Known Your Stores

Yesterday we needed at new back door. The old door was beyond repair. It had already been fixed two or three times. First we checked Craigslist. We had no choice but to get a new one. We went to Home Depot. But just because we had to buy new, it didn't mean we had to pay full price. We went to the Depot and looked around first. When someone asked if we needed helped, we immediately asked if there were any discounted or returns available. The worker walked us right over to the discount section for doors and windows. After a few minutes we found the right door. Originally priced at $800, we picked it up for $180. That's a hefty 75%+ discount, which is good enough for me. I like buying at a deep discount. Furniture stores have a back room where they keep stuff that has gotten ever so slightly damaged in transport. You can get the best for less. Paying full price doesn't neessarily make a thing is any better. The same principle applies to food. Grocery stores have loss leaders in every department. That is the merchandise stores sell nearly at cost in order to attract customers. Even smaller more epensive stores follow this policy. I once lived down the street from a small boutique market. None of my neighbors dared shop there because it was so expensive. I went every week and scoured the sales circular and managed to live out of there even on a budget because I kept a pantry and a freezer to stock up on the sales. Learn your stores and find out how to get the most out of them.

NO DEAL: Economic Repricosity

Sometimes when I tell people about how I manage my money and how we live, they get irate. Their complaint is that if everyone did what I do, the economy would collapse. I never really had an answer for that claim, except to say that it works for me, but you are free to do things your own way. Nevertheless people felt that I was cheating the system by not fully participating in it. Until the recent economic meltdown, I could almost see their point. This economy is after all largely consumer driven. However since 2008, I feel a little differently. So much wealth was destroyed and so many people were hurt without any real consequences to the people in charge, that I have changed my mind and I am calling for a consumer boycott. They shipped our jobs to China, so don't buy their merchandise. Go to garage sales, church sales and shop in your community buying from local artisans and recirculate the money in the community. Figure out ways to get around the treadmill of working and spending. The treadmill might function for you if you have a job. But what if you don't.
In the forty odd years from the Great Depression till the advent of Ronald Reagan, the American economy was growing and very stable with a very low unemployment rate. Then American Business decided that the best way to innovate was to figure out ways for one employee to do the job of three. Instead of creating the new must have product, they looked to cutting costs. Instead of investing in Research and development, Big Business started investing in lobbyists, to get out of paying taxes. Don't like paying taxes, why don't you move your business to Russia? See how that works for you. As far as I'm concerned Big Business has been strangling the goose that laid the golden eggs. Henry Ford had it right. Pay your workers enough so they can afford to buy your product. American Business has lost sight of that bit of wisdom. Instead it's all about blaming workers. GM went bankrupt because it's salaries were too high? No, GM went bust because it made crappy cars and didn't pay it's taxes, but paid management. Now they're after the public sector employees, who were cheated out of pension money by Wall Street. Create jobs and pay taxes or we won't go to the mall. Somethings gotta give. I'm tired of the whole blame the worker thing. I think you should pay people well. If you can't afford to pay workers a living wage, then , quite frankly, you have flawed business plan. It's important to pay the people who actually do the work and not the managers and CEOs who run companies into the ground with short sighted notions about what really is good business. So until I see real investments in our community, I say stop shopping. Use it up. Wear it out. Make it do or Do Without.

Creative money solutions

Life is very random. although we all like to believe that nothing bad will happen and that there are no forces in our lives beyond our control. The truth is that life is random and a lot of stuff can go wrong. Just look at the financial meltdown which blindsided everyone especially the smart alecks on Wall Street. Even if you did the right thing you could have ended up losing you job and your house. This post is about having other ways of making money. For my family it is eBay. We buy and sell. We started as buyers but when we had to move, we started to sell. I was thrilled to find out there were people out there willing to give me money for my stuff and pay to move it too. It saved me a lot of headaches when we moved. I got paid to pack and I didn't have to unpack. We also gave a lot away to charity. And we had a lot of good stuff because we were both inveterate junk collectors. What was great is that I could sell the stuff that no longer suited me and buy new stuff. I shop at garage sales and church sales for the things I can't otherwise afford like some clothes, silk scarves, vintage jewelry. We don't really run it like a business. I buy stuff , use it for a while and then sferentell it when I grow tired of it. I 'm happy to get back what I paid for an item, which is minimal. It's not a lot of money, just a little play money, enough for an occasional dinner out or to get something we need for the house.

