the bank account." Sure there is plenty in the bank account, but on our digital budget spreadsheet, that money is actually being saved for things like the dentist, medicine and gifts. In a sense, we were stealing from our own savings. Sad.
9. Talk about money! Many people we know with money problems and debt hate money. They are angry about it, they don't want to talk about it. Once you allow yourself to get past that, and openly talk about it with your partner, your family, your friends, whomever. It is a lot easier to feel in control of your money, your expenses, your debt and your savings. Yes, we still argue about money, but I will say our conversations are much more productive and we are mostly on the same page.
10. Shop thrift shops and yard sales. This is a frugal, budget conscience person's best friend. In many instances "gently used will do". We buy as much as we can second hand right now. Of course we'd love to buy new, but on our just above poverty line income, we can't afford new on most things. I find name brand, designer clothing all the time. Watch for holes/snags/stains/general wear and tear but otherwise you can often win at thrift shops for clothes. We also buy a lot of kitchen items at thrift shops - dishes mostly. Pots and pans we buy new because the non-stick stuff does wear out. It is amazing what soap and water can do. Facebook has lots of local buy/sell groups. Search for your town name & buy/sell/yard sale/garage sale etc. Also shop online classifieds like craigslist. Plug your nose, dive in and you will be surprised and impressed at the treasures you will find. I have found Coach, Bottega Veneta and Gucci among other brands at thrift shops. Treasures people and more pennies in your pocket!
Have some more tips not mentioned here? We would love to hear them. Please share in the comments!
