Did you celebrate Earth Day?

I got up on April 22, the 40th Anniversary of Earth Day, and began my normal routine. I used the bathroom, practicing "if it is yellow, let it mellow" philosophy and using cloth wipes. I checked some of my favorite internet sites (e.g., my Google account), had some breakfast and took my shower, shutting off the water in between rinsing. I used some of my remaining rain water from Autumn 2009 to water my vegetable seedlings in their repurposed containers, and placed the seedlings in my greenhouse purchased used from craigslist. I brought my lunch with me (leftover dinner from two nights ago) and a treat for my work colleagues (organic corn tortilla chips with homemade taco dip; components were in reused plastic containers).

While I did not explicitly celebrate Earth Day, I continued to practice what aligns with my personal values: reduce, reuse, repurpose, recycle. Yes, I still use cloth handkerchiefs, collect items on a neighbor's curb, get composted horse manure for free from a nearby farm and take care of my car so it runs as long as possible before I need to replace it. All these things I happened to do on Earth Day. The composted horse manure enables me to increase the tilth of my soil so I am better able to grow food on my suburban property. The items I recruited from the curb will go for other household projects including storing chopped leaves in the fall. I took my car in for its semiannual checkup and found there was something to be concerned about but will not immediately affect the use of my car. This enables me to save longer for my next vehicle and broaden my choices when I did need to buy a newer car. All these things I would have done normally but happened to take place on Earth Day.

Everyone has a list of several ways to celebrate Earth Day. I just look at the individual choices I make every day and what more sustainable activities I have incorporated into my life. Green living is more than a day-long event. It is a lifestyle, considered choices in what is purchased, how it is made and what is really needed. If we made just two thoughtful choices a day (no, I don't need a bag; I brought my own and hey, do I really need that overpackaged, processed food?), this would build a foundation to greener and more considerate living for all of us.

What did you do differently on Earth Day?

Psst! Do you want to buy something else?

Recently, I made a combination trip to the grocery story, the pharmacy and the vet office to pick up some needed items. I hit the grocery store first and since my list was short and I prefer go in, get what I need and leave, I was done in a few minutes. However, the pharmacy was not open yet so I recalled my previous hunt for an item at the hardware store ended with me empty handed and a suggestion to visit Wal-mart. Now, I am not a fan for many reasons and don't typically enter the store. In fact, my last trip there was the first in two years.

This trip was an unwarranted one--I had not planned on going--and an eye-opening one. Because I was only looking for one item and wanting to kill some time, I found myself realizing the bright colors, the presentations, everything was encouraging me to pick up more items--because they were pretty and not that expensive. I was taken aback at just how blatant the consumerist lifestyle was. Wandering in the cleaning aisle was overwhelming. As I make my own detergent and use baking soda and vinegar, the bright packaging seemed garish to my naive eyes. I realize now because the Wal-mart store was lit so much brighter than my grocery store, all the colors seemed more vivid and eye catching. Not to say I did not succumb to the siren call to spend. I came away from the store with one item I needed (more 5W-30 for my car), something I could use if not the most eco friendly (a refill on my lint remover) and one item I did not need but decided to buy anyway (a pack of three canvas bags I could use to make gift bags). And unfortunately, not the item I was looking for in the first place.

Because I confine most of my spending to the second hand store, I did not realize how retail stores that sell new stuff are really trying to sell their stock. Because I still watch television and do feel some influence of the advertising even if I generally react with skepticism, I had forgotten about the direct sell in the stores themselves. Yes, I am aware of the way grocery stores leverage their space to encourage spontaneous purchases. I know I am not perfect, but a list really helps keep me from impulse purchases. Plus, I am only focused on finding the items I want instead of what else there is available to purchase.

So confronted by the reality of American consumerism, I could only ask myself if I really needed this item in hand? The engine oil--yes. The lint roller--no, but my current one was only out and this was a refill, something I had not purchased in over five years. The three canvas bags--no, but $1 per bag was cheap and I had decorative items at home to personalize them and give them as gifts to nieces or nephews. Plus I was reminded I could make bags as gifts for others with all the fabric I have.

So be wary when you enter any store. A retail shop does want to part you from your money and once inside, you are subject to their displays until you leave. Wal-mart received three times the amount of money than I should have spent and that was only in the fifteen minutes I was there. They did their job well and I learned I need to work harder at resisting the sales pitch.

How much do you overspend in any store you enter?

Three ways to cut the cost of groceries without coupons

Saving money on grocery shopping seems to be a popular topic on search engines. Many people seem to find themselves at my site because I discuss going to the grocery store once a month and I happen to be single. With all the other costs in my life (cat has a prescription diet and a chronic condition, a mortgage and associated utilities cost, etc.), saving some money on food and keeping my grocery spending allocation the same is a challenge.

Regardless, I have stuck with my tried and true method of creating a grocery list and putting the items in the order in which I shop (minimize backtracking in the store) and using my calculator to see how the numbers look (giving me feedback on whether I am overspending or no). While meal planning is not as important, I do keep in mind what I enjoy eating as I make up my list prior to the once monthly grocery trip.

