How I save money

Anonymous Says:

January 31st, 2007, 23:05 pm

> Never go out. I don’t go to clubs, or the theater, or ballet, or opera.

Is this post a joke? Here’s another way to save money - lock yourself in a box until you slowly die of starvation and/or boredom.

Leo Says:

January 31st, 2007, 23:15 pm

Well, that’s one way to look at it, undoubtedly.

However, I don’t feel deprived by not going out, if that’s what you mean. I enjoy spending time with my family, and we do lots of free or cheap stuff that is tons of fun. It’s a matter of adjusting your priorities and finding other means of entertainment.

Sure, if your idea of fun is to go out to clubs, or opera, or whatever, my lifestyle wouldn’t be for you. You would probably be willing to spend more, and thus work more, to support your types of entertainment, but that’s your choice. There’s nothing wrong with it.

But neither is there anything wrong with saving my money for the future or my children instead, or living frugally so my wife can stay home with the babies. It’s fulfilling to me, and that’s ultimately what matters, isn’t it?

Anonymous Says:

January 31st, 2007, 23:37 pm

of course you are right - I was just being trollish. You can live your life however you want and I admire your strong will - it just seems a little extreme…

Leo Says:

February 1st, 2007, 1:46 am

no worries … feel free to be trollish. i like the discourse!

as for being extreme, i admit that the way i presented it does sound extreme. that’s because i didn’t present the fun side of what i do. i often treat myself, and especially the kids, to movies, dvds, restaurants, ice cream, water parks, and more. we just don’t do it all the time. i also buy myself books and gadgets on occasion, but i’ve been cutting back on these things slowly, over time.

it doesn’t have to be extreme … i agree with you. it should be done in moderation, and you should be able to enjoy life while living frugally.

i think a good post would be frugal ways to have fun and enjoy life.

Anonymous Says:

February 3rd, 2007, 9:40 am

At the risk of sounding New-Agey, the best way to save money is to like yourself and feel loved. Most of the unnecessary stuff we buy–especially women (like me)–is to make us feel pretty, loved, sexy, important, worthy, whatever. I don’t buy haircuts, new clothes or shoes, makeup, shampoo that costs more than a dollar, jewelry, etc., etc.–Because I like myself, I have a partner who loves me and thinks I’m beautiful, and I have supportive friends and family, so I don’t need any of that stuff. I think this is a HUGE money issue for women in particular, although men are feeling it more these days too.

Leo Says:

February 3rd, 2007, 12:03 pm

Good comment, and no, I don’t think that’s too New Agey. You’re getting at the actual source of the problem, which is of course the wisest thing to do.

Anonymous Says:

February 7th, 2007, 14:22 pm

I’m on the same wavelength and, no, I’m not suffering. Have seen about 30 free movie screenings this year alone. While we may have to line up well before the movie time, we have these amazing line parties (like tailgate parties) with our homemade suppers, snacks, games, books or just fascinating conversations with new friends we’ve made of the screening “regulars.” Same thing goes for theater, sports events, etc. There are unbelievable free opportunities out there and finding a deal becomes part of the fun.

Thanks for sharing your ideas!
Jan

Leo Says:

February 7th, 2007, 16:08 pm

Hi Jan … great comment! Thanks for sharing your frugal ways of having fun. I have only had the chance to go to a couple free screenings, and there were no line parties. I did have a great time waiting in line overnight for Star Wars Episode 1 (yes, I’m a geek and ashamed of it).

Thanks for commenting and keep coming back!

David Says:

February 9th, 2007, 12:09 pm

How funny, i just saw that you linked to my other blog a while back. Thanks!

Leo Says:

February 9th, 2007, 16:55 pm

David … I didn’t realize that was also your blog … I really admire the Good Human. You’re 2-for-2 with me! I had actually forgotten about it … going over now to subscribe.

David Says:

February 9th, 2007, 22:04 pm

Thanks Leo, appreciate it!

Ariane Benefit Says:

February 10th, 2007, 23:35 pm

What a neat blog! Love the whole concept of Zen Habits! Can’t wait to take some time and look around more. Till then, thanks for linking to my post on ways I save money!

p.s. I don’t think you are extreme at all…it’s refreshing to “meet” someone whose values and priorities are clear!

Leo Says:

February 11th, 2007, 2:31 am

Hi Ariane … thanks for the encouraging comments … I hope you like the other stuff on this site. Check out the essential posts on the left. There’s several new posts every day, so subscribing isn’t a bad idea. :)

Pizza Ace Says:

February 15th, 2007, 12:01 pm

For extra cash we garage sale a lot and resell on e-bay. With 5 kids and wife it has turned into comptition as to how much $ the kids make. Each weekend we give each child $10 and we hit the garage sales. My daughter found an old barbie for $5 and resold it on e-bay $150. Wife found some old Fenton glass for $2 and sold it on e-bay for $100. All the kids have made over $500 each spring and summer doing this. After they sell there finds they have to put 75% into there savings account and 25% crazy cash to spend as they like. My older one used the money to buy more finds and make more money. My oldest daughter just but a car at a garage sale with cash from the money she made with hers. It is amazing how fast they learn to spot a bargin. Online auctions for charities are great to. Made over $1000 buying clothing gift certificates for 20 cents on the dollar and then buying clothes and selling on e-bay. The extra bonus to this is the family time togather on Sat hitting all the garage sales. Still hoping to find that million dollar painting for a buck–;-}

Leo Says:

February 15th, 2007, 12:23 pm

Hi Pizza Ace … I love that idea. Yo combine family time with making money and lessons on savings and more. I’m glad it’s working out for you. The garage sales in my area are not very high quality, so I’m not sure we could make the same kind of money as you, but it sounds like it’s worth a shot. Thanks for the great tips.

