spiderpop/Flickr
At least one reader was shocked by my disclosure that my monthly budget is $1,200. In a comment about whether a $533 mattress purchase should come out of my budget or my savings, Cindy said, “If you easily have $1200 free cash to spend in a month…wow! That’s not being very frugal.”
Let me explain my budgeting system and why I give myself so much leeway.
I have tried many, many budgeting systems, from tracking every penny to estimating monthly costs by category. None of them worked because they all relied on past purchases to predict future ones. What I spend my money on varies widely. One month a plane ticket may eat up a good chunk of my dollars. During another month a wedding or home project may account for much of my spending.
What does not change is my total spending, certain fixed bills, and my income.
I decided to use this information to create a forward-looking budget (the pdf is safe to download). I start with my income, subtract my fixed bills, and am left with a monthly spending amount (my budget).
My fixed bills include basic necessities and any bills that must be paid including my rent, savings contribution, 1-tank of gas, student loan payment, cell phone bill, and regular prescriptions. Everything else comes out of my monthly budget.
- groceries
- second and third tanks of gas
- gifts
- travel
- clothes
- coffee
- movie rentals
- toiletries
- meals out
- drinks with friends
- hair cuts
- yoga classes
- gardening supplies
- car washes
- vacations
- anything else
Still think $1,200 sounds like a lot?
I gave up credit and debit cards this month to try to reduce my monthly budget. Previously, I went on a spending moratorium to learn new habits. My 15-minute budget may or may not work for you. The first month I used it I reduced my credit card bill by $2,000. Give it a try and let me know what you think.
A reader named Ellen emailed me this warning:
Hi Julia: I know you’ve addressed the subject of gift cards but I wanted to give you and your fans a warning: Watch out for gift cards to stores that have gone under! The other day I was in 7-11, which sells a variety of retail gift cards. Well, my eyes popped out when I saw a display for Circuit City! That retailer has been out of business for quite some time. I was going to alert the management but for some reason chickened out. However, next time I’m in there, I will definitely do so, if only as a duty to the customers.
jakerome/Flickr
As it turns out, Circuit City still operates an online electronics store under new ownership, so Ellen’s worry was unfounded. However, Ellen brings up a good point. In this ridiculously tough economy when market forces, natural disasters, and new spending habits are re-shaping the face of American and international businesses, it is wise to doublecheck that the company you want to do business with is still IN business.
The best thing to do is call the business and see if someone picks up the phone, especially if you are considering buying a gift card through a third party. If you are in a store and want to know if it is on the brink, look for these signs while shopping.
Another useful tool is a Wikipedia page of businesses that have failed. This list is not foolproof nor does it indicate that the company is not still operating in some form or fashion, like Circuit City. The list includes national and regional businesses, but not local ones. It is a good starting place if you are researching the solvency of a company you want to do business with.
khawkins04/Flickr
Get 33% off the list price of any one item with this Borders coupon, good through April 22, 2010.
Take home a free roll of Reynolds 100% recycled wrap when you pair this high-value $1.25 off coupon with a sale.
Get 30% off at Ann Taylor and Ann Taylor Loft during their friends and family sale. It ends Sunday, April 25, 2010.
Get 70% off at Restaurant.com through Thursday, April 22, 2010.
Through April 25 Dairy Queen Blizzards are buy one get one for $.25. That’s practically a 50% off your total Blizzard purchase!
These coupons and deals are from my WalletPop blog. Check back later today for a huge list of Earth Day freebies, discounts, and deals!
Evil Erin/Flickr
I’ve gotten a lot of questions from readers about my month-long cash-only experiment. Why am I only spending cash in April? What is the goal? Did my “emergency” mattress purchase come from savings or the regular budget? How much money do I have left to spend this month? Answers below.
Q: Is the mission of your cash-only experiment to find out how much money you need to live on per month? How much you want to live on per month? Or some combination thereof? – Concetta
A: Neither. I know how much money I have to spend after bills and savings every month. And most months I’m good at staying within the limit I’ve set for myself.
Q: Is the point just not to use credit? Or is it more about how to use credit smartly? – Concetta
A: Yes and yes! I usually rely on credit heavily because I spend cash quickly, don’t like going to the ATM, and prefer not to carry gobs of money. But studies show people are more reluctant to spend cash over credit. An NPR story from 2008 says psychology is responsible. I was curious if spending only cash would change my habits and reduce my overall spending. In the process, I’m learning how to use credit smartly.
