Long for Frugality?...Give tips here

[paperboyNC]

yeah my grandparents grew up in rough times too and they became the extremes of each other... my grandfather changes his car every 3 years, eats out all the time at very fancy places, n in general splurges as much as he can while my grandmother is borderline hoarder, refuses to eat out, and is a reuser of anything that can remotely be reused... its wierd cause they get angry at each others spending habits... haha but i guess they balance out each other

i personally save because im scared as heck that ill be "stuck" in middle class because i want way more financial freedom then what middle class can provide me (yeah i know... its a first world problem =_=)... so to me what matters more is what savings:income ratio i have every month... that truly tells me if my standard of living is above or below what i can afford and that dictates my spending habits way more then anything else

Before I had kids I saved like crazy. At the moment my wife isn't working so my income has to stretch to support 4 of us so I've temporarily suspend everything but retirement saving. (My net worth still goes up mostly because I bought an Irvine home last year). Once the kids are in school and my wife starts working again I plan to start saving aggressively again. Also - one nice thing about buying a home is that the mortgage stays relatively steady while income goes up every year with inflation. In just 10 years a fixed mortgage will go down 25% based on 3% inflation/yr. HOAs tend to not go up much either and the mello-roos will eventually go away. If I stay in my house for 30 years (I know it's unlikely) I'll have it paid off with a low HOA and no mello-roos.

 

[usctrojancpa]

That's a difference between being frugal and being cheap...the former is good while the latter is bad.  That being said, I like to purchase higher priced items online especially from vendors who are out of state so I can save on the sales tax.  If it is a CA vendor, then I'll have it shipped to my home in Las Vegas.  I hate paying sales tax....such a waste.

 

[irvinehomeowner]

That's a difference between being frugal and being cheap...the former is good while the latter is bad.  That being said, I like to purchase higher priced items online especially from vendors who are out of state so I can save on the sales tax.  If it is a CA vendor, then I'll have it shipped to my home in Las Vegas.  I hate paying sales tax....such a waste.

Technically, aren't you supposed to report and pay the sales tax yourself?

But I agree with you... it's too bad Amazon succumbed to the pressure and is now charging sales tax in CA. I wonder how many people are circumventing this by going direct to whoever is partnered with Amazon? I did this recently for a purchase of t-shirts, saved me on sales tax AND shipping because they shipped free over a certain amount (whereas Amazon wasn't).

 

[usctrojancpa]

That's a difference between being frugal and being cheap...the former is good while the latter is bad.  That being said, I like to purchase higher priced items online especially from vendors who are out of state so I can save on the sales tax.  If it is a CA vendor, then I'll have it shipped to my home in Las Vegas.  I hate paying sales tax....such a waste.

Technically, aren't you supposed to report and pay the sales tax yourself?

But I agree with you... it's too bad Amazon succumbed to the pressure and is now charging sales tax in CA. I wonder how many people are circumventing this by going direct to whoever is partnered with Amazon? I did this recently for a purchase of t-shirts, saved me on sales tax AND shipping because they shipped free over a certain amount (whereas Amazon wasn't).

Sure technically you are supposed to but I doubt many people do.  I do the same exact thing with Amazon now that they charge sales tax.  Before they did that, last year I bought a 63" Panasonic Plasma from Amazon....no sales tax and free delivery, no other retailer came close.

 

[socal78]

What's the cheapest or craziest things you guys have ever done in the name of saving a dollar?



When we decided to start saving up for a house, I decided I wasn't going to be a slave to the nail salon no' mo'. I had beautiful acrylic nails I got done every 1-2 weeks. I let Mr. SoCal take a Dremmel file wheel thingy and cut them all off. That was the most physically painful thing I've ever done to save a dollar. But I was free and our goals were more important to me. Affording it now would be no problem at all but I choose not to go back to that. Too much of a waste. I'd rather save all that money and do my other hobby - diamonds instead. 

We once used an inflatable couch as furniture when we were very young and money was tight. LOL!

I bought a Flowbie a couple years ago. I was going to save tons of money on haircuts for my 2 3 boys. Just one problem. Disastrous results. But if you want to look like any one of The Three Stooges, it's great.  :-\

 

[OCgasman]

There are plenty of lists on the intrawebz on how to save money.  I don't wanna repeat any of that generic info.  Each decision is always a balance of lifestyle and budget.  Here's some things that make sense to me but maybe not to you.  (Also, there are always exceptions to every rule and I break my own guidelines all the time.)

1.  Buy used when possible...for everything.

2.  Spend on entertainment, but don't overspend.  This is different for everyone.  I forego cable and save over $1200/yr, but for some families, especially sports fans, this is a non-starter.  Is the Disneyland pass really worth it?  The neighborhood park that came with our overpriced Irvine home is free.  I always use Costco movie passes vs paying those crazy box offic prices and just say no to concessions.

