We're Doing OK, No Need to Panic

The nightly news preview flashed across the TV screen, and within minutes my inbox and Facebook had started to fill up with doom and gloom.

The Australian stock market had suffered the biggest losses in twelve months. Wall Street was going backwards faster than ever. Fortunes were being lost in the blink of an eye.

And I sat and watched and thought "we're doing OK, no need to panic".

I was grateful on Thursday afternoon that we are debt free. I was grateful that our savings are in Australian banks (not all in one bank, even I'm not that trusting!). I was grateful that the losses felt by stockmarkets around the world didn't have a direct, personal impact on our lifestyle.

I was grateful that we have a very comfortable roof over our heads.

I was grateful that we had food to eat for dinner.

I was grateful for a mother who kept a fully stocked pantry, and taught me to do the same, and to stockpile for times of trouble.

I was grateful for a backyard big enough to handle our veggie garden, and for the seeds and seedlings that will feed us through the summer.

I was grateful that we had learned long ago that there is no such thing as good debt, and that when you have debt, you own nothing; that we worked and scrimped and scraped and saved and went without luxuries (we never, ever went without necessities) to pay down our debt so we would own everything we have.

I was grateful that Wayne would come in from work, relaxed and happy; that we would be able to sleep that night, secure in the knowledge that those huge losses wouldn't hurt us.

But most of all I was grateful that, whatever the storm, we would face it together. And together we would come through it, we would be OK.

How We Live Happily on Our Budget

I'd love to say it is easy and we live on our budget without even thinking about it, but that simply wouldn't be true.

We are human. There are times we want things RIGHT NOW PLEASE that we just don't have the cash saved up for, and I'll admit that I don't like it. Sometimes I suffer from the "I see it, I want it, I deserve it" mindset too.

But our lifestyle is what it is. We live debt free. We have everything we need, and as of today, want. We have worked hard to get to this point in our lives, and we do not ever want to be where we were When Disaster Struck, so we have a few checks before we go crazy with the spending.

Now we don’t stand in the store and tick them off, but they are always asked before we spend money that's not on our spending plan.

1. Is it a want or a need? – Sometimes, in the emotion of the moment, the difference between wants and needs blurs, but they are two very different things.

2. Can I find it used? – There are very few things we buy that are not used.  Underwear, shoes and tyres are the three things I absolutely won't buy used, otherwise as long as the item is in excellent condition and a fair price, used suits us just fine.  If something can't be sourced secondhand, then we do our research and look for the lowest possible price, and aim to never buy anything that isn't on sale (other than the basic grocery items from Aldi that we stock our pantry with).

3. Am I buying this out of habit? – We get so used to shopping that tossing things in the trolley or basket out of habit can really bust that budget. Shop with a list for everything, not just groceries. I have household and garden items on my shopping list, clothing, medicines - everything we need to buy. I'm so focused on getting what's on the list and crossing it off, I very rarely ever add anything to the trolley.

4. Will I be able to use the item for more than one task?  – How many times have you found something in your cupboard and realised you've only used it once or twice, or even worse, not at all? Or you can't remember why you bought it in the first place? Think about every purchase, and ask yourself:
• will you actually use it,
• will you be able to use it more than once,
• can it be used for other purposes,
• do you have the cash to pay for it ,
• will you still be using it in six months?

5. Is it worth going in debt? – Unless you're buying a house, then the answer is always no! When it comes to anything else (including cars!), if you don't have the cash to pay for it, then you can't afford it. Simple.

Working out your budget to fit your income may mean you need to trim a few things, but it's a much nicer lifestyle to trim a few things from the budget and be debt free, than to buy whatever you want and live with the ongoing stress of debt.

And if asking those questions is too daunting for you, remember the $100/24 Hour Rule:

If it's more than $100, wait 24 hours before buying it. Then, if you still need it or really want it, think about how you can afford to get it. Do you have the cash on hand? Will you need to borrow from the budget? Will you have to go into debt to buy it (credit cards, store loans etc.)? Can you raise the money to buy it (overtime, garage sale, use birthday money etc.)?

Most of the time you've changed your mind, realized you don't really even like it or just plain can't be bothered going back to the shop to get it and you've just saved yourself a couple years' worth of debt re-payments!

