In this warmhearted guide to living the good life on less, Deborah shows you how to live within your means and enjoy doing it. Among other things, she shows you how to:
* Eat like a king on a peasant’s budget
* Take the sting out of gift-giving
* Dress well on a shoestring
* Save big bucks on family expenses
* Slash household expenses
* Save on medical expenses
* Involve the whole family in saving money
* Save more for the things you want
From basement to attic, cradle to grave, Frugal Living For Dummies covers all areas of life with common sense advice and guidance on:
* Working with your partner to achieve financial goals
* Going to the grocery without being taken to the cleaners
* Quick and thrifty cooking techniques
* Providing kids the basics on a tight budget
* Putting kids through school without going broke
* Looking good and feeling good on a tight budget
* Frugal holiday fun year round
* Saving money around the house and driveway
* Finding quality in pre-owned merchandise
Packed with tried-and-true techniques for cutting costs and stopping the insanity, Frugal Living For Dummies is the ultimate financial survival guide for the rest of us.
Recently, my wife and I had some guests over to visit. While here, one of the guests used the restroom on the main floor of our home, where we have a large closet where we store supplies over the long haul. She observed that there were about twenty bars of soap, several bottles of Old Spice body wash, several large bottles of shampoo, and six boxes of our son’s favorite breakfast cereal (Yogurt Burst Cheerios) stowed away in there, and when she came out, she made a half-curious and half-sarcastic comment about them.
Here’s the real scoop: every item listed above cost us less than a dime. In each case, we saw a tremendous buying opportunity matching coupons to a sale and we simply stocked up big time on those items, leaving us with a large closet stuffed full with unusual items. I like to call it anticipation buying.
Anticipation buying revolves around four distinct principles.
First, there are some items that we will continually use over time. Soap, shampoo, oatmeal, Yogurt Burst Cheerios (without them, our son would riot), flour, sugar, some fruit juices, milk, coffee, razor blades, toilet paper – these are items that we use over and over again and continually need to stock up on. Because we’re aware of this, we can use a specific plan of attack for these items to get low prices on them.
Second, there are irregular opportunities to find such items on sale. These items pop up on sale on a completely irregular basis. Brand A shampoo might be on sale one week, then two weeks later Brand B will be on sale. Not only might national brands be running a promotion where items are on sale in stores, but individual stores might select different loss leaders to get people in the door.
In order to keep up on these individual sales, we just follow the grocery flyers in our Sunday paper (and in other flyers we get in the mail throughout the week). I usually have flyers for all of the local grocery stores and I keep an eye out for their big sales by reading their flyers each Sunday over breakfast.
Third, there are irregular opportunities to find strong coupons on such items. I clip every coupon for items in the above categories that are of acceptable brands from the Sunday paper, and if I see a very good coupon, I’ll stop at the local convenience store early on Monday morning and ask for the inserts out of the old Sunday papers (the cashier always says “Sure” and I start scavenging for coupon inserts). Sometimes, I can get as many as fifteen of the good coupons – if they’re for $1.50 off an item I know we’ll use frequently, it’s like cash in the pocket.
So, we patiently clip all coupons for these items and save them until there’s a sale, then stock up. I have the coupons. I have the flyers. I then just wait for them to sync up. Usually, it happens about a month or so after I clip the coupons one month coupon strategy at work).
Another tactic to note: quite often, individual store flyers will have coupons that match the manufacturer’s coupons you have. Often, you can use these coupons simultaneously. So, let’s say my local Fareway ad has a coupon letting me get Herbal Essences shampoo or conditioner for $1.99 a bottle (limit 6) and I have three “save $3 on 2 bottles” coupon from the manufacturer. I just take all of them there and walk out with good shampoo and conditioner for $0.49 a bottle.
Here’s a real-world example. Recently, I had several copies of a coupon that permitted me to save $3 on any two bottles of Old Spice body wash. I waited until I noticed a sale – and not long ago, there was one at a local Walgreen’s. The individual bottles were $1.79 on sale there. I took in my wad of coupons and picked up ten bottles, paying $0.29 a bottle. I walked out of the store with ten bottles of soap, having spent less than $4 total – and it was just a five minute stop on my normal shopping trip. That’s how you save money.
What’s the long-term effect? The result from doing this regularly is quite interesting. Our regular shopping lists almost never have these “anticipation” items on it. Instead, they almost always just list the food items we need for the week, which means that at the grocery store, we rarely even visit big sections of the store. We mostly visit the produce aisle, the meat counter, the dairy area (for milk, etc.), and a few other specific places (pasta, canned items, bread when I’ve not made any), and that’s about it. Our grocery bills are cheaper and our shopping trips are actually quite a bit shorter because we’re not going over to the far side of the store to pick up shampoo or toilet paper – the time invested in executing this strategy is partially redeemed on ordinary shopping trips.