Study Skills Guru Says:

February 15th, 2007, 17:23 pm

Leo,

I think your whole blog, kids, ideas everything is a complete inspiration! Well Done. I have added you to my technocrati favourites

I’m just starting to build my own study skills mentoring blog, website and maybe even business. Thanks again for your inspiration.
And lots more success!

study skills guru
studyskillsmentor.blogspot.com

Study Skills Guru Says:

February 15th, 2007, 17:25 pm

sorry made a mistake should be thestudyskillsmentor.blogspot.com

I’ll get the basics right, eventually!!

Leo Says:

February 15th, 2007, 17:38 pm

Hi Guru, thanks for the nice comments and for adding me to your favorites. I’m glad you’re enjoying the site. Good luck with your blog!

Anonymous Says:

February 25th, 2007, 17:22 pm

wow!

great post and great blog!!

thanks

Anonymous Says:

March 8th, 2007, 0:05 am

Meal planning is number one in saving money.

Anonymous Says:

March 8th, 2007, 0:06 am

Oh and I forgot, along with the meal planning, STICK to your shopping list, and ONLY shop for EVERYTHING once a week.

Anonymous Says:

March 8th, 2007, 9:38 am

“2) No Cable TV. We watch DVDs, or read. I don’t spend much on DVDs either (probably less than most people, per month). Cable costs about $65/month. Annual savings: $780.”
Giving up TV would be hard for some people. You don’t have to give up TV all together, though. With a modest investment you could switch to an antenna and possibly even a satellite dish.
I was able to make an antenna like this out of stuff in ones garage and some dollar store items. 40 channels on my $250 sdtv (wallmart). Not bad. A FTA satellite system could be as cheap as $75. Maybe even cheaper on craiglist.
So for $325 and some leg work I have a decent television setup (with a new tv I might add.) Which is more than half the price of cable for a year.
And if we really wanted to through down the gauntlet, I could make this even cheaper. Voom used to sell digital receivers. The are now on ebay for $50 bucks. Hook it up to the current house tv (you should only have one), and you can get that digital programming as well.
Total cost $150, and I have network TV, some cable channels. 24 hour news stations, etc. It’s not cable but for 1/5 the price it’s pretty darned close.
Sorry I can’t leave well enough alone. Ebay for DVD’s and older VCR movies. See anything you’ve ever missed. $1 a movie.
And finally on that idea of buying stuff at garage sales. Craigslist is pretty awesome.

Leo Says:

March 8th, 2007, 13:06 pm

Great tips! Not everyone will want to give up cable tv (I haven’t given up DVDs, only cable), but for me, I came to a realization that most of the shows on cable are crap, and that I was wasting countless hours watching so many channels. In truth, there are only a few shows I really enjoy, and I can get those on dvd. The rest are filler. Thanks for the frugality tips!

Michael Schade Says:

March 18th, 2007, 7:11 am

I also wanted to add that on #2 you don’t even have to buy the DVDs. We are fairly frugal on our end as well and we rent them from the library.

It’s actually fairly easy as our library has a website, yours might too: you should certainly check. We have to wait a bit but when you forget about having ordered it and then get an e-mail it’s like your night has just been planned; it’s exciting sometimes!

Thanks,
Michael

zenhabits Says:

March 18th, 2007, 7:44 am

Thanks for the comment, Michael! That’s an excellent tip, and I would definitely be using it, but unfortunately my library isn’t very good. I’ve checked. It makes me want to move sometimes.

Michael Schade Says:

March 18th, 2007, 22:47 pm

So sad to hear that zen. Hopefully they’ll improve soon!

vdovault Says:

March 19th, 2007, 18:01 pm

I use Skype for all my phone calls…I signed up with them last year and in January they made it possible for me to call all my friends in the USA & Canada for $15 per YEAR! I think as of the end of January that rate doubled to $30 but that’s still for the whole YEAR. That is super cheap even if you splurge and buy yourself a USB headset (mine was $20). I know many people who pay that much per MONTH or more on their cell phone bills (I don’t have a cell). Ouch!

A lot of your habits I never had (I don’t drink lattes or alcohol and I am allergic to cigarettes). Since I live in the country, the closest gym is too far away for me to join and get any value out of using (instead you can walk or go hiking, ride a neighbor’s horse or a bicycle or garden for exercise), mall shopping is really inconvenient, and ‘going out’ even for a movie gets redefined…you either hang out with neighbors at each others’s homes or plan for really special trips into the ‘big city’. This also cuts back on travelling expenses and unnecessary trips.

I am not a vegan but I sometimes eat meatless meals for reasons of health, environmental concerns and of course thrift. I also strive to buy a lot of local in season produce for similar reasons (preferably organic, but I am flexible here). I also garden organically and trade my surplus around with neighbors (some of whom have orchards, a dairy farm and also raise various kinds of meat).

One of my vices is I like to drink the occasional soft drink, but I usually refrain from buying those from anyplace other than the grocery store and then of course I buy on sale and use my own refrigeration. I won’t buy one from a vending machine that’s priced more than 35 cents (we still have some of those out here in the country).

