Archive for February, 2010

A few more money saving tips

It’s been a while since I’ve added any frugal tips to the site, so I thought I’d share a few more. A lot of these tips are in use by yours truly, but please exercise caution when trying out something new, as all of the tips and advice contained herein may not work for everybody. I’m sure that a lot of these tips have been shared before, but it’s always good to have a reminder on occasions, especially when things become financially challenging.

Use half the recommended amount of detergent or softener when doing laundry, as this also ensures that it rinses out properly, and clothing is still clean after being washed. This is a winner, especially with dark clothing, that can often be left with laundry detergent residue after washing.

If possible, hang washing out to dry in the sun. Not only does this save on electricity, but it also makes the clothing smell far fresher than simply using the dryer.

If you do not have an outside line, it is sometimes possible to improvise an indoor line down a passageway by running laundry line cord or rope down the passageway and inserting a large cup hook on a  door frame on each side of the passageway to attach the line to.

After removing laundry from the washing machine, shake it a few times to help remove stubborn wrinkles. This will save on ironing time. You may find that after shaking, some items will not even require ironing.

Instead of buying expensive gift wrap, get creative, and use colourful newspaper or magazine pages. Or even good old-fashioned brown paper with a coloured piece of wool or string. These days, simplicity is in, after all!

Always compare prices, especially before buying large items/appliances. Many times, the first place you go to, will not be the cheapest.

If each member of the family has cellphones, consider cancelling your landline connection, unless it is used for internet, or emergency purposes if you have a childminder or elderly folk at home during the day.

Try to avoid shopping at malls as much as possible, as prices are often a lot higher there, to make up for their convenient locations.

Try to avoid borrowing money as far as possible, unless it is a definite emergency – and no, those strappy designer sandals in the store window do not count as an emergency!

If appliances need to be replaced, opt for those bearing the Energy Star logo, as these will save money on electricity costs in the long run.

Learn to do small DIY projects yourself, and save a fortune in repair or handyman bills.

Reduce your soda and fruit juice intake, and switch to water. Your teeth, waistline and bank account will love you forever.

Always wait a few days before making a large or impulsive purchase. Often, you will fins that after a few days, the item is no longer as appealing as it was before.

Always try to pay more than the minimum amount required on your credit cards or other outstanding debt. This way, you save interest, and also shorten the repayment time. A sneaky trick to give the bank a taste of their own medicine here, is to check your statement, and then repay the minimum, plus the interest charges each month. This will ensure faster repayment.

Use fabric, or reuseable shopping bags. The amount saved may not be substantial each time, but it all adds up.

Consider relocating to smaller/cheaper accommodation if you have large debts to repay.

Don’t spend extra money on vehicle accessories, unless they contribute to economy, or safety.

Don’t buy excessive amounts of clothing for children, as they grow out of most of it before it wears out. Also shop sales and chain stores for them, as they do not need expensive clothing.

Defrost/thaw meals overnight in the fridge, instead of running them under hot water.

Unplug all appliances that are not in use. Even when switched off, they can consume energy, which is a waste.

Only run the dishwasher/washing machine or dryer if there is a full load.

If using the oven to prepare a meal, turn it off 5 to 10 minutes before the cooking time is up. It is still hot enough inside to cook for the remainder of the stipulated time.

If you have friends with children that are similar ages to yours, consider doing a toy swap. That way, you both save money, and your children both get different toys on a rotational basis.

If you are among the fortunate few to receive a raise at work, consider using it to pay down debt, or save it, instead of spending more.

Do you perhaps have any additional tips for saving money? If so, feel free to comment.

Go on…you know you deserve it

Pay nothing now! First payment only in six months! Only xyz% interest! Buy now, pay later! Still working with the old one? Replace it! Out with the old and in with the new! You deserve a little extra!

We’ve all heard these sales pitches before. All trying to entice us to spend what we can’t afford, on things we don’t need. This tends to create a vicious cycle, even although at the time, we cannot see it. You may be asking, “What vicious cycle?” The vicious cycle that sneaks up on us in such a way, that we don’t even notice it until we are almost buried under a heap of unnecessary consumer clutter and cr*p.

For many of us, it starts when we enter the working world. After seeing that first pay check in our grubby paws, we often think to ourselves, “I worked hard for this. I deserve a little something extra to celebrate.” Fair enough, everyone does deserve the occasional treat, but these days, people are so easily sucked into the consumerism facade, that this soon becomes habitual, rather than occasional.

