May 27th, 2009
What is the difference between being cheap, being frugal and being wasteful?
Cheap: You’re only concerned about spending the least amount of money.
Frugal: You are financially resourceful and seek the best value.
Wasteful: You buy more than what is necessary and typically buy things on impulse without prior planning.
Toilet Paper Analogy
1 Sheet vs. 3-4 Sheets vs. Big Wadfuls
If you only use 1 sheet you may be considered cheap in your TP usage.
If you use 3-4 sheets you may be considred frugal in your TP usage.
If you use big wadfuls you may be considred wasteful in your TP usage.
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tim
Categories: Frugal Living, Misc
May 20th, 2009
As recently as the 1990’s you had to pay for many things that you can get for free on the internet today. Switching to free online sources will decrease your monthly spend as well as increase convenience and timeliness.
Magazines/Newspapers
Most magazines and newspapers (such as Time Magazine and The New York Times) have free online editions.
TV/Movies
Sites such as Hulu and YouTube offer a broad selection of TV shows and movies to watch.
Classifieds
Craigs List offers a free service for posting your classified ad in front of potential prospects.
Medical Advice
Instead of going to a doctor for medical advice, for minor medical aliments, sites such as WebMD can be a good source for medical information.
Invitations
Evite is a good nice alternative to sending out an invitation through snail mail.
The above are examples of just a few free sites/services, there are probably thousands of other sites that offer free services and information that will be useful to you.
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tim
Categories: Frugal Living, Saving Money
May 13th, 2009
Some people get a thrill out of paying the lowest possible price. But there are several factors that need to be looked at to see whether the best price is really the best price.
Cost of Acquiring the Deal
If gas is $0.02/gallon cheaper in the next town, it doesn’t make financial sense to drive 5 miles out of your way to save $0.30. You’ll be spending more on gas (plus wear and tear on your car) then you would receive in actual savings.
Time
Spending hours doing comparison shopping at the mall to save $2 on one item is not an efficient use of your time.
Usage
If you buy a product just because it’s on sale but never use it, then you would have been better off if you never bought the product in the first place.
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tim
Categories: Frugal Living, Misc, Saving Money
May 6th, 2009
Credit cards are a great resource… if you are able to use them responsibly.
Convenience
There are very few places that don’t take a credit card, so instead of carrying a cash with you everywhere, you can just bring a credit card. Also you won’t be “forced” to carry change that you receive after paying for something in cash.
Rewards
Many credit cards offers you incentives based on the amount you spend with your credit card. Rewards vary from cash back to points that you can redeem for awards.
Security
If your credit card is stolen, you are only legally obligated to pay a maximum of $50 of the fraudulent charges but most companies will even waive this.
Track your Spending
By using your credit card, you’ll have a record of everything that you spent on your monthly credit card statement.
Credit Card Protection from Merchants
If you have a dispute with a merchant your credit card company can do a charge back and issue you a credit if they rule in your favor
Build Credit
Using a credit card will help you in building a better credit score (if you pay your bills on time).
Insurance/Purchase Protection
Depending on your credit card, they may offer purchase protection or travelers insurance.
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tim
Categories: Credit, Credit Cards