Spend Less, Save More 1/23/08

The word on everyone’s mind right now is “recession” and we are all feeling the pinch. Stocks are down, home prices are down and I don’t dare open the quarterly statements for my 401(k) investments. Our lives have suddenly taken on the lyrics from that old Kinks song “Low Budget”: “Times are hard but we’ll all survive…I’ve just got to learn to economize”.

It seems like wherever you turn there are articles and lists about how to cut back and live more thriftily. That being said, do I really need to come up with my own list of suggestions? Heck yes!

Are you ready? Here it is: Spend less. Save more.

What? You were expecting something radically different? Suze Orman I am not. Though I have culled some tips from friends and family (and a few of my own) that might make things just a little bit easier.

Financial experts will tell you that you should first establish a budget and stick to it. My husband and I try to do this each year (unsuccessfully). We go through our finances line item by line item until I am ready to poke him with a pencil. Then comes the dawning realization that we spend more than we make. At this point we shut off the computer, run upstairs and hide beneath the covers. It sounds strange, but it works for us.

A friend of mine loves to buy books. She reads at least one new book a week, and purchases most of them. Here’s a tip: There’s this big building in the center of our town. It’s called the Library. The people there are extremely nice and will let you borrow that same book for free. They also have the latest DVDs, CDs and some locations have video games (for the Wii!) And because we’re part of a network, if our library doesn’t have something, chances another library will. Before you look for something on amazon.com, look for it first at ocln.org.

Another tip? Dunkin’ Donuts coffee is cheaper than Starbucks, but do you know what’s even cheaper than Dunkin’ Donuts? The coffee you make at home. We still haven’t gotten on board with the Keurig system (though I covet every friend of mine who has one!) but even Keurig is less expensive than buying your coffee each day. Now if only we could recycle those little pods.

Belong to a gym? Pack a bag and shower after your daily workout. It takes a little extra prep time in the morning, but your membership fee already includes heat and hot water, so why pay for it twice by showering at home? You can stand under that hot spray for as long as you like without feeling guilty, but invest in a pair of shower shoes (there are some things you just don’t want to share with your fellow athletes and foot fungus is one of them).

Get creative with your cooking. Google the words “budget cooking” and you’ll find a whole slew of websites with wallet-friendly recipes. When all else fails, bring back creamed chip beef on toast. My mother used to serve that to us at the end of the month while waiting for my dad’s next paycheck, and my sister enjoys it to this day. Another Anderson family recipe: Spam and bean pie. My mom would layer slices of Spam in a pie plate, add a can of baked beans, sprinkle the whole thing with cheese and then bake until hot. I passed this recipe along to a friend thinking it would gross her out, but she actually thought her kids might like it.

Become a savvy shopper. Read store circulars and compare prices. Be a ghoul and prey on stores that are going out of business (hint: Hanover’s Office Depot and Kay Bee Toys are both closing. Load up on copier paper and birthday presents now.) Beware the warehouse. A friend of mine just joined Costco in order to save money. In addition to the $50 membership fee, she spent $350 on her first visit. Then still had to go to the grocery store two more times that day for other items. And did I mention Costco is in Avon?

Finally, don’t forget that misery loves company, so use the recession as a way to connect with friends in new ways. Start a dinner club with a few couples, alternating at each person’s home instead of going out to eat. Make friends with people who own vacation homes. It’s the next best thing to owning one yourself. Take your kids to the Harvard Museum of Natural History on a Sunday morning or the ICA on Thursday nights when they’re free. You can save money without missing out on a good time.

Ray Davies said it best: I’m not cheap, you understand, I’m just a cut-price person in a low budget land.