spending — 2/4 — Beating Broke

Have a No Spend Month This Fall to Save for Holiday Gifts

October 3, 2011 By MelissaB 10 Comments

Have you ever watched your family open up Christmas gifts while mentally calculating how much each gift cost and comparing that against the amount you have in your checking? Have you dreaded opening the bills in January because you know the credit card statement from holiday shopping will be coming soon and you do not have the money to pay the balance in full?
When my husband and I were newly married and dirt poor, we carefully planned our Christmas purchases to fit within our meager budget. We didn’t buy many gifts, but the ones we bought were well thought out. When we went to visit my mom over the holidays, she kept telling us about all of the presents she had bought for us. There were so many under the tree! Because we are the only people to buy gifts for my mom because my dad has passed, we started feeling guilty about the few presents we bought her. Noticing that her bathroom towels were worn, we went out Christmas Eve night and bought her an entire set of 6 new bath towels including hand towels and washcloths with money we did not have. Then we bought her some jewelry. We charged everything knowing we didn’t have the money to pay.

On Christmas morning, she delighted in her presents. When we opened ours, we were in for a surprise. She too had bought a few well thought out gifts for us. But all those extra gifts we found under the tree? They were leftover t-shirts from a conference some of the professors had hosted at the university where she works. She bought them for a $1 each. Each time I or my husband opened another one of those presents that contained a t-shirt, I felt sick. We had put ourselves in debt to try to make sure our presents were equal to hers, but she had stuck to her financial budget by giving us “filler” presents. There had been no need to buy those extra gifts on Christmas Eve. . .

We worked like crazy selling off things in our apartment such as textbooks we no longer used so that we could pay off those credit cards used to buy the extra gifts. On our meager salary, it took us until March. Thankfully, we have learned our lesson.

If you don’t want to spend the months after Christmas worrying how you will pay off the new debt you just acquired, consider having a no spend month now. We still have nearly three months until Christmas. Pick a month such as October or November to drastically reduce your spending.

If you normally spend $1000 a month on groceries, gas, entertainment, eating out, toiletries, etc., decide how much you want to cut that amount. Maybe you will decide that in October you will only spend $500 a month. To make up the difference, perhaps you won’t eat out or you will eat from the pantry to use up those groceries that have been on the shelf for awhile. Maybe you will do something for free as a family rather than catching the latest movie.

By reducing your spending for just 4 weeks, you will be able to come up with a good amount for your holiday gift giving. If you normally spend $1000, but only spend $500 of that in October, you now have $500 saved for holiday gift buying. Yes, you sacrifice now, but it will be well worth it when you know that every present under the tree has been paid for. Best of all, there is no reason to dread the bills in January. Isn’t that a great way to start the new year?

photo credit: kevin dooley

The Art of Being “Un-Frugal”

August 8, 2011 By FPT Guy 15 Comments

12 Ideas For Spending & Splurging Your Hard-Saved Money

That’s right. I said it. SPEND your money. Before you go getting all fru-guilty on me, hear me out.

We work so hard to save and spend our money wisely almost every day throughout the year – so don’t we deserve to treat ourselves really well, once in a while? Sometimes it’s time to celebrate our successes with being fiscally responsible and treating ourselves to a great emotional reward. I mean after all, this is life and you only get one shot, so how about a little spendy fun, at least once in a while?
Of course, this is only for the good girls and boys who have been saving hard and are already quite frugal. For people who are quickly paying their debt down or already have that illustrious excellent credit score rating. If you haven’t been frugal and been saving well, you can’t use this as an excuse to splurge and revel in your own financial gluttony.

Here’s a list of ideas for the angelic frugal-ers – for treating yourself for a day (or two, if you want to be really “bad”). I have to admit a bit of frugality slips in here and there on this list, it just couldn’t be helped. But be as frugal or as spendy as you want to be, you deserve it.

B&B Adventure – This one is obviously for couples, but don’t forget to keep the romance alive. A weekend bed & breakfast adventure might be all you need to refresh and re-inspire ourselves into everyday frugality. You could go by yourself if you’re single, but I just think that would be strange, unless you want to get romantic with yourself? Yikes.

Champagne Brunch – The classic way to celebrate any occassion with friends – mimosas, bellinis, bloody marys or just straight up champagne. If you don’t drink, then go for the non-alcoholic options, but I can’t claim to know those as well. Oh yeah don’t forget about tasty food, too. I love a nice eggs benedict for a fancy brunch. Choose a nice locally-owned place where you can remember the times and is more than just a franchise.

