Beating Broke

Personal Finance from the Broke Perspective

Are Good Deals Putting You in Debt?

By 2 Comments

We all love a good deal, right?  There’s nothing better than paying $2.40 for a pair of kids’ shorts that retail for $16 or paying $0.25 for Christmas wrapping paper at an after Christmas sale when it would cost you $2 or more to buy it new.

After all, buying things on clearance is what savvy shoppers do, right?  This is an excellent strategy for being frugal with your money, right?

Well, yes. . .and no. Are those good deals putting you in debt? Ask yourself these questions and decide if you really need that good deal.

Do You Buy More Than You Need?

Good Deals DebtWhen something is on clearance 80% off, it’s tempting to buy alot. . .more than you need.  After all, why buy one sweater at $5.00 on clearance when you could buy 8 for the cost of what just one would cost retail?  Besides, you’re not paying any more than it would cost to buy a $40 sweater brand new, and you’re getting 8.  What a deal!

But do you NEED 8 sweaters?  Will some of them languish in the back of your closet, with the tags still on, until you decide to purge your closet and give them away or try to sell them at a garage sale?

Can You Afford It?

Sometimes, you need to pass up good deals.  If you can’t afford the deal and put it on credit card, are you really saving money?  By the time you figure in the interest you’ll pay, that clearance sweater may end up costing you nearly as much as it would cost retail, or, if you pay only the minimum payment on your cards, even more!

Some people have gone in debt in pursuit of good deals.  Kristine Rogers, who was featured in Money magazine, explains that she went in debt buying children’s clothes on clearance: “Gymboree held a clearance sale in which every item was priced at $7.99. ‘I grabbed clothes my daughter didn’t need.  I bought four of the same coat in different colors.’  By the end of the day, Rogers’ compulsion had cost her $800.”  Rogers developed a full blown shopping addiction in the pursuit of sales and ended up with $50,000 in credit card debt!  Sure, she got good deals, but in the end, after interest, she likely paid much more than she would have if she’d bought the items at retail.

Are You Tying Up Current Cash Flow?

Assuming you don’t go into debt to buy good deals, you may still be tying up your cash flow.  If you spend $40 on 8 sweaters that you buy in May but won’t wear until November, you’re tying up cash flow.  If you don’t wear some of those sweaters at all, you’ve wasted money despite the good deal.

Be More with Less explains, “If you buy wrapping paper on December 26th and stock up on sale items year round, you are spending more than you would if you just bought what you needed.  Don’t be fooled by the cashier that tells you, ‘you just saved $22.00’ when you just spent $300.”

What do you think?  Is it worthwhile to pursue good deals, or can it be a slippery slope to overspending and debt?

Do you buy items on clearance?  Do you always use all of the items, or do you accidentally buy too much?

Have We Lost the Meaning of Frugality?

By 23 Comments

My grandparents were married during the Great Depression.  Their first few years together were spent in severe economic hardship, and the financial lessons they learned during that lean time never left them.

They always had one car.

My grandma wore the same dresses throughout my entire lifetime.  I think when she died, the dresses she still had were 25 to 30 years old.

They rarely went out to eat, opting instead to cook and eat simple meals at home.

My grandparents did without much of the time, and they were very frugal with their money.

They sold their house when they retired and lived in a 5th wheel trailer parked on the side of our lot, less than 20 steps from our house.  All of their possessions fit in that space, and their home was not cluttered.

Has the Meaning of Frugality Changed?

Lost FrugalityNow, the definition of frugal seems to be different.  People try hard to avoid doing without.

Now, the motto seems to be, “Why do without?”  Live like the Jones’ without spending money like the Jones’.

Whereas my grandparents carefully bought the groceries they needed, today’s frugal zealots clip coupons and create grocery storage spaces out of their garages.  They have rows and rows of processed food that they got for pennies on the dollar thanks to couponing.

Many mom bloggers are making their fortune sharing all the hottest deals available.  Kids’ winter jackets for $8!  Hurry, buy women’s turtlenecks for $4 today only!  Get your child the Barbie princess house for the low price of $48!

Hurry!  Hurry!  Buy the bargain.