I am currently talking to my husband about doing some math tutoring on the side for a few more bucks. It's like running a small business. There are plenty of people in need of certain skills whether it is cooking or baking (read catering) or sewing or fixing. A little side business can be a godsend as long as you are not totally dependent on it. Because that is the key. Don't be too dependent on just one thing. Have a few different baskets for your eggs. Don't even be dependent on the full time job. Though they are nice to have, but be prepared with options if something goes wrong, which it can. If the financial meltdown taught us one thing, it is that things can go wrong in an awful hurry. Gas is through the roof right now. That is something that could kill this fragile economy. My advice is to have an emergency fund and a backup plan. Cutting excess spending in this time of uncertainty, is a good start. Make saving money fun. Make beating the system a game. Lots of things are available online. I wanted to get a pair of shape-up sneakers last fall but I didn't want to spend over $100 for them. So I looked online and got a new pair delivered to my door for less than half the store price. I was thrilled. You can have it all with less. And have fun doing it. Next wek the town down the road is having a city-wide yard sale. I will be ready with my big bag, my singles and small change to shop for treasures. I will look for the stuff I really want and stuff to sell. I can take the brand name clothes to the consignment shop or sell it on eBay. Then with the money I make I can get something I really want. Or maybe I'll find what I'm really looking for at a yard sale and call it a day. Either way, I'm going to have a great time. I love saving money and finding corners to cut. I love having it all with less.

HOME FARMING

Gasoline prices are through the roof. This is a good time to do a little backyard farming. I've been planting fruit trees and we have a few tomatoes plants as well as some strawberries. I've always been big on planting herbs like basil and parsley. I don't like having to pay two or three dollars for a handful of the stuff. I have also taken to planting lettuce. I got some heirloom arugula from a neighbor. The nice thing about heirloom varieties is that they reproduce unlike hybrids which are sterile . I have to pick them out of the lawn every spring and put them in my growing pot. But essentially it's free food. If the price of gas stays high things that need to be shipped cross country will become more and more expensive. Another option which I am considering is joining a local farm coop. For a substantial fee you get tons of fresh produce for the season. Doing the math, it seems like a good deal. I an apprehensive only because it would be something new. I think I may try it because the food is grown locally and the transport costs are minimal. I sometimes get my fruit and vegs from the discount bin at the supermarket. This can be tricky but can have huge payoffs. I get blood oranges which are pretty expensive for pennies. But check the fruit as carefully as possible. Never buy anything that is visibly spoiled. It's not worth the money. I only buy discount bananas if I plan to bake bread. My supermarket also discounts fish and meat which is even dicier to buy than fruit. If you do this be very, very careful. Use your nose and cook immediately that same day. I've had stuff turn green in the fridge. Can't eat that. Just throw it out. Better safe than sorry. Having said all this, I find expiration dates to be flexible. I've often bought expired food that was perfectly fine. Bread is something that generally holds up well. However, if you see even a speck of green on baked goods, you must throw the entire thing out. Be careful, but scan for discounts. It can be fun. My supermarket uses yellow stickers. I like nothing better than rolling down the aisle snapping up the bargains. Look for the manger's specials too. That is how I tried out Greek yogurt for the first time. It was great. Now I buy it whenever it's on sale.

SOME ASSEMBLY REQUIRED

Tag Sale season is upon us. If there is one thing I have learned over the years, it is that people don't know how to put things together anymore. If something requires the simplest of skills to assemble, it is sure to end up at a deep discount at a yard sale. We picked up gorgeous towel bars and etc for our bathroom last year, still in the package because it required a little assembly. We would otherwise not be able to afford the stuff but at a yard sale we got it at a fraction of the retail cost. So some basic skills come in handy and now with advent of the internet and the proliferation of online videos, getting those skills is a lot easier. You can learn how to do just about anything. online. My advice is to start with small household repairs. Sure you can pay someone for the service, but why not learn how to do it yourself and use that money for another purpose like saving for a better car or paying down the mortgage. Or saving up to buy that first place.
Real estate is a sore point these days. A lot of people are under water. I have been through this before. Even though I got a good deal on my apartment in 1991, by 1996 I was under water. My place had lost half of its value. Ouch. This did not bother me too much because I liked where I was living and knew I couldn't live any cheaper elsewhere. I stuck it out and waited for the upcycle to sell. I believe we're in that same situation now. Things look pretty bad but they are bound to change. This for me, is the time to invest. I want to buy more real estate even though I'm not convinced we've touched bottom. Prices may continue to drop. I figure housing will be it's cheapest in 2014. In any event, I'd rather pay slightly more than miss the boat. Anyone who says they bought at the bottom is, as they say, a liar. My plan is to be ready when real estate comes roaring back. I'll have somewhere cheap to live and be able to sell without worrying about having to buy back in at the top of the market. So save, but with a plan. Have a goal and purpose for scrimping. I've ridden the real estate roller coaster three times in my life. I still think housing is the best investment, particularly if it's rental property, that puts money in your pocket. Right now my paid off house is probably worth less than I paid for it, but I'm renting it out so it doesn't really matter

