5 frugal grocery shopping habits. . . .

People are often amazed (my own family included) that I can subsist on a grocery budget of $100 or less each month. While this seems rather anemic to some (my dad can't seem to stay under $600 - and it's just he and my mom), I do eat well and I can generally manage to avoid most pre-packaged foods (I'm thinking of frozen dinners, here).

Here are my five top tips for bringing a frugal mindset to the grocery store:

1. Make a list. Let me repeat that: MAKE A LIST! Doing this implies that you've put some thought into what you're going to eat for the week or the the month (see tip number two, below). It also reduces the odds that you will throw things in the grocery cart that you don't need, have no intention of using, or are simply spur-of-the moment whim items (see tip #3 for more on this);

2. Plan your menu, at least through the week. If you know that you're going to be home for dinner five nights out of seven, and that you want to bring your lunch to work every day of the week, spend some time cruising the recipe websites to find recipes that you know you'll use. Focus on those that can be made ahead, and avoid those that use expensive, hard-to-find items;

3. Don't go to the grocery store hungry (and for the ladies: try to avoid going when that ole PMS rears her insatiable head. In my world, shopping during this period - no pun intended - is a sure bet that I'll be coming home with chocolate covered cookies, buttery croissants, or red wine. Or all three);

4. Don't be afraid of store brands. If you don't at least TRY the can of store-brand diced tomatoes, you'll never learn whether it tastes sufficiently delicious to merit purchasing over the higher priced brand you usually buy. Some store brand items I avoid, while others work just fine for me;

5. Comparison shop. A couple of years ago, I took the time to note prices of items I often buy at several area stores. That way, I had a list of the store that frequently beat the others (for me, this is Winco) in terms of price. I NEVER shop at Safeway or Albertson's unless I'm desperate or have an outstanding coupon deal.

You may have your own methods for saving money at the grocery store; please feel free to share them with us in the comments!

Digital motivator. . . .

When I graduated last spring, I splurged (well, $100 to start and about $70 a month thereafter) on a 'Smartphone' with which I can surf the Internet, check email, listen to podcasts, text, and oh, of course, talk. It's an extra expense that I don't necessarily need, but I wanted to reward myself for completing my program (without additional debt!) and it definitely keeps me sane on my 45 minute lightrail commute each morning and afternoon!

One of the bazillions of things you can download onto the phone is a 'Countdown Widget', which I used to create a clock counting down the days until my second mortgage is paid off. I'm estimating that by the beginning of March, 2012 I'll either have that baby paid off or will be very, very close to it.

Here's (essentially) what it looks like:

Neat, huh? I'm a spreadsheet nerd; I'm constantly playing around with different debt payoff scenarios. This little widget helps me to see the 'light' at the end of the tunnel as I pack my days (and nights) with more and more part-time work that adds to the coffers. It'll be nice to see this number get smaller, and smaller, and smaller the closer I get to my goal. Maybe once I'm down to a year or less I'll add the widget to the sidebar so you can all follow along with me!

Frugal cash. . . .

In September, I signed up for one of Dave Ramsey's local Financial Peace University courses. Although I feel that I've learned quite a bit on my own and through my regular blog reading, I wanted to go through FPU with a group of like-minded individuals, as a way to jumpstart my motivation to get out of debt. Although our group was small, there were a couple of people there who were just at the beginning of their journey, and a couple who were basically at the end of their journey and thinking about next steps. I fell somewhere in the middle, in that I already have "Baby Step #1" completed ($1,000 emergency fund) and I've been diligently working multiple part time jobs.

Unfortunately, about halfway through the course I had to stop attending, after I picked up an additional job; having "class" one night a week while attempting to TEACH classes for the first time was just too much for me. Although I did drop out early, I got what I wanted out of the class; a new sense of purpose, the knowledge that I am NOT in this alone, and motivation to continue on my path towards a debt-free life.

If you are struggling to correct the financial mistakes of your past and you are not familiar with Dave Ramsey's Total Money Makeover, I highly recommend it. One of the suggestions in the book is to use the 'cash envelope' system in which you budget for various costs (such as groceries, entertainment, gas, etc) and pay for all of those items in cold, hard cash. Since part of my course registration included my very own Dave Ramsey cash envelope system, I started using it in mid-September and I haven't looked back since!


Essentially, I pull several hundred dollars out of my checking account at the beginning of the month for groceries, entertainment, gas, and "miscellaneous" purchases. The theory is that we spend LESS money when we have to part with actual cash (rather than throwing down the debit or - horrors - credit card), and that once the money in the envelope is gone, it's GONE. No spending a little extra on this or that, because the money literally isn't there.

Although I don't follow all of the "rules" in that I often borrow money from one envelope (usually entertainment) to fund purchases in another category (usually miscellaneous, which is the bane of my existence), the system has worked well for me. Although I love the convenience of using my debit card at the grocery store, Walgreens, Target, and any of the other businesses I frequent, I never lose track of how much I've spent anymore. If I have $25 left in my entertainment envelope, then I know exactly how much I've spent that month, and what's more, I know how much I have remaining to spend. That's pretty huge for me, as pre-frugal-living I frequently lost track of both my income and my spending.