Living in the country means you cook a lot (there are few restaurants out here save fast food ones) and when I do eat out, it’s at a local sit down restaurant on their days when they have discounted lunches. Eating a big lunch rather than a big dinner is not only cheaper it’s healthier.

I visit the library for magazines & newspapers and use interlibrary loan for books I want to read but my library doesn’t have. For DVDs, first I try the library and then a service like NetFlix.

As far as clothes and shoes go I shop sales and the occasional outlet mall clearance. Sometimes I can pick good things up cheaply used or online…I stay flexible here. I tend to dress pretty classically or simply and I try not to buy clothes that don’t already go with at least three other things I own. Being female means I can wear my hair long and trim the ends myself at home as needed and since most cosmetics irritate my skin, I skip them.

I do have satellite TV (it’s the rest of the family’s splurge…if it were up to me, I wouldn’t bother but I was outvoted), DSL internet access (for my work and for fun but I bought the cheapest package), and I buy the occasional book (always at a discount price…I am fortunate to live near a book fair that sells slightly imperfect books at typically somewhere around 75% off cover (but sometimes even cheaper than that!) and of course I buy a lot from used book stores and discount sites online.

Did I mention that I am debt free? I own my own car, have no credit card balances or student loan debt and pay a little towards rent and do some housekeeping in exchange for a few rooms attached to my senior citizen widower father’s home? Dad has a mortgage on part of the house and some of the acreage, but he owns rest completely and has substantial equity in the house and the acreage that is not yet paid for (20+ acres are paid for, the other 10 plus the house are more than 50% paid for). So you can see I got a pretty good education from my parents about the financial facts of life. But there’s always more to learn :-)

Glad to see you’re making a dent in your credit card debt. Keep up the good work!

zenhabits Says:

March 19th, 2007, 19:44 pm

@vdovault: Thanks for the excellent comment and for sharing your great habits. I appreciate that. And congratulations on being debt free! Keep up the great work.

Xaq Says:

March 22nd, 2007, 20:40 pm

Two ways to generate wealth — decrease expenses, or increase income. But then, it takes money to make money.

If I ever have to cut my own hair or not drink beer I think I will have to do something naughty!

Simone Says:

March 26th, 2007, 11:29 am

Great list, best one I’ve seen so far. My way to do it:
1) Letting my hair grow again, only needs a cut around twice a year versus about once a month. Rather a girl thing though ;)
2) Included in my rent, couldn’t get a better / cheaper appartment anywhere either.
3) To that later.
4) I get the gymn paid for by the company I work for. Got by without that also, still the sauna’s awesome.
5) Never did that anyway.
6) Never smoked.
7) All the alcohol I have in my appartment is for cooking.
8) When I go out I hardly spend any money.
9) Got a health insurance - here thats mandatory. But I use lots of the stuff they pay for precaution. Like they got a point system, if you go to the check ups and maybe to a gymn. In the end you can get nice stuff for that.
10) Rare in women - but I hate that anyway. Worst are shoes.
11) I go to work by train, that’s max half as much as the car would be and I can relax on the way and read a book. Could never live without the car though - just the idea that I could get in and drive .. to Italy…
12) Cafeteria at my job is cheap, but not always good - always a salad buffet though. For 2.70€ I get bring myself something better. Always a good for a change though.
13) Never really did that either.
15) Forget about that, that’s what I’m saving for ;) Just don’t waste your money one it.
16) Yes, for me those “every day” things add up so quickly, so I got rid of all of them. Coffee at work is 10 cents a cup now - at home it’s free (sponsored by granny).

Some things that work for me:
I got flatrates for so many things now. Telephone, Internet (ok, not the cheapest one there, for skype with webcam), train ticket for the month. I hardly spend anything on books - I get about as much for my old ones as I pay for the used ones.

Somebody mentioned above, to shop for everything only once a week. Recently they found out in a study that like that you actually spend more money. I guess that depends a lot on your way of living, but I’m very spontaneous about my food. So meal planning is impossible for me - just get two days out of any diet or meal plan you find and add up all the stuff you should buy. What do you do with the rest? I could not make a meal plan for one person for just a week that doesn’t either waste a lot of the rest of the package or is really boring.
My favourite: drop by at the local market on the way home from work and get what I need - and only as much as I need! I can buy one stick of celery there, two carrots, one onion.. and I always know it’s good quality.
If you buy it once a week, too much goes bad, if you buy it cheap too much already is bad.
I get the other stuff about every other week - pasta, sugar, flour. Wherever it’s cheap.

In addition to my job I’m still freelancing. Like that I meat many nice people, stay up to date about what’s going on out there and earn some extra money for the stuff I don’t wanna miss - like World of Warcraft. I started working during the holidays with about 14 years and now I know how to get more money if I need more :)

Other small things: do it yourself… taxes, birthday presents, new decoration for my appartment.

..wow… that got pretty long there…

Simone

Gareth John Says:

March 30th, 2007, 19:40 pm

Yea i think maybe you should get a bit of a life to go with your saving principals.

I am a university student we go down the pub at least 3 times a week, i smoke a fair bit, a lot, and watch films in the cinema a lot and i am not completely broke i have savings and investments to i dont see that it is neccesary, at least not for me it’s called a welfare system move out of the US into the free world, health care is already paid for in NI & TAX.

Ari Says:

April 3rd, 2007, 17:35 pm

In New England we have this great little company called Rnktel. If you live within local calling distance of one of their access numbers you can buy a card that gets you 3000 domestic long distance minutes for 10.00 -> 1/3 cent per minute! :D. We cut all long distance from our local line and buy about two cards per year. For out-of-country calls we try to use Skype where we can or buy phone cards for particular countries. Why pay monthly membership to the long distance club when you can buy a la carte?