Freeing Up Cash

Today's Tip of the Day is one after my own heart. When Disaster Struck the first thing we did was switch to a cash budget using the envelope system. In those day's I'd go to the bank every second Thursday and withdraw the cash we needed for the next two weeks. I'd have to go into the bank because I wanted the right change for each envelope. The night before banking day I'd sit down with the budget and work out exactly how much I needed to withdraw and the currency needed.

Then, when I finally made it home, I'd sit down at the kitchen table with a cuppa and sort the money into the envelopes. Those envelopes lived in a drawer in our bedroom. When I needed grocery money I'd take what it from the grocery envelope, petrol came from the petrol envelope and so on.

It may be old fashioned but it works and it is a great way to control your money and your spending.

Freeing Up Cash

When I started out seriously budgeting, we had 2 school aged children, credit card bills, mortgage, car payments as well as everyday living. We both work full time and weren't getting anywhere fast or had any spare cash so I set up an envelope system for my bills I split it all up into fortnightly amount (that's when we get paid) and started putting the money away. For the first twelve months it was hard but if you persevere it will get easier. I now can make double payments on the house, have cleared the car payment, credit card bills, have just sent my husband to Germany for a holiday with his family and have spare money in the bank. I have never felt more in control of our money than I do now. Our children don't miss out on anything and now our son works he realises the value of money and saves his up. He has already purchased a car for when he gets his license.
​Contributed by Presley Dostal

How to Cut Back on Household Expenses: Heating

There’s nothing cheap about running a household as all facets of it require us to spend money. However, this doesn’t mean that you can’t find an affordable way to run your household. In fact, you may be surprised to find that you’re spending more money than necessary in several areas of your household expenses. Below are a few areas where you may be able to cut back your household expenses.

We all spend money heating our homes during the cooler months, which can add up to quite a bit of money over the year. There are ways to reduce these expenses though and they are all simple things anyone can do.

·Use ceiling fans – Use ceiling fans to force warm air down. Some ceiling fans have a reverse switch, others you need to reverse the blades to drag the hot air down from the ceiling.

·Close unnecessary vents – Many of us have vents in our homes that don’t need to be open because we’re seldom in the room. Close those vents and you’ll instantly save money.

·Close doors to rooms you aren't using. - There's no point in heating rooms you aren't using. Keep the doors closed most of the time. Open the doors one day a week to air the room and keep it from getting damp.

·Change filters regularly – Stay on top of changing your airconditioner filters regularly. You should be changing them every 30-60 days during heavy use.

·Open curtains and blinds – During cooler months, keep your curtains and blinds open during the day. This allows the sun’s rays to naturally heat up your home. Close curtains and blinds during hot summer months to keep cool air in.

·Close curtains and blinds - During cooler months close the curtains and blinds as soon as the sun starts to go down. Warm air will be trapped in the house and they'll block the cold coming through the windows.

·Use space Heaters – Space heaters  are a great way to supplement your central heating, which helps lower energy costs.

·Bring out the throws and knee rugs - Cover up of an evening with a throw or rug and keep the thermostat on the heater turned down. You'll be warm and cosy without affecting your heating bill.

·Check around windows and doors for draughts - You'd be amazed at just how much cold can sneak in through gaps around windows and doors. Seal them up with specialist tape you can get from any good hardware shop. It's a simple DIY job, the tape isn't expensive and it will save you a lot of money all year round.

·Use draught stoppers or sausages - A sausage against exterior doors will keep draughts out. Again, they'll not only keep cold (or hot in summer) air out but save you money.

​Cash or Debit? Depends on the Total

When I go shopping for anything I wait until the total is rung up before I decide to pay by debit card or pay cash (sometimes I know beforehand). If the amount is rounded up when cash is paid, then I pay by debit because it is an exact amount and I therefore pay less. If it would be rounded down, then I pay cash. This saves me up to .02c every time I purchase....not much but it adds up. Living the Cheapskate way has meant that because I am so conscious of spending now I virtually don't have big issues to worry about. As the old saying goes "Look after the pennies and the pounds look after themselves"....well nearly.
​Contributed by Wendy

Earning Pocket Money

Teaching our children about money and how to handle it to their benefit is hard! Children don't understand abstract ideas until they are in their early teens, so a concrete, hands-on, physical teaching aid is essential.