This is definitely not an 'easy' system to use or to get used to. I'm still figuring how the best plan of attack, and have had to adjust my habits to include actual change! I haven't carried nickels, dimes and quarters around in my purse in years! On the bright side, my change jar has never been more full! Although I'm using Dave Ramsey's "system", this is something you could pick up at the local Target or Office Depot store; get a little expanding file folder (I believe they come in 'check' size, which would be perfect for cash) and you're set!

Does anyone else use the cash envelope system, or anything like it? Do you have any tips to share? If so, please comment!

P.S. If I'm not mistaken, this is Finally Frugal's 300th post! I wonder how many there will be when I can finally announce that I'm debt free? (-:

My 'Next Big Thing'. . . . .

So here it is, the Big Plan that is helping me keep my sanity as I continue to work a mind-blowing 65+ hours a week between my four jobs. Well, first here's a hint:



Have you guessed? Not yet? Well, how about this:



Okay, that one was a little silly. So how about THIS:



Yes, you've guessed it! Paris! 'Uh, but what about Paris', you ask? 'You live in the Pacific Northwest, and Paris, France is roughly 6,000 miles away. Also, have you forgotten that you owe $90,000 to the U.S. government and to CitiMortgage?'

Yes, I do know all of that. But I need some kind of incentive to work like a maniac for the next year or two, and what better reward than Paris to keep a girl's eye on the prize?

Several months ago, my best girlfriend, whom I've known since I was six years old, called to see if I wanted to celebrate her birthday with her in Paris. In Spring 2011. I knew that my financial goals wouldn't be met by then (not to mention I had no idea where I would be working and in what capacity) so I told her that Spring 2012 might be a possibility, given that I wanted to have money in savings for the trip (no credit! I've traveled before, and even studied abroad years ago, and came home with nasty credit card bills).

Then, not weeks later a coworker mentioned that she wanted to spend next summer in Paris with a friend. Which started me thinking: Why should I limit myself? Why shouldn't I start living my dreams, once I've gotten rid of the heavy weight of $90,000 in student loan and second mortgage debt? Yes, I'll go to Paris for ten days in Spring 2012 to celebrate my friend's birthday. But what if I started thinking about how I could relocate to Paris, a city I love? I studied abroad in France many years ago, still speak 'un peu' (a little) French, and in reading back over my old travel and study abroad journals, I actually wrote about how much I loved the city and wished I could study there (this was never feasible, unfortunately, given my lack of funding and the requirements of my program).

Perhaps this is just a pipe dream, something that will help me justify the sacrifices I'm making now. Maybe it's a very extreme reaction to the sometimes plodding, nose-to-the grindstone life I'll be living until my debt is repaid. And I know there are people out there thinking that I've lost my everlasting mind. Then again, I've always been a 'planner', I've always looked to the future and matched my actions to my objectives, and this new goal just might be the thing that helps me keep my momentum on this last, long leg of the journey towards frugality, financial independence, and debt-free living.

Super Frugal-istic. . . .

I've been doing some thinking about this $60,000 student loan bill, which is growing like a monster each minute I put off my repayment. I want to pay this sucker off as soon as I possibly can, and I'm just starting to consider what I'm willing to do to achieve that.

Today, I looked at my "day job" income (which is 20% lower than it was last year). With 10% going to my 403b, I'm bringing home just over $1800 a month. I logged into my trusty Excel spreadsheet to see what my life would look life if I were 'forced' to live off of just that income (thereby allowing me to send all the income from second jobs to good ole Sallie Mae). Here's what it looks like:

Pretty barebones, eh? I know that in order to make this work, I need complete confidence in my ability to live on $1800 a month, but this just looks unrealistic! Then again, I'm so tired of that $60K hanging over my head.

Since I stopped monitoring every penny I spend, I'll need to begin paying attention again, or this austerity plan will never work. So, starting next month (July 1st) I'll see just how frugal I can be!

A new chapter. . . .

School's out! Meaning, I've finished my graduate program and am now weighing my options (which are somewhat limited in this anemic economy). I will continue my previous job (now at part-time status) as well as my night job, and am trying to pick up teaching gigs on the side. It's tough, since I have little experience; I've really had to promote myself, which is not a 'natural' for me!

I'm so impatient to begin the next chapter of my financial life, yet am finding that the opportunities aren't just dropping into my lap as I'd hoped, so I'm having to learn a little patience and humility (as my many job applications are either ignored or denied). Baby steps!

As far as my financial life, what's on my mind now is the $60,000 in student loan debt that I'm carrying (and which is growing, growing, growing as that interest accrues!) I've been listening to Dave Ramsey's show on my morning MAX commute, which is helping inspire me, but to be entirely honest, the prospect of paying off that much debt is just . . . . daunting! I vacillate between: "I can DO this!" and "There is NO WAY I can do this!" If I could sell my house for what I owe, life would be much, much less complicated (I'm sure many Americans are in the same bind). I literally fantasize about selling my house and living in a cheap apartment, constantly running the numbers in my head, calculating how much extra I'd have each month to pay down that student loan debt.