For many people, price points are important when figuring out where and how to shop for groceries. With that in mind, I have some tips for those looking to pinch those pennies:

Club memberships: If bulk buying suits your needs (i.e., something you use often, have room to store it and will use it before it spoils), consider sharing a membership to Costco or Sam's Club. To find out if either option will fit your shopping needs, get a trial membership or ask if someone has a membership and would allow you to join them one day. I really only want a few items in larger quantities so purchasing a year-long membership seems unnecessary. Finding a friend who has a membership and asking to use their card once or twice a year, or sharing a membership cost with a family member or colleague is less expensive than purchasing one alone.

A calculator is handy to make sure you are getting a better deal than in your usual grocery store. This is where a trial membershop or trip with a friend is useful--for calculating the unit costs and determining if the membership gives a better bargain. Again, you need room to keep all the food or bulk items and then use them in a timely fashion so nothing spoils, thus eliminating the savings in the bulk purchase.

Food buying clubs: Recently, I have learned there is the Angel Food Ministries option in my area. While I am still debating whether I truly want to purchase some of my food from them, it seems like a nice assortment of items. Again, much of the food is processed and seems heavily packaged from the description, not the greenest items. However, there are fresh produce options, something I would consider buying. There is a minimum purchase amount but if these are items you normally buy, this food buying club may save you some money--if there is room in your refrigerator and freezer for all the items.

There are other more state-centric food buying clubs. One in my state has a pickup just a few blocks away at a church and offers organic and fresh produce options as well. Local clubs may also feature more local produce and food items, a way to support local farmers and save some money.

Food transportation and delivery: This is a combination option. That is, you offer to help an elderly or disabled neighbor by shopping for his or her food and then charge a small fee to do so. Since you were going to the grocery store anyway, you are not using more gasoline, the intended recipient is your neighbor so little additional cost in gasoline there and you just need to spend a little more time finding the neighbor's items as well as your own. A modest fee for convenience would counteract some of the total on your grocery bill and you help out someone else at the same time.

Alternatively, you could offer a rideshare with a neighbor that has no car, and for a little gas money, get some company and a helping hand for unloading groceries. Again, a small fee discussed between parties could decrease your grocery spending each month and give someone the opportunity to shop for more than the few things he or she can carry by hand or on a bus, resulting in a mutually beneficial relationship.

Will you try one of these strategies?

Are you prepared for a companion animal?

Pets are expensive. When I lost one cat to illness, leaving me with one 16-year-old cat in early stage kidney disease, I saw my food, water and litter expenses nearly cut in half. However, the veterinarian visits remain about the same as I need to monitor how quickly the kidney disease is progressing. Having a robust emergency fund is helpful when your pet is sick as debating cost of treatment versus current resources is a difficult choice when you would rather consider is the treatment going to add to your companion's quality of life?

Here are a few strategies for keeping pet costs from sinking your spending plan:

Put pet costs as a line item in your budget. I quickly noticed that without a category for "Cat care", I easily blew my budget when I had to purchase anything for my cats. When I did put in a category, I found that costs were less troublesome to manage and I was less stressed about that large purchase of cat litter or treat of canned food. Make sure veterinary visits are covered. Hopefully, your pet is in good health and visits will be no more than once a year. Add a little extra to the spending plan for chronic diseases or unexpected illness. This amount will need to be adjusted if there is prescription food or medication is required for continued health.

Start a savings fund. If I had any money left from my "Cat care" category, I put it in a savings account. This would help with the vet costs or if anything changed in the pet's treatment. My cats have undergone teeth cleaning, surgery, antibiotic treatment, overnight visits to the vet and various diagnostic tests. These costs really add up, another argument for funding a pet expense fund or reinforcing your emergency fund. I have raided my emergency fund more than a few times due to cats visiting the vet, undergoing a battery of tests and dealing with the diagnosis. Save more than you think you will need. Depending on where you are, pet treatment can get very expensive.

If you are in the "considering a pet" stage, start saving now so you have a cushion when you select your companion animal as expenses can quickly add up.

Keep fewer or smaller animals. I could afford two cats without too much trouble, but it was definitely harder in graduate school when I less income. However, there is a big difference between one and two cats when it came to expenses. I have had a rat, several lizards and fish in previous years. All of these animals were less expensive to keep than my furry felines and rewarding companions in very different ways.

Make sure the animal is right for your lifestyle. A cat is a better choice for someone who is not home during the day rather than a dog that needs regular attention, letting outside and walking. A smaller animal requires less time for cleaning and caring than a large one. Be sure the animal suits your interests and time commitment.

And finally, a piece of advice:

Commit fully to taking care of your companion animal. By taking in an animal, you are committing to his or her well-being. Are you ready to see your pet through to the end of her life? Aging animals become more expensive and can develop chronic, expensive illnesses. There may come a time you will have to consider euthanasia. Becoming the caretaker of any living creature is a great responsibility. Make sure you are ready, both emotionally and fiscally, for all that is involved in dealing with your animal companion.

Knowing how expensive my cats can be, I am still glad I was able to care for them. Both have given me unconditional love and I am committed to being with them for their entire life's journey. As with everything in life: hope for the best, prepare for the worst and love your life's companions whatever form he or she takes.