Latte Factor – This has been hammered on for years as a frugality-killer, but maybe for a few days in a row, you could treat yourself to some coffee binging for being a good frugal-er. Or even a week. Just don’t make it a habit again.

Fashionable Shopping Spree – OK, since we ARE frugal-ers – by spree I mean a pair of nice shoes, a pair of designer jeans or pants, or a fashionable shirt or you’ve been eyeing up. It’s ok to pay some good money for it, since you’re only buying one. I’m a Adidas Samba (shoes) freak so as a reward in the near future, I’ll be picking up some of those oh-so stylish sneakers.

Lounging Nights – Remember when you used to go out to a club or nice lounge with your sweetie or big crew of homies? Maybe you can’t remember, but if you did, a night with the party people could help you relive the party days a bit as a celebration. The next day you might be grateful those days are gone! This can obviously be combined with a fancy dinner, but if you want to frugal-it-up a notch, make a nice dinner at home. I just can’t help but to think frugally.

Surf or Turf? – Steak, seafood or both? A night out at a nice steakhouse or seafood restaurant. No – I’m not talking about Red Lobster or Outback Steakhouse. I’m mean a high end steakhouse or seafood restaurant. Reminding me of Peter Luger’s Steakhouse in New York City, yum. Go local!

Spa Day – Go for the all-out treatment if you can. Full body massages, facials, mani-pedis, Russian or Korean-style bathhouses, special shower treatments, hydrotherapy or whatever you fancy in a spa. Be adventurous and go for it. Oh yeah and this isn’t just for the ladies, guys can do it to nowadays. Heck, the Greeks did it long before we ever did, haven’t you seen “300” and how tough they look? Spas, fellas, spas.

Beer/Wine/Spirits Tasting – If you live in a state like Colorado as I do we have micro-breweries everywhere. So it’s a real treat to head down to a microbrewery and grab up a tour, or chill at the in-house pub or tap room, or go to several. I’ve got a friend in Brooklyn who recently went on a tour of a gin distillery, he loved it. If you live in or close enough to wine country, then it’s a no-brainer. Or plan a weekend trip to you favorite destination if you want to fly-in. If that’s too much, then get a party of friends together for a build your own tasting party at home.

Electronic Toy Time – Whether you want a new iPhone or Android Smart Phone, or perhaps a new MP3 Player, iPad or Tablet PC. Maybe that new flatscreen boob-tube is calling your name. Not limited to these devices, but whatever your geeky-side desires.

Outdoor Adventure – So much to do outdoors, so little time. By mountain, sea, land or sky? A simple camping trip can be a great getaway. If you’re the seafaring type then maybe deep sea fishing is your style, or a relaxing river or lake trip. Adventurous and thrill-seeking – why not fall from the sky for a couple minutes? With a parachute of course.

Concert/Sports Game – How long has it been since you’ve seen your favorite band or sports team? Whether you want to take family or friends, go cheer your favorite team or band on. I’m not a sports guy, but a musician and huge music fan, though I’m having a hard time justifying paying over $100 per ticket to see my favorite band Kings Of Leon this summer.

Dinner Party or BBQ – Make it Italian, Asian American or (insert ethnic food here) themed, or fuse them all together. You can turn this into a real shindig and go all-out, providing all the drink, food and fixings. OR…you can make it a potluck and provide some higher-end items. Frugality strikes again! Always combined with fun of course. I do love me some cole-slaw, cornbread and vinegar based BBQ dishes. Mmmm, mmm, Cletus!

EXTRA CREDIT: If you have a rewards credit card and having been using your card for all of your purchases, then perhaps you can use those rewards points to help pay for any of the ideas above. Of course, you are using your credit card the right way by paying it off every month in full and gathering all those tasty rewards points. As smart money people, we never will get in a situation where we damage our credit and have to work hard at a fixing bad credit score, right?

So that’s a wrap on how to splurge away those hard-saved dolares. I’m sure you’ll have more ideas or can expand on these, so feel free to share below. I know BB wants to see those comments and so do I!

photo credit: Velo Steve

11 Tips on Smarter Spending

June 2, 2011 By Daniel Rosenhaus 4 Comments

If you’re reading this blog, chances are you know all the tips and tricks associated with spending less. But everyone needs to spend money sooner or later. So when you know you’ll have to open up the wallet, spending smarter is your last defense against wasting your hard earned cash and maintaining a contribution to your high interest savings account . Smarter spending can save money and get you to feel better about your purchases at the same time. So how do we spend smarter? By reducing or eliminating ‘spending mistakes’.