-Ari

M. Miller Says:

April 4th, 2007, 14:35 pm

I don’t mean it in a bad way, but why have 6 kids if you are on such a limited budget? It seems like that might be something to consider since the blog, which I really enjoy and appreciate, is about Zen habits…ie awareness of finances and life. Probably not a popular comment, but I bet on more people’s minds than admit it.

Leo Says:

April 4th, 2007, 15:01 pm

Hi M. Miller … thanks for the question. That’s a complicated one for me. First, I will admit (not proudly, but not embarrassed either) that not all of my children were planned. I’ll also admit that’s not the smartest thing in the world, but we make mistakes when we’re young and have to live with them. Having said that, I have no regrets … each and every one of my children has filled my life with joy, and they are incredible human beings. In fact, having a large family has turned out to be an unexpected joy in itself, and we are enjoying the dynamics of such a family while learning to overcome (and have fun with) the challenges that such a large family brings.

Second, the limited budget is partly caused by the unexpectedly large family. When our two youngest children were born (they’re now 1 year and 2 going on 3), we decided that it would be best for them if my wife stayed home, so she’s taken a few years off her teaching job to give them some amazing care. She’s going back to work later this year, which will mean some extra income, but while we’ll probably add a little extra to our spending budget, most of it will go to debt repayment and savings. By next year, we’ll be debt-free with a sizable savings (well, sizable for us).

If I were going to make a recommendation for others, I would say not to have such a large family, at least not so young. Get yourself on good financial ground, don’t get into debt (except for a mortgage if you can afford it) and be sure to have a good emergency fund and good investments for your family’s future. Once you’ve got a good hold on your finances like that, then decide how big of a family you want.

However, that’s using the benefit of hindsight … going forward, we’re making the best of our large family, and enjoying the process.

Thanks for your question! - leo

Lisa Says:

April 5th, 2007, 16:36 pm

Here’s a tip for anyone with kids in school (I work in a middle school). Check out the lost and found at your child’s school. At my school, they get around 12 large trash bags of abandoned clothes(coats, jackets, hoodies, ect) , shoes, lunch bags/boxes, purses, ect. Twice a year. we donate these items to charities out of our area. Some would be play clothes but I’ve also seen Nautica and other expensive brands in excellent condition. Right before the clothes are due to be given away I take some of my (disadvantaged) students “shopping”. They love it.

Jean Says:

April 16th, 2007, 17:46 pm

Interesting ideas. I think the key element is making conscious decisions about what your values and priorities are. I am happy to give up coffee, cable, and other things, but wouldn’t want to live without seeing ballet and opera performed live. It enriches my life, and makes me feel part of a larger cultural universe.

Mr D2X2 is Nuts Says:

April 24th, 2007, 8:23 am

I love this post. Well done! I can only encourage you to continue in that direction.

Everything on your list is pretty much part of my way of life. To anyone else reading this post and comment: I don’t feel deprived either and it has given me more freedom. It will work for you!

I used to always buy the latest gadget and then wait for the next gadget… Buy magazine after magazine and realise they all sold the same thing. Even movies, once you have seen a rom-com, they all are disappointingly the same. I always loved books and now I get them from the library instead (same for magazines and videos, the library has enough to keep me occupied if necessary).

Not getting into all the junk thrown at me by advertiser saves me a fortune, huge amounts of time and has made me a very independent person, with a better sense of what life is about (and it’s not about buying stuff). In fact, I even dumped my old job because I was not happy there; when I realised that I didn’t need to worry about getting that much money every month after all, it gave me the courage to go out and try to find something I’d enjoy more.

I found something else, it pays just the same… and I work three days instead of five. What’s weird is… I don’t even spend the money I earn now. My biggest expenses must be food - I turned vegetarian and buy organic.

That is what I called the great life!

Leo Says:

April 25th, 2007, 3:22 am

Mr. D2X2 … thanks for the great comment. You’ve done an amazing job in simplifying your life, and I commend you. You’re living what I’m talking about! Keep up the great work.

Ron Diggity Says:

May 1st, 2007, 18:49 pm

You must have a boring life. You save 20k, but you miss out on the great things life has to offer. Carpe Diem.

Leo Says:

May 1st, 2007, 19:06 pm

Hi Ron … I can see how it might seem that way to you, but in truth, my life is greatly fulfilling. I’ve found ways to enjoy life without having to spend a lot for artificial entertainment. Really, when we think about it, all the expensive entertainment we pay for is just to fill a void in our lives. When you fill that void with more meaningful things — spending time with loved ones, for example, or reading a good book, or enjoying a sunrise, or going for a peaceful run — you don’t need the artificial entertainment.

I appreciate your comment though. I agree: Carpe Diem! Just don’t do it with artificial entertainment.

teejay Says:

May 24th, 2007, 2:37 am

Going out in Sweden is an expensive affair. I did go out in the beginning as I knew I will have to stay here for at least 5 years on assignment (I am an Indian). It will be very hard to live in the dark if I don’t have anyone to socialise but after having many unpleasant experiences at pubs/restaurants, (like no entry, diplomatic racial remarks etc) I stopped going out. I don’t deserve such treatment just because of my racial background. So this is an answer to the very first comment that it is NOT a joke, you can always invite friends over and have good time home. I make sure to invite friends over at least once in 2 months so that way I get invitations back and I manage to socialise very well in this dark cold country.

