Frugal (part 4)

nickel and dime it

This is really the idea that "little things add up." They add up in your spending and in your saving.

Every little bit you can set aside and save is a good thing. Even small, seemingly tiny amounts can add up. If you put $10 a month into savings that will be $120 in a year. A hundred dollars will be twelve hundred. And in ten years it will twelve thousand. Save. Save whenever and whatever you can. Even if it's spare change. It will add up. When Beorn and were first married I heard a story about a couple saving their spare change and paying for a trip. So I decided to save dimes. Just dimes. Every dime that passed my way went into a jar and by the time we booked our getaway for our first anniversary - half of it was paid for with those dimes. Learning to save for a rainy day and for future purchases is an important skill for a frugal life.

Saving while spending is the next step. Yup, it's the simple stuff like price comparing, watching sales, couponing, buying in bulk and buying generic. I highly recommend all these money saving tactics. Just saving $0.10 a can buying generic can add up to a lot of money by the end of the year. But there are some safety notes to consider:

Buying generic - This of course is based on the assumption that you find the generic just as good as the name brand or at least good enough. If you hate it and won't use it, then buying a case of generic is losing money, not saving.

Buying in bulk - if you can't use it all up before it goes bad, did you save money? Costco fans beware.

Couponing - It's become quite the fad recently and YES you can save significant amounts of money doing coupons. $0.25 off does add up. But be careful. Only use coupons for items that are a regular part of your life, not to justify purchasing things you would otherwise never buy. Yes, it is possible to pick up PopTarts for a quarter when you hit the sale and use your coupons, but if your family doesn't normally eat PopTarts, have you really saved money? No. Ok, you got them for WAY cheap, but in the end you spent money you wouldn't normally spend, so it's the manufacturer who won. They got what they wanted - their item into your home. Then they are counting on you (or your kids) wanting that item enough, after trying it, that you will continue purchasing it. At regular price. Also, if you spend 10 hours a week searching, clipping and organizing your coupons to save an average of $25 on your weekly grocery run... have you really saved? That amounts to $2.50/hour for your time. Make sure your savings is worth the amount of time invested. Me? I can make $10 to $50 per hour sewing, so coupons either have to take NO time or save me a significant amount of money, otherwise my time is better spent elsewhere.

Sales and store hopping - Again, remember what your time is worth. You might want to think carefully before driving across town to save $2. Ad matching programs may be a better way to go, though remember - ad matching amounts to a store coupon program, so remember what your time is worth.


So... number four: little things add up.