Re: Tips on Frugality
 

I've been doing something similar to this since I retired a short while ago. We have no balance on credit cards, all bills are paid out of our chequing account, and we do everything else cash. Boy, a huge difference to when I was working and recklessly using the debit card - quite the eye-opener when you actually see the cash running out.

One more thing - someone mentioned the interest rate on credit cards. Don't forget you can negotiate the major ones down. My Mastercard is less than 10%, did that on a phone call some years back, just gave up a few air miles per purchase instead. Mind you, I've been careful never to carry a balance so it doesn't matter, but life has a habit of throwing expensive curveballs so you never know when you might need it.

Re: Tips on Frugality
 

But wouldn't a line of credit be a better solution than any credit card for such curveballs? :confused::confused:

Re: Tips on Frugality
 

Pay with the CC to get the points / cashback, then pay that bill off with the LOC at a lower interest rate.


Paying cash is a great eye opener...but i just cant bring myself to give up the convenience of paying with the CC and reaping in the points, and hate carrying large amounts of cash. I guess I spent too long in the dingier bits of Leeds LS6 to feel comfortable carrying more than about 50 or 60 bucks around:)

Re: Tips on Frugality
 

I forgot to mention the Bulkbarn, a much cheaper way to by flour, rice, sugar, candy, dried fruits, herbs, pepper etc etc.

Re: Tips on Frugality
 

First of all, I wasn't advocating the use of a credit card at all. I was simply responding to the idea of frugality on the basis that credit cards had been mentioned in this thread and, since most people have one, if you do want to use it then choose one that's at least not as high as some - PC was highlighted so that's why I raised the rate comparison. Of course paying with cash is much better if you can. Pardon me for breathing! :)

And when I say 'no fee', it really is. No minimum balance, no hidden charges, definitely no fees. If anyone has a high balance in a savings account then they definitely should be looking at other types of investments which are not necessarily always with the main banks or credit unions.

Re: Tips on Frugality
 

The difference is in the interest rate for a line of credit as opposed to a credit card, the latter being higher.

But at the end of the day, credit is credit right? So a LOC isn't really any better than a credit card.

Re: Tips on Frugality
 

Ideally one does not want to use credit but how on earth can you say a LOC isn't any better than a credit card? :confused::confused:

Credit Card interest average anywhere between 18% and 28% can be negotiated down but nowhere near as low as a line of credit.

Line of credit bank prime, .5% over bank prime maybe 1% over bank prime.

Huge difference.

Re: Tips on Frugality
 

Of course it would, but I was responding to the comment about high interest of a CC. And I guess not everyone has a LOC. I do, but I've never used it.

Re: Tips on Frugality
 

Agree completely about Coast Capital Savings:) We were recommended to them by a local when we first arrived and the service has been excellent. There are definately NO account fees. We were also both given credit cards immediately. We use them for most things and pay off the balance each month to help build up our credit records.

We also used their insurance division when we bought a car and saved about $400 on the top-up element of the BC insurance:);)

Re: Tips on Frugality
 

I am also retired and we do the same as you, pay off credit card balance every month.

But a line of credit is not that hard to get and for emergencies as Iaink said pay with credit card then pay off the card with line of credit.

Re: Tips on Frugality
 

Buy a cheaper PS3 for Christmas.

http://www.cbc.ca/technology/story/2...tech-sony.html

(Keeping the PS2 will resolve the backward compatibility issue)..

Re: Tips on Frugality
 

Credit card interest doesn't have to be as high as 18-28% and I don't know anyone myself who is paying that. I'm not sure I'd agree that it's the average rate either. Most people I know are paying between 9 and 11%.

The fact is you're still paying interest on the LOC even if it is much lower. I never said it wasn't lower. However, some people max out their credit lines - if you're LOC is small I suppose it's fine but if you're looking at a LOC which is $10,000 plus then I guess it's not! (And I know a couple of colleagues at work who have LOCs this large).

The point I was trying to make (apparently not very successfully!) is that if this is about frugality, credit is credit and everyone is saying (aren't they?) that it should be avoided. So I guess that rules out a credit card and a LOC too, whether the interest rate is lower or not! ;)

In the end, it's all about what works for the individual. I hope that ladymoose finds all of the tips valuable and food for thought - no one person on this forum is right but we're all entitled to offer suggestions and tips. I've found some ideas worth thinking about!

Re: Tips on Frugality
 

Sorry, didn't mean to come over as jumping down anyone's throat.