So that's my current dilemma: how to pay off $60,000 in the shortest possible time on about a $45,000 year salary (including the second job), with about 55% of my take-home pay going towards my mortgage. Yikes! And I've already whittled my budget down as much as I can. Should I bite the bullet and try to find a roommate? I love my privacy, but having an extra $400 or so a month would be bliss!

Your financial personality. . . .

Whew! I landed on my feet after a weekend at the beach; who knew that three days out of town could result in getting so far behind in everything else? In any case, my mini-holiday was fabulous, and I'm back to the 'grind', as they say, after a rejuvenating beach vacation.

In the midst of catching up on work stuff, I came across this very interesting article in a British paper (the Daily Mail), about a recent survey on people's financial personality. In essence, it appears that of the people surveyed, over 50% are considered 'Amblers', meaning they simply amble through their financial lives, paying little to no attention to bills, savings, and budgeting! I wonder if these numbers would be the same if Americans were surveyed?

Here's a table with the five financial personalities as defined by the researchers:

In reading this article, I kept wondering: where is The Frugaller? Where is the 'personality' for balanced people who pay attention to their finances, are able to live simply and save for the future without becoming neurotic or anxious (as The Hoarder appears to be)?

Doesn't it look as if financial personalities have been defined a little too narrowly by this study, and perhaps a bit negatively? I know in the past I've been The Ambler, The Evader, and The Splurger, and I know people who fit The Validator profile, but I feel as if I now fit into a sixth category---someone who opens her bills without anxiety or delay, who spends quite a bit of time thinking of her finances---without as much worry as a Hoarder---and who is motivated by optimism for the future, rather than fear.

A budget-busting diet. . . .

I started a diet in a desperate attempt to lose this ten pounds that has hounded me for the last year. The diet is relatively low calorie, and includes a higher percentage of protein than I'm used to eating (I'm generally kind of a carbohydrate whore). I'm also supposed to eat what seems like a giant serving of fruits and vegetables at each meal!

What this means is that I've made two or three trips to the grocery store in the last half of the month to restock my refrigerator, and this has decimated my grocery budget for the month. I budgeted for $85 this month for food, and I'm probably closing in on $150!! And I've barely lost any weight (maybe a couple of pounds).

Granted, it's been less than a month and I'm still getting used to the types of food I need to eat, but I'm just a bit bummed about it. So what's a frugal gal to do? Well, as always, I turned to the trusty internet for some tips. And luckily, one of the first articles I came across was in Consumer Reports (and I didn't even have to subscribe to read the full article! How's that for frugal?)

The article in question is about dieting on a budget, and has some budget-friendly ideas for people like me who want to shed a few pounds without spending hundreds of dollars. . . . here are some of the better ones:

• Plan ahead: make a menu for the week and stick to it; take a list to the grocery store and stock up on the items you'll need for your meals. This is something that I didn't do when I shopped for groceries at the beginning of last month---I didn't know I'd be on this diet, so simply shopped for my usual items, only some of which I've used.
• Buy in season: I've said it before, and I'll say it again, watermelon in the summer is cheaper than the same item purchased in the dead of winter (and better for the environment, too)!
• Eat beans: I already eat a lot of beans, since they're a frugal food source, but I may need to find more recipes to add to my arsenal.
• Try tofu: now, this is something that I've not tried much yet. Tofu doesn't appeal to me---but that may be because I'm just not familiar with it. So I'll check the price of tofu (against other protein sources like chicken and tuna) to see if this will save me some dough the next time I shop for food.
• Buy a whole bird: I did this last month---I found whole chickens at .77 cents a pound at Albertson's, and cooked one in my crockpot. It made a fair amount of chicken meat; now I just have to find the time to cook the second one, and keep my eyes peeled for good deals like that. Next time though, I'm going to measure exactly how much meat I get from the bird and compare the cost to the bags of frozen chicken breasts I usually buy, to make sure I'm getting a good deal. . . .
• Plant a garden: I'm in the process of doing this right now! My seeds took off, and I now have more tomato starts than I know what to do with. Unfortunately, I lost track of some of my seeds, so I now have some 'mystery starts' that I put in the ground last weekend. Hopefully soon I'll know what they are (assuming they survived the transplant. . .)

So there you have it. Although I suspect I'll need to increase my grocery budget to include more fresh fruits, vegetables and protein sources, I think with some planning I can keep my expenditures at the grocery store to a reasonable level. . . .

The shopper's high. . . .

Last weekend, I made a trip to a local mall to visit Barnes and Noble. I'm trying to lose the ten pounds I've gained since moving to Portland, and find that I just don't have time to get to the gym every day. I chose a 20 minute workout by Jillian Michaels, one of the trainers on The Biggest Loser. So far, it's giving me a run for my money!

