Frugal

We Love Frugality, But Are We Actually Saving?

October 17, 2016 By Jennifer Clark 1 Comment

Frugality seems to be of increasing interest among Americans. However, whether or not we are actually following through is up for debate.

It is not surprising that articles about frugality draw so much attention; after all, who doesn’t want to have financial freedom? It is motivating to hear that even celebrities like Hilary Swank clip coupons. And we are sure that many aspiring millionaires look up to Warren Buffet and his modest lifestyle and financial decisions. But the problem that appears to be present is that, despite reading all these great stories of individuals living well below their means, we still have a hard time taking action. Why is this? Let’s weigh in on the issue.

The Statistics

Although it seems things are looking up following the financial crisis of 2008, the average savings rate in the U.S. is still low. In 2005, we had a low savings rate of 1.9 percent but moved up to roughly five percent in recent years. While the jump appears positive, it is, in fact, still terribly low. The recommended average amount one should save from their income is 20 percent, and at this rate, five percent is not nearly enough for a nice and comfortable retirement. Sadly, 69 percent of Americans say they have less than $1,000 in their savings account and 34 percent say they have $0, according to this GoBankingRates 2016 survey. These numbers exist despite the fact that there has even been an increase in personal income and decrease in spending for durable goods, as shown here by the Bureau of Economic Analysis. So, what’s happening?

Possible Reasons

It is no secret that the recession put a dent in our economy, but you would think such an event would prompt Americans to always be thinking ahead. The 2014 Consumer Sentiment Survey from McKinsey&Company states that 40 percent of consumers surveyed were challenged with living paycheck to paycheck, which was up from 31 percent in 2012. Those making $75,000 and less annually seem to struggle the most with saving and have a hard time thinking about anything else other than day-to-day needs.

Additionally, regardless of whether low-income or upper middle class, online shopping makes it easier to spend more than ever, adding to the problem of living outside of our means as a society. We are in an age of instant gratification. Not just that, but investing changed with the financial crisis. Individuals not only lost trust in the stock market, preventing them from making their money go further, but also are waiting to invest until later in life. This can be seen primarily in millennials.

The Other Side

The other side of the argument says that we are actually spending less and saving more, adding that this is a problem for the economy. Despite that our savings rate is still low, the spending is too. This side of the conversation also points out the fact that regardless of this low savings rate, we are, in fact, starting to save more due to worrying about the economy. In that same Consumer Sentiment Survey, the results showed that only 23 percent were optimistic about the economy while 31 percent were not making purchases due to uncertainty about the nation’s resources and 39% were “somewhat or very worried about losing their job.” Because of this, consumers have been buying less name brand items, thrift shopping more and looking for even more ways to save.

Of course, opinions do vary, but concern still lies in that average five percent savings rate, which is a bit of a decline from the 1970’s as shown in this graph. One might say the availability and easy accessibility of credit from the in the following decades is mostly to blame, but that is a conversation for another day.

So, what do you think? Do we actually love frugality, or do we only enjoy the thought of it? Do you believe we are starting to save more?

Penny Pinching Celebrities That Live Large on a Small Budget

February 1, 2016 By Amanda Blankenship 2 Comments

Celebrities are people that the “common man” are always looking up to. They usually have flashy lifestyles, nice cars, beautiful clothing, but the amount of money they spend is ridiculous. However, this is not the case with every celebrity. In fact, there are quite a few who are frugal. Some of them dress their kids in hand me downs, don’t spend a penny of their paychecks and even use coupons!

Zooey Deschanel

Photo: Flickr: Breezy Baldwin

“Hipster” Zooey Deschanel went through a divorce in 2013 when her financial standings became available to the public through a court document. Usually, when a celebrity’s finances hit the spotlight, people are disgusted by the amount of money they spend on useless stuff. Deschanel, however, spends a moderate amount of money on day-to-day items and she saves and donates the rest of the money.

Jay Leno

Photo: Flickr: WEBN-TV

Jay Leno is a saver. In fact, he hasn’t spent a penny of his earnings from the “Tonight Show.” He uses his earnings from the comedy scene to pay for his day-to-day expenses. His annual paycheck from the “Tonight Show” was $25 million. Every cent went into savings or investments, that’s a nice nest egg.

Sarah Jessica Parker

Photo: Flickr: David Shankbone

If you are a fan of “Sex in the City,” you know Sarah Jessica Parker. You may also know that she is a regular penny pincher. This may be because her family depended on welfare to stay afloat when she was growing up. Every single purchase the well-to-do actress makes now is considered an investment. Her son even wears hand me downs. Actually, he only wears hand me downs. Parker said that makes the most sense because he has plenty of older cousins that have clothes that he will fit into. Why spend the money?