My point was that if you are holding a balance and paying interest then for the sake of frugality you should do everything in your power to pay it off as soon as possible, and secondly that there are benefits to using some cards...I get about $500 a year in free groceries for example. Cash is a good exercise to get a grip on spending, but once thats done its worth using some cards for the cash-back benefits on offer.

Really my point was supposed to be that once you decide never to run no balance, the interest rate on the card is irrelevant in the selection process. If it the bill cant be cleared from available funds for some reason then its better paid off using a line of credit which is pegged at at a much lower rate than any credit card (0% transfers not withstanding)

Even if you dont need a line of credit and things are great financially, I personally think it a good idea to arrange one while you have the financial clout to get a good limit and rate, just for emergency purposes is the shit hits the fan at some point in the future. When you have no income and need the safety net is not the time to be trying to do it! The trick then is to forget all about it and resist the temptation to use it to buy a 50" TV or a new car in the mean time.

Which credit union are you with? Maybe this is the thin end of the wedge and over time the major banks will have to follow suite.

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I have a Capital One credit card with a permanent interest rate of 5.9% - so long as you always pay at least the minimum payment.

And as for buying things on sale you don't need. My husband does this all the time. I guess he thinks he is saving money when he comes home with a 20 lb box of long spaghetti. There are only two of us and because he always works late, I generally have a salad or something around 6 and he comes in and fries himself a steak or something at around 7.30 or 8. So the only time we might eat spaghetti would be on the weekend. So its going to take us quite a few years to eat 20 lbs of the stuff!! Maybe I can package it up in smaller portions and give it to the Food Bank.

Re: Tips on Frugality
 

Take it round to one of those chuches/clubs that have spaghetti suppers, that should feed the multitude.

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Christmas gifts. We have an upper limit on spending, last year it was $10, we may go to $20 this year. We've done this for a few years and it makes present buying more fun, as is opening the gifts. We have rules, say 3 gifts per person for a total of £20. The year before last we spent Christmas with my in laws, there were 5 of us so we each had 15 parcels to open and noone had spent more than £100.

For our Canadian friends, they appreciate home made craft things so I went to Michaels (a huge craft store) and bought paint, and bottles, and glasses, and little wooden boxes and painted them up. They were much admired.

No need to spend $$$$ on playstations!:D

Re: Tips on Frugality
 

I'd love to get back to something like this. Our best Christmas memories are the ones in the years we were struggling and totally broke!! (Now, we're talking about many years of memories here!). But it was simple and pleasurable. Now, Christmas is all stress and worry about how to afford this and that. My grandkids are so darned spoiled it's not funny, and I've got 8 of them. The ones in England, who are supposedly not as well off as the ones over here, have every electronic gadget known to man. It's a challenge to know what to get for them that they'd actually appreciate and that doesn't cost a bomb. I'm sending gift certificates this year and I'm sure the amounts won't get anything they would like to buy.

Sorry to go so far off topic, but this touched a nerve, as you can tell!

Re: Tips on Frugality
 

We like a challenge at xmas time, especially secret santa at work. Last year we kept it to under £2.50 and we had to try and find the crappiest gift. It was great seeing what everyone had managed to find and a lot more thought went into individuals gifts than normally does:rofl:

Re: Tips on Frugality
 

See your point everyone about the Playstation - accept that what I didn't say (cos it didn't seem relevant!) was that the hubby's boss gave our son a $100 gift voucher last year for one of the electronic shops (can't remember the name) which we didn't give him cos he had so much other stuff from the rellies. We've just found it again and there's another one coming this year (we've been told) -thus the question about an upgrade - without these we wouldn't be considering it. Also current PS2 has already been fixed once (that cost $100 on its own) and is definitely coming to the end of its natural....

However - Christmas is something we've actually done right this year with gradual savings being made. None of it will go on credit for the first time in a long time... :thumbsup:

Re: Tips on Frugality
 

When I was broke I adopted some odd habits. Some of them won't work here as you don't get the buy ones get ones free very often but here's some suggestions.

Shop the supermarket the wrong way round - so instead of the fruit/veg/bakery. Start with Dairy and frozen.

Set a food budget and take a calculator - add your shopping as you go and when you get to your limit head straight to the checkout - wether you have done the whole shop or not. You soon get very picky on what goes in your basket.

Have a seperate account just for bills, pop enough in it to cover your monthly outgoings and what you want to save and don't use it as an every day account.

Walk as many errands you can. I used to make sure I had a 1/4 tank of fuel in my car. That was enough to get me to the hospital and back if I needed to for my daughter. If I didn't have spare to put in the car, we walked.