Anyway, it's been quite some time since I've wandered through a mall, and I felt my anxiety rising with each step. Although my head swiveled to the left and right as I passed interesting stores, I successfully avoided stopping in at my favorite pre-Compact stores (Banana Republic, The Gap, Ann Taylor Loft. . .) but ended up walking past a couple of stores that brought back that credit card itch! I'll admit to making a quick detour through the shoe section at Macy's on my way out of the mall. Luckily, nothing truly caught my eye---and I was happy to turn my back on the springtime displays of strappy sandals and peep-toed flats.

I re-entered the outside world with a "Whew! I made it" attitude. But why was I lured in the first place? I felt like a diabetic sitting at a dinner table with a giant chocolate cake in front of me.

As part of my night job, I routinely read articles from all over the world, and although frugality and simple living aren't part of my target focus, it's impossible to pass up a headline like: Why spending money is like a drug. Researchers showcased in this article found that the perception of higher salaries (and spending money) actually activates a part of the brain termed the "reward center". Although this particular article focuses primarily on how our 'reward center' is activated when we perceive that we have a higher salary (regardless of inflation), there is a secondary reward when we purchase an item.

This might explain why there is an actual term for compulsive shopping, called Oniomania. For example:

"Victims often experience moods of satisfaction when they are in the process of purchasing, which seems to give their life meaning while letting them forget about their sorrows. Once leaving the environment where the purchasing occurred, the feeling of a personal reward has already gone. To compensate, the addicted person goes shopping again. Eventually a feeling of suppression will overcome the person. For example, cases have shown that the bought goods will be hidden or destroyed, because the person concerned feels ashamed of their addiction and tries to conceal it."

This is exactly how I racked up so much credit card debt (except I never destroyed my purchases---though I did sometimes deny that an item was new if someone asked). When I'd had a bad day, when I was depressed, when I felt fat, or ugly, or any other negative emotion, I often turned to the mall to assuage my feelings. Interesting, then, that researchers have recently found that anti-depressants like Prozac can actually help 'cure' people of overspending!

Luckily, I've made a commitment to both The Compact and to not adding useless charges to my credit card. I never again want to be in a position where my credit card payments are larger than my deposits to savings and investment accounts. I can't say it's been easy, though, as my recent trip to the mall illustrated. Maybe someday I can walk through a shopping center without feeling anxious about not spending anything. I do know that even when I find a used item at the Goodwill or some other used clothing store, I feel a momentary thrill--and that, for now, is more than enough for me.

Frugal movies. . . .

I don't enjoy the luxury of just chilling at home much these days (and, truth be told, I'm not a couch potato even in the best of times . . .) Between Job #1, Job #2, and being a full-time graduate student, my schedule is tight, but my budget is even tighter, meaning that entertainment gets squeezed in here and there, as time and money permit.

A couple of years ago, I explored the possibility of 'renting' movies at the local library, only to find that the most popular movies (meaning, anything with a title I recognized) had from 10 to 75 'holds' on them, placed by other patrons. I chafed at the prospect of not having my movies when I wanted them---wait times could be months long---and continued to rent some instant gratification from Blockbuster, at almost $4 a pop!

Now that I'm two-thirds through my graduate program, I'm feeling the need for additional 'self-care' while also feeling the pinch in my budget from ramping up my savings to account for my upcoming drop to part-time status at the day job.

So once again, I went back to my beloved Multnomah County Library website and set to work finding some movies that interested me. I dutifully placed my holds, behind scores of other library patrons, and settled in for a long wait.

Imagine my surprise, then, when just weeks later I received an email from the library letting me know that my first DVD hold had come in! I trotted down to the library before getting on the Max (light rail system) for the ride home, and presented myself at the DVD counter. Shockingly, there were FIVE movies waiting for me! In placing my holds, I had tried to be strategic, placing holds up to the limit of ten DVD's, thinking that they would arrive in a staggered fashion, allowing me to watch one or two DVD's every weekend or so. Not so, not so. Although patrons are allowed a whopping TWO WEEKS to keep their DVD's, many often return them in mere days, meaning that the 'hold list' decreases much more quickly than I had assumed.

So far, I've watched six or seven FREE movies over the course of the past month or so. Using coupons, I purchase some packaged popcorn, and voila, I have a fun movie night that cost pennies. I've had friends over to watch a couple of movies with me, and if they bring beverages, we're all set for a frugal evening of entertainment.

Note: I have been downloading free audiobooks for my MP3 player for about a year, which I use when I go to the gym. I can get all sorts of books this way, without paying the $15-$30 they cost on the iTunes and other audiobook sites. . . .

A Goodwill find. . .

Late last month, I went on a quick tour of the Goodwill store located closest to my work, which also happens to be a 'high quality' Goodwill. Meaning that any designer items or even higher priced clothing (such as Banana Republic castoffs) will be funneled to this particular store. Of course, the prices at this store are also quite a bit higher than at other Goodwill locations around town. In spite of the high prices, some good deals can be found.

