Frugal Fred and Freeda

Freeda's image is courtesy of:public-domain.zorger.com
Freeda wanted to tell everyone that she was able to use the picture for free if she gave credit for it. Being much more friendly than Fred; she has always maintained that "you can catch more flies with honey than you can with vinegar".

Freeda will tell you that she would never think of herself as a tightwad or even a penny pincher. She says that she never pinched pennies; she just counted them. But if you catch her after her night cap of a (not cheap) glass of Port, she will admit to having engaged in some acts of implusive spending every so often. But she would also ask you "not to tell Fred".

She agrees with Fred that they have a responsibility to share the things they have learned throughout their lives and during the up and down swings of the economy. Freeda likes the fact that as they talk about frugal things that people can and should do that will force her and Fred to practice what they preach. She knows that that is more for her benefit and her rare but sometimes impulsive spending times as "Fred has always been a tightwad, you know!"

Being a tightwad all his life, (sorry we mean frugal) Fred does a big "Humph!" followed by "I've been doing this all my life!" But he will admit, sometimes, with Freeda's help, even he is learning some new ways to be frugal in today's economic environment.

Recession is a word that fills people with dread and bad visions. It's a time people consider bad for finances, a time capable of magically shrinking a dollar's value overnight. It also automatically increases the cost of basic living. And where money is a huge concern, people always ask, 'Can I still save for real during a recession?' The answer is: of course you can. You just need to be wise and creative about the whole thing. Here are ways how:

Plan your purchases.

By planning your purchases, you're effectively planning your expenses. This will help eliminate the danger of impulse buying and unnecessary spending. Try to look at the bigger picture when it comes to your basic needs.

Plan for a week's worth of groceries, for example, so you'll have an idea of which items you truly need (and want) and which items you can do away with. To make sure that you maximize your planning efforts, consider incorporating items on sale into your planning. If there are foods on sale that week, for example, why not plan your week's menu using what's currently on slashed down prices?

Implement the 'B' word.

Budget, that is. If you want to be able to save money during a recession, learn to discipline yourself and your family. Using your plan as a reference, come up with a weekly or monthly budget and then stick to it. If you must overshoot it, you should have a very good reason to do so. Otherwise, don't spend.

Keep an eye out for bargains and discounts.

Learn to monitor stores for seasonal sales. You'll save a lot of money by buying items on sale than in their regular prices. During a recession, that's considered wise spending. Check out store or newspaper ads and don't be shy about asking for cheaper alternatives, getting store rebates or using discount coupons. Consider buying at discount stores as well. Each dollar you don't pay is a dollar you save.

Buy in bulk.

If there are items in your house that are often in use (paper towels, canned beans, yoghurt, etc.), consider buying in bulk. Many stores offer items in packs, which mean you'll save money in the long run if you buy them instead of paying for individual items.

Put off bigger purchases.

A good rule of thumb is, if you can't afford it, don't buy it. If, for example, you have enough money for a down payment on a new LCD TV but will have to borrow money off your credit card just to tide you over for the next few weeks, it would be really insane to make a purchase. Wait until you can truly, comfortably afford something. The worst you can do during a recession is not just failing to get money saved but also going into debt.

Practice prevention, not cure.

If you look closely, there are many things you do in your home that are siphoning precious dollars from your wallet. Simple steps such as repairing and maintaining your home and appliances, using more efficient equipment and cutting down on unnecessary consumption can do wonders for your wallet and piggy bank. And what better way to treat a recession than to be prudent?

Frugal Fred and Freeda had some help with these tips from someone Freeda met when she was on that internet thing that Fred still doesn't trust: Laughing Pond.

Frugality is the new name -- Fred still likes the name "tightwad". "But I'll use Freeda's word, just to keep her happy", he says. Sometimes people think that frugal and tightwad people like me are simply unfortunate souls without the means to buy more. Some even think that frugality equals cheapness, but I don't care. In my grandparents' and parents' time, being a tightwad, now frugal, was a great quality. It just meant that you got the most out of what you had and bought, and avoided spending money on things you didn't really need. This frame of mind has helped when times were especially tough, but it also benefited when times improved, as we continued to live by frugal principles and build wealth.