Q: Part of an exercise like this is to be able to defer those expenses until they do fit into the budget. Is the point of this to simply pay cash for everything (no matter if the budget is met) or is it to begin the process of defining wants from needs? – Janet
A: Yes, the point is to pay cash for everything, even major purchases. In my book, defining needs versus wants is unrelated to how you pay for them. Instead, defining needs versus wants is about sitting down with paper, pencil, and a calculator and creating a first budget. Once you have taken into account regular bills, irregular expenses, and fixed expenses, you will know how much money you can actually spend each month on fun stuff like meals out, movie tickets, and clothes.
Q: What happened to the mattress!? – Sarah
Back story: I put off buying a mattress for so long that after three sleep-deprived nights I had to start sleeping on the couch or shell out for a new mattress. I chose the latter, seeing how the couch is covered in dog hair. From browsing mattress sale flyers, I knew I could get one for under $1,000. I researched coils, padding, and natural fibers online and realized only two things mattered. Was the mattress comfortable? If so, did it fit my budget? A good friend highly recommended IKEA and from the website I was confident I could find a mattress within my budget, less than $500.
A: I went to IKEA, found a comfy mattress within budget, and lugged it home with the help of a burly friend. I’m sleeping easy, but debating whether the $533 mattress should come out of my monthly budget or savings? I tossed around the pros and cons for a week, asked readers to weigh in, consulted friends, and decided the mattress will come out of my savings.
Here’s why. I have ample savings to cover a big last-minute purchase like this. Even though I put off the mattress purchase until it became an emergency, for weeks I had been mentally preparing myself for the big purchase.
Q: What I want to know is how you researched this mattress for the features you wanted and price before spending the money. For example, did you consult Consumer Reports? Tell all, BB. – Diane
A: See above.
Q: So how much money do you have left to spend this month? (I submitted this one!)
A: My target spending was $1,200 for April. If that number seems high, hang tight. I’m writing a future post about my budgeting system and why my so-called discretionary spending is higher than other budgeting systems. So far I’ve made three ATM withdrawals totaling $1,200, but the $533 mattress came from savings so I have $667 left to spend this month. Not bad!
D Sharon Pruitt/Flickr
This is a guest post from reader Marie.
There are countless fun and entertaining events and places all around the USA that we can enjoy either free or at very little cost. These events are geared towards adults, families, seniors or kids. The possibilities are endless. Some examples include:
- Museums to cater to every taste and budget
- Senior Center facilities for fun, food and friendship
- Churches for spiritual support, entertainment and companionship
- Low-cost or free kids entertainment
- Low-cost or free kids fun and educational activities
Museums to cater to every taste and budget
To find free museums, festivities and events in any US city, visit Free-Attractions.com. Select the city of your choice and look at the great free choices available. Always call ahead to confirm as the site has some outdated information. Here are a few examples of free museums in…
New York…
- Governor Nelson A. Rockefeller Empire State Plaza
- Washington Park
- New York State Museum
- Albany Urban Cultural Park Visitor Center
- Albany Pine BushNew York State Capitol Tour
- Bronx Zoo
- Delaware Park
- Karpeles Manuscript Library Museum
Florida…
- Manatee Viewing Center (Apollo Beach)
- Kelly Park (Apopka)
- National Key Deer Refuge (Big Pine)
- Boca Raton Historical Society (Boca Raton)
- Spanish River Park (Boca Raton)
- Gumbo Limbo Nature Center (Boca Raton)
- Desoto National Memorial (Bradenton)
- Manatee Village Historical Park (Brooksville)
- Rodgers Christmas House Village (Cape Coral)
- Lower Suwannee National Wildlife Refuge (Chiefland)
California…(six pages of wonderful free entertainment!)
- Columbia State Historic Park (Coloma)
- Port Chicago Naval Magazine National Memorial (Concord)
- Nimbus Salmon/Steelhead Fish Hatchery (Cordova)
- Redwood National Park (Crescent City)
- Jelly Belly Center (Fairfield)
- Anheuser-Busch Brewery Tours (Fairfield)
- Manzanar National Historic Site (Independence)
- UCLA Armand Hammer Museum of Art and Cultural Center (Los Angeles)
- The Getty (Los Angeles)
- Natural History Museum of Los Angeles County (Los Angeles)
Senior Center facilities for fun and friendship
For a list of Senior Centers in any city, do an advanced Google search and plug in the city or zip code where you want to find a senior center. Most senior centers are open on weekdays and offer not only very low-cost nutritious lunches but also a chance to get together with peers keeping busy with the classes of one’s choice, such as dancing, knitting, crochet, cards, etc.
