I became frugal, not by nature, but by circumstance. When my husband became disabled and was unable to make the same kind of income he had previously provided, our annual income was cut in half. In raising two small daughters, it became necessary for the four of  us to learn radical ways to scale back yet at the same time create a great quality of life. Here are my tools that I still use, even though our circumstances are not as dire anymore.

1.  Don’t Borrow:  Money that is. Everything else, is OK. If you need a hedge clipper just once every three months, maybe you can trade mowing your neighbor’s lawn to use them. I know it sounds harsh, but really the first and best rule, is to live within your means. This means, never ever borrow or pay credit on anything, if it can possibly be avoided. If you haven’t earned it, don’t buy it.  If you do have credit cards, stop using them, immediately. Put them in your ice tray in the freezer, and only dethaw in the event of an emergency, even then. It is questionable. If you have savings or certificates of deposit at your local bank, you can actually borrow from yourself at about 5% interest instead, and in the worst case scenario, if you become unable to pay back the loan, you’ve only foreited your own money, less the interest.

2. Don’t Spend Money: What does this mean? It means, if you have discretionary income that is above and beyond your budget, then do yourself a big favor and either 1) save it or 2) use it to pay down debt. In either case, you will be making yourself wealthier in the long run and able to spend your money on the things that really matter later: education, family vacations, and giving to charity. It also means prevent impulse spending on small things by planning how much you will pay in advance for things like clothing, gifts, groceries and other discretionary items.

3. Don’t Waste Anything: This includes money.  Whether you lump your errands together or carpool when you drive your car, use energy efficient lights and unplug electronics in your home to reduce energy consumption, or go off the grid completely by getting solar panels for your home, all these savings will add up. Wasting money also means being conscious of paying your bills on time to avoid late fees and/or penalties. You can also save money by buying only those groceries you will actually eat, going to the local farmers markets or u-pick berry farms to take advantage of fruits and vegetables in season and clipping only those coupons for items you actually use. Finally avoid fast food, not only is it not good for the environment, it’s bad for your wallet and heart as well in most cases by giving you empty calories.

3. Don’t Use Plastic: While using a debit card and electronic purchases on line are convenient, it’s also an opportunity to overspend. New regulations regarding debit cards, may make local merchants more likely to give you discounts for using cash. The very best plan is to have just enough cash on hand for your weekly expenses like gas and grocerieis, which will help you stay on your budget. Have a debit card available, just for emergencies. By just keeping the cash you need available avoiding check or debit card purchases, you can also avoid the excess banking fees that sometimes go with them.

4. Recycle and Reuse: Another way to be green is to buy and sell “used” products. We have furnished our home with antiques and items from garage sales. Some pricy clothing, like designer blue jeans can be found for half the cost at consignment or thrift shops where you are not only getting a good deal, but contributing to a good cause. My husband was able to get parts for his car and brand new tires mounted and balanced for about 1/2 the cost of new from the local auto salvage yard. This also means cleaning the clutter out your own home to either contribute to charity (where it’s tax deductible) or by having a local garage sales allowing someone else to enjoy the dinnerware that you have tired of or selling your items on Ebay, Craig’s List or consignment shops.  

5. Enjoy What is Free: They say the best things in life are free, and that is very much the truth. When all it said and done, it is probably easier to have a potluck dinner with your family and friends then have everyone go out to dinner together. You can meet at a public park and also have a picnic, set up a volleyball game or croquet set, share the costs and have a wonderful afternoon. There are also low cost options for the arts, local schools have low cost or no cost music, drama and sports programs. In our community there are free concerts and plays in the park. There are also local museums that usually have a “free” day and once a month.  Also libraries are great places to get good books, videos and to read magazines when you can’t afford the subscription.  

6. Buddy Up: Power to the people! By getting together with friends and/or family you can lower all of your overall costs whether buying  toilet paper or groceries in bulk it’s at the local Costco or Sam’s Club, or getting group rates to sporting events, concerts or the arts. You can also do this on vacations, our family recently had a great vacation in at a beach cabin for 6, each couple threw in $200.00 and we stayed for 3 days, which was about $33.00 per person per night. Other ways to spend less is by using Hostels or Park owned facilities like Cabins, Yurts or Historic sites where you trade labor or services for lodging.

7. Use Students in Training: Whether you go to the local hair academy for your latest hairdo, local dental school for a dental cleaning or vocational school for a new paint job on your car, these places can provide significant discounts while not sacrificing quality. Students are overseen by trained professionals and in my own experience, the only drawback the amount of time it takes to have these services done, expect to stay longer, but you’ll get the same results, at half the cost.

8. Be Healthy: While this is easier said than done, it is important to the quality of your life and your wallet and in most cases, the tools you need to do this are at little or no cost. This means eating mostly a low fat diet with lots of fruits, vegetables and whole grains. Staying away from oily, greasy or fried foods and too much sugar. You’ll also need to exercise daily for at least 30 minutes, and yes, taking a walk around your own neighborhood at a moderate pace works just fine. Keep up on your preventative care like dental cleaning and annual health exams can save you thousands later by catching small problems before they become big health issues that cost thousands of dollars. It also means keeping your sense of humor and learning how to deal constructively with stress> It also doesn’t hurt to have a little faith in the Higher Power of your own choosing. Finally, get plenty of fresh air each day, a little sunshine and good night’s sleep to keep your body and spirit in good working order.

9. Negotiate Often: Whethere it’s getting the best deal on your cable services, or shopping for a new car, or getting another 5% off a dress with a minor flaw, learn how to negotiate. The best way to do this is to allow both parties to speak, and then just shut up. Allow the other person to make an offer, counter offer and then be silent. Allow the other person to respond, they wil either counter offer or give in and in most cases, if they really want your business they will then give you the best deal. If you are uncomfortable in negotiating, bring someone who is. You do not have to beunpleasant or aggressive, by being firmly and quietly persistent, you can negotiate and still maintain your integrity and class be a nice person.

10. Check for Mistakes: Everyone makes them, we are only human. So it’s important to check and double check for errors, whether it’s on your own bank statement or your water bill or credit card statement. Make sure you are not being unfairly charged for fees or services that you did not honestly incur. In some cases, even when you did make an error (say in paying a bill late), you can still negotiate to have the late fee waived if you have a good track record. Always ask, the worst that can happen is they can say no.