We've always encouraged our kids to earn their pocket/spending money and they've done so from an early age. We started them on pocket money and work around four years old, with simple, age appropriate chores that weren't things that should be done because they're a part of our family i.e. making beds, clearing tables, cleaning the bathroom etc.

Instead they had to do other work such as washing the car, gardening, helping with extra household tasks and so on.

I love Gary's idea of teaching his children to earn their pocket money, and encourage their entrepreneurial talents, they'll grow up with a wonderful worth ethic and a good appreciation of just how hard it is to earn the money they spend.

Earning Pocket Money

We have three children aged 6,8 and 9. One of my frustrations had been the weekly handing out of pocket money. Earlier this year I let the children know it would be a good idea to do something towards their pocket money, or even better still earn it themselves.

The kids threw in a few ideas of what they could do, most of which required mum and dad to pay. I then told them about the people in my office who daily buy coffee and cookies from a nearby coffee shop. As they were paying $1 for the cookies, I told the kids I was sure they would be happy to pay half that (50 cents). I told the kids I would ask my boss if it was OK to make cookies and put them in a container in the lunch room with a note asking for 50 cents towards the cost of each cookie. He said it sounded great to him.

Since then the kids (with help from dad) have been baking a selling about 60 choc chip cookies per week. The cost of the each cookie is about 20 cents, leaving 30 cents from each one to go to the kids. We are now experts and can make and bake them (60) in about 40 minutes.

We see three benefits:
1) have now saved on paying out pocket money
2)  the kids have extra money to spend or save
3)  the kids are learning that money is earned.
Contributed by Garry

The Most Liberating Feeling

Jen P sent this Saving Story to me a few Decembers ago, but its message is as valid this Christmas as it was then: you can get control of your finances and live a really good life, without depriving yourself. Jen is still a Platinum member and still doing a great job at living the Cheapskates way.

We all have a saving story, some of them are just being written, as Jen's is, some of them are almost finished. Wherever you are with your saving story, I wish you the very best Christmas and New Year and may you find peace, happiness and joy living the Cheapskates way.

"Dear Cath,

I am just writing to say a very heartfelt Thank You!!! to you from all of my heart. You are wonderful with how you help us  and I only really realised it today, but this is the first Christmas in over  11 years where I am not stressing one bit about money or where I am going to find it for all the expenses of the season. It was enough to actually make me cry with relief when I realised it!

My groceries are nearly under control finally and I look forward to even more savings next year if I can in getting them down even more.

I have money for my bills saved  and no credit card debt any more. We have money in our savings account finally and money building up and some set aside for a long overdue holiday next year to celebrate our 20th wedding anniversary.

It is the most liberating feeling to not feel controlled by debt. We are still paying off our home loan, but I am happy to say this is the only debt we have now.

We are not high income earners and pay our own way with private health insurance and school fees etc., but I think we have learned to live within our means and save up for the things we really want from life.

I have only been a member since August but what I have learned I could not have learned in a lifetime without Cheapskates support and guidance.

I would also add that it has not been easy, I have had to work on fine-tuning and getting my budgets a bit better every day, slowly and steadily, but it certainly wasn't as hard as what I thought it was going to be either.  Also the advice and encouragement from other members is  just overwhelming and wonderful not to mention invaluable.

Thank you so much once again Cath. I wish you a blessed Christmas and a New Year full of love, happiness and good health ( and savings!) ."

Jen P

Pay for Rain Check Bargains and Never Miss Out

Rain checks are wonderful things, designed to let you buy things after a sale at the sale price. I always ask for a rain check when I can't get something on sale that I especially want. But sometimes when it comes time to redeem the rain check, you just don't have the money before it expires.

I don't like missing out on a great bargain, and I really don't like wasting a rain check so I pay for my rain check items when I get the rain check.