Alcohol, its a rip off here. I have almost given up on alcohol but I do maintain a stock if I need any. I get the stock from the duty-free stores when I am traveling.

We have hacked our grocery list, in the sense, we maintain a list of things we have at home and go on marking as and when they run out. We go to grocery stores only once a week and fill up the stock so that way, we don’t buy unnecessary stuff, that saves money and wastage.

We have a weekly meal plan in place by saturday so we know what we gonna need for the next week. We have grocery stores deals for the next week dropped at the doorstep by thursday, it helps in making meal plan. You can tweak meal plans as whats on the deal.

If something (grocery or any other things like gift items) is on deal, we try to buy in bulk. If groceries are cheap, we freeze them. (Electricity is very cheap here so freezing weighs out well)

We use VoIP and have dumped traditional landline.

I don’t have any credit card.

I don’t have cable TV, we rent DVDs or We watch on Democracy Player. We download TV shows off the web.

Finally, a very good post. Afterall, why squander money, its hard-earned so respect that money…

PJette Says:

May 24th, 2007, 9:24 am

Good tips, Leo. But regarding your choice of alternative protein-Soy- you may want to check out the health hazards of it. Here’s a quote from mercola.com-eho for years has been warning of the health risks of soy products:
Still on the fence about the value of soy products, even after health claims have been hugely debunked? If there’s any lingering doubt in your mind, I urge you to read this interesting piece from Dr. Kaayla Daniel, author of The Whole Soy Story: The Dark Side of America’s Favorite Health Food Revealed, who describes how soybeans are “milked” and transmogrified into health-harming products nobody needs.

Take, for example, the process by which soybeans are converted into a milk. After presoaking beans in an alkaline solution, the resulting paste is cooked in a pressure cooker, eliminating key nutrients and producing low levels of the toxin, lysinoalanine.

From there, it’s a matter of cleaning up the undesirable, beany taste of soy milk, either by presoaking beans beforehand with baking soda or “deodorizing” them using a process similar to refining oil. Sweeteners (raw cane crystals, barley malt or brown rice syrup) and flavorings mask any remaining “beaniness,” Dr. Daniel says.

And, remember, non-fermented soy products like tofu, soy milk and meatless foods made from textured vegetable protein also contain phytic acid, one of many anti-nutrients it’s wise to avoid at all costs.

Weston A. Price Foundation

Leo Says:

May 24th, 2007, 18:18 pm

Hi PJette … actually, the Weston A. Price Foundation has strong ties to the meat and dairy industries, and hundreds of other (non-biased) studies have shown that soy protein is actually safe if not taken to excess — 3 servings a day is very safe. I wouldn’t believe that study, which has been blown out of proportion all over the internet and taken as fact, especially as it is being heavily pushed by the meat and dairy industries (which have even started websites to promote this misinformation).

klein Says:

May 26th, 2007, 21:58 pm

I like the tips, but I think they ought to be geared for family. If I had the family you have, I would certainly feel that I had more than enough entertainment and wouldn’t need to spend money on going out, movies, theater, etc…

The question, I’ve been trying to answer for myself is, after I’m contributing max’s to my 401k, I’m saving 10% of my pay for my ‘emergency’ fund, and my debt is relatively under control, what “future” am I saving for? How can you ever know that you will have enough for retirement, and why deny yourself during the most prime years of your life so that by the time you’re older and can’t enjoy things as much, you have the money to do them?

kleanchap Says:

June 1st, 2007, 13:35 pm

Great advise! What kind of haircut buzzer do you use? Where can I get one (for men)? I cannot stand long hair but the local hairdressers are bad anyway. So I thought I will try your method. Please do let me know where I can buy these hair buzzers? Thank you.

Not for Everybody Says:

June 18th, 2007, 11:29 am

I read your post and it seems like these things work for you. However many of your suggestions are unrealistic for someone like me.

“Rarely buy new clothes. I use my clothes and shoes until they are threadbare. Really. Ask my wife and kids.”

I used to only shop at used clothing stores, but after a while I realized that if you keep your eye out, you can get new clothes for the same price (and sometimes cheaper ). Looking good doesn’t mean that you have to spend money. Call me vain if you want but looking good and feeling good go hand in hand. Put a person in a crisp suit and you can see more confidence immediately. That little bit of confidence could be just what it takes to get the job or the raise. So in the end, skimping so much could actually cost you money.

“Never travel. I would like to travel. When I am out of debt and my savings accounts are nice and healthy, I will travel. But for now, I skip it. Others I know take at least a trip per year. Annual savings: $1,500.”

This really makes me worry. Traveling once a year is by no means extravagance. Travel is at the very core of the human being. By venturing out into the world, one can experience other cultures and widen ( and perhaps question) their own belief systems. I’ve been to Afghanistan, Iran and Cuba to name a few places. These are all big bad countries according to the media and the government. I have to disagree with them. You don’t have to fly around the world to experience this either. Road trips are fairly inexpensive. Pile the kids into the van and explore your country. Camping is one of the least expensive ways to go and your kids have a chance to see how dynamic the country is. The past two years have been pretty tight, so my wife and I spent 10 days in the middle of nowhere. Absolutely incredible. Cost approx $300

“Never go out. I don’t go to clubs, or the theater, or ballet, or opera. I guess I’m just not that type of person. Annual savings: maybe $500.”