For example, I've been on the search for a good pair of jeans---I like the designer stuff, but I'm not willing to pay more than $40 dollars for a pair of jeans. Hence, I wear a lot of Gap, Old Navy, and Banana Republic jeans.

However, on this particular day, I came across a pair of 'Joe's' jeans at the local Goodwill. They fit me well, the length was perfect with boots (difficult when you're only 5'4"), and they were in good shape. At $29.99, they were more expensive than I'd expect from a used clothing store, but I thought it was worth it.

Upon arriving home, I checked the Macy's website to see how much this particular brand generally sells for. What I found was astonishing! These fairly run- of-the-mill jeans typically sell in the $155 to $175 range! Unbelievable (I would NEVER spend that much money on a pair of jeans). What this means is that by shopping in a used clothing store (even a more expensive one), I saved approximately $140, or about 80% off retail!

Bliss!

Last weekend, we enjoyed the first truly sunny, warm days in Portland! Aside from the fact that I had a chance to replenish my diminishing supply of Vitamin D after a grey, rainy winter, I was also able to air dry my laundry outdoors---in a matter of hours!

I purchased a retractable clothesline at Home Depot, installed it in a half-hour or so, and ran inside to wash the linens that had been piling up---I was dreading the idea of trying to figure out how to dry sheets and blankets indoors. By Sunday afternoon, all of my sheets were clean, and I even took the opportunity to wash my duvet cover---something I generally avoid even when my dryer is working, since it's so large and unwieldy. I confess that after the duvet air-dried, I put it in the dryer to tumble for a few minutes, just to remove the last remaining bits of lint and pet hair. It worked like a charm!

Ahhhh, if only Portland could offer sunny weather on a more regular basis. It's been years since I slept on sheets that had been air-dried---since I was a child, really---and the smell is fabulous!

With that said, I did learn some tips to make line drying more successful:

• Snap the clothing, sheets or blankets before hanging them on the line. This will help smooth out some of those wrinkles the items gained while clumped up in the washing machine.
• Hang socks and shirts upside down, to avoid any stretching.
• Fold towels and jeans over the clothesline, and flip to the other side halfway through. I forgot to do this with a pair of jeans, and the legs look a little weird. . . .
• Use a bit of vinegar in the wash water, to help avoid the crunchy-crinkly feel of towels, sheets and clothing. You can also throw these items in the dryer for a quick tumble, which may help soften them prior to folding and placing in cupboards or closets.
• Hang colored items inside out, to avoid their being bleached by the sun.
• Wash items that may generate tons of lint with other items of the same color/type. Now that my black polar fleece jacket is covered in white lint, I'll pay more attention to these details in future!
  

Alas, today is our last day of sun before the clouds and rain (and MUCH cooler temperatures) return. I'm all caught up on my laundry, but look forward to the next blissful sunny spell so I can continue saving money on my utilities. . . .

CNN's laughable 'budget-friendly' home remodel. . . .

I would love to sell my house at some point in the very near future, but realize that in this market the word 'future' really means a year or more, at best. In looking on the bright side of this, I'm considering cheap, easy ways I can improve the curb appeal of my home now, so that it's easier to sell when the time does come.

So I was intrigued when I saw the following link on CNN's site: Make Over Your House Without Going Broke. Upon clicking this compelling link, I found that CNN's idea of affordable is quite, uh, interesting.

Case in point:

• The very first example of a 'modest' makeover shows a beautifully redone kitchen, in which the cabinets alone cost a mere $15,000! My first thought was: Are you kidding me? This appears to be the type of kitchen remodel that Americans were doing in droves, courtesy of their home equity lines of credit, a year or two ago before the economy tanked! My idea of a frugal, 'budget friendly' kitchen remodel involves NOT spending $30,000 or more on new cabinets, new countertops, new appliances and new flooring, but instead doing something apparently quite radical---and cheap. Like painting. Or replacing the cabinet hardware. Maybe, maybe, upgrading to an energy efficient refrigerator or a new stove.
• In the bathroom, CNN's ideas are equally incredible. For example, the article recommends adding a skylight, for a mere $1,500. Granted, a skylight will open up the space and perhaps make the bathroom look a little larger, but with the economy in tatters, doesn't this seem a little, well, superfluous? Again, I'm thinking a little paint and some new towel bars are well within my price range, while the thought of purchasing a "$1,000 mirror" is simply absurd. The suggestion to "add a drain" in the middle of the floor (cost: $1,000) seems unnecessary and overpriced as well.
• Finally, CNN shares its idea of a 'smart' splurge. This includes $4,800 for a dining room table (no clue whether the chairs are included in this bargain price), almost $2,000 for a custom sofa, and nearly $2,200 for a bed. A BED. That you sleep in. Again, whether the mattress is included in this 'relative bargain' isn't mentioned. I'm going to guess not.
  

Seriously. What planet do the editors of CNN live on, that they believe people who are interested in a budget remodel would consider shelling out $9,000 on three pieces of furniture??? I'm simply astounded by this article, and it makes me wonder who actually paid CNN to write it. Home Depot? Lowes? Ethan Allen?