Why I use cash

I carry a debit card and a rewards credit card in my wallet along with cash in a variety of denominations. Depending on where I intend on shopping determines when I spend cash. For example, when I go out to eat, I use cash, but visiting my hair stylist or the gas pump means I use the credit card. Cash gives me flexibility. If I am eating with someone and we want to split the bill, I can just pay my friend in cash while she charges the full bill to her card because she lacks the cash to pay her portion. I prefer to use cash at the thrift shop because my money is going for charity and I do not want to add fees to their bottom line. Each time a credit card is used, a transaction fee is charged to the vendor.

Cash makes it easy to bargain at garage sales. Typically, I have a $20 bill, a $10 bill, a $5 bill and 4-5 singles in my wallet. If I plan on hitting several garage sales, my wallet has a few more $5 bills and singles. If I ask the person whether in person at a garage sale or virtually via craigslist to knock off a few dollars or $10, it behooves me to have exact cash and not ask for change. Carrying cash and using it for purchases applies more universally than credit cards. Most farmer's markets run on cash and people casually selling things at work want cash, not plastic or a check. I also keep an extra $20 in my purse as a just-in-case resource. I have only used it once since I started carrying it almost two years ago.

While I use cash for about 25% of my transactions, I don't typically visit my credit union to withdraw money. I access cash using my debit card at an ATM. However, the ATM I visit only dispenses $20 bills. Therefore, I usually break any $20s I acquire when I spend it at restaurants and the thrift shop. As a result, I usually have more bills on hand at home that ensures I have the correct array of denominations in my wallet for whatever occasion I need them.

A recent example why having a range of cash denominations is helpful applies to the propane grill my dad received as a birthday gift. While my share of the grill itself was $40, the propane tank had to be purchased separately. Because I had $5 bill in my wallet, I could give my brother additional money to cover a share the unexpected expense. As I mentioned earlier, I have flexibility and control when I carry cash with me. Plus, keeping some cash on hand at home means I don't have to hit the ATM every week just get some cash to spend.

My question to you: How do you use cash?

Handling a surprise expense

This year, my father's birthday happened to arrive the same weekend as Easter. I had planned on giving him a humorous card with two bars of dark chocolate with almonds, a favorite of his. However, my brother called five days before our dad's birthday and asked me to contribute toward giving Dad a gas grill for his 60th birthday. As one of five children, my share would come to $40. I was taken aback at the expense to which my brother informed me earlier he was looking at $60 per person. After querying if Dad wanted a gas grill (yes, he's admired my brothers' setups), would the propane tank be filled and ready to go (not sure, will check into it), I checked my gift giving allocation.

The reason I was uncertain about the gift was twofold. One, I prefer to be warned more than a few days beforehand of an expense so I could save for the item than raid my savings account. Two, I wanted to keep my hard-earned money in my savings account. Luckily, after checking my budget, I had more than enough to cover the $40 in my gift spending category. This was a relief and demonstrated the necessity of having a gift-giving allocation and for spending less than I needed to. Because many previous gifts had been handmade or purchased secondhand, I had not spent the full amount allotted for gifts every month. The leftover money accumulated over time and allowed me to easily afford a share of a gift I had no idea I would be giving my dad.

My dad liked his new propane grill and my brother took care of all the hard work of purchasing, assembling the grill and transporting it to our parent's home. It all worked out (my brother did not have to resort to guilt trips to "encourage" me to contribute) and I was able to keep my savings account intact; a winning situation all around.

Figuring out what to do with a salary increase

I am quite meticulous about planning what to do with future money. Everything from small bonuses to merit increases are carefully assessed to figure out what best aligns with my financial goals, whether to spend or save. However, there is planning and there is something that blows all projected plans to heck.

Yesterday, I was notified that not only did I receive an annual merit increase but an unexpected promotion as well. Notably, this position change came a further salary increase. Since I was not expecting to be promoted,I was unprepared for the change in my salary. Prior to my notification, I worked on a number of scenarios to figure out how much I could add to my various savings accounts if I received anywhere from 2%-4% increase. (In fact, I felt the high number was too optimistic.) All told, I received a nearly 10% increase in my salary. Therefore, I have some work to do on figuring out how to distribute my new salary.

My first priority was restoring the level of automatic transfers to my various savings accounts (emergency, house and car). This year, we are on a 27 paycheck cycle (rather than the normal 26) that reduced the amount of the individual paycheck but totaled the same salary as a 26 pay periods. The first place I compromised was how much I added to my savings accounts rather than changing my spending levels. Being able to fund my savings at previous levels makes me happier as I can reach the goals I am striving for sooner.

Furthermore, I dedicated more money to my future farm account. I have been considering a second job to add more money to this account so with my new salary increase comes along, I can afford to put more money toward this savings goal. In fact, I am now saving 6.5 times more for my future farm than I could before. I am rather pleased I can advance this goal more rapidly without finding alternative income sources.

Finally, a fraction of this new pay level will go to various spending categories. Most are small increases in the monthly allocation. However, some of my spending categories I felt confined by the numbers I allowed myself. Therefore, I believe a tiny increase in the amount I can spend will be helpful without much lifestyle inflation.

I am a numbers gal so as soon as I learned how much more I would be earning with my salary, I had to figure out what to do with it. I cannot let any money just sit there without determining how I can make use of it. With a plan in place, I feel calmer and more in-control regarding my spending allocations and my savings goals.

How do you handle similar situations?