We learned to make do with what we had and felt fortunate just to have simple things, like a good meal on the table. When I think about all of this, I realize a couple of things:

* It's important to count your blessings and be glad for what you have rather than what you don't have.
* Listen to the financial advice from a past era, as there are pearls of wisdom that await.

*. Make do with what you have. In today's age when something breaks or becomes worn, people can get frustrated and immediately purchase a new item to replace the old one. In my age, we would try to fix or repair the item instead. If your washing machine breaks down, see if you can replace a part before you purchase a new appliance. If there's a tear or hole in your shirt, I have Freeda make a few stitches with a needle and thread and repair it so I can wear it again.

*. Choose the do-it-yourself route. Instead of hiring someone to do very basic repair, maintenance or home improvement, consider taking care of it yourself. Fixing a broken appliance is not always as difficult as it may seem. Need new vinyl flooring in the bathroom? You might be surprised at how easy this can be accomplished with a how-to book and some patience.

*. Avoid debt. I grew up in a time when things were simpler and you didn't spend more than you made. In today's consumer-spending society, people are encouraged to charge their credit cards and rack up bills that they can't afford to pay. I can't remember a time that I ever bought something for which I couldn't pay cash. If I don't have the money, I save or determine another plan to get something I need. I never considergoing into debt in order to buy something.

*. Have an emergency fund. Unfortunately many people are discovering that rainy days do come and, if they're prepared, rough times may not be as painful. As a child and young adult, my grandparents (and my parents) always encouraged me to save money and set it aside for rainy days or unexpected expenses. They wanted me to enjoy the peace of mind that comes from not living paycheck to paycheck. If you can take even just a small portion of each paycheck and put it directly into a savings account, you'll thank yourself later. Having that cushion can really help you when rainy days come.

*. Look for bargains. When my grandparents needed to purchase something, it was usually a process rather than a quick one-time event. They took time to research, shop around and/or wait for the right price. They didn't just pull out a credit card. They also considered less obvious places to get the things they needed. For example, instead of the big department stores, they might look for something at a garage sale or used clothing/appliance store. Instead of buying that pretty new car that was advertised, they would purchase a used vehicle. Used items are often just as good as new and less expensive. I have Freeda look for our bargains; she likes doing that.

*. Freeda's homemade meals are better than anything. They're always more nutritious too. I can't remember anything as soothing as Freeda's home-cooked meals. My grandparents (and my parents) only went out to eat when it was a special occasion or treat. Our society is focused so much on convenience that a lot of things are overlooked. Going out to eat regularly can get expensive. Consider eating a few more meals at home.
Maybe I can persuade Freeda to share some of her "recession" recipes with you younguns!

Heeding financial advice from a bygone era may offer some insight into your current situation. As basic or as simple as these things might be, they are what made past generations successful. We can learn so much from each other and from listening to our elders. Sometimes we must delay instant gratification and make careful decisions in order to give ourselves more opportunities for the future. That is what my grandparents told me, and that's the advice I still live by.

* Coupons for health and beauty products that say good on "One Any Size" can be used on trial sizes. If you have a $1.00 coupon off of your favorite shampoo, and the trial size is only .99 cents, you will get it free!

* For the truly frugal - when you can no longer squeeze any more toothpaste out of the tube, cut the tube open, and scrape the remainder into a bowl. Add baking soda and some water, and you can double the amount of the toothpaste.

* To stretch your shampoo pour half of bottle into empty bottle, and add water to fill both. You have twice as much now, and it will work just the same.

* Free fingernail brush - When washing your hair, before you rinse off the shampoo run your fingernails through your hair a few times. Then rinse.

*Bee Stings - Remove stinger if there is any and dampen area and put Meat Tenderizer on area. Just leave awhile.

* Facial Moisturizer - Petroleum jelly makes a great moisturizer. Wash your face and while it is still wet apply a tiny amount of jelly. Continue rubbing in a circular motion adding very warm water until jelly is spread evenly. Your skin will be soft and non-greasy even in the winter.

One of the biggest problems that most people face is shopping. To be frugal you have to decide to not shop anymore - at least for things you don't really need.
PennyPinchingGrandma

Since Freeda started going to the library and spending some time on the computer there, (Fred thinks computers are time wasters) she has been finding so many more opportunites to locate money saving tips. One of the Google searches she did about buying a new car took her to a website about a book written by a former car dealer.