Last week Coles had 12 packs of Mission tortillas on half-price sale, $1.99 a pack. I like to make our tortillas, but at that price making them actually costs more in dollars and time. I went to three different Coles supermarkets during the week and couldn't find them anywhere. The last store had an empty spot for them. So, off to the service desk I went to get a rain check.

Which you'd think would be simple but it was quite a procedure. And then I had to beg to get rain checks for 12 packets (and then only after I'd explained I would have bought every packet on the shelf if they'd actually been on the shelf). In the end I was given two rain checks for six, with a two month expiry.

As soon as I walked in the door at home, I went straight to the kitchen, took out my slush fund envelope and put the $24 for the tortillas in it. Then I wrote the date, the amount and what it was for on the envelope and put the rain checks into the pocket in my purse so I have them on me when I'm shopping.

Now, when I'm in Coles and find the tortillas I can buy them with the rain check, knowing they are already paid for. After I buy them I'll reimburse my grocery budget with the money in the envelope.

It's simple really. You have the money to buy the item when it is on sale, so put that money away when you get the rain check - you are paying for your rain check items when you get the rain check. When you redeem the rain check you'll have the cash ready and waiting to pay for your bargains, your grocery budget will be safe and you won't have missed that great bargain.

We Are Saving Money Using Envelopes

This is such a simple, old fashioned way of budgeting, but it works! Spreadsheets and debit cards linked to a multitude of bank accounts that you can update via your smartphone may be the modern way of budgeting, but it has its downside.

When Disaster Struck and we had no money coming in, we switched to a cash envelope system and I still use it for the housekeeping today. It works, it's convenient and it's simple so why change it.

Switching to a cash budget and then using envelopes (or separate purses or ziplock bags or whatever) is a very tactile way of managing your money. If you, like me, need to be able to actually see and physically control your money, envelope budgeting may be for you, as Cheapskater Amanda found out.

We Are Saving Money Using Envelopes

Approximate $ Savings: $50-$100  

We find using the 'envelope' approach helps us save so much money. We live on one wage so have to watch our budget. Now when we get paid we have money transferred straight in to specific bill accounts to cover weekly and fortnightly payments like rent etc, as well as money transferred in to a savings account, so we don't actually see this money and payments are covered.

Then I take out a small amount to cover food, petrol and weekly spending money for my husband and I. This cash I withdraw goes straight into labelled envelopes or labelled plastic seal money bags, and then means I only ever pay for things in cash from my envelopes.

I am not tempted to spend money because I don't use my cards, and I really think about what I want to use my cash on. When you use your card you don't realise that $10 here and $15 there all adds up and before you know it you have spent $100 on unplanned items that you could probably live without.

I also only pay cash for my groceries and will only spend my budget limit and am very good at sticking to this and anything over goes back on the shelf, and I fill my car up on $50 petrol per fortnight and that's it.

Now when I have money left over at the end of the week I put it aside in another envelope and this then gets used when something unplanned comes up and we need it, or we spend it on the family as a treat, put it in a Christmas fund envelope or in an envelope for something we are saving for.

It is so nice to see the money start to build up in the account because we aren't making any other withdrawals apart from the one-off withdrawal for our envelopes each pay day.
Contributed by Amanda Woodwood

12 Strategies for Coping with a Financial Emergency

Oh no! You're about to lose your job, or the car has died an untimely and very expensive death. You've only just started your emergency savings and you don't have six months' pay stashed away yet. So what are you going to do?

You may be tempted to panic, but don't!

You need to stop shopping, cut your expenses to the bone and stash that cash. Knowing that you have cash available to pay the bills will give you peace of mind and confidence to survive whatever the setback may be.

Here are some cash-saving strategies:

*Stop shopping immediately. Live on the food in your pantry and freezer, wear the clothes and shoes you have. Cut and/or colour your own hair.

*Make minimum payments on credit card bills. This is only a temporary strategy! As soon as you find a job or get the car fixed, go back to your debt reduction plan.

*Stop eating out (the potential savings here are huge). This includes buying lunches for work.

*Cook from scratch. It's not as hard or time consuming as you might think. Stick to basic meals to cut costs and save time.

*Don't be tempted to buy expensive, convenience foods.

*To really save at the supermarket, shop the perimeter of the store and avoid the centre aisles.