Spending and the charity thrift shop

Lest you think all my behavior is about being good (staying in my spending plan and saving over 40% of my income), I bring you one of my downfalls: the charity thrift shop. I prefer to buy used for many reasons: being frugal, lower environmental footprint, the good work done with my money. However, my weekly trips usually mean I walk away with something that I need (want) when I stroll through the store.

My latest trip found me leaving the store with a new pair of sandals (I wanted ones with straps for the front and back of my foot), a pasta maker (I want to try making my own), a ceramic pot for plants (it's pretty and I can find a use for it), a cobalt blue glass (my plastic ones are cracking and it's a great color), baby powder (I am running low on the small container I have) and a metal watering can (I have been looking for one and hate how easily the spout on the plastic one broke when I kicked it against the garage wall). Of these, the most useful ones are the watering can and the glass. The rest were optional.

This is how most of my purchases run. I don't need more pots or canning jars or candles or soaps or dishes, but I get them for the just in case/like them/trying something new/possible future gifts. Even if I buy used from a charity thrift shop, I am spending money and it means more clutter, more unnecessary stuff and less money even if I do not spend more than I allocate each month.

My behavior would not be so bad, but I do not always carry through on plans. The stick blender I purchase over a year ago still collects dust rather than mixing up a batch of cold-process soap. I have not using my crockpot much and it's better if I do not discuss all that fabric I bought for all those gift bags I never made. My best move would be not to spend money every time I go to the thrift shop, no matter how good the deal is. However, I like patronizing the shop and would rather make poor spending decisions there than other places.

Am I justifying my existence or a pompous, preaching windbag about my spending habits?

Consumer goods spending for the past 12 months

As part of the Riot 4 Austerity goals, I have been keeping track of my consumer goods spending. The Web site states:
The average American spends 10K PER HOUSEHOLD, PER YEAR on consumer goods, not including things like mortgage, health care, debt service, car payments, etc… Obviously, we recommend you minimize those things to the extent you can, but what we’re mostly talking about is things like gifts, toys, music, books, tools, household goods, cosmetics, toiletries, paper goods, etc… A 90% cut would be 1,000 dollars PER HOUSEHOLD, PER YEAR.
Used goods are deemed to have an energy cost of 10% of their actual purchase price.
Goods that were donated are deemed to be unlimited, with no carbon cost.

Since I have been tallying my spending for a year, I thought I would finally add up what I have spent on consumer goods according to the rules. Since much of my money was spent at charity thrift shops, I did not count any of those totals. Garage sales and craigslist's finds were only 10% of what I spent and everything else (Walgreens, hardware store, etc.) was full price as I was paying for new.

So what was my total? Acknowledging that I may have forgotten to note a few spending opportunities, I spent $1,138.33 from July 2008 to July 2009. I will round that up to $1,150 to accommodate spending not accounted for. I really wanted to hit the $1,000 goal and I would have except I did buy a new tree for my yard. While I was not sure if gardening items were really part of this (shrubs, trees and plants), I counted them anyway.

Then I remembered I had a large purchase in June--a replacement laptop plus supplies from Amazon. Instead of nearly reaching the 90% reduction goal, I spent $3,100 over the last year. If I would have been able to wait until next year (or at least until August), I could have patted myself on the back at reaching the consumer goods goal. Unfortunately, a large purchase was enough to more than double what I thought I spent. However, this gives me a personal goal to reach in the next 12 months--spending less than $3,000 in one year.

Other expenses that added up included a couple of heavy spending trips. Once or twice a year, I take a day or a week off and among other things, do a lot of my accumulated "want and need" spending. That is, if I need more socks, want new light fixtures or the bath mat is beginning to wear, I make a list and hit several stores in one day. Not being a big fan of shopping, this gets what I need and what I would like to stock up for a year out of the way at once. Fighting crowds is not my idea of fun so I prefer to go on a weekday in the morning. Since these trips are heavily invested in new items, I noticed about 60% of my accumulated spending came from two shopping trips (excluding my new computer purchase).

While this goal was not the success I hoped for, I can continue to focus on buying secondhand, whether off craigslist, at a garage sale or from charity thrift stores. Much of my spending was kept lower because I pursued this option. I believe I can do better for next year but acknowledge that a curve ball (or two) could throw off me off my goal.

Fix it or buy new, that is my choice

I may write about how my savings accounts are growing and that my net worth is up but I still make decisions that may set me back. Recently, I had to decide between fixing my electric lawn mower or repairing the one I have. Let me set up the story:

I was reluctantly mowing my lawn and completed cutting 2/3 of my grassy area when I decided to stop and get a drink of water. After I came out of my house and tried to mow again, absolutely nothing happened. I did the basic troubleshooting: is it the power to the lawn mower? Fuse box was fine. Was it the cord? Second cord (with light on end) lit up but did not move the motor. What did the owner's manual say? Perform the steps I did and if that did not resolve the issue, take the mower to a Black and Decker service provider.

Two weeks later, I get the news that the motor was the problem, a replacement part was $150 and labor would be $60. I was advised to junk my lawn mower and get a new one. My dilemma was do I fix what I have and waste fewer resources or buy a new lawn mower and hope it lasts longer than three years? I was assured that the lawn mower would not simply go into the big garbage hole in the ground so that was one less burden.