The only thing I can surmise from this ridiculous 'article' is that either the people who regularly cruise CNN's site are doing a heck of a lot better than the vast majority of Americans, or the editors at CNN have their heads screwed on backwards.

Frugal energy use. . .

I've been toying with the idea of getting one of those 'Kill-A-Watt' devices, that you can hook up to various electronic appliances to see how much electricity they're using. However, since I'm on The Compact this year, this purchase would eat into my six 'freebies' (six items that I can purchase new, so I don't go completely crazy) unless I could find a used one.

When I was using the MagicJack phone system a few weeks ago, I had to keep my computer on all the time. It really bothered me! In fact, it bothered me so much that I sent it back with a 'thanks very much but I want a refund' message. I wondered how much electricity my computer was using just being on but idle during the evening or day when I was sleeping or at work. Of course I turned to the trusty internet to answer my questions. . .

First, I found this article on the green section of Yahoo that discussed the facts and myths surrounding standby electricity use. I was surprised to learn that set-top cable boxes and DVR machines are the worst offenders as far as drawing power even though they're technically not in use! Although these items can't really be shut off (the whole idea of a DVR is to work when you're not around, after all!) there are other ways consumers can reduce their utility 'footprint' around the house.

Probably the most helpful resource for consumers wanting to decrease their utility bills is this comprehensive list from the Lawrence Berkeley National Lab. Researchers actually tested and measured the energy usage of a variety of products---when they were on, when they were in 'sleep' mode (as with a computer), and when they were off but still using power for some reason (such as the coffee maker with a clock). The results are pretty fascinating (and maybe the fact that I'm so interested in this has just exposed my inner nerd, but I don't care).

I was particularly interested in the results for a desktop computer (which I was using with the MagicJack). For example:

• The average watts consumed by a computer that is on, but idle: 73.97
• The average watts consumed by a computer that is off: 2.84
• The average watts consumed by a computer that is in sleep mode: 21.13

Since it's impossible to put the computer 'to sleep' with the MagicJack, my computer was consuming quite a bit of energy while I was at work or asleep, just to keep my "free" phone service working! Not worth it from a financial standpoint, or from an environmental standpoint, in my opinion.

It's also important to point out that while none of the individual products on the Lawrence Lab table was a huge energy 'vampire', when the energy use of those appliances are taken as a whole, you can see how decreasing the standby power of just a few (or all) would make a difference.

Frugal Focus community portal launch!

I'm pleased to announce the 'birth' of Frugal Focus, a new community portal site that combines content from yours truly as well as seven other frugal bloggers.

With the explosion of blogging---especially on the topic of frugal living, paying off debt, and living within one's means---it can be difficult and time-consuming to surf the web looking for just the right information or advice you need. I know that I can spend literally hours a day jumping from one site to the next following this link and that, all in the name of learning more about frugality.

Frugal Focus is a site that promises to compile the most recent, relevant blog posts in one spot, making it easier to find what you're looking for. If you don't feel comfortable subscribing to several different blogs, you may want to consider bookmarking this new site (or you can click on the link in the frame to the right of this post) for one-stop shopping, so to speak.

My fellow bloggers in this Frugal Focus endeavor are:

Bargain Babe

Bargain Briana

Frugal Green Girl

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Not Made of Money

The Frugal Duchess

The Frugal Girl

I hope you'll find the time to visit Frugal Focus, as well as the partner sites that are also included on the site. I've already got it bookmarked so I can check back each day and see what's going on in the frugal blogosphere without having to visit a thousand random sites. . . .

Frugal is the new cool. . . .

I began my frugal journey over a year ago, when I became sick and tired of feeling as if I was working for my credit card companies instead of for myself (read Your Money or Your Life to learn what inspired me). Now that the economy has tanked and people are losing their jobs and homes, it seems that frugality is becoming popular in a way I never imagined!

According to Paul Harris, a columnist with the London Guardian, the recession is changing the very fabric of society in the United States. Whereas we've striven for 'bigger and better' over the past 30 years (in everything from cars to cookies), we as a nation are beginning to see that the culture of overconsumption was not only bad for our environment and our waistlines, it has wreaked havoc with our collective pocketbooks.

"Frugal is the new cool, putting an end to hyper-consumption. The orgy of credit card abuse is over. A website called Debt Proof Living launched a daily email tipsheet last summer which now has 100,000 subscribers. Oprah Winfrey forsook her annual holiday list of expensive gift suggestions in favour of more modest "favourite things". Salons and spas are seeing customers desert them as women pamper themselves on the cheap at home."

While Harris ties this new culture of frugality to the ascendancy of Barack Obama, I believe thriftiness and simple living concepts would have been just as powerful under a McCain presidency. After all, our economy is in the toilet and will remain so for quite some time, regardless of who is living in the White House. The financial metamorphosis that we are undergoing is a result of the crash in the housing market, among other things, and would have been inevitable no matter the outcome of the election.