Do You Really Need That Bargain?

So many consumers are on the hunt for a good deal that they never stop to ask themselves if they really need the item that is on sale.

What if your child doesn’t need the Barbie princess house?  What if your child has so many toys, she whines about picking them up and doesn’t take care of the ones she has?  Is that Barbie princess house still a good deal?

What if you never even thought about buying that item until you saw it on sale and didn’t want to miss out on the savings?

We’re Overwhelmed with Stuff

Look back at pictures of people’s homes from 60 or 70 years ago.  Their homes were not cluttered.  They were much more like the minimalists’ homes of today.

Now, we take advantage of so many “deals” that our homes are overflowing.  Here in Arizona where there are no basements, and therefore no built in storage, most people can’t park in their garages because they’re stuffed with possessions.

We don’t need all of this stuff.

Snagging a great deal on something we don’t need isn’t a deal.

It’s a waste of money.

Keep More Money in Your Pocket This Holiday Season

We’re entering into the busiest shopping season of the year.  There will be good deals, plenty of them.  You’ll likely be tempted to buy as many gifts for yourself as you will for others.  After all, the prices are so good.

But ask yourself one simple question–Do I need it?  If you don’t, it’s not a deal.

Do you think the definition of frugality has changed?  Do you or someone you know struggle with buying more than you need because something is on sale?

 

 

How Avoiding Vanity Has Saved Me Thousands of Dollars

By 4 Comments

Facebook is certainly a time suck, but it can also be a fun way to catch up with old friends and even high school acquaintances.  Just yesterday, I followed a rabbit hole of people I had known in high school, which ultimately led to Kimmie’s page.

Where Beauty and Fashion Meet

I’m sure you had a Kimmie in your high school.  She is pretty–perhaps beautiful.  She wears stylish clothes and is one of the most popular girls in high school.  Her parents have a lot of money and are happy to spend that money on their kids.

The Kimmie I went to school with married her high school sweetheart, who was a popular prep himself.  Thanks to their Facebook pages, I see that they now have three equally beautiful children.

What struck me most, though, was how pretty Kimmie still is.  Some popular,  pretty high school girls don’t age well, but at 42, Kimmie is just as pretty, if not prettier, than she was in high school.  She looks like she could be a model for a fashionable clothing line.  Not just because of her face, but because of the stylish, chic way she dressed.

For a moment, a part of me was a bit envious of her put together, stylish look.  But that thought quickly disappeared because I have neither the time nor the inclination to be a fashion plate like Kimmie.  (Besides, there’s no way I could pull that look off as well as she does!)

Avoiding Vanity Saved Me ThousandsHow Not Being Vain Has Saved Me Thousands of Dollars

Women like Kimmie make looking beautiful easy, but I know a lot of time goes into picking just the right clothes, make up, and hair styles.  I also know it can be very expensive.

Thanks to my lack of vanity and acceptance that I will never be one of the Kimmie’s of the world, I estimate I’ve saved thousands of dollars.

Here are some of the ways:

Embrace the Features I Have

I would love, love, love to have naturally straight hair, but I was born with naturally curly hair that has become curlier after each pregnancy.  Rather than spending time and money straightening my hair regularly, I instead bought a bottle of hair gel to tame the curls and make them more manageable.  This one bottle lasts forever!

Take Advantage of DIY

My hair began to go grey when I was 23, long before I had children.  By 25, I had to have it dyed for the first time to cover up the grey.  I had my hair dyed professionally for about six years.  However, for the last ten years, my husband has dyed it for me at home.  Every time he does so, we easily save $40 to $60.

Avoid Being a Trend Follower

I tend to rely on the same classic clothes and colors.  I don’t follow trends.  This allows me to wear the same clothes for years without looking particularly in or out of style at any moment.  This also allows me to buy classic pieces at garage sales and second hand stores for a fraction of the retail price.

A Kimmie I will never be, nor do I want to.  Instead, I rely on practicality, and doing so has saved me thousands of dollars.

How do you cut costs on personal appearance, care, and grooming?  If you like to follow fashion trends, how do you keep it affordable?