After doing some looking around Amazon.com, reading specifications and consumer reviews, I settled on buying a new lawn mower for $205. However, it had been two weeks since I last mowed my lawn and while my neighbor kindly offered his gas-powered lawn mower whenever I needed it, I have not asked him for it. With the necessity of mowing my lawn (some areas definitely needed a trim), I paid extra for two-day shipping bringing my total purchase to $280.

Buying a new lawn mower was not in my sights at all. I was happy with my Black and Decker model--until it quit on me. I am disappointed I received just under three seasons of service before the motor came to the end of its lifetime. I am hoping my new Earthwise 20-inch electric mower has a longer lifespan than my other corded electric model. Luckily, I did have money in my home savings account that easily covered this cost but I did create a greater cost by paying for two-day shipping.

Do you agree with my actions?

Latest frugal acquistion

I am a person who can become intently focused on an idea or a plan. To ensure I had enough canning supplies, I recently added more pectin, jars, lids and bands to my collection even though I am not sure how much I will really use for canning jam and tomatoes with my water bath canner. In 2007, I decided I wanted a used bicycle for around $20. It took me a few months but I purchased one for $25 in wintertime. My latest quest: a used tent.

Now, I have never been camping except in a truck-topped camper when I was a young lass. There is no urge to pack up and hit the road with a tent. However, it would be nice to sleep outside when it is warm and see how I might like camping in a tent--at least in my own yard. My first stop was craigslist, and my experience was more interesting than I wanted it to be.

Again, I was setting the threshold for cost low because I did not want to invest much money in something I may or may not be using. So my target cost was $20. Surprisingly, there were more than a few near this mark. Unfortunately, I encountered several issues in seeking a tent to call my own:

1. I did not contact the seller soon enough and lost out to someone who e-mailed quicker.


2. My offer was too low for the seller.


3. I was looking at tents that while in my price range were larger than I needed (and were difficult for one person to assemble).


4. I was treated to a reprimand on how to do business when the seller was unhappy I chose not to buy his tent.

However, my persistence and desire not to go beyond $25 paid off. I attended a garage sale where a two-person tent was available. It was a dome tent, shorter than me and could be assembled by one person. The price on the item was $20, and the seller was on her third day of the garage sale. I offered $15 and she accepted it.

To prove that even an ignorant person like myself who only saw a single one tent assembled could put one together, I set it up on my lawn--successfully. It was the size, style and ease-of-assembly that I realized I could use. The drawback to my purchase: some transfer of darker color to lighter color on the fabric and an interesting aroma I will try to bake out of the tent. Even if I get only a use or two out of the tent, it will be worth spending $15 to try it out.

What do you think of my tent deal? Was I cheap or was I frugal?

Second quarterly update for my 2009 financial goals

Net worth: Since I last reported in April, I have seen my net worth increase each month. My focus on saving and consistently contributing to both my 401(k) and Roth IRA have given me a 12.6% increase in my net worth since April 1. This is much better than I ever expected especially in the face of losses in late 2008.

1. Fully fund my 2009 Roth IRA with $5,000.
I am 47.7% to my goal. With the 1.9% merit increase in my pay check, I placed most of this new money toward my Roth IRA. With a little help from my regular savings account, I am on track to nearly fully fund my account by the end of the year. Plus it is nice to see the balance this account back above five digits and moving fund worth closer to amount I contributed (although still lagging).

2. Save $2,500 for purchase of a newer vehicle.
I am pleased about my progress towards this goal. To date, I have an additional $1,454 in this account. Much of this increase is due to systematic contributions but leftover money from my gasoline spending category has helped. This month, I will have additional savings from my extra paycheck. With more than halfway to my goal, I am confident I will reach this goal.

3. End the year with $1,500 in my farm savings account.
With monthly transfers to this account, my savings has reached just over $807. I plan to contribute some money from my extra check (three pay periods instead of the usual two this month) so this should push me closer to my goal. This goal seems to be within my reach.

4. Accumulate $800 toward buying a new computer.
Unfortunately, I was unable to hit this goal. With my trusty iBook G4 losing its cooling fan and me being addicted to Apple laptops and surfing the Web, I purchased a refurbished 15" MacBook Pro for $1528.70 with a $262.67 AppleCare Plan, and had to use $1,100 from my regular savings account to fund the purchase. This meant I did have just under $700 saved for the computer purchase. Because I owe myself money, the money I get from selling my iBook G4 and the final installment of my internet funding award in 2010 will go toward mitigating the raid on my savings account.

4. Save $600 by August 2010 for a potential vacation.
This is my replacement goal and one I should be able to fulfill. My monthly contributions will get me to $533 and I had a few dollars extra from my FSA account that I had subtracted from my spending plan. With at least two more pay periods before August that have a bonus check, I should be able to reach my goal with little stress.

Overall, I am doing better than I thought I could be. While a positive trend is nice in the stock market, good old-fashioned savings is also boosting my bottom line. How are you doing financially?

Sometimes prudence does not win

I have been saving for a new computer and looking forward to this time next year when I would purchase a new MacBook Pro to replace my iBook G4. My Quicksilver G4 Tower despite being older, is not slated for replacement. I plan on keeping it as long as I can access all my electronic accounts and use the hard drive as a back up. However, after dealing with unexpected veterinary bills that added up to $700, my iBook G4 decided it was time to freeze because the cooling fan stopped running.