Halle Berry

Photo: Flickr: Gage Skidmore

Halle Berry, who has been a big star for quite some time, is also a frugal person. Now that she is a mom, Halle has become even more strict with her money. This is likely because she grew up in a single-parent household. She learned a lot about budgeting and saving from her mother and doesn’t let her big paycheck change how she lives her life.

Tyra Banks

Photo: Flickr: David Shankbone

Tyra Banks, a model and television host, has a net worth approaching $100 million. However, not many people would believe it because of the way that she lives her life. Banks’ way of saving her money is probably best attributed to being raised by a single mother who had to watch every penny. Her upbringing made her a saver, and no matter what happens, she will be able to take care of herself the rest of her life. The model/actress even goes out of her way to help other women get in charge of their finances.

Mariska Hargitay

Photo: Flickr: Ted Eytan

Mariska Hargitay, known for her appearances in “Law & Order SVU,” makes about $500,000 per episode. However, she hasn’t changed her way of life from when she struggled with finances. She has a good reason too. Hargitay said that because she’s an aging woman in Hollywood, it is even more important for her to save. She won’t be desirable for many parts soon, so spending a ton of money will only put her in a bad situation later on.

Lady Gaga

Photo: Flickr: Philip Nelson

Extravagant Lady Gaga is also a pretty pincher. The pop star and actress generally spends tons of money trying to look fabulous on stage. However, she uses coupons when shopping for regular day-to-day items. She even posted to Twitter that people look at her like she’s crazy when she pulls out coupons at the store.

Examples of Extreme Frugality

January 22, 2016 By Alexa Mason 3 Comments

Have you ever asked yourself if you are a little “too cheap?” There are people who are frugal, and there are people who go way beyond frugal. There are people who go as far as dumpster diving for food or even share a toothbrush (gross). When have you gone too far?

Cloth Rags as Toilet Paper

Some peoples consider themselves cheap and will so anything they can to save a few cents. Some people, on the other hand, go way beyond being cheap. Frugality is a great thing if you’re trying to save money, but extreme frugality can sometimes lead to strange, seemingly abnormal habits.

For instance, some people willfully choose to use washable cloth rags or wipes instead of toilet paper. Why? Because cloth rags can be used multiple times whereas toilet paper needs to be disposed of as soon as it’s used.

Cloth Diapers

In addition to cloth rags instead of toilet paper, some people choose to use cloth diapers instead of disposable ones, claiming that it’s cheaper to wash a cloth diaper. While this was obviously a method used in previous generations, modernity has allowed for disposable diapers to make things easier. Of course, they might be more expensive, so it’s a personal decision to go with disposable or the more frugal option of cloth diapers.

Dumpster Diving for Food

Another example of extreme frugality is picking through the trash or a dumpster for food. Now, hopefully people who choose this option are only going after boxes or cans that are unopened. Though, it wouldn’t be surprising for someone to go dumpster diving for unused or uneaten fruits and vegetables that have been thrown out.

Sharing a Toothbrush

On one online forum, someone suggests sharing a toothbrush between everyone in a household. This is definitely an extreme case of frugality. If you have five people in your household and they each brush their teeth twice a day, that’s one toothbrush getting used ten times a day. That’s a lot of germs to be traveling around. Considering toothbrushes can be as cheap as $1, someone practicing this must be extremely frugal.

Alternate Ways of Brushing Your Teeth

The same forum linked above has another extreme frugality example: not brushing your teeth. Instead, one user suggests cutting up plastic bags and putting them over your teeth before you eat. Now, this is incredibly extreme – and not only that, it’s poor dental health. You might not be getting plaque buildup or food caught between your teeth, and you might not be harming your teeth with too much sugar or bad foods, but you’re also harming your teeth by not brushing them. You might be saving money on a toothbrush or toothpaste, but you’ll probably end up spending a lot of money at the dentist sometime down the road.

Shower Less

Once again, the forum above suggests that showering less is a great way to save money. And the suggestions aren’t just to not shower every day, but to hold off on showering for half a week. Some people have even been known to take one shower a week in order to save money on electricity and water. Unless you live somewhere with an extreme water deficiency, this might not be a great idea. You can get away with not showering every day, but going too long without washing will lead to poor hygiene.

Use a Porter Potty

While some extremely frugal people might suggest forgoing buying or using a toilet in their house to go to the bathroom outside, some take one less extreme step and opt for using a porter potty instead. A porter potty means less money spent on electricity and water, but it also means you’re left with the problem of getting rid of the refuse. It might save some money, but is it really worth it?

