Finally Frugal

Aside from too-expensive cable and internet, one of the things many people waste money on is food, because they don’t plan ahead and don’t know how to shop strategically. Eating out can seriously damage a budget; learn to make your own food (take leftovers to school and work), and be a smart shopper at the grocery store. Here are some tips:

1. Buy in bulk. Shop the bulk section of your least expensive grocery store first—then do the rest of your shopping. You WILL save money (and packaging) this way.

2. I religiously, religiously, check the per ounce or per pound price on the shelf stickers. If your store doesn’t provide this information, ask the store manager about it, or go to another store! By noting how much I’m paying per ounce, I know at a glance whether the 16 oz spaghetti sauce at $1.89 is cheaper than the 20 oz sauce for $2.05.

3. Apropos of the first two tips, create a price book. There’s nothing more satisfying than being able to determine that the “sale” price in a weekly circular is no less expensive than the regular price at a low-cost grocery store.

4. I purchase food that is inexpensive, long lasting, and can be used in many different recipes. Example? Potatoes! I also eat a lot of beans and rice, in different incarnations.

5. I don’t buy much meat or poultry.

6. I buy store brands (generics) when I can. This includes sauces, sugar, bread, frozen vegetables, and many other items.

7. I shop at a chain called the ‘Grocery Outlet’ for items like shampoo, conditioner, toilet paper, soaps, and cleaning supplies (sometime food, too). I rarely pay more than .99¢ or maybe $2.00 for these products. I’m also starting to use more natural cleaning supplies. White vinegar is a wonder product!

8. Check Rite Aid (or CVS, if you’re lucky enough to have one in your city) for ‘buy one get one free’ or even ‘free after rebate’ deals for household items like toothbrushes, toothpaste, and shampoos.

9. I grew up in a home where dinners consisted of a meat or other protein dish, salad or cooked vegetables (or both!), and almost always bread of some kind. I don’t do that. Instead, I try to find recipes that include all of these items (usually a casserole, stir fry, or soup of some kind) in one dish.

10. Snacks for work and school consist of fruit (usually bananas), dried cranberries (from the bulk section), or crackers. Generally, I’m looking for snack food that is inexpensive, easy to carry in my bookbag, and not completely unhealthy.

11. Leftovers. I love them. I can eat the same thing for days and days if I’m craving it (like lasagne). Also, bringing food to work keeps me from spending $6.99 on a burrito at Chipotle every day.

12. “How can you afford to make lasagne”, you ask? I substitute expensive cheeses (like ricotta and mozzarella) with cottage and cheddar cheese. Also, I never, ever buy pre-shredded cheese.

13. Coffee. I love it. I brew it at home and bring it to work in a thermos and a travel cup, so I never run out.

14. Free food. Bring it on! I work at a university, where the free food is abundant. There are receptions and meetings where the muffins, bagels, coffee, tea, or even cold cuts and salad are available for those who are invited.

15. Grow your own! Last summer I feasted on the most amazing tomatoes grown in my yard.

16. I don’t drink much alcohol at home. This decreases my grocery budget substantially. 17. I also don’t drink much soda.

18. Top Ramen: not just for college students! This is a great, low cost base for other dishes. Lose the overly-salty seasoning packet and create your own chow mein using fresh vegetables and the protein of your choice!

Is that all? Probably not. There are so many ways to save money at the grocery store, if you’re willing to cook from scratch, buy in bulk, purchase store brands, and be creative.

Several months ago, I began keeping track of my grocery purchases, and created a price book. This has been incredibly helpful—I’ve learned where the lowest prices are, and am much more familiar with the prices of items I buy regularly. This allows me to look at advertised ‘sales’ at other stores, and know immediately if the sale item is truly a good deal.