*Make $2 meals. It's possible to get your meal cost down to $2 per meal and still eat well. Cooking from scratch and buying what is on sale can slash your grocery budget. Options include grilled-cheese sandwiches with tomato soup, spaghetti with meat sauce, noodles with fresh vegetables and pieces of chicken, baked, stuffed potatoes, omelettes, meatloaf, casseroles and stews and homemade salads such as coleslaw, potato and noodle salads. There is a section in the Recipe File for $2 Dinners.

*Have a garage sale. Clean your house and garage and make some money too. If your clothes are in good shape and reasonably in style, consider consignment shops. If you have more valuable items, advertise online or other publications where you don't pay unless you sell.

*Cancel your pay TV, it's a luxury you can't afford.

*Cancel your Internet access. Use computers at your public library for free.

*Stop renting videos. Check them out of the library, instead.

*Leave the car at home whenever possible. Walk, ride a bike, car pool or use public transport.

Even if you don't have a financial emergency, take the opportunity to start your emergency savings fund. If you already have one, you can use these ideas to fast track it, or increase it. Having your own 'financial insurance' will take away a lot of stress and a cash emergency won't seem such a disaster.

And last of all, stay positive. Meet the challenge head on and use it to improve your financial skills.

Grocery (or any) Shopper Beware

I harp on a bit about how it is vital to know how much your shopping is going to cost before you get to the register and to check your dockets and receipts before you leave the store.

Those two points have been reinforced in my mind twice this week as I've been shopping and buying to add to the pantry and our stockpile.

I was shopping at Coles and in amongst the items I bought there were three items I'd been overcharged on, and to make it a little more absurd I'd been charged twice, but two different prices for one of those items - so four mistakes, totalling almost $20. I was in a hurry and didn't check the docket until I was at home and trying to work out why my figures didn't add up.

I wasn't sure whether to laugh or cry when I figured out what had happened. Laugh because my figures would have been correct without the supermarket's mistakes or cry at my stupidity in not checking before I left the store, because that involved going back, with the goods and the receipt and waiting for it all to be worked out in-store so a refund could be processed.

Then yesterday I was shopping in an Aldi store and a discounted item I bought (don't you just love the Aldi discounts?) scanned at full price of $29.95 instead of the discounted price of $5. Kudos to the young man on the register, he picked it up straight away and fixed it immediately, so no loss of money, time or energy there.

These two events have had me thinking: if just one item on every second shop was scanned at a higher price, and the customer didn't pick it up, in every store of all three major supermarkets, every day of every year, how much would our mistakes be adding to their profits? Because they all make a profit, and now I'm thinking that lack of diligence by yours truly  and other customers is adding to it.

So I apologise in advance for holding you up if you are behind me at the checkout in the future, but Wayne and I work far too hard for our money to glibly make an involuntary donation to any supermarket's profits.  I choose to keep my money in my purse, and my profits in my bank account.

In the future I will be double checking the price of every item I buy as it is scanned and picking up any errors straight away, and I suggest you do the same.

No.

A tiny word, just two letters, but so powerful, especially when it comes to money.

Tell your kids, “No.”  

Even if you’re just throwing a Milky Way or a cheap toy into the shopping trolley, at the end of the month it all adds up - to junk in the house, less money in the bank and probably cavities. At the end of the year that $2 or $5 a week adds up to a lot of money you no longer have to spend on things you really want or need.

Just say no.

Tell yourself, “No.”  

Make your own coffee, and take it with you in a reusable mug.  Don’t buy that book. Don’t get those shoes, regardless of how cute they are or how cheap they are on sale. Don't pick up takeaway on the way home - use what you have to prepare a meal (and it doesn't have to be gourmet - breakfast for dinner anyone?). 

 Just say no.

The more you say "no" instead of opening your purse the more you will be able to save, the more you will have to pay down debt, the more you will have to build an emergency fund.

Just say no.

Buy just what you need, then use just enough

Let's face it: human nature will prompt us to purchase more things than we actually need when we realize we have more money to spend. However, by only purchasing what you need, when you need it, you eliminate wasting your money. Many times, in stocking up on groceries and other products, plenty ends up being wasted.