We’ve all had the experience of buying something we regretted. It probably happens more often than you think. Whether it is clothing you don’t wear, something sitting in the fridge or freezer because no one wants it or some toy or gadget taking up space. How do we define spending mistakes?
I define spending mistakes as anything you buy which you do not get full value out of. Whether this means you only received limited value or no value at all. For those who are already doing what they can to spend frugally, spending smarter may be the last, best way left to save more. The following is my list of 11 tips to help you spend your money in a more effective and efficient way.

All Products / Services

Read Reviews and Compare First
This advice is usually adhered to for major purchases like cars and TV’s, but smart spender gather as much knowledge about the products or services they are about to buy, every time. Whether you check a place out on yelp first (great for knowing what to order), reading reviews online for fashion or checking consumer reports. Do your homework and you will spend smarter.

Know Their Refund and Return Policies
Always ask about refund and return policies and make sure you adhere to their guidelines. I get a real sinking feeling when I did something small or stupid to void a chance to refund or exchange something I only realize later was a mistake to buy in the first place.

Know Why And How You’ll Use The Item
Before you buy a new gadget or anything really, figure out how you will use the item in your day to day life. Also, make sure the item is an improvement over whatever you do now and is worth the cost. Better products come out every day, make sure the upgrade is worth the extra cash. If you’re buying toys for your kids, if they are old enough, ask them how/when they would use the toy. If a kid knows all that stands in their way of a new toy is a good reason why they should have it, they’ll be motivated to give a good answer. Plus, it is a great way to develop their logic and reasoning skills.

Follow Your Basic Shopping Knowledge
Searching for coupons and using a shopping list are no-brainers that no self proclaimed frugal spender can do without. However, no list is complete without mentioning these shopping strategy staples. But it doesn’t hurt to be reminded of these tips for being a savvy spender.

Food and Drinks

Don’t Buy It Until You’ve Tried It
Think that new 6-pack looks good? Only see the family size version of a new product? Want to switch brands? See if others you know have the product for you to try yourself. If that won’t work, try waiting until you can buy a cheaper or smaller quantity of a product before you invest in a more expensive purchase you may need to suffer through till you finish. Or worse, need to throw away and replace completely. Also, try these other ways to save on food costs

Clothing and Accessories

Wait Before You Buy
After you find an article of clothing, try waiting a week before you buy it. If you can go a week without needing an item you were on the verge of buying, chances are, you don’t really need it. This works best however, with bigger clothing purchases, like new shoes, dresses or jackets/coats. If after a week you still feel you NEED that item, you have already cut down drastically on the chance this is a mistake purchase.

Use A Shopping List
Just like groceries, you may be tempted to buy more than you need when you go clothes shopping, particularly during sales. By having a list of what you need, with notes about what colors or styles will fit best, you can cut down on mistake purchases by being able to zone in on what you’re really after. This can also help you save time too.

Know Your Wardrobe Before You Shop
While men seem to suffer with this more so than woman (no shock there), knowing what you have at home can prevent you from buying something you realize later you can’t match with anything.

Don’t Take The Tags Off
Don’t take off the tags until you are putting on that item and are sure you are going to walk out the door with it on. If you are the type to go shopping, come home and cut off all the tags and labels immediately, you could be making a mistake. First of all, leaving the tags on until you are about to wear it will remind you that this item is new and hasn’t been worn, who doesn’t like having that feeling? Second, if somehow the item gets pushed back in your closet and doesn’t get worn, having your tags intact can help you return it more easily or sell it for more money.

Don’t Rush To A Decision
Chances of a mistake purchase are at their highest if you’re not really into the item at first sight. Spend some time looking at the item, coming back to it later after browsing through more options. And definitely try it on. Nothing makes you feel worse than bringing something back you barely liked to find out it doesn’t fit anyway. However, sometimes you can use a second, or third, opinion, which brings us to the last tip.

Go With Other People
Go with someone who you trust to make purchasing decisions. A second, or even third opinion can help ensure you don’t buy something you won’t want to wear out when the time comes.

Pro tip – Designate certain people to help you buy certain attire. Have different “bar friends”, “golf friends”, “dinner and movie friends” and “business friends”? While your exact groups may vary, some of us tend to do certain things with certain people. Not only will going shopping with them help eliminate mistakes, but it can also lead to a nice day with a friend and strengthen your bond.

We want to know what your money saving tips while shopping are and what you think of this list in the comments below. And if you have shopping buddies or feel others can benefit from the advice here, do not forget to share it on Facebook or Tweet about it. Sharing is caring 🙂

photo credit: epSos.de