Where are you children getting cultural awareness from? Children need to be exposed to theater, dance, museums, art, and music. It’s another fundamental part of who we are. Most theaters have pay what you can days. I recently went to the Detroit art museum, where I spent 3 hours looking at hundreds of masterpieces, all for 6 dollars (kids were $3).

You seem to thrive well on frugality but have you thought about what effect your penny pinching may have on your family? I grew up in a very limited financial situation. We had life’s necessities. We had food and a roof over our heads and even basic cable TV. But I grew up afraid to spend money and I didn’t have any concept of the world outside of our city. I constantly worried about not having enough to live on. By the time I was 25, I had saved over $10,000 but at a huge cost to my personal growth. After some therapy, I socked half of it away in a mutual fund and took the other half and spent a year working my way around the world. I discovered that you could have security and enjoy life. You say that you will enjoy yourself when all of your debts are payed off. Do you plan on enjoying life when you are in the last stages of it? I myself would rather enjoy life while my children are young enough to experience it with me.

Have fun pinching pennies, I’ll be living a balanced life if you need me.

ForEverybody Says:

June 18th, 2007, 18:40 pm

Counter-point to ‘Not for Everybody’: I grew up in the Netherlands and now my family and I live in the SF Bay Area, where there are plenty of great public/free venues to explore. (From your post it sounds like you may be from Detroit so that may not be the case for you). I also would not underestimate the ability to raise culturally aware children by carefully chosing what media and books you do (and do not) expose them to.

Vic Says:

June 30th, 2007, 17:58 pm

@teejay:
I don’t know what your situation is but you definitely shouldn’t stay in an environment where you are not wanted. Even here in the US, people are still being excluded because of their racial and ethnic background but it is not widespread and not widely tolerated. If you have the means, find a more suitable environment to live and definitely make it known to the locals that you are being harassed.

@Everyone
I saved a lot by
1) Stop shopping at Gap and Banana Republic
2) Cutting back on lattes
3) Cutting back at the vending machine
4) Add insulation to the Attic - cut electricity bill by 37%
5) Use coupons!
6) Keeping my tires properly inflated
7) Watch discount movies
8) borrow instaed of buying every book I need
9) Cooking more
10) Using the laundry, vaccum, etc after 11pm when electricity is cheaper per kwh

Vic Says:

June 30th, 2007, 18:07 pm

@Not for Everybody

“have you thought about what effect your penny pinching may have on your family”

Very well said!
I know for a fact that coming from a family that never had a lot of disposable income, it did affect me tremendousely.

I screwed up many classes in college because I didn’t want to fork out the money for Internet Access and the required software. Instead I relied on the computer labs for my assignment.

Since the labs were closed at nights/weekends, my grade suffered enermously. I worked part time but there was a constant fear that I’ll need the money to pay rent so I always live on the frugal side.

The students who took $25K loans and buy what was needed, graduated and got jobs paying > $100K. I’m making much less than them because I was afraid of debt.

Kids, my advice to you is this: Take as much loan as necessary to further your education. Your education is priceless.

Johanna Says:

July 5th, 2007, 7:36 am

Actually, I’m with Jean above on the art-enriches-life aspect. Galleries and museums in many cities have one day a week where entry is cheaper (or sometimes for the last few hours of the day). I wouldn’t want to give up on those. As already mentioned, there are plenty of theatres that do Pay-What-You-Can nights.

Also, ballet and opera and big musicals are not the only performances available! Supporting smaller dance and theatre companies usually means that your ticket price is cheaper and often the quality of the shows can be just as good or even better than the larger houses. The extra $500 a year for me wouldn’t be worth it, given the priceless gifts I receive from art.

John Kaiser Says:

July 6th, 2007, 10:15 am

“Cable costs about $65/month”

Wow, that is way overpriced.

Pete W Says:

July 19th, 2007, 8:18 am

Tell you what… If you want I’ll do a guest post on the opposite end of life - how to do the cinema/food/going out places thing and still be frugal.

I love the whole musicals/opera/ballet/concerts etc thing, games, music, DVDs and so on, but still save well.

Carolee Says:

August 22nd, 2007, 12:58 pm

How do you eat vegan at fast food places? Three times a week?

dajolt Says:

September 20th, 2007, 4:01 am

I like your list, apart from two things:

Not going out and not travelling.

Just like the No-Cable-TV recommendation, this limits your exposure to the outside world severely. While not having cable has loads of great advantadges, not travelling and not going out cuts you off experiences other people have.

In the long run this will cost you more than the money you can save. Because your mind will suffer if you stay at the same place doing the same things all the time.

Note that there are many possibilities to travel and go out without spending much. Just not doing it at all is not an option.

N'Awlins Kat Says:

September 22nd, 2007, 1:10 am

Great list, Leo. I do have to agree about not cutting out cultural events, but we have a lot of free stuff locally, too. My daughter’s ballet company performs at the library and local park for free several times a year and season tickets for three of us to our local Little Theatre run about $150 a year. Hate going to movies, or much of anything else that involves crowds, so we save a LOT there. I’d gladly dump not just cable, but the entire TV, but I’ve gotten a lot of flack from the other two voting members of our mini-democracy–I’m the minority vote there. Though I plan to prevail eventually! I’m the president of our local Friends of the Library, so I’m in the business of hawking all that the library offers, and running used book sales (50c to $1) to raise money for the library. Great source of cheap entertainment! And our library, though fairly small, does have a lot of cultural activities for both kids and adults.