Embrace Your Inner Cheapness

It's okay to be cheap. If you walk up to the counter and find that something is just too expensive, put it down and walk away. It's your money, you have a right to say no. Embrace your inner cheapskate. I had a friend once who was literally homeless. She was sleeping on my living room floor. She finally gets a job downtown. I tell her save every penny for a deposit for an apartment rental. She gets her first paycheck and comes back to my place showing off a pair of gloves she bought. That wasn't bad in itself, but her reason for buying the gloves was that she didn't want to leave the store without buying something. Personally, I thought that was crazy. I can walk out of a store without buying a thing. Hey, I can leave a garage sale without buying anything at all. My husband used to have trouble doing that but he has since learned to embrace and nourish his inner cheapness. The first time he did it, he felt a little bad for the people. In some ways garage sales are tragic events. People spend money on junk which has to be gotten rid of at any cost. I ofter see $10 and $20 candles unused with the price tags on the bottoms not selling for a dollar. It's kinda sad to see what folks throw money away on. But if I don't need it. I don't buy it. I don't buy something out of pity that I don't really need. My strong and nurtured inner cheapskate won't allow it. I'm cheap and I'm okay with it.
I'm not okay with credit card debt or past due notices. I'm not okay with debt of any kind. I have an old TV and that's just fine until I have the cash to buy a new one. Being cheap keeps me grounded and makes me feel safe. I have an emergency fund which makes me feel safe. I know that whatever happens, I have enough to make it for a year or more. When I was young I didn't have that security and life was pretty scary. My emergency fund gives me freedom. It means I can splurge if I want to or need to. Savings mean the ability to grab opportunities that come along. One day I was in a big department store, JCP or Macy's, when they were having a sale. They had end of the season rock bottom prices on some really nice cashmere sweaters. I grabbed one in each color in my size and an extra for a Christmas present. I got to the counter and the sales girl was amazed and said. "If I had the money, I would be doing the same thing." And she would get them for even less with her employee discount, but she couldn't afford it. I felt sorry for her, but happy for myself and all those lunches I packed for work. For me, it was the best payoff. Don't worry about what people think. Worry about what's really important. A clean, warm, safe place to live is important. Having security is important. What the sales girl thinks is not important.

Second hand roses

Okay so any money saving book or blog is going to tell you to shop at second hand stores. But I want to warn you about some of these places, they can be very expensive at times. and not at all worth the money. I have a few rules for thrift shops. Never buy anything at a thrift shop that you can afford to buy new. No use buying a t-shirt from Kmart (Basic Editions) at the Salvation Army for $5 bucks when you can get it for $6 brandy new and in the size and color you really want. Only buy the stuff you couldn't otherwise afford in thrift shops. Look at the labels. I am particularly fond of buying stuff from SAKS FIFTH AVENUE and other fine stores. I find their clothes to be of excellent quality and superior workmanship. When it comes to coats. I gravitate to the men's department. Men's clothing is better made and has more luxurious details than women's wear. In addition they get inside pockets which I like because I can leave my purse at home.
When it comes to dressing well, Men have another advantage over women: the uniform. Men are practically dressed the moment they open their closets. They have to wear a suit which eliminates much distraction and a plain shirt. The only bit of self expression allowed is in the selection of a tie. They can dress with their eyes shut. This is marvelous.

Years ago I decided to invent my own female version of the suit. I call it the sheath. You pick a neutral base color like black. Buy interchangeable tops and bottoms in your base color. I have a collection of black sweaters, slacks and skirts which I mix and match throughout the week. Then all I have to do is pick an accent color. I throw on a sweater or a jacket in a bright color. Add some jewelry and a scarf and I'm done. Nothing could be easier on a busy morning. I always look good because all of the problems have been worked out in advance.Whenever I buy another piece of clothing, I work out how it is going to be worn immediately. I don't want to get caught trying things on before going to work. Who has time for this. I have a 2 hour plus commute. Better to get it over with ahead of time and just know what to do without thinking. I leave for work while it's still dark and my husband is still sleeping .


For the summer I change my base color to white or navy blue. I still use my accent color, but I am even less subdued and generally go for hot pink and bright orange. Summer is time for color gone wild. I decorate my home in much then same way as well. Choosing neutral bases and finishes like cream and throwing colorful accents all around. The restriction actually gives a lot of freedom because you're not limited to being all matchy matchy.