Freeze all leftovers and have pot luck nights (makes it really exciting when you think 'Oh I'll remember whats in that one' and the curry you thought it was ends up being left over roast).

Bulk out foods like bolognese and chilli with extra onions and more tomatoes. Buy frozen veg and fruit (Costco are very reasonable for those).

If your a cake fiend - bake your own. Don't buy pop and crisps - if you haven't got it, it can't be consumed - the moaning doesn't last that long.....honest!

Good luck:thumbsup:

Re: Tips on Frugality
 

[QUOTE=ladymoose;5434011]I need some help with tips on frugality if you all don't mind? :)

ive just been shopping at wal-mart on stoney plain road and got great deal on pork, i u eat it.
pork loin half (bonless) $3.90 per kg, yes thats not a typing mistake.

i bt a piece for $9.00 and ive just cut it up. i produced 14 chops and stirfry. jesus thats cheap.

the other thing is dont forget the dollar shop. they do carry brand names inc glad and ive got some bargains from there food wise and bathroom stuff.

Re: Tips on Frugality
 

Grow your own veg, store it, freeze it or bottle it!

Make lentil soup - it's v cheap, versatile, filling and healthy!

If you eat meat buy it bulk when it's on offer and freeze it.

Buy, chop & freeze veg when it's cheap & in season. Great for winter soups.

If you see discounted food buy it - it's a great way of trying something new!

Lynpy

Re: Tips on Frugality
 

Thanks for all the new input - loads of good ideas out there :thumbsup: Hopefully other people are finding this thread useful as well.

lynpy - we're going to be growing our own veg next year (were planning on doing it this but got distracted by other things) - and we aleady buy in bulk from local farmers for meat/chicken etc, so really starting to benefit from that approach now. Not just saving money - but healthier options all round.

beeginger - wow, good deal on the pork - I never go to that Walmart - a bit too far into town for me - maybe should take a trip. I've just about given up trying to shop at Superstore in Spruce - queues are now out the door at all times of day- labour shortage and all that! It's getting like Tesco in Worthing!

PiffPoff - good idea about the freezing left overs - I've tried serving them up the next day but hubby moans if he has the same thing 2 days running and often there isn't enough to serve us all the next day - so I end up cooking anyway. Don't quite get the shopping the wrong way round thing though - how does that save money??:unsure: Thanks. :thumbsup:

Re: Tips on Frugality
 

ladymoose

I try growing my own too - I'm just not very successful!:frown:
But what I have grown tastes so much better than shop bought especially potatoes.
And as I haven't got a clue about spraying with pesticides it's all organic, but perhaps that's why I lost most of my veg to mildew.:confused:

Re: Tips on Frugality
 

By shopping the wrong way round on a budget you don't get tempted to fill the trolley with cakes and all the impulse buys, you fill up with stuff you need 1st, y'know pasta and rice and tinned stuff, by the time you get to the yummy stuff your trolleys nearly full and your fed up so you just grab a cheap loaf and out the door you go. Don't forget the supermarkets are laid out in a way to get you to spend more when your in there. So you buy the impulse stuff first then grab the essentials. Maybe it's just a psychological thing that works with only me?

Oh and NEVER go shopping hungry:eek:

Re: Tips on Frugality
 

I buy too many veggies unless i know what they are supposed to go with ot what meal they will turn into, so you are right its best to shop backwards
:blink:

Re: Tips on Frugality
 

Just saw a program last night and they reccomended that when you write your shopping list to actually write the meals down that you will be having for the coming week, and not just a long list of food stuffs.
I think this makes sense and I will be tring it next time I do our "big shop".

The other thing I thought id suggest is something we have only just got round to doing after 2 years of saying every week we would do is to set up online banking, then you can instantly access your balance and transactions.

Always try and find a bit of cash to save each month, we havent always been that wise and thought we couldnt afford to save. Finally convinced hubby that its a case off we cant afford not to save. Learned that lesson the hard way, when in July my Dad passed away suddenly and we did'nt have enough funds to get us all back immediately to the UK. Thank god we didnt have credit cards so our bank were able to offer us a Line of Credit with a high limit wich we can manage (just about).