While alone, the fan does not seem like a big issue, I did not realize what the problem was at first. Unfortunately, I started seeing errors regarding start up files and the iBook was starting up suspiciously quickly. Frugal Pursuit goes into panic mode, starts backing up files to the G4 Tower and the backup hard drive. Then she realizes how addicted to using a portable Mac to access the web and visits the Apple Store to see what refurbished MacBook Pro models are available.

The bottom line: I spent $1,528.70 for a refurbished 15 inch 2.53GHz Intel Core 2 Duo MacBook Pro. After I receive the new computer, I will transfer all content onto the new Mac, confirm all the information is present and then sell my iBook G4 either on craig's list or on eBay. Someone else may want to tinker with the computer and I get it out of my house.

The MacBook Pro is a want but I have a nearly nonfunctional iBook and an insatiable desire for Web surfing on my sofa. While I do have to dip into savings for the new purchase, I should not have to buy a new laptop for another four years.

What do you think of my purchase?

How I deal with overspending

I talk about my spending plans and my savings goals but rarely talk about breaking the budget. Most times, my spending plan keeps me on track to ensure I spend less than I earn. However, there are also times I just do not keep within the spending limits of my category allocations. How do I handle this situation?

Minimize the excess spending.
This is always the best strategy even if it may not be the most realistic. I estimate I overspend ~5% of the time so this reduces the chances of spending too much. I also try not to go more than a few dollars over the spending plan allocation. Again, this can be a challenge but I try to reduce the chances I need to steal from my savings account to fund my overspending.

Keep the overspending in the same month's budget.
This is where I start playing with several categories allocation. For example, if I exceed the limits of my personal care category, I see if there is any money I can use in miscellaneous or even entertainment. Yes, I do stretch some definitions but I am trying not to use my savings. If overspending occurs at the end of the month, there may not be enough left in other categories to fund my shameful excess.

Use the next month's allocation if the same month cannot fund the excess spending.
Yes, I do spend into the next month if I see no other way around my overindulgence. In May, I did exceed my grocery limit and could no longer use money in my eating out allocation. Therefore, I subtracted the amount from my June grocery allocation. I do not recommend this because the overspending can carry over too far. If the category is exceeded in the next month, I suggest either taking the money from savings before compromising another month's spending, or rethink the amount allocated in a particular spending category especially if this category tends to run over more than twice a year.

Raid the savings account.
This is the last resort because the reason for the spending plan is to keep my spending in check. However, I sometimes have to admit defeat and just steal from my savings account. This is not ideal since overspending does not constitute an emergency. As long as this happens two times or fewer in a year and does not exceed $100, I forgive myself the excess. More than that, I start to take a closer look at why I exceeding my spending caps and what do I need to do differently.

Any thoughts on overspending and how to handle it within a spending plan?

What works for me

I have not been writing much about frugality or my money. Gardening, which is part and parcel with self-sufficiency and frugality, has taken much of my time. My current situation has a good-paying job that looks fairly secure, a lack of consumer debt, and always spending less than I earn. I keep my strategies simple:

• Transfer money automatically from my checking account to my savings accounts every pay period.


• Pay my bills immediately using electronic bill pay.


• Subtract any spending from my budget within two days.


• Spend no more than I allocate for each spending category.


• Contribute to my retirement accounts regularly.


• Keep a well-funded emergency savings account (at least two months worth of spending).

My emergency savings has come in handy as one of my cats was extremely ill. With all her treatments, an emergency over a holiday, room and board for several days stay at the veterinary clinic, the costs really added up. My emergency fund was able to cover this unexpectedly large expense.

Being a homeowner is an expensive responsibility. The lone mature tree on my property has never been in good condition but looked to have some years left. A recent diagnosis left me with a shortened life span and the need to plant a new tree close by as soon as possible. My house savings account has enough money to help me fund this unexpected expense.

The bottom line is I spend less than I earn by keeping myself on track with automatic savings and a spending plan. What have you found that works for you?

What to do with a surprise bonus

When unexpected money comes into my life, it is easy enough to think "this is outside my usual money so I can treat myself and spend it whatever I want without guilt". I received a bonus in my latest check as a reward for pitching in on a departmental project as well as for an individual project. This was the largest single bonus I have ever received and upon learning of said bonus two days before payday, I became anxious. Despite all my preparations, my saving priorities and all my fiscal awareness, I thought "now what do I do with this?"

Saving for a newer car is my most immediate savings goal therefore, it should take the majority of my bonus money. However, I found myself baulking at putting the entire amount of my bonus into a single savings account. I can do this for smaller amounts of $30 here, $25 there, but add a zero or two and gut told me no.

So what are my alternatives? There were a few things tugging me in different directions. I have been thinking about my charity savings account and how much I would like to give this year. I would like to match the amount I gave in 2008 and challenge myself to give more. By taking part of this bonus check and funding the charity account, I would still have money leftover from my bonus to fund other accounts.

I have been contemplating the acquisition of a new MacBook Pro. My iBook is still working well but I am considering a replacement in the next year or so. Of course I would like a bigger screen, faster processor, more RAM and hard drive space. However, I am being strict with myself and saving for this purchase. Right now, I have $300 saved for a new computer. Saving all or most of my bonus for this purpose would bring me to nearly 50% of the price of refurbished MacBook Pro in my savings account. While not an immediate gratification of my Apple hardware desire, I would be months closer to buying a new laptop. This is an option I could pair with my charity account funding.