It is possible, though, that President Obama will become the new symbol of living within one's means (although the recent bailout package seems to fly in the face of this notion). I'm hopeful that this ginormous injection of capital (translation: credit) into the country's coffers will enable us as a nation to become more frugal at the government level. Perhaps the New York Times columnist Bob Herbert says it best when he tells us to "Stop being stupid". I only hope our government will take the time to read and digest Mr. Herbert's message of economic intelligence, as so many individual Americans have done (and continue to do in greater and greater numbers).

I think I might be a 'Saver'. . . .

I know it's really too soon to say for sure, but in looking at my expense-to-income chart and my ING Direct account balances, I think I might be turning into something I never thought possible: a Saver. Never in my wildest dreams did I believe that I could afford to save, let alone find the motivation and determination to actually do it.

In spite of my skepticism, my bank account tells a different story. Over the past two months, I've been able to place almost $800 in my 'internship year' savings account (which I'll use to 'bridge the gap' next year when I'll be forced to work part-time). That's in addition to the roughly $250 I place in other savings accounts each month to cover future school costs, utilities, and bi-annual car insurance payments. In the month of January, I managed to sock away $458, which represents almost 17% of my take-home pay! In February, I'm shooting for a total savings of $675---a definite challenge, but one that I look forward to. Just two years ago, I would have declared this goal 'impossible'.

"Big deal", you might be saying to yourself, finger on the mouse button that will take you away from this page. But to me, it IS a Big Deal (with a capital B, and a capital D). What does this really mean to me? It means that I have it in me to save money. It means I can be a Saver. For someone who grew up in a household in which extra money was spent before it was ever earned, and who lived off credit for 20 years, that's a HUGE deal. It means that when I finally conquer my student loan debt and have my mortgage under control, I can save the money to: buy a "new" used car; replace my computer; take a vacation; make home improvements. I can pay cash for these things, rather than throwing the credit card down at the checkout counter with the never-to-be realized intention of paying it off by the time that 0% introductory interest rate goes the way of the dodo bird.

According to a recent article at ABC News, I'm not alone. Due to decreasing income and the threat of layoffs, Americans have increased their savings rate during the past year from 0.4% in 2005 to 1.7% in 2008. This 2008 average includes a savings rate of 3.6% in December alone. Also driving that higher number is the May 2008 stimulus check---in that month, Americans saved their after-tax income at an astonishing 4.8% (meanwhile citizens in countries like China save closer to 30% on a yearly basis)! Nothing like a recession and the threat of unemployment to send Americans scurrying to the bank at last.

Of course, my own metamorphosis from a credit-dependent spender to a live-within-my-means Saver began not with the recession, but with a little book called Your Money or Your Life. Perhaps it was mere coincidence that I read this life-changing tome just a year and a half before the economy tanked. Or maybe it was some sort of supernatural prescience, who knows. What I do know is that it jump-started my journey into 'un-debtedness', rather than 'in-debtedness". That I rode the waves of the recession last fall while sending my very last payment to my credit card is due in no small part to YMOYL as well as to Dave Ramsey's The Total Money Makeover.

I had no idea when I started living more frugally and paying down my credit balance that I would one day have an emergency fund, that I would learn to keep track of every cent that leaves my fingers, and that I would have the financial fortitude to place money in a savings account long enough for it to actually earn interest. Since I was raised with the unspoken understanding that 'money comes, and money goes (and where it goes, nobody knows)', the psychological benefit of learning that I have control over both my spending and my savings is profound.

As I write this post, it occurs to me that it may sound overly self-congratulatory. It's not meant to be read in that way (although I do feel a certain amount of pride in my ongoing efforts to change my habits). With over $56,000 in student loan debt looming, I've quite a ways to go before I'm truly financially secure. No, what I hope to communicate is that if a person like me, with an average salary---especially when compared to my ridiculously large mortgage payments---can manage to pay off credit card debt and increase savings, so can any of the other folks suffering through this current (though, I'm convinced, temporary) economic recession. It's not easy, and it's not instantaneous. It's a process, a journey, a challenge. But when you reach the point where you can ever-so-tentatively label yourself a Saver, it's worth every moment spent noting expenditures, creating and updating budgets, determining spending priorities, and reading personal finance books (and blogs!)

How Americans are saving money. . . .

I came across this Business Week video entitled Frugal America, which is basically an interview with a family that used to be $800 in the hole each month (thanks to a home equity line of credit, apparently). After a few cruises, yearly trips to Disneyland, and countless restaurant meals, they found themselves over $100,000 in debt! This video details what they did to get themselves out of debt and more importantly, how they learned frugal new habits that will hopefully keep them out of debt!

It's interesting that by the end, the interviewer is comparing the increasingly frugal habits of contemporary Americans to the way their grandparents lived during the Depression. Will we revert to our old super-consumer ways when the recession finally lifts? Only time will tell!

A frugal bonus. . . .