Churches for spiritual comfort, entertainment and companionship
Many churches in the US offer spiritual guidance, church services, concerts, hikes, crafts, book clubs, Taize, and other programs. To find information on various churches, look for ones near you in the Yellow Pages.
Kids activities
For a variety of free or low-cost entertainment for children, GoCityKids has a handy page that lets you search for activities. Click on your city. If you live in Los Angeles, you will find information on Griffith Park, O’Melveny Park, Westwood Branch Library, and Audubon Center at Debs Park.
Natural Treasures: Mountain trails, beaches, etc.
Don’t forget the natural treasures of our great country – hikes on mountain trails or along the beautiful beaches – fun for all the family. To find local beaches, go to Google and enter “beaches” and the city or state of your choice. To find mountains for hiking, camping and fun, repeat the Google search but enter “mountains in” and the city or state of your choice. Click on items that interest you to find out more details about campsites, costs, etc.
In short, wonderful entertainment, free or almost free, is just a click away on your computer. Start clicking – and have fun!
By Bobbi Burger Brunoehler of BobbisBargains
DIY is my mantra. One of my best defenses against paying too much for anything is knowing how to do it myself. Over the years, in an effort to stay in my budget and to teach my children to be self-reliant, I have learned many very useful skills that have saved me enormous amounts of money. Here are just a few of them.
Take and retouch headshots
A professional headshot can cost anywhere from $150 to $500 before retouching. You can learn digital photography at your local community college or occupational center for a fraction of the cost of the tuition at a fancy art school. If you are really good at learning on your own, then there are tons of free online tutorials on photography and retouching. An excellent subscription online software tutorial site that I have used for years is Lynda. For $25 a month you have access to fabulous tutorials on just about every piece of art software that exists.
Check the fluids in your car
All of my mechanics in the past have told me that if people only checked and maintained fluid levels in their cars, mechanics would practically go out of business. Many major car repairs can be avoided by proper maintenance, thereby saving you a bundle of money. By watching YouTube videos on the subject and asking my mechanics to show me, I have learned where and how to check my vehicle’s fluids. Search with the make and model of your car and you can most likely see how your engine should look.
Alter your own clothes
This is a skill that I learned as part of my visits to Swap O Rama Ramas where I also scooped up hundreds of dollars of free clothes. Who knew that you could actually cut down and re-sew a t-shirt so that it looked attractive?
Read musical notations
Music gives me great pleasure. Instead of feeling like I need to take a vacation to chill out, I can just spend some time with music. Check out your local library for how-to videos for kids. If you really want to understand music the easy way, then I suggest attending one of Duncan Lorien’s “The Understanding of Music” seminars. I’ve taken this seminar before and it is simply brilliant. Plus, it comes with a 100% money-back guarantee.
Build things out of wood
Great and free places to start to learn how to handle a hammer and nails are the free workshops given at Home Depot and Lowes. Lowes has how-to project videos online as well as free kids clinics each Saturday morning. Learning to be your own handy person can save you up to $100 an hour on simple repairs.
Along with the savings you get when you do things for yourself, you also gain competence and the satisfaction of knowing that you can do things yourself. What are your favorite DIY sites?
Free fries at Jack in the Box – today only! The fast food chain is trying to spread the word about its new fried potatoes.
Get a free sample of Aveeno Nourish shampoo and conditioner. You get to choose from one of four types.
Get $5 off Haggar pants at Sears when you donate a gently used pair as part of an Earth Day “pantcycling” program to benefit charity.
Get 25% off your next pair of heels or sandals with this Shoes.com coupon code.
Get a free sample of fizzy bath tablets to make getting cleaner fun for kids!
Going shopping this weekend? Use this Filene’s Basement coupon and get 20% off.
Or head to the mall and use this Banana Republic coupon for 25% off.
Right now the Entertainment Book is $15 plus you get free shipping. Not bad for hundreds of BOGO free and 50% off coupons.