Avoid waste at home by purchasing just what you need each time, then use just enough of what you've bought so it lasts twice as long - you don't always need to use the amount suggested on the packaging.

This may seem the opposite of what I usually say about building up a stockpile and buying in bulk, but if you are just starting out living the Cheapskates way, take your time and think about each and every purchase. Then you will know what you use, how much you use and how often you use it.

Those tins of smoked oysters might be on sale for a rock bottom price, but if you only use one tin a year, buying a box, no matter how cheap they are, is a waste - of your money, your space and eventually the smoked oysters because after a couple of years you know you'll throw them out.

When you do stock up, only buy what you can use in a reasonable timeframe - think of those smoked oysters - and you'll save money, time and energy and eliminate waste.

The 5 Commandments for Managing Bill Payments

Paying your bills each month is essential to continue to have the services you need and the credit you've earned without interruption. However, life happens and there are times when that doesn’t mean you are always on top of getting those bills paid.

How can you best manage recurring expenses?

These five commandments for managing bill payments can help you stay on track:

1. Focus on necessities first. In many cases, the challenge with bill payments comes from trying to manage expenses. You have a limited income, so you want to ensure the money is spent most efficiently. To do that, ensure you're paying for necessities first.

2. Review bills for accuracy. You'd be surprised how often billing companies make mistakes! In order to pay only what you're supposed to, constantly review your bills.

3. Set up recurring payments. Sometimes the challenge lies in trying to remember when to pay bills. If that's the case, and if the bill totals are usually the same each month, setup recurring payments.

4. Pay bills online. If time is a real issue for you, avoid standing in line to pay bills. Many companies facilitate online payments. Make use of it, it's easy and can be done when you have the time!

5. Know your due dates. Being able to keep track of due dates can help you manage bill payments.

These are pretty easy commandments to follow to effectively manage your bill payments.

Remember it's your responsibility to maintain a positive history of payments. Use these strategies and you'll be surprised at how easy it can be!

Card Eating ATM Causes Epiphany

Sometimes it takes what appears to be nothing short of a disaster to show us just how easy it is to stop spending, as Cheapskater Jessica found out.

Card Eating ATM Causes Epiphany

At our lowest point financially I recently ran up to a local ATM to get some money out only to realise I didn't have enough in our account. I then resorted to my credit card (thinking doesn't matter, I will fix it up later... I have done it plenty of times) only to put my pin number in wrong three times. The card was eaten by the ATM there and then! Panic set in. I had no cash! I rang the credit card company only to realise I had to fax this, that and the other, it could take up to ten working days etc. Once the panic had subsided I realised I was only two days away from pay day and bugger it who cares if I can't use that card anyway! So I have not faxed anything, I have just realised I don't need it and now I have been transferring as little as $5 left over from my pay day each week onto the credit card. This card may take time to pay off but at least I know I can no longer to any damage with it financially. I am actually looking forward to paying this money sucker off!
Contributed by Jessica

$5 Here, $5 There Really Adds Up

When my daughter was getting married a couple of years ago I didn't know how I was going to afford a really beautiful Mother of the Bride outfit. So I decided that I would try to not spend the $5 notes that came my way as change from breaking a note for another purchase. It worked. Whenever I got $5 as change I would put it in a separate purse and forget about it.

Well they really started to add up pretty quickly. Within a few months I had a few hundred dollars.

When I went shopping for my outfit I ended up finding a truly beautiful outfit for just over $300 dollars and only had to add $25 to what I had saved in $5 notes. It saved me having to put my purchase on credit card and pay back over several months, not to mention the interest that would have been added as well.

So I still save my $5's. It's great for Christmas presents, birthdays, and holidays. Now I never spend my $5's until that special time that I've been saving for.

Contributed by Dianne

Save Money and the Planet Simultaneously

Approximate $ Savings: $185 per month

We've found that saving money and saving the planet go hand in hand! My household has adopted the following rules that are set to save us (and our planet) a fortune!

1. Avoiding purchase of plastic products: this rules out bottled water (Melbourne tap water is fine!), soft drinks (really add up in price) and sauces etc. (we have had fun and saved money making our own!) not to mention avoiding the negative effect that plastic has on our environment.