'Tis the season. . . for tax preparation! I'm one of those people who waits impatiently at the mailbox (and the email inbox) for my W2's and other assorted tax documents, so I can get my grubby little hands on my refund. I don't waste any time filling out my forms online, and often create a 'fake' 1040 in late January so I know roughly how much to expect in my refund check.

Although (according to my tentative calculations) I won't walk away with much of a refund this year (due to the income from my second job), in the process of creating an 'estimated' 1040 form, I have discovered a new passive source of income that I've never had before!

It's called INTEREST! As in, interest on my savings accounts! I'm stunned to report that my measly savings (the majority of which is held in my emergency fund) brought in almost $70 dollars last year!

This is what the wealthy (or even just financially secure) people mean when they say that their money works for them, not the other way around. Although $70 is not that much money, I think it represents a huge step for me. I've never before been able to keep enough money in a savings account to actually earn interest. In fact, just getting the money from my checking account to a savings account has been a challenge; it's generally been spent before I've even gotten my paycheck.

This past November I finally paid off my credit cards, leaving just my student loan debt to deal with---that has been my entire focus. Even when I created my emergency fund (as Dave Ramsey suggests in Total Money Makeover), it just never occurred to me that some day that account---as well as the other sub accounts I created---would benefit me in such a tangible way.

Though I have miles to go to reach total financial independence and security, I have to say: the journey so far has been incredibly fulfilling. I love my new frugal lifestyle!

Are my frugal ways hurting the economy?

A recent Forbes article indicates that a whopping third of U.S. women are planning on making NO clothing purchases in 2009! That is an incredibly high number, in my opinion, and speaks volumes about the current state of our economy. Apparently, in a 'normal' year, only 4% of women say they won't purchase any clothing. In fact, consumption in general seems to be waning, as the graph below from the Wall Street Journal indicates.

Partly as a result of the sudden increase in women who will wear what's in their closets, many retailers are either in dire straits--and will probably close their doors completely--or are in serious financial jeopardy. I was shocked to see some of the well-known brands that may be shutting some or all of their stores in the coming year:

• Eddie Bauer
• Ann Taylor (a personal favorite)
• Sears/Kmart
• Lane Bryant
• Pacific Sun
• Timberland

Learning this immediately made me think of my own frugal goals for 2009, which include following The Compact and attempting to purchase used clothing and other items whenever possible. Technically, I must count myself in that 33% of American women who will avoid the mall this year. Are my frugal habits going to hurt our economy? According to this Wall Street Journal article, we 'frugallers' are "aggravating" the economy!

Well, I decided to do a little unscientific web research on the topic of frugality, saving money, and helping (or hurting) the economy. Here's what I found:

Jim Ludwick of the Business Monthly has this to say:

"I won't take you back to school for economics class other than to remind you that when you save you can help banks, companies and even the government save money, too, by putting your dollars to work at less cost. That means more profits for businesses and their owners (read: shareholders), and it lowers the cost that the government must pay to borrow (read: lower interest rates)."

Scott Malcomson writes on the Huffington Post:

"The theory is that, in the near term, the American economy needs stimulus, and a critical part of that stimulus should come from consumers. Otherwise the current Mexican standoff - companies cutting back and shedding workers, banks not lending, consumers not spending - will continue.

It makes sense, up to a point. But it isn't as though Americans aren't spending at all. A savings rate of 10 percent will still keep us a bit behind the French and Germans (who don't have our worries about health care and retirement savings), and far behind the Chinese, whose levels are somewhere around 20 or 30 percent (and who have much worse worries than we do about health care and retirement). Besides, the money is not being put under mattresses. It is going into bank accounts and other highly conservative investments. It is available to be lent."

Meanwhile Steve Hamm, over at Business Week writes about the 'new frugality' this way:

"Menzie D. Chinn, who teaches economics at the University of Wisconsin, figures consumers won't be in a position to spend freely for five years.

Which brings us to what John Maynard Keynes called the paradox of thrift. What's good for the individual, argued the famous economist, can ignite or deepen a recession. But that won't deter the newly thrifty. "I can't help the economy," says Kim Schultz, a resident of hard-hit Avoca, Mich., who with her husband, Jon, owes $40,000 in credit-card debt. "I've got to help myself." On the other hand, this newfound austerity could—emphasis on could—rewire Americans as savers rather than spenders. And that would help put the economy on a sounder footing over the long haul."

It seems that Keynesian economists would likely blame the slowing economy on frugal Americans like me---if I don't spend, then our consumer-driven economy will topple and fall. But isn't it better for Americans to SAVE, rather than overspend? Isn't one of the reasons we're in this predicament because lenders gave out too much easy credit to people (like myself) without the ability to pay it back?

Although I "get" the argument that I must spend to help my country's economy, I don't BUY it. A healthy economy, in my humble opinion, is not one that is driven by short term spending by people who are living above their means. Instead, a healthy economy is one that is based on long-term investment in the things we can afford, whether at the individual level with a reliable car (paid for with cash) or at the government level with investment in sustainable industries and infrastructure.

I choose a healthy economy. I choose frugality.