Despite some clear cut priorities for saving, I had to seriously consider what to do with the unexpected money. I thought about paying my mortgage down a bit or buying a nice piece of jewelery, but I prefer keeping my assets liquid. After thinking about it and writing down multiple options for dividing the money, I settled on my final strategy:

• 18% was earmarked for charity; some of the money was used immediately for a donation


• 25% was added to my car savings account


• 25% was saved in my found money account (likely for my future MacBook Pro purchase)


• 25% was transferred to my farm savings account


• 7% I could spend how I like

I was able to save for all the items that matter to me, make a donation to my favorite local charity to celebrate my unexpected windfall and spend some on myself for pure indulgences of the food kind. I am pleased with the outcome and am grateful I have money I can both save and spend.

What do you think of my final action plan?

Getting started is half the battle

When discussing my financial situation, I approach it in a slow and steady fashion. That is, create a spending plan, account for every penny, spend less than I earn, set goals for savings and fund these goals automatically. This is not a fancy method and you will not get rich quickly. However, years of living this way have given me a CD ladder, several savings accounts with specific goals in mind, enough money to cover all monthly, semi-annually or irregular bills, and a retirement fund however depleted with the current market in a downward trend.

How did I get here? I eliminated all credit card debt, paid my student loan and car loan in full, kept my car for years after being paid off, bought a home well within my budget and chose a 30-year fixed-rate mortgage. This is boring to discuss, but again, no fancy methods, money manipulations or lifestyle envy. I made consistent, automatic contributions to my retirement funds and savings accounts. I paid all my bills on time missing only a few times in ten years. And I strictly followed a spending plan, ensuring I could spend without raiding my savings accounts.

Why am I telling you this? Because looking at where I am now, it all seems easy. However, getting started took some false starts and overcoming inertia. I got along just fine without automatic transfers from my checking account into my savings account. I did not save as much as I wanted, but I did not spend more than I earned. Then I made a commitment to buy a house, something that requires maintenance or replacement of items. And I had to make a downpayment on said house. Suddenly, letting money slip through my fingers just because I could spend it seemed like a poor plan. At this point, I decided to change my saving habits to include more strict adherence to my spending plan and removing "savings" as an item in my spending plan. Instead, I just starting setting up an automatic transfer from checking to savings.

Wow! That automatic transfer was a revelation! Suddenly, my savings account was growing faster than I could imagine and having a greater cushion for unexpected expenses seemed within reach. But to get started, I needed to do two things: 1) change my thinking and 2) do something about it. Both of these are easier to write or say than do. For example, I know that I have too much stuff in my house--too much clothing, too many books, CDs and DVDs, more stuff than I need in my day-to-day living. I know I need to sort through it and determine what stays and what goes. But it is easier to say "Oh, I need to do that" than to actually get off the sofa and do it. I have the best intentions, but still, nothing gets done.

However, when I do sort through it all (and I will!), having all that space back, having fewer items to clean or dust or maintain will give me more control over my life, lessen my burden and mean fewer things to pack and move in the future. I have learned my lesson with my finances but have yet to apply it to all parts of my life. I know I need to work on my health goals and sheer amount of stuff I live with. Progress always comes slowly so I will remind you do not look at what you have not done (e.g., the dishes); look at what you have accomplished (e.g., expanding the garden for the growing season). The positive feeling will help carry you through the challenges of getting started on that next project that seems insurmountable.

Unexpected effects from my no-spending challenge

When I initially planned my no-spending challenge, I was looking to save a little money toward my goals and learn to separate what I could do (e.g., go to the thrift store every weekend) from what I needed to do (e.g., buying food and seeds for growing food). Strangely enough, the effects of this self-imposed challenge are still felt even today.

For example, I needed furnace filters as I had just used the last one in February. One of my two local hardware stores was having a "20% off everything you can fit into the bag" sale with the caveat that I had to pay $1 for the reusable bag. I had been at the other hardware store using a $5 coupon, but was unable to buy furnace filters as they were out of my filter size. However, I noted the price of the filter. With the 20% discount, I could get the filters for over 75 cents less than the other store. So, I picked up four furnace filters. I found myself wandering around the store, looking at other possibilities to buy at 20%, but found myself either saying "I don't need that" or "I could make something like that". That was unexpected.

While I did end up with a year's supply of furnace filters and some mouse bait (I hate voles!), I did not walk out with more than I truly needed. While I had read that it takes a month to really change a habit, I had not realized that my no-spending challenge and the mentality it fostered would change how I behaved. I not only question more what I really need to buy but I also find myself spending less time in places I usually browse for items like the thrift store and craigslist. Getting out of the habit also seems to carryover from the challenge.

This no-spending exercise was not perfect. For example, I still enjoy going out to lunch with friends and feel less guilty now that it is allowed again. I also recently made a run to the grocery store for junk food--not a great use of time or resources. But I have learned where the give is in my budget, that I can live with less without compromising my health or my enjoyment of life. I have also stimulated my thinking, wondering if there is another way other than buying it. Yes, I have moved on to buying used rather than new, but can I make it myself or something similar enough to do the job? Using what I have on hand decreases the clutter and I need all the help I can get with that.