Oh the other tip is to use Freecycle

http://www.freecycle.org/

All sorts of bit's and bobs on there that may save you a few squid, im sure they will be one in your local area.

x Mrs minihaha

Re: Tips on Frugality
 

I'm reeallllyyyy bad at shopping for food - don't like doing it at all. I try to make lists then inevitably leave them at home.... I tend to buy ingredients by the dish I'm cooking and end up wandering all over the place - going from veg to meat to rice, back to veg cos I've forgotton something etc, then onto the next dish (repeat until exhausted) - no method in my madness at all - but at least I get some exercise :blink:

My husband is a lot more organised and tends to write a list, stick to it, he's in and out in minutes (:huh::ohmy::o). Luckily he can't stand my dithering so elects to do most of the shopping himself - and now that he isn't smoking and drinking a lot less - bills are getting smaller. :wub:

Re: Tips on Frugality
 

Thanks Mrs minihaha - I've heard of freecycle but not checked it out yet so will look into that next time we need something. We've already got online banking and yes, I agree its very useful - couldn't go back to standing in line now! :thumbsup:

Re: Tips on Frugality
 

I think it's hard to not have a credit card in this day and age but it does take willpower to not be tempted by things! And I do see your point in general.

The credit union I'm with is Coast Capitals Savings but I believe they are only in BC at this time although recently I heard they are trying to open across Canada (it's something to do with provincial laws). I truly only have good things to say about them. They are quick to respond, they really listen to what you want and I've never felt like I couldn't ask. They even ask after my dog! So if you're thinking of ever using one, I'd see what credit unions you have where you are and find out what people say. I would hope that there are some who offer no fee accounts.

Coincidentally, my old bank from a couple of years ago is doing a survey and I got a call asking about their service. I think the man doing the survey was shocked when I gave them a '10' - meaning I would never use or recommend them!! Some banks think they don't have to try at all and most people dislike being 'just a number'. I think the credit unions here have taken quite a few people away from traditional banks - when Coast Capital offered its no fee account, my local branch said that over 50,000 people opened accounts within a few weeks!

Re: Tips on Frugality
 

*Collect and use coupons.

*Don't forget socializing, movies at the cinema on cheap night, rent DVD movies on cheap night. Find good value restaurants, we go to a top notch hotel that does a prime rib buffet on Saturdays for $20. Drink water with the meal, rather than alcohol or pop.

*Decide what is good value, rather than what is cheap.

*Buy while things you want are on sale and bulk buy where it is cost effective. Even 10% off something you regularly buy is a good return on investment. Better than the money being in a bank for 2 years.

*Don't spend $10 to save $5. Often I hear about people driving miles to save a few bucks, spending far more on getting there.

*Shopping wisely makes best use of available funds.

*Do your research on major purchases.

Re: Tips on Frugality
 

Here's my contribution. Leftovers aren't really very popular with some husbands/partners/kids but you can cheat. :)

On day one make a chicken casserole and put carrots, parsnips or other root vegetables in it, and herbs such as thyme and marjoram. Serve with mashed potatoes.

On day two throw in some cayenne pepper and/or chilli flakes to spice it up and add some mushrooms and lentils (or canned chick peas), a little extra liquid if necessary and heat it up in the microwave. Serve with rice or pasta.

It takes very little effort to make the original dish into something different and you don't have to put the oven on two days running.

Re: Tips on Frugality
 

I have a friend who, IMO, spends too much time and energy on being frugal. She started being frugal because she had to be as she had a crap paying job. Nearly six years on, she still has that crap paying job (which she hates). She has diverted her energies into being frugal instead of doing things to improve her income: better job, side job, gaining qualifications, asking for a raise, etc.

I've always tried to up my income instead of being frugal although I'm not very materialistic or wasteful and my cost of living is quite low.

I'm not sure what my point is. :huh:

I'm sleepy.

Re: Tips on Frugality
 

Good post HWP for someone who is sleepy:p
Got to do both in order to get ahead financially.

I must say sometimes I do get carried away with my
frugal living,in away it is kind of challenging and fun
to find bargains.Sure takes energy and time to be frugal.
Yoong

Re: Tips on Frugality
 

is it that if you do frugal too well you dont have an incentive to earn more as you are managing??

that cant be right though, as noone ever seems to have enough money. If you have 2 million then the 2.5million house would be perfect ??? It would be for me, I could sell it and buy lots of little ones and be an evil landlady expoiting the masses:eek::rofl:

Re: Tips on Frugality
 

I agree with that (especially as she hates her job). Anyone with such a good handle on their own budget could possibly be quite an asset to a company or organisation.
Up until recently I was doing volunteer work for a non profit organisation that wastes money and resources in a way that is nothing short of scandalous, and if their donors knew I'm sure they would object. I suspect there are many others like that that your friend could sort out, maybe she just doesn't have the confidence to go for it?

Re: Tips on Frugality
 

Short arms & deep pockets.