After being a victim of it myself for far too long, I came to the conclusion that if it is going to cost money I don’t have, then I actually don’t deserve it. My mindset has now changed to that of, “You mean to say I deserve to get into debt, simply to have that item or gadget? I think not!”

Many people work really hard and long hours for their pay, so we definitely do not deserve to see our money being spent frivolously on bank charges and interest, long after the enjoyment of having the item has worn off.

It’s time that consumers stopped thinking with herd mentality, and stopped buying for the sake of buying.  You do not deserve it if you cannot afford it. You do not deserve to have your hard-earned money be spent on interest and finance charges.

The only things a person truly deserves in life, are love, and those items they can truly afford to treat themselves with.

I’d like to introduce you to BOB

What a whirlwind weekend this side! Seems like as we get older, they tend to pass even faster. Start on a Saturday morning with rushing around to stock up on fresh fruit and veg, and look again, only to find it’s already Sunday evening!

Admittedly, since BOB came into my life, things like shopping and budgeting have become a lot easier. BOB helps me to keep track of what things cost, and where my money goes each month. By now, you’re probably wondering who, or what, BOB is.

BOB is my Book Of Budget, where every penny I spend, is carefully tracked and recorded. This makes budgeting and financial planning and debt repayment a breeze! It may sound old-fashioned to write up each expense, but it sure pays off. Simply knowing where my hard-earned cash is going, is a stress reliever. No more question of “Where on earth did my money go this month?”

BOB has also helped me to track the amount of snowflakes I have been able to put towards debt repayment. Each time I channel a snowflake (no matter how small) towards debt repayment, it is written down in BOB. It’s surprising to then see just how much extra can be channeled towards debt repayment. Often we think, “I could never afford to pay back so much.” But in reality, we actually can repay more than we think. During the past month alone, I have snowflaked an extra $40 towards my debt. It may not sound like much, but each bit helps.

Inside BOB, I list each and every cost, ranging from rent, gas, food right down to vitamin supplements. That way, I know exactly what is left over for day-to-day expenses. Lately, I have challenged myself to save as much as possible from day-to-day. Even if I am able to spend $2 a day less than normal, that adds up to $60 a month, or $720 a year!

A lot of people channel these small amounts towards savings, but right now, I choose to channel every spare penny towards becoming debt free, and will not give up until that goal is achieved. It may take longer than initially planned, but at least there is a plan in place, with a set goal. Right now, the goal post is set for the end of May 2010. While I am doing everything possible to achieve this goal, it may or may not be achieved. Life is a strange thing. I have to also be ready for the fact that unexpected essential expenses may crop up, but until now, that hasn’t happened, so I am holding thumbs that life continues in this way, until I have achieved my goal.

What works for me with BOB, is having a page for each month, listing income, as well as outgoing expenses. I jot down the income at the top of the page. Under that, I start by listing all expenses for the month. Once they are all listed, that shows me precisely what is left over for day-to-day expenses.

This is where the fun and games begin. If I buy anything, I keep the store receipt, and I also shop around, until I am able to find it at the best possible price. If I am able to spend less than initially planned on any item, the difference is channeled into debt repayment.

Right now, the only thing that is hanging on by a thread, is my favourite pair of shoes. They are a 10 (yes 10!) year old pair of Cats (yep, I hate shoe shopping with a vengeance…but hey, who would have guessed?). I am carefully nurturing them as best as I can until the debt has been repaid, because it may soon be time to lay them to rest (noooooooooo! I don’t want to!!!!!) But more about them in another post.

Anyways, BOB has helped me tremendously with regards to tracking my earnings and spending habits. This has helped me to look for, and identify, areas where I can spend less. If you need any help or advice about creating a BOB of your own, please drop me a mail, or post here, and I will do my best to help you.

One small snowflake for debt, one large snowball for debt repayment.

Post your comments.

Chipping away bit by bit

Apologies for the scarcity of posts of late. It’s been an extremely hectic week or two this side. Am hoping to get back on track this weekend.

If any of you are regular visitors to the site, you’ll know that my primary goal is to become debt free within the next few months, namely by the end of May 2010. So far, so good. I am well on track to achieving my goal, and am down to owing $856.69! Not bad, considering that it was a whopping $2386.67 in September 2009.