So I challenge you to do something differently for a month. You can pick any month and anything. For example, try using cloth towels and cloth napkins rather than paper products and see how that affects your life. Or you could cut your eating out allocation in half and see how creatively you can think about spending time with friends. Let me know what you did and how it went for you. I would be interested in learning how changing one thing affected you.

Strategies to prepare for a job loss

There is no guarantee of much in life except death and taxes. That means my job is not secure, I may become seriously ill or become homeless due to fire or natural disaster. I found it even difficult to type about these issues because it is not easy to contemplate. While I am confident that my company will be fine for the next two quarters, I have no predictions about six months from now. I think our position will still be more than adequate, but circumstances can change unexpectedly.

Like many of you, my friends and family are talking about contingency plans, hunkering down and cutting expenses just in case income is cut to one salary rather than two. For others, it is from one salary to none. The husband of one of my colleagues is one of 84 men left standing at his company after 16 were recently laid off. My mechanical engineer cousin works for General Motors in Flint, Michigan, and GM just announced it would lay off 10,000 of its salaried employees and cut the salaries of those that remain. His income supports his wife and six children.

Feeling scared or apathetic can paralyze you and me from taking action in the face of possible threats to our welfare. While my immediate future will be occupied with decluttering, doing my taxes and listing the items I have stockpiled, there are steps that can be taken to deal with the possibility of a layoff in the future.

Look at your spending.
What can you reduce or eliminate from your current pattern of spending? Small steps like eating out once or twice a week instead of five days a week or reducing the features on your calling plan are a good place to start reducing expenses. Eliminating entire categories (e.g., cable television or vacations) could drastically affect your bottom line. Figuring out how to spend less than you earn now means if you lose your job and your next opportunity cannot match your current wage or salary, you can live within your reduced means.

Think about other revenue sources.
Are there things that take up space or remain unused? Consider selling a motorcycle that sits in a garage eight months out of the year or renting out a room just used to hold stuff in your home to bring in more money. If you have a way with animals or children, think about offering your services to those who need to have pets looked after or need more time at work than just the hours kids are at school. With gardening season starting up with seed orders and seed starts, think about growing extra and selling them to other, more lazy gardeners (i.e., me) to earn a little cash. You might consider offering your physical labor to help get an outdoor garden or landscaping project started (and even maintain it) for neighbors and friends who have more plans than time (i.e., me).

Keep your resume up-to-date.
I am guilty of not doing this at-least annual project. This is a true investment because having a resume ready at a moment's notice means you can take advantage of an opportunity that has caught your eye even if you are not looking to leave the company you are at. A few modifications to tailor the resume to the possible job, a good cover letter, and you may have just found yourself an interview for a great new position. If the worst should happen, a prepared resume means one less task that needs to be completed under the stress of an emotionally devastating job loss.

Reflect on what you have.
For many people, his or her job is closely identified with who he or she is. Enjoy time with family and friends. Laugh at your child's antics, your father's bad puns or the crow walking across your lawn. You are more than a job. You are a human being with connections to other human beings who care for you. Indulge in a rewarding hobby like reading, biking, painting or knitting. Give and receive as many hugs as possible. Physical affection is always emotionally rewarding. Be grateful for your health, your family, your friends, your pets, the beautiful tree in your yard and the warm greetings from your neighbors across the hall or across the street. If you have the opportunity, volunteer for an organization or event. I find it rewarding to help out and feel like my time was well-spent.

These strategies may not find you a new job, but will help as you look for your next opportunity. Expanding your network and exploring your interests will benefit you both in the short-term and long-term. That event at the library may be the key to the next job or to connect with a person that becomes your next best friend and/or business partner.

Could I give up my spending plan?

My spending plan is very important to me. I have created and followed my spending plan as it currently exists for four and a half years, so at this point in my life I should be ready to let it go and be able to spend without problems. However, when I consider removing my current planning structure, I get anxious. While I do not like change, I believe my anxiety comes from not having the neat little boxes to put my money in and from which to spend.

In contrast, one of my colleagues says she does not budget. She always knows she has money and just spends what she has. In fact, she usually has enough leftover after maximizing her 401(k) and Roth IRA contributions plus her normal monthly spending (mortgage, utilities, food, etc) that she can add to her money market account or purchase more stocks. This freeform lifestyle works for her and she can obviously live below her means. However, this approach is not for me.

With my personality, having specific spending categories each with its allocated money ensures that I do not raid my savings account for incidental expenses. I am far from perfect and do use the savings account for overages, a rare occurrence that does not total more than $20 in a month. With $45 budgeted for eating out, which includes vending machine snacks, I strictly ration the money. This is a category I could easily spend more on, but my long-term plans are more important than immediate easing of hunger.

Structure works well for me. I keep money out of my hands with automatic withdrawals when I receive a paycheck, I allocate funds in various slots for needs and wants, and record each transaction in my notebook (yes, I am old school with pen and paper). I have a running total of what is in my checkbook and what remains in my spending plan. I feel good about the method I use, making me justify the expense as I place it into a category. Furthermore, I have enough flexibility to change the specific amounts allocated if my circumstances change (e.g., gas prices increase or have a few more dollars as income).

What method helps you spend less than you earn?