Bizarre. Here is a free sample of a high-tech disposable toothpick that eliminates the need for floss.
Check out all the coupons and deals on my WalletPop blog.
My frugal friends at Savings.com shared these coupon codes.
Get 15% off orders at Swell. Expiration date unknown.
Get 35% off orders of $100 or more at GameStop. Expires April 30, 2010.
Get 25% off $25 or more at Kodak Gallery. Expires April 30, 2010.
Get 10% off your order at Crocs. Expiration date unknown.
Get 20% off site wide with free shipping on $100 or more at Hanna Anderson. Expires April 21, 2010.
By Mike Barclay of 10CentsWorth.com
hipsxxhearts/flickr
How many times when growing up did you hear, “Eat everything on your plate. There are starving people in Africa”? If it was anything like my household, it was almost daily. Interestingly enough, I recently had my own paradigm shift about food waste. What started out as “I don’t have the money to toss out food I don’t eat” has turned into a realization that none of us do!
Statistics show that Americans throw away about 25% of the food we prepare. That amounts to about 96 BILLION pounds of food tossed into a dumpster (video). The food service industry (restaurants) estimate that 4-10% of the food they prepare is wasted before it gets to you. That’s a lot of food! “There’s a huge disconnect,” says William Rathje, a Stanford archaeologist who ran the University of Arizona Garbage Project for years. “People don’t pay attention to their food waste because it goes straight into the garbage or disposal. It’s not like newspapers that stack up in the garage.”
According to the USDA, the average weekly amount spent on food for a family of four using a low cost plan (we’ll go with kids in the age range of 6-11) is about $170. That breaks down to about $24 per day. Remember that earlier stat that 25% of the food prepared in America is wasted? What’s a quarter of $24? $6. A family of four is essentially throwing away enough food for an entire person each day!
So how do we get that 25% waste down to zero? Recycle it! The most obvious option is just not to throw it away! If you have leftovers, think of ways to reuse them. Make sure they’re in a clear container so that you can see what’s in them, and try your best to keep them up in front. You’ll have a better chance of not forgetting about them that way. And who says you need to eat the same dish four nights in a row? I found a great site for leftover recipes that lets you plug in the main ingredients and populates a bunch of recipe ideas. (See BargainBabe.com site review here.)
Ripened fruit? No problem! Toss them in a blender with ice and make smoothies.
Obviously some things aren’t reusable and some food needs to be tossed. But even then, it doesn’t necessarily need to be wasted. You can easily make your own homemade kitchen composter which will allow you to save those scraps and turn them into fertilizer for plants around the house, or even your garden in the backyard.
So the next time you start to scrape your plate down the disposal, pretend it’s cold hard cash that you’re inserting down the drain, and think again.
I compiled a huuuuuuge list of tax day freebies and discounts on my WalletPop blog. The list includes sweet treats at Cinnabon, Subway, and Maggie Moo’s, free coffee at Starbucks, free tacos at Taco del Mar, and a free 3-day trial to find love at Chemistry.com. Plus the post has tax day discounts at P.F. Chang’s, McCormick & Schmick’s, Kelly’s Running Warehouse, and a lot more.
Check out the April 15, 2010 tax day freebies here. Haven’t filed? File your income taxes for free. Or use this 30% off coupon to buy tax software. Remember to check out the new tax credits available this year.
If you’re getting money back, here are ideas for how to spend your refund.
I totally overspent during the first week of my cash-only experiment (yes, I really did give up credit cards!) so I drastically scaled back during my second week. My cash outflow was drying up when – BAM! – I had to buy a new mattress. Believe me, it was that or sleep on the couch.
My mattress purchase leaves me with $157 for the month. Unless…I dip into savings to cover the mattress. Here’s how my spending looks so far.
Week 1 spending – $470 (including a pricey snowboarding trip)
Week 2 spending – $40 (just groceries)
Emergency mattress spending – $533
That adds up to $1,043. My target was to spend $1,200 this month.
[poll id="62"]
UPDATE: For some reason the poll is not working. We made some tech updates recently on BargainBabe.com so I’m checking to see if those affected the polling features. Hang tight!
Cathy at Chief Family Officer shared four great deals at Ralphs this week. If you’re new to coupons, read my post on coupon clipping basics. To take advantage of these deals, you’ll need to have saved the coupon inserts you receive in the mail or with your Sunday newspaper. Here’s a great suggestion for how to handle coupon organization.
