Can you be too frugal?
January 29, 2009
I wonder if sometimes frugal can become too frugal (or even cheap).
I’m all for saving money, staying out of debt and living within your means. I absolutely understand that sometimes extreme frugality is done out of necessity, but there is a point at which something that seems frugal can be unhealthy, wasteful or even hurtful to others.
There is a reason I started thinking about this. I’ve read some frugal living tips lately on various web sites that are so frugal I actually wonder if it’s even reasonable. Sometimes people aren’t actually being as frugal as they think.
I’m not talking about being “too frugal” in terms of going without cable or thrift store shopping. I’m talking about things that could actually impact one’s health and well-being or are ultimately wasting money or driving your friends and family away.
For instance, I read an account from one person who talked bout how she keeps a baby warm at night when she turns her thermostat down to 60 degrees. She described bundling this baby until he must have looked like a little sausage about burst. The baby was sleeping in three layers of clothing including tights and a turtleneck. Would you want to sleep in tights and a turtleneck?
I read another account of a woman stockpiling year’s worth of products such as toothpaste. These products have expiration dates. I’m not sure you’re helping yourself if you buy so much of an item on sale that it is past the expiration date by the time you get around to using it.
If you buy something because it’s really inexpensive or on sale and you never use it, that’s not frugal. That’s wasteful. If you know your family will not eat brown rice, it isn’t saving you money to buy a 10 pound bag that will sit uneaten until you have to toss it in the garbage. Likewise, if your family loves zucchini and you buy a lot on sale during the winter, find many ways to prepare it or to freeze it before it spoils.
The line between frugal and cheap can sometimes be blurry. I think you’ve crossed the line to cheap when your frugalness starts to affect others.
Most of us have known someone who always seems to be short on cash and “borrowing” from his or her friends. Or that person at the bar who will take advantage of others who are buying rounds of drinks, but who will mysteriously disappear when it is his or her turn to buy a round.
If your idea of frugal is sponging off of friends or family, it may be time to reassess your habits.
What are your thoughts on being too frugal? When do you think someone has gone overboard with their frugalness?
The cost of weight loss
January 27, 2009
Have you ever wondered what it would cost you to lose 30 pounds?
The good folks at Bankrate.com have answered that question. It turns out that it isn’t cheap. The cost could range anywhere from $100 to over $5,000!
Of course it depends on which plan you choose. Plans with prepared foods that you have to eat daily are far more expensive than those where you prepare your own food.
Even though I have never done a diet plan where I was required to buy prepackaged foods, I still find that it’s more expensive to eat healthy. Let’s face it, there’s nothing cheaper than Ramen noodles and boxed mac ‘n cheese, but that’s going to kill your waistline and pump you full of sodium and carbs.
Here are some tips for healthy eating and weight loss:
· Drink lots of water. Water is good for your body, and it will fill you up so you eat less. The big bonus here is that water is free. If you want filtered water, consider installing a water filter on your tap instead of buying bottled water. It will be much more cost effective.
· Stock up on lean proteins, like chicken, when they are on sale. You can freeze what you can’t eat right away.
· If you are going to buy prepackaged “diet” meals, watch for them to be on sale and stock up. Also visit the web sites of the companies that make the food and see if they are offering coupons.
· If fresh veggies are too expensive on a daily basis, incorporate frozen veggies into your meals. Frozen are less expensive and often taste better than canned vegetables.
· Beans are healthy and inexpensive. Incorporate them into your meals as a substitute for meat whenever possible.
· Look for store brand foods. Most grocery chains sell their own brands of food, which are usually less expensive than some of the name brand foods you probably already buy. Focus on healthy items like whole wheat pasta.
· Always plan your shopping trips ahead of time. Make a list. Clip coupons. Go into the store with a plan, so you don’t just throw stuff into your cart.
With some planning you can have a balanced diet that will help you lose weight and won’t ruin your budget.
The hidden details of gift cards
January 23, 2009
I am one of those people who loves to get gift cards. I also like to hang on to them for awhile. I think of it as saving them for a rainy day.
Maybe I’ll need something and be short on cash. Maybe I’ll want to splurge and order an appetizer and dessert with dinner. Whatever the case, I horde gift cards.
We’ve all heard stories lately about not hanging on to gift cards too long because of the number of stores that are closing. If you don’t use the card right away, there’s a possibility there might not be a store left.
Last night I discovered another reason why it doesn’t pay to hold on to some gift cards. Even if there’s a store left, you might not have a balance left.
When my husband and I got married in August, we received quite a few gift cards. Many were to stores where we had registered, but a couple cards were Visa gift cards.
I must admit that I didn’t do my homework by reading the fine print on the card or calling the toll-free number to get details on the card. We pretty much stuffed them in an envelope to use when we really needed something.
Fast forward to last night when we tried to use our Visa gift cards to buy some things for our home. One of the cards kept getting rejected.
I called the number on the back of the card only to find out that the balance on the $25 gift card was actually $22.50. Apparently as soon as the card was purchased a monthly fee was assessed. Because we waited a few months to use it the balance was steadily declining.
I’m really glad we didn’t wait any longer to use the card or there wouldn’t have been much left.
If you get a gift card, make sure to check for any fees or charges so that you don’t lose the full value of your card.
Would you walk away from your home?
January 21, 2009
I’ve been reading a lot lately about people who are walking away from their homes, not because they can’t afford the payments, but because they don’t feel their homes are worth enough.
On the MSN Money Community message boards, it’s not uncommon to see the discussion pop up. The topic is usually brought up by a homeowner who is considering walking away. Sometimes the topic is broached by people who are outright frustrated watching people walk away from their homes.
Inevitably the debate boils down to: Is it wrong to walk away from your home?
NPR did a piece about this very thing nearly a year ago when the reality of sinking home values and foreclosures was really sinking in.
On MSN, Liz Pulliam Weston wrote an informative story about when to walk away from your home.
What are your thoughts on the topic?
Consumer Alert: Mysterious credit card charges
January 13, 2009
It is very important for everyone to check their credit card statements ASAP.
The Boston Globe just printed this story about mysterious charges showing up on possibly millions of credit card statements. The thing is that the charges are so small they could easily go unnoticed. The amounts of the strange charges are only 25 cents.
According to the article, the charge supposedly comes from a company called “Adele Services” in
There are two theories about what is happening, but both of them boil down to theft.
Please check your credit card statements. If one of these charges happens to appear on your statement, contact your creditor and the credit bureaus right away.
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