3.  I churn credit cards and put all spend on the appropriate credit cards.  Travel is expensive.  This is how I get flights and hotels...and I'm talking about 1st/business class seats and 5 star hotels...for free.

4.  Stay within your means.  Don't compare.  Don't keep up with the Jones.  There will always be someone richer than you.  Envy is dangerous.  Do not covet.

5.  Spend on experiences, not on things or material objects.  This is great use of your disposable income.  You'll remember your trip to Africa forever, you'll forget about your new iPhone tomorrow.

 

[daedalus]

What's the cheapest or craziest things you guys have ever done in the name of saving a dollar?

What won't I do to save a buck?  I lived in a ghetto for 8-1/2 years.  But it was close to work.    In addition, my life is dotted with unplanned learning events:
"Guess I need to (quickly) learn how to replumb a house with copper pipe."
"Looks like I'm learning all about dishwashers this weekend."
"I finally get to learn how to replace a timing belt."
"I better learn all about span tables and pouring concrete footers before I start this."

It never ends, but there are some great upsides, like having good reasons to buy more tools, and never feeling bored.

+1 on paying for good experiences over material items.  My wife's and my most treasured memories revolve around doing things together, not having things together.

 

[irvinehomeowner]

1.  Buy used when possible...for everything.

Underwear?

I always use Costco movie passes vs paying those crazy box office prices and just say no to concessions.

Yep... Costco discount tickets all the way. It's bad but I will admit we sometimes sneak in snacks for the kids, sometimes drinks. The only thing we always buy is popcorn, it's expensive but you can't beat that just popped taste (with lots of butter).

3.  I churn credit cards and put all spend on the appropriate credit cards.  Travel is expensive.  This is how I get flights and hotels...and I'm talking about 1st/business class seats and 5 star hotels...for free.

We do this too... but we make sure we pay off the balance every month, no 20% interest.

5.  Spend on experiences, not on things or material objects.  This is great use of your disposable income.  You'll remember your trip to Africa forever, you'll forget about your new iPhone tomorrow.

I agree... except I do spend on technology because it's a necessity. The good thing about iPhones is that even a 2-year old model (usually the time you'll renew) is still worth money (unlike most other phones). So if it cost $200 for a new one on contract, and your old one is worth about $100-$150, you save that much money.

 

[bones]

.

 

[paperboyNC]

1.  Buy used when possible...for everything.

I strongly disagree with this one. With the help of the internet you can often find such good deals on new items that you can sell them with minimal depreciation.

Buying used DVDs = mostly pirated stuff you are paying for. Might as well pirate it yourself if you are going do it. You can find a few year old DVDs for $5.00 new anyways.

Bought my son a used bike = it was in a condition where he couldn't learn to ride it and I couldn't fix it. I donated it and bought a new one.

Buy a used laptop = dead battery, no warranty, slow. You can buy a new one laptop for $300.

Used car = better know what you're doing. The real killer in buying cars is sales tax so I lease and save $2000-3000 per car on sales tax (legally I might add). I had a friend that bought a car at auction for $2000 and spent $3000 the first year fixing it.

Used Home = lots of repairs (bursting pipes, dying appliances, etc.)

Used Clothes = ewwwww

Used couches = ewwwww

Used Beds = ewwwwww (I did buy a used futon once for a guest bed that I later sold for a profit - but I wouldn't buy my own mattress used).

My brother is in your club and buys most things used and lives like he's poor. I buy everything new and actually spend vary little on "stuff".

My goal is a 4 star lifestyle at 2 star pricing (think Hotwire) not a 2 star lifestyle as 2 star pricing (think Super 8)

 

[irvinehomeowner]

The real killer in buying cars is sales tax so I lease and save $2000-3000 per car on sales tax (legally I might add).

Actually, for leases, you still pay sales tax, but you only pay it on the depreciation (I think you meant that you only pay a portion of the sales tax).

 

[paperboyNC]

The real killer in buying cars is sales tax so I lease and save $2000-3000 per car on sales tax (legally I might add).

Actually, for leases, you still pay sales tax, but you only pay it on the depreciation (I think you meant that you only pay a portion of the sales tax).

Exactly. I just leased a $32K car. Depreciation is only $9K over 3 years so I save 72% of the sales tax ($1,840). With a monthly payment of only $300/mo it would take me an additional 6 months just to pay off that sales tax.

 

[usctrojancpa]

frugality?  lame.  just marry a FCB. 

She has to be cute and either understand english and/or polish though. 