Getting Free Samples Instead of Buying

Many supermarkets, wholesale stores, or department stores often offer free samples. This can range from free food samples at a place like Costco or BJ’s to free makeup samples at a place like Macy’s or Sephora. Some people choose to go back day after day for the free food or free makeup application instead of buying the product. If you want to make this part of your daily routine, that’s fine, but that’s a lot of time and energy for something that might not be too expensive. After all, is spending $10 on lotion or $20 on a weekly trip to the grocery store really more inexpensive than stopping every day to pick up free (and small) food samples or to reapply some makeup?

Reusing Water

Some people choose to save the water after their shower to do their laundry or to take another bath. While this might conserve water and save you some money on your monthly water bill, someone doing this has to make sure that the water is actually clean before reusing. Saving water to reuse it later is great, but not if the water is still going to be dirty.

Not Washing Clothes

Many of us have worn a specific piece of clothing a couple of times before washing it, but some extremely frugal people choose to go weeks (or months) without rewashing clothes, sheets, or towels. It’s one thing to wear a pair of jeans two or three times, but another to wear them constantly for a month before washing.

Photo: Flickr: Tax Credits

35 More Places to Find Coins

September 25, 2015 By Alexa Mason Leave a Comment

Do you know a person who is always finding money? Do you ever ask yourself how is it possible that Mary/John or Joe always seem to find money wherever they go? Well, it begins with the process of always picking up the change that crosses your path. Here are 35 places to find coins.

• Under your washer.
• Under your dryer.
• On the street.
• At the restaurant on the floor next to the cash register.
• Old bank accounts
• Forgotten IRS returns
• In an old secret hiding place.
• Your baby’s diaper bag. Most parents will throw a wallet into the bag and then change will fall out.
• In your high-end camera bag.
• Change is almost always at the bottom of one of my backpacks.
• In between the cushions in your car.
• In any guy’s pants pocket.
• Next to a fountain that people throw coins in and make a wish. I tend to throw these in the fountain…just in case!
• Whenever the giant pile of snow melts you definitely find change…and some other things.
• Under a ski lift; you will also find tons of gloves, sunglasses, and the occasional hat.
• In your kid’s piggy bank. Hopefully you don’t have to use it though.
• In an old coffee can that was being used as a coin collection jar.
• At your Grandma’s house in odd places.
• In an old coin bag that you used to throw in your purse.
• In your random collection of boxes that everyone seems to always have.
• In the seat of your moped.
• Next to the ticket machine at the light rail station.
• On the bus.
• In your kid’s cheerleading bag.
• On the dance floor-but those coins are usually a little sticky.
• Underneath the outdoor patio at your local bar. If you’re lucky you’ll find some crumpled up dollar bills.
• In the sand at the beach.
• At your next food truck festival you may find change next to the front of each food truck. People are usually furiously digging through their pockets to pull out some change to make their purchase.
• At the “circle of death” during your next cruiser ride. The “circle of death” is where all the cruiser ride participants ride around and party at the end fof the night.
• You’ll sometimes find change on the patio that surrounds your local swimming pool or on the bottom of the pool if other swimmers tossed a coin in for fun. CAUTION-if you aren’t a strong swimmer avoid retrieving those coins.
• In your old yoga bag for the yoga class that you don’t take anymore.
• In your old swear jar.
• Sticking to the bottom of your shoe. It has been known to happen.
• Old garage sale change boxes.

There is an endless number of possibilities to explore and consider when looking to find loose change. Make finding change a game and over time you will be amazed at how often you will find change around you. Let your friends and family know about your loose change love. Have fun!

50 Places to Find Coins

September 25, 2015 By Alexa Mason 2 Comments

It is amazing how many places coins manage to find themselves. From the obvious to the not so obvious places there always seems to be an opportunity to stumble upon some unexpected cash. If you think it’s impossible, try looking for change in the following 50 places!