Freeda wasn't sure how she would convince Fred to read the book after she had purchased it and printed it off so he could read it, not on the computer. This is what convinced him to at least read it:

"No cleverly disguised links to try to "recommend" places to check your credit or get a car quote, and no hearsay talk from someone who's never worked a day in the business . .

Just the inside scoop on every dealership trick and tactic I ran across in the process of selling 227 cars, working over a thousand deals, and seeing thousands more."

It also didn't hurt when I told Fred that we had a 60 day money back guarantee! Fred really likes money-back guarantees.

If you are interested in buying a new or used car and want to know some inside tricks to get a better deal, you should check this out: Inside The Car Dealers Playbook

(Fred says that he has to read playbook again before we can go look for a car. But I think it will be soon!)

Just what is a salvage grocery store anyway? A salvage grocery store can sell groceries and other items at greatly reduced prices because they buy the overstocks, slightly damaged goods, and items that have been mislabeled, or just didn't sell well in some other big grocery store.

The other store returns the grocery items to their warehouse, and the surplus grocery store then purchases those same goods to sell in their discount or salvage grocery store, passing on the savings to their customers.

The food may have had a case or two dropped, and the cans slightly dented, so the first store returns it to their warehouse.

Or sometimes a certain food product just doesn't sell well in that area of the country, so again it gets returned to the warehouse.

The food might be seasonal, for instance there is often a lot of Christmas candy, and other seasonal goods, in the surplus stores starting in January. The candy is the same though, and if you don't mind the Christmas packaging, you'll save a lot buying it at the grocery surplus store.

Some of the cans have been mislabeled, or the labels have been updated on a certain food, so the cans with the old label are returned to the warehouse.

Cereal boxes might have gotten bent or have a tear or small rip in the outside box.

Some foods have reached their store sell by date, but are still perfectly good to eat. (It has been estimated that most canned food has at least a five year shelf life under normal conditions, and some say much longer.)

All of the food is examined and checked by not only the buyers from the discount stores, but by the same government health regulators (USDA) that check the regular grocery stores, and deemed safe to sell, or the discount stores would not be allowed to sell them.

The consumer, therefore benefits by saving hard cash on perfectly good food because of our societies obsession with perfect looking food (or cans and boxes as the case may be.)

If you don't care that your label is a bit off, or colored oddly, or your cereal box is a bit bent, then the discount grocery store is the place for you.

According to Wikipedia:

"Dumpster diving is the practice of sifting through commercial or residential trash to find items that have been discarded by their owners, but which may be useful to the dumpster diver. The practice of Dumpster diving is also known variously as urban foraging, curb shopping, binning, alley surfing, aggressive recycling, Curbing, D-mart, Dumpstering, garbaging, garbage picking, garbage gleaning, dumpster-raiding, dump-weaseling, tatting, trash picking, treasure hunting, skally-wagging, skipping, or trashing."

According to a post on an Internet comment board:

"Dumpster diving, rather than the physical diving implied by its name, is actually more along the lines of fishing - it is as relaxed or competitive as desired, follows many seasonal trends and localizations, is an excellent social activity, and may just leave you with something interesting or tasty. Dumpster diving consists largely of rummaging about through others' trash. It at once allows you to challenge and take advantage of the fact that people as a whole are very, very wasteful. And while poking through your neighbor's trash this very moment would be a perfectly acceptable, if perhaps somewhat awkward, dive, there is a fair amount to know in order to keep the diving experience safe, enjoyable, and fruitful.

According to by Nikki Willhite at www.allthingsfrugal.com

Dumpster Divers are people who search for things that other people have thrown out that are still useful, can be recycled, and have value. Dumpster Divers will not only pick up discarded items left at the curbside of people's homes, but they will climb into dumpsters at apartment buildings and behind shopping centers. However! Most don't actually get in the bins. Most people have some sort of long pole which allows them to just lean over the dumpster and pull the items up to them. People enjoy this hobby. It's like a Treasure Hunt. If you think about it, at one time or another we've all been lazy and thrown away something that we could have given to Goodwill or recycled. If we've done it, think about the people who don't watch their finances carefully. They are throwing away things right and left!