A lot of you may be thinking that this is such a trivial amount of debt to have, but to me, it’s a heck of a lot. Take into account that, after deductions are made from what I now earn, I am left with a mere $494, of which $187 is being spent on debt repayment. The $187 is the smallest monthly payment that I am making, and if I am able to save a few pennies or a dollar or two here and there, that is also put towards getting the debt paid faster. Last month, I managed to put an extra $42 towards it, simply by shopping around, and comparing prices on goods that I normally buy. It may not sound like much, but every bit has helped to cut the outstanding balance.

The best things in life require a lot of hard work, and commitment. By choosing to commit to a debt-free life, I also choose the effort, sacrifice(s) and commitment required to living a debt-free life. While many other people have chosen to life debt-free as well, many people have not. This is okay too. Not everyone is the same, or has the same goals in life. Whereas some of us choose to no longer make banking institutions rich by willingly donating our hard-earned money to them in the form of interest payments, others see no problem with doing this.

Yes, sometimes it feels like it’s taking ‘forever’ to reach my goal, but I know that it will be worth it once I have achieved it. The feeling of freedom that I will experience from being debt-free will far outweigh the feeling that many people experience when buying stuff.

If you’re also feeling like you’re ‘getting nowhere fast’ with paying debt, feel free to post a comment, or drop me a mail at thegreenpiggy[at]gmail[dot]com and I will be more than happy to offer words of advice or encouragement to help you along.

Feel free to post replies or comments.

Love is spelled t-i-m-e

Time is not something we can store up to use at a later date. Once the minutes have passed by on the clock, they are gone – forever. We need to embrace each opportunity that comes our way, and make the most of it. For example, when your child comes to you and says, “Please play with me,” would you say that it’s more important to take the time out to spend a few minutes with them, or are the dishes and laundry more important? I read an article where a little girl told her grandmother, “Whenever I ask Mommy to play, she always says, ‘In a minute, honey,’ but the things she is doing always take lots longer than that, and then sometimes she forgets.”

Parents, those “please play with me” moments do not, and will not, last forever. Cherish them now, and take the opportunity to spend a few minutes with your child. The years go by faster than you think, and it will be too late to ask where the time has gone when the children have moved out. A few moments time out with your child should surely rank far higher than a clean floor, or a pile of laundry that needs doing.

Yes, on one hand, I am saying that we shouldn’t procrastinate when things that need to be done, but on the other hand, family time is also extremely important. Children won’t always remember the toys and expensive gadgets we buy for them, but they will remember the amount of time we spent with them. Children tend to spell love as t-i-m-e, and not as t-o-y-s or m-o-n-e-y.

By taking those few moments and spending it with them, and giving them a little undivided attention, we are telling them that, yes, they are extremely important, and they mean a lot to us. So often, I have heard parents telling people that they work such long hours, or don’t have much time for their children, because they want to give them everything they never had.

Believe me, your children would far rather have you be spending quality time with them, than be given all the toys that money can buy. Were they the ones who asked for a newer, or new car, or do you simply use that as an excuse to justify spending so much time away from them? Did they come to you and ask to move to a bigger house/more expensive neighbourhood? I think not.

In fact, many times, children don’t want the changes that accompany a more lavish lifestyle, because it often means moving away from familiar places, schools and friends which they have become accustomed to. More often, it’s a case of we give them what we think they need and want, rather than what they truly need.

Your child will cherish the times when they had your undivided attention, far more than they will cherish the latest toy. Good memories will always outlast the toys. A walk together, sharing an ice cream, and just listening to what your child has to say, without any interruptions, will be something they will enjoy. Be sure to try to turn your phone off while listening as well, because by interrupting those special moments with your child, it is telling him or her that other people are actually more important than he or she is.

Take time out to ask them how their day was. Be sure to listen carefully to their response though, because children know when adults aren’t really listening to them. Make eye contact. That way, you will often be able to tell if there is something wrong.

I know it isn’t always possible for a lot of parents, but try to be there when they play important school matches or games. If you can’t , at least let them know that you would rather be there than be at work, or meet the other obligations. But, mean what you say. Children will know if you don’t mean it.

Cherish the time with your children while you can. You never know what tomorrow may bring. Blink again, and they won’t be asking you to play, but rather, asking you for the car keys!