2. Everyone showering consecutively: this means you don't waste water and energy whilst the shower heats up and you have to stick to your 4 minute shower or someone else misses out on hot water altogether!

3. Grey water: we catch our shower water in a bucket and as we have a small yard this is all we need to completely water our growing garden.

4. Carpooling with neighbours: my next door neighbour works near where I do, so with a little bit of organisation I can carpool with him and we save on fuel and carbon emissions daily and get to have a good chat on the way which reduces traffic stress!

5. Changing work start time: my neighbour and I have been lucky enough to be allowed to start and finish work later. This means that we avoid lots of traffic and fuel usage caused by 'stop start driving'.

6. Combine trips: we have run all our errands in one go and shopped once a week, this prevents popping out and spending money unnecessarily and fosters an innovative 'make do mentality' which has resulted in some interesting new dishes to add to our repertoire too!

7. Getting rid of our clothes drier: given how bad it is for the environment we decided to sell our drier. We're quite happy to make do with our 2 clotheshorses and remove the temptation (plus our electricity bill is far smaller and we made some money on eBay!)

8. Make use of natural light: minimise the lights on in the house by cooking etc when it's still light outside so that when it's dark everyone can be in the same room and there aren't lights on all over the house. -

9. Installing energy saving light bulbs: speak for themselves

10. Composting: we've started a compost heap that is free and easy to maintain. It's fascinating to see nature and science at work in front of your very eyes. Additionally, you save a fortune on buying soil enriching products and plants that die due to poor nutrients! This is great for us as we are building a garden from scratch and are spending a great deal on it at present.

We are always finding more ways to save money and the planet environmentally. It's great to have that extra motivation to save and feel proud of yourself! So far the savings financially have on average amounted to the following: $100 quarterly energy bill, $30 off weekly fuel bill, $40 month on potting mix and replacement plants.

Contributed by Rachel

Small Adjustments Combine for Large Gain

Approximate $ Savings: $2,500 annually  

Becoming a seasoned "Cheapskate" has taught me to always be on the lookout for ways to save $$$. At first glance, many things may not seem to be worth the effort, however the results, when combined and calculated over a years time, are significant. For example:

• a call to the phone company saved me $5, 
• a change in cable service -$13, 
• called the refuse company to discuss rates -$3, 
• closed our Safety Deposit box -$2.10, 
• switched from disposable to reusable (dish rags, napkins, plates, etc.) -$6, 
• eliminated most all junk food purchases -$33 (and 10 lbs.:), 
• one additional week between hair appointments -$10, 
• cancelled daily newspaper delivery $8.33, 
• on-line bill payments -$3.33, 
• reduced electric -$15.50,
• natural gas -$8.33, 
• water-$2.50, 
• practice ESSENTIAL spending -$86, 
• use Cheapskates washing powder -$12.50. 

Combined, these small monthly changes save us (at least) $2,500 annually.

Happily, we can add to that another $300, as we are now able to avoid the late penalty on our property taxes!

After getting started, it's become a bit of a game, and the savings just keep coming!
Contributed by Laura Toy

Living within Your Budget

The best budget is the one that works for you.

If your budget isn’t realistic for you, then adjust it until it becomes realistic.

Keep your budget up to date so you can continue to enjoy its benefits.

The Envelope Method requires you to move to a cash-only system and this is a great way to get your budget under control:
‣Each payday, withdraw the cash from the bank, then divide the cash into different envelopes for each expense category.
‣Use cash for all expenses. Once you spend the money in that envelope, that’s it for that week.
‣Each day, put the cash from that day’s spending money envelope into your pocket or purse. That’s your spending money for the day. When it’s gone, stop spending!

If you find that you’re spending more than you make, you have two options:
‣Make more money.
‣Reduce the amount you spend.

It's easy to cut those variable expenses, like entertainment, food, petrol and energy expenses. They are the expenses you have complete control over. Start by trimming your grocery budget, cutting back on entertainment, planning car trips to save fuel and filing up to coincide with the cheapest day in your area to buy fuel and watch the power you consume - turn lights off when you leave a room, keep the freezer full, turn appliances off at the power point.