When I first started The Simple Dollar, I had a very simple coupon strategy that didn’t save me a whole lot of money. It’s been fun to watch the strategy evolve over the years – first syncing it with a grocery list and evolving that strategy a bit, then discovering the figuring out how sales and coupons synchronized and now evolving that strategy a bit. I used to believe that perhaps coupons weren’t worth the time invested, but I’ve found more and more that if you do it intelligently, there are some serious savings to be had – and it doesn’t take as much time as you might think.
Mortgage loans are calculated depending on the kind of interest that you signed up for. This is based on the interest rate and the length of mortgage. The shorter the duration of the payment, the more expensive the bill is on a monthly basis; however, the higher the bill per month, the shorter the time duration of the payment. It comes down to how much you can afford.
Create a budget and envision, how much can you actually pay in a month and think long term. Will you still be earning that particular amount in two, three years time? Do you have enough savings just in case an unforeseen accident occurs? How long can you keep on paying the mortgage?
This is how some lenders calculate how much they can lend you. The
housing payment is your total mortgage payment set alongside your monthly income and the total debt ratio – meaning what you are obligated to pay in the big picture. That’s why there’s also the question of “Should I buy or rent?” If the person isn’t yet financially stable, it is better that he rents in the mean time. However, calculations show that the expenditures on rent are somehow close to signing up for a home mortgage.
Also, there’s a great sense of pride in owning your own home. But with that comes the responsibility of paying your bills on time. Plus, now that you’re a homeowner, you’re also required to set aside a significant amount of your salary for taxes. Owning a home also means paying for utilities such as gas, electricity, water and food.
For you to decide, think whether choosing a home is what’s suitable for you at this time. Determine if you have enough to actually afford to buy your own home. If not, then it’s better that you rent. Now here’s where the mortgage rates come in.
Begin by checking the interest rate and rate movements of a specific mortgage loan you’re signing up for. Mortgage rates depend on the Wall Street securities. Keep an eye on the stock market and the mortgage market trends to know the secrets on the direction of where your mortgage is going.
You must also study the APR or the Annual Percentage Rate. By law, mortgage companies are required to disclose the APR to their clients. That is how they should advertise a rate. This is done so that people who signed up under them will be aware of where their rates are going. It represents the real cost of the loan to the borrower and can be seen extensively when the yearly rate is presented. This prevents lenders from hiding fees and for clients to have an open relationship with their mortgage dealers.
As much as possible, try to personally meet with the lender. When money is involved, personal arrangements are better because not only can you clarify better, you could also have an idea of what kind the person is on the end of the phone or at the receiving part of the email you send out. Now that you have met up with a dealer, know your APR, study the stock market, and then you are ready to lock in your rate. This means that you are ready to commit with a lender and the lender is bound to a promise to this certain interest rate. From there, you must work on a budget.
You must set aside a specific amount from your salary for your mortgage; and, if you can pay faster, then why not? If you have extra money, talk to your lender and ask if you can pay for a higher amount. For good credit history, always pay more, not less. Pay on time, not late. This is to ensure that you won’t have a hard time dealing with insurance matters in the future. With the right decision-making and the right budget, you won’t have any problem with money. It’s just having the discipline of creating a budget, sticking to it and paying on time. If it is arranged as such, notice that you could even save a couple of your dollars.
These days, brides are all about saving money, but you don’t have to scrimp on having a fabulous wedding! Check out this video for
cost saving ideas for your ceremony, reception and more. See how top designers are creating gowns to fit brides with all budgets and tips for saving money at your cocktail hour.
The Frugal Millionaires “…contains more apropos information than found in a year’s worth of of Wall Street Journals.” – Mark M. Owen, Ph.D. (Armchair Interviews).
WINNER of the prestigious USA Book News “National Best Books Award” in the Business: Investing category.
Ever wonder how some people grow their wealth while others simply can’t? The Frugal Millionaires tell you exactly how they do it so you can too. 70 millionaires anonymously share their ideas about money to help each other and you. – What sets millionaires apart from the other 98% of the population. – The 6 ways millionaires think differently about money. – Why being frugal doesn’t mean being cheap. – Over 800 wealth growing ideas across 24 categories, including: investments, mortgages, real estate, credit cards, buying/leasing cars, saving and spending, donating to charity, taxes, conserving resources, recycling, marriage, and retirement. (more…)