Hamburger Helper, Rice A Roni or Pasta Roni $1
Use 75 cents/3 from 3/7 or 4/11 Smart Source
Final price: 67 cents each when you buy 3
Nabisco Snack Crackers or Sunshine Cheez-It Crackers $1.99
Use $1/1 Nabisco Ritz Munchables Pretzel Crisps from 3/14 Smart Source, if included in sale
Final price: 99 cents
Snuggle Fabric Softener $3.99
Use $3/1 Snuggle from 3/28 Red Plum
Final price: 99 cents
Hershey’s or Reese’s Candy Bar 50 cents
Use 55 cents/1 Reese’s Dark Peanut Butter Cups from 3/14 Smart Source
Final price: free
Check out the rest of her deals at Ralphs this week. Thanks, Cathy!
By Bobbi Burger Brunoehler of BobbisBargains.
Do you have a son or daughter 21 years of age or younger who has their driver’s permit or license? Heck, maybe you are 21 or younger.
If so, you are in luck because there is an amazing free defensive driving school program called Driver’s Edge. This program was created in 2002 in response to the outrageous statistic that car crashes are the number one cause of youth deaths in America.
Driver’s Edge is a free educational program that teaches young drivers to know what to do during an emergency driving situation such as hyper-planing or super-quick swerving. Last year, my teenage son was lucky enough to grab a spot and participate in one of the four-and-a-half hour classes. The instructors were all professional race car drivers and performance driving instructors. The classroom portion was fast paced and MTV style. Then, the participants got behind the wheel of a car and practiced what they just learned, including skid control and evasive lane change maneuvers. My son said it was very cool.
You must be between the ages of 15 and 21 to attend this program. However, parents of participants are encouraged to attend. Driver’s Edge is headquartered in Las Vegas, but they tour around the country. You pre-register online and then the organization emails you when the registration for your area will take place. There is very limited space and they fill up quickly. When I last checked there were upcoming free classes in Los Angeles, Oakland, and Seattle. Even if the classes are filled for this year’s tour, sign up so that you can attend a class during the next tour.
The program is funded by donations, grants and sponsorships. Bridgestone North America Tire is a major sponsor of this program. It’s a good thing, because they go through a ton of tires due to the skidding and severe braking done during the driving portion of this class.
Several months after my son took the free class he was driving on a rainy night. I was not worried because he had taken this program. Peace of mind is a wonderful thing.
Get a free reusable bag (worth $.99) when you spend $20 by April 22, 2010 at any Fresh & Easy grocery store. Alcohol, dairy, and gift cards do not count toward the $20. Print the coupon here.
If you spend $30 by April 18, 2010, use this $6 off coupon to reduce your tab. Alcohol, dairy, and gift cards do not count toward your total.
Fresh & Easy has locations in CA, NV, and AZ. The coupons are part of Fresh & Easy’s Earth Day celebrations. The store wants to encourage customers to use reusable bags instead of paper/plastic.
Thanks, Tina!
I pay $4 a day for the privilege of receiving calls and working anywhere I want on my iPhone, which seemed like a decent tradeoff until I heard about no contract cell phone plans like those available at Pure TalkUSA. The network just launched an unlimited talk and text plan that is $48 a month. $48! That’s insane. And it includes taxes and fees.
What really sets Pure TalkUSA apart from the competition is its $10 a month Flex Plan that starts you with 101 minutes. Another $10 gets you 125 more minutes. Pay another $10 and you get 150 minutes, and so on. You can cap the total bill or let Pure TalkUSA add another $10 every time you use up your minutes. Get more info about Pure TalkUSA’s cheap cell phone plans. Remember, the plan prices already include taxes and fees.
Pure TalkUSA’s month-to-month plans come with a variety of handsets – from free handsets to others available for $11 to $65. You can also use your existing phone, as long as it is an unlocked GSM phone, and keep your current phone number for no extra charge. Pure TalkUSA will provide you with a FREE SIM card, which also comes with 150 minutes.
Pure TalkUSA is on the GSM network, same as AT&T and T-Mobile. Pure TalkUSA is a family-owned and operated business based in Georgia.
This is paid content. Want to take out an ad? Read my advertise page.