• Under church pews-I would donate this change…just in case!
• In your summer purses. Like most women I rotate my warm weather and cold weather items. It’s not unusual for me to find change and random bills in last season’s purses.
• In a suitcase. Most people don’t keep purses and wallets in their suitcases while traveling but they do leave stuff in their suitcase while hanging out in foreign locales.
• In an old wallet you’ve forgotten about that is hanging out in the back of your closet.
• In a bike parking lot.
• At the train station, specifically where the self-service kiosk is located.
• On the floor of the children’s museum.
• In the aftermath of a mud run.
• In the aftermath of a marathon (you might find keys too).
• At the ski resort equipment rental room.
• In a forgotten digital savings account.
• Near a Coinstar change machine.
• On the floor of your local pool hall.
• Outside your local bar (but usually you’ll find bills).
• In your old party supplies box.
• In your old storage unit.
• In your “everything” drawer at your house.
• On the floor of your favorite coffee shop.
• At your local food hall.
• Your forgotten yard sale change collection. You decided not to have the garage sale after all.
• In your washer.
• In your dryer.
• In the pockets of suits that are sent to the dry cleaners. Check these before you send them out.
• In your baby’s diaper bag.
• Coins are often found in your back or front jeans pocket.
• On the gym floor at your local Girls and Boys club.
• Under your bed. There are nights when you pull off your jeans, the change falls out of your pockets and you’re too tired to pick it up!
• In the cushions of your local bus. Proceed with caution if you stick your hands between the cushions.
• In between airplane seats.
• In a forgotten swear jar.
• At the amusement park near the Tilt-a-Whirl.
• At the amusement park near the roller coaster.
• In between the seats of an Uber car. You should proceed with caution before sticking your hand between the seats.
• In a skirt hem that you weighed down for your old biking obsession.
• Coins may be found in an old makeup bag.
• On the grass after a bbq.
• In between the seats of a taxi.
• At the tattoo shop. If someone is in pain and they are shaking, there is a found change opportunity.
• Near, in, or around any green (read-pot) business. For obvious reasons.
• At the next beer festival that you attend, look around for change. More often than not you’ll probably find bills.
• During Oktoberfest. People’s pockets move a lot during the chicken dance.
• At the DMV.
• Next to any ice cream stand with an outdoor facing window.
• On the floor of your next fraternity party. Caution, that change might be gross.
• On the floor of your next sorority party. Again, caution that change might be grungy.
• In the next golf cart that you rent.
• At Dave and Busters, anywhere and everywhere.
• Random thrift store boxes.
• At the bottom of every foam pit.
• In your tool kit.

Following my own advice I found a quarter at the bus stop today. In fact, hardly a week goes by without finding some change. Whenever I find change it reinforces my belief that there is an infinite amount of money to tap into. What do you think? Found any loose change lately?

How to Hack Your Way around Starbucks Prices

September 23, 2015 By Alexa Mason Leave a Comment

Similar to Whole Foods, Starbucks has a reputation for being an expensive coffee option. While this can be true, there are a number of ways that patrons can keep coffee purchases within reason.

There are a number of approaches that you can use to save money on your next Starbucks purchase. It’s so easy and you’ll never again be frustrated with the cost of your next latte.

Savings Opportunity #1

Don’t add on to your drink. The next time you hear the following order “I would like a double tall, extra hot, vanilla, soy, no foam latte.” Be aware that there are 3 up sales in that order. A double refers to two espresso shots-each shot averages around 75 cents. The vanilla in the order refers to vanilla flavoring. Flavorings tend to cost around .35 and soymilk is around .50 cents to add to a drink.

Savings Opportunity #2

Keep it small! Instead of choosing a Venti (or large) drink, choose a short or a tall. In fact, a short is a small drink that is smaller than the tall. Most people are unaware that this drink is on the menu. Shorts are around 6 oz. a cup and a tall drink runs closer to 8 oz. a cup. The difference in price between the two sizes tends to be .10 cents so if you prefer a larger drink choose the tall size.

Savings Opportunity #3

Use your treat receipt. If you purchase a drink in the morning and know that you are in the habit of having a second drink in the afternoon-go with a friend and split the cost. Typically the drink receipts are for iced drinks.

Savings Opportunity #4

Purchase your drinks during “happy hour.” Similar to a bar’s happy hour, drinks are offered at a discount. Talk to your barista to see if they know when the next happy hour will happen.

Savings Opportunity #5

Use your Starbucks Rewards card strategically. Make sure to load your Starbucks card and use it to make purchases. You will usually earn discounts, or a free drink after purchasing a certain number of drinks. You can also access your Starbucks card via the Starbucks app.

Savings Opportunity #6

Don’t buy food at Starbucks. Bistro boxes, pastries, and snack bars are next to the checkout. These are upsell opportunities for Starbucks to increase the average customer purchase.

Savings Opportunity #7

Decrease your weekly visits. This one is hard if you have a daily coffee habit. Alternate your Starbuck visits and go either Tuesday/Thursday or Monday/Wednesday/Friday. Over time this strategy will save a substantial amount of money for consumers.

You now have seven savings opportunities that you can use that will enable you to continue enjoying your coffee habit without the guilt. Before your next Starbucks visit, remember to do the following: order smaller, don’t add extras, eating at Starbucks can be expensive, use your rewards card, cut down the number of weekly visits, use the savings opportunities presented to you by Starbucks and finally, enjoy your next drink.