 

[usctrojancpa]

The real killer in buying cars is sales tax so I lease and save $2000-3000 per car on sales tax (legally I might add).

Actually, for leases, you still pay sales tax, but you only pay it on the depreciation (I think you meant that you only pay a portion of the sales tax).

Buy a 1-2 year old car with low miles, you'll save 20-30% off sticker price and if you buy from a private party you can write in a lower sales amount to save on the sales tax.

 

[paperboyNC]

The real killer in buying cars is sales tax so I lease and save $2000-3000 per car on sales tax (legally I might add).

Actually, for leases, you still pay sales tax, but you only pay it on the depreciation (I think you meant that you only pay a portion of the sales tax).

Buy a 1-2 year old car with low miles, you'll save 20-30% off sticker price and if you buy from a private party you can write in a lower sales amount to save on the sales tax.

That's why I put legally in my notes. I'm one of those people that evens pays sales tax when I buy something from a website that doesn't charge it. I believe in being smart with my money - not cheating (taking advantage of price mistakes) or stealing (not paying my taxes).

 

[rkp]

I don't think of it as living frugally but rather, having a savings mentality.  It's more than just change of vocabulary as savings can be achieved through multiple means.  One of the biggest and probably least looked at is increasing your income.  Very few people I know actively and consistently look for jobs and negotiate their salaries.  Yet many people call their telephone companies and cable companies every year to get a discount.  For us, its always been a combination of saving and making sure we increase our income. 

I realize that not every job can grow in income and with the recent recession, its not even guaranteed but its really as simple as keeping your resume up to date, meeting recruiters, going on interviews, and most importantly, getting offers to gauge how much you are worth to other employers.  Finally, you have to smartly use that info in negotiations in your current job and be prepared to change companies. 

 

[paperboyNC]

Another idea: Barter

I don't mean the classic bartering, but helping out friends & family & church groups who help you out in return.

A) Babysitting: Watch someone else's kids in exchange for them watching yours (saves on babysitting and your kid will be playing with a friend)

B) Eating out: Have friends / family over for dinner and then go over their for dinner. Have meals at church. You have to do more work when you host but you get some days off from cooking / cleaning without spending a dime.

C) Help with projects: Help others move and they might help you move

The best part is that most of this is legally tax-free (though some barter is taxable)

 

[paperboyNC]

I realize that not every job can grow in income and with the recent recession, its not even guaranteed but its really as simple as keeping your resume up to date, meeting recruiters, going on interviews, and most importantly, getting offers to gauge how much you are worth to other employers.  Finally, you have to smartly use that info in negotiations in your current job and be prepared to change companies.

I agree. My last company got acquired and I told the new owners that I was quitting if I didn't get a raise / bonus / etc. They ended up letting me go after over a year but I pocketed an extra $20K that year due to being aggressive and now I have a better job. Even with this job I got $4K more the first year than they offered just by asking. As I mentioned earlier, I also look for money making opportunities on the side.

 

[OCgasman]

Help others move and they might help you move

No, I'm gonna be selfish here.  Moving sucks, helping family and friends move also sucks.  I would never bring that torture to my family or friends.  I'm done with U-haul.  Hire movers.  Plus, 2 movers getting paid will do twice the work and a much better job than 6 of my friends.

To me, it's not the little things that add up, but I understand when people say every little thing counts.  It's the big purchases that hurt the wallet.  Houses and automobiles are usually the big ticket items that account for the majority of expenditure (not counting school loans).  But, I would never begrudge anyone for making those purchases.  If it brings joy to your life, do it.  At the end of the day, as long as you're saving more than you're spending, you're doing fine.  Living paycheck to paycheck, well, you probably need to take a hard look at your finances and budget accordingly.  Orange County is an expensive place to live.

 

[paperboyNC]

Help others move and they might help you move

No, I'm gonna be selfish here.  Moving sucks, helping family and friends move also sucks.  I would never bring that torture to my family or friends.  I'm done with U-haul.  Hire movers.  Plus, 2 movers getting paid will do twice the work and a much better job than 6 of my friends.

To me, it's not the little things that add up, but I understand when people say every little thing counts.  It's the big purchases that hurt the wallet.  Houses and automobiles are usually the big ticket items that account for the majority of expenditure (not counting school loans).  But, I would never begrudge anyone for making those purchases.  If it brings joy to your life, do it.  At the end of the day, as long as you're saving more than you're spending, you're doing fine.  Living paycheck to paycheck, well, you probably need to take a hard look at your finances and budget accordingly.  Orange County is an expensive place to live.

I actually agree with you and it's one thing on my list that I no longer do (my parents never hired movers and always got friends to help). I love my professional movers and work hard on making more money or getting my employer to pay my moving costs.