I’ve traveled in the past and can’t wait to again, but our debt has come in the form of natural disasters. NEVER skimp on your homeowner’s/renter’s insurance, and always carry national flood insurance, even if you think you’ll never need it. I speak from bitter experience on the flood insurance. Six months after we married, our home flooded, and we had no flood insurance. We did, however, have over $25,000 in damage on a (then) $62,000 house. Just as we were starting to see the light at the end of that particular tunnel (we’ve done most of the work ourselves and I don’t recommend it), we had the fun of Hurricane Katrina. More damage, biiiig (3% hurricane) insurance deductibles, and the cost of our insurance has gone through the roof. It’s left me with the realization that the insurance industry is a scam, but one you have to deal with. Uggh. My house still isn’t complete, I’m down to fixing the things the insurance didn’t/wouldn’t cover, and seriously questioning why I gave up half a grad-school dorm room 13 years ago for this! But we’ll get there eventually.

kayjay Says:

November 7th, 2007, 19:19 pm

I’m only 21 and have found myself in debt of 2000 which is much being a single mom of a preschooler and planning to go back to school. I should have started to save when i got my first job but i stop after my son was born. Now i have major savings to do. I have to save 30% of my salary so that I can afford to go back to school in 4 years. My son will be 6 then. I’ve potty-trained him from 1 yr to save on diapers and i buy groceries and household items in bulk. I have a boyfriend now so i bum a ride with him everyday. We buy dvd’s when we wanna see a movie and watch older dvd’s after some time. or we exchange dvd’s with friends so that everyone can watch the latest movies for much less. I don’t have cable I don’t miss it. Was never a fan of the tv. I have a laptop that i store all music i download and haven’t bought a cd since the backstreet boys released millenium. plus i have a room-mate and we share all household expenses and food. We cook at home…. which i love because i am so picky and like to have my food the way i want. When it come to going out. I do go out once in a while. but most of my party times are at my friends house… we all put together for drinks and play loud music at least twice a month. when we go to the clubs we get together and drink first and then go to the club (drinks are 4x what they cost when you make it urself. I’m not planning to live like this forever and tho my son’s dad helps me with him I still don’t depend on him for financial wellbeing and whatever he gives is savings. after i get my masters (half way to the bachelor’s) i’ll have more money to spend on unnecessary luxuries but for now my son has everything he needs. oh we also take advantage of free clinics and free meds and do have health and life insurance. and my son has his own bank account.

Andy Says:

December 21st, 2007, 13:41 pm

Great post! I used some of the tips in this article to help me write a How To page entitled “How to Save Money”: http://www.mahalo.com/How_to_Save_Money. Keep up the good work!

Karl Sandberg Says:

December 31st, 2007, 20:25 pm

Buy a COCO toilet. It will make using toilet paper unnecessary. A lot of people don’t realize that we use an average of 57 sheets of toilet paper per day. So you will be saving a lot of money from not having to buy toilet paper and you will have better hygiene.

Gaje Master Says:

January 17th, 2008, 19:35 pm

I am a work from home freelancer who also has about 15 blogs. Out of those blogs, only about three are updated often. The one that i love the most is Gaje Master Blogging and at one time it had a lot of great information on it but then my server crashed and I lost all the information that was on it. I am now restarting it from scratch.

As far as this post goes, I can see how a person would spend this much. I spend approximately $4 a day on fountain drinks and $10 a day on cig. This can add up quick. I too, have a large family and look for every way to live a frugal life. It can be tough but leaves a well accomplished feeling once you have done it. Good luck to you and I look forward to reading more of your post.

francisca Says:

February 15th, 2008, 6:11 am

hi leo,
im proud of u wanting to take care of ur family but with six kids i dont envy ur financial situation saving is a must i know u have there best interests at heart question is are u the sole provider in ur house???
since i started working in formal employment i opened a savings account but i can only save so much in a month i budget n everything but still cant afford a medical cover so at the end of the day money is never enough n even if i get a better paying job my needs will increase coz id like to move out of home sometime and live my own life.For me il start some side project that can get me some other source of money one job isnt enough coz i think a little ambition wudn hurt anyone n i really want to be independent.
gd article tho`

James Simpson Says:

March 4th, 2008, 12:19 pm

I got a web site tip from a guy at work so I always run my online purchases through http://www.bestshopguide.co.uk first.

It is a price comparison site, but it lists the current prices on ebay and amazon too which is useful.

Means I never pay too much for items online e.g. digital cameras or ipod accessories.

Carmen Says:

March 13th, 2008, 14:54 pm

Some of your tips are extreme, but others I use myself, especially bringing lunch to work. That saves me at least $30/week.

One new thing I did to force myself to save is mid January I set up a new savings account that gets $1 transferred to it whenever I pay a bill online or swipe my bank credit/debit card, plus an automatic transfer of $50/month.

My savings account balance Jan 1: $0.
My savings account balance Mar 13: $176! Wow! At this rate I’ll have a nice little nest egg of $600 by the end of the year, which will cover my expenses for a month or two should something happen (I’m a student so $600 is a LOT for me!)

Another thing I do is really use coupons, shop for deals, and buy online. I have an Entertainment coupon book I use at least once a week, and instead of buying brand name clothes at department stores, I go to Ross or on ebay and get awesome deals, up to 90% off, especially on beauty products.

Thanks for the tips!

Web design linconshire Says:

April 2nd, 2008, 17:30 pm

There are many ways to save money. But the best way I do is pay yourself first. Put a percentage away to yourself on payday. It is your hard earned money, you should reward yourself first.

Then watch your income grow over a space of a year. If you an ISA this is a great way to save money and get some tax free savings. Why not get something out of the government, they are the takers!

Surving The War Says:

April 9th, 2008, 2:02 am

Dang…the alcohol part is going to kill me! I drink a couple of times a week, and it’s never “at home drinking while eating pizza or watching a movie”. Usually, once during the work week, there is a happy hour somewhere near by and although the booze is cheaper then, it adds up. Especially when some people don’t pay their share (I guess that’s their way of saving money).

Great post - thanks for the advice!

Matthew Bezahler Says:

April 17th, 2008, 20:13 pm

The simplicity in your tips makes them easy to implement and follow. Look foward to more
MattSense

Karissa Says:

April 19th, 2008, 21:48 pm

I love your list - and the site - and while I may not be ready to adopt all of your habits, I greatly appreciate the ideas!

I also wanted to say that I don’t think you have to be a total recluse to save money going out. At least in most metropolitan areas, there will be a section of the paper on Saturday (frequently available online) that lists free activities, like music and art festivals - it makes a great family outing, and if you bring your own food and drinks from home, it doesn’t cost more than the gas it takes to get there. :-)

bobby Says:

May 5th, 2008, 16:31 pm

I think a great way to save money is to cut down on landscaping expenses. I was hiring a professional landscaping firm to maintain my lawn every week. Instead of keeping up this very expensive luxury I looked for a local college student to help me out. I found a great site called Barefoot Student which has a lot of students for hire. I found one student offering landscaping for only ten dollars a hour. Bingo! You can find the site at http://barefootstudent.com. I also found a nice nursing student to babysit my children as well!

Myself Says:

June 5th, 2008, 16:27 pm

I believe that stretching to the far side might be beneficial for you right now Leo. But don’t forget that you have to loosen the reigns some time, otherwise you’ll just be a grumpy old man.

There is a middle ground as others have mentioned. We do eat meat, but not a lot, and it’s usually chicken. We don’t drink soda except on rare occasion, but we do drink mostly water, and fruit drinks (that don’t have the additional sugar added). Basic cable in our area is $15. Now, 50 cents a day is pretty low to be able to see an occasional show, not to mention find out what is going on in the world. Unless of course your children are also able to browse the Internet while they’re at home as you do at work. Don’t forget that seeing the good (and sometimes the bad) is very beneficial to the young ones. After all, I remember seeing the man land on the moon on a black and white tv when I was a kid. I also remember seeing the space shuttle blowing up in mid-flight.
Having the experiences one has as they grow up is very helpful in all of us being rounded and compasionate human beings.

Glare Says:

June 24th, 2008, 1:51 am

If you want to get the kind of free directory assistance service you deserve, simply dial 1-800-411-SAVE! I discovered it myself! Try it!

Liz Says:

July 1st, 2008, 14:44 pm

You’re not even living,
Not going out to eat? Not buying new clothes? No movies or traveling?
What in the world are you doing sitting at home reading a library book
That’s not living, thats just plain old stupidity .

Myself Says:

July 2nd, 2008, 8:50 am

As for the professional landscaping service, it costs a lot, but can be extremely rewarding.
We have ours taken care of by a professional company. They cut/trim/edge/blow our 1.5 acres for $61/cut. That is only up due to gas mostly. But I also feel that the people that cut the grass would like to get an occasional pay increase. :) That service costs us about $1,100 for the season, so it adds up.
I also have horrible allergies to freshly cut grass. When I used to do this myself, it would take 3 hours, and my chest would take almost all weekend to get cleared up. Also, that time didn’t account for sharpening of the blades, oil changes, etc. Not to mention the time that I couldn’t have playing with our kids and enjoying the time with them and my wife.

John Clemsens Says:

July 9th, 2008, 4:34 am

We have been a member of direct buy and found that they can help you save money on many items for your home. We furnished our living room and saved about 40% off the best retail prices. If you are interested check them out at http://www.directbuylosangeles.com

Jeff Swanson Says:

July 10th, 2008, 15:38 pm

To me, you can save money by doing the little things - it adds up fast. For example, bringing lunch to work (at least three times per week) saves a ton of money. It’s hard to do at first, but it becomes routine after a while. And, when you do eat out, get water. It sounds ridiculous, but I used to get a soda every time I went out for lunch and it’s about $2 per soda. That adds up during a year when you eat out multiple days per week.

Also, when you do need to buy stuff, compare local coupons and ads. If you don’t get the paper, you can go to places online, like http://www.shoplocal.com and view weekly circulars in your city to save some dough.

http://www.shoplocal.com

Me me me!!! Says:

July 20th, 2008, 21:42 pm

Wow you have some good ideas that I employ myself. Instead of being a vegan though, get a hunting license and bring home your own meat! The ladies don’t dig pale, skinny, non-meating eating wusses!:)

More Money Please Says:

July 23rd, 2008, 19:34 pm

Great article! There are a few different tips that I haven’t seen which is exciting for me!! I am glad I stumbled upon this site because it will save me a few bucks…

anon Says:

July 24th, 2008, 19:09 pm

you guys are all tools. the guy has six kids. try going out and all that then. he has found a system that works for him and his family. figure one out for you but dont hate.

moserw Says:

August 2nd, 2008, 20:38 pm

Really??? Well if it works for you… I would think “get a life”… I mean what’s the point of living if you have not lived at all? No offense meant here, just my thoughts on this subject.