Because food prices have risen so quickly and consistently over the past few months, some journalists are beginning to suggest that buying in bulk might be a good way to cut down on grocery costs. I’ve been lurking around the bulk section at Winco for months, checking out the prices and often making my purchases in bulk rather than in the packaged food sections. I decided, out of curiosity, to note the prices in the bulk section and then compare to prices for store brand (where available) to see just how much can be saved by buying in bulk. Luckily, my store of choice (Winco) shows the per pound or per ounce price on the shelf sticker, making my comparisons easy. Here are the results:

White, long grain rice
Bulk: 3.8¢ an ounce
Store brand: 5.7¢ an ounce

Jasmine rice
Bulk: 4.1¢ an ounce
Pre-packaged, not store brand: 9.6¢ an ounce

Brown sugar
Bulk: 51¢ a pound
Store brand: 55¢ a pound

White granulated sugar
Bulk: 48¢ a pound
Store brand: 48.8¢ a pound

Quick oats
Bulk: 3.1¢ an ounce
Store brand: 4.2¢ an ounce

Walnuts
Bulk: 34.3¢ an ounce
Planter’s: 38.4¢ an ounce

White flour
Bulk: 32¢ a pound
Store brand: 35.2¢ a pound

Chocolate chips
Bulk: 11.7¢ an ounce
Nestle: 21.2¢ an ounce

Spaghetti
Bulk: 6.4¢ an ounce
Store brand: 5.9¢ an ounce

Parmesan cheese
Bulk: 24.8¢ an ounce
Store brand: 23.5¢ an ounce

So there you have it. The only item that was more expensive (of the items I reviewed) in the bulk section was spaghetti! And keep in mind: I only looked at the prepackaged store brands; if you regularly buy name brand items, your savings will be even greater. Something to consider: when you purchase bulk items, many times you’re helping the environment as well. I save my oatmeal container (the big Quaker oats tub) and my plastic parmesan cheese container. Then I refill them when I bring home my cheaper bulk versions.

Here’s another tip. Bulk sections are not all created equal! When I was finished at Winco, I went across the street to FM, to size up the competition. The bulk section is relatively small, so most of my items weren’t even available there. In addition, Fred Meyer only gave prices in pounds, not by ounce. Of the items that were available at Fred Meyer, the difference in price was substantial.

Walnuts
FM: $11.99 per pound
Winco: $5.48 per pound

Quick oats
FM: .89¢ a pound
Winco: .49¢ a pound

White flour
FM: .79¢ a pound
Winco: .32¢ a pound

Jasmine rice
FM: $1.29 a pound
Winco: .66¢ a pound

Hmmm, why are the prices so much higher at FM? Answer: advertising. Fred Meyer sends out weekly advertisements in the newspaper, runs TV commercials, and purchases huge billboard ads throughout Portland. When you buy your $11.99 pound of walnuts, you’re helping FM with its advertising costs. Also, FM offers more than just groceries: you can buy clothing, jewelry, housewares, electronics, and many other items there. I would wager that the much higher grocery prices are making up for losses or lower profits in other areas.

The lesson in all of this? It definitely pays to take a small notebook with you when shopping, and to pay attention to per ounce and per pound pricing. Make a detour into the bulk section of your local grocery store, and shop around. You can experience substantial savings if you’re willing to spend an extra 20 minutes or so every few months researching grocery prices.

I spend a great deal of time studying at the public library. Since I’m keeping my thermostat at 58 degrees this winter to reduce my exorbitant heating costs, I find the tables at the library to be a much warmer substitute for my living room couch, where I would be buried under three layers of blankets and two cats, wearing wool gloves and a hat. It’s kind of difficult to really learn and internalize the difference between test reliability and validity when one’s teeth are chattering.

Another benefit of the public library is that I have access to all sorts of magazines and newspapers that I’m too frugal to actually subscribe to.  I took a look at an old Newsweek, the front cover of which shows a lonely highway stretching into the distance, along with the title: ‘The Road to Recession”.

One of the shorter articles describes how consumers can ‘survive’ a recession, which is particularly relevant given today’s economic climate.

• Protect your job: in other words, this is not the time to tell your boss just how lame, ignorant, or ineffective he or she is. Instead, it’s time to act really busy—or, if you can stand it, actually get busy and do some work! The article suggests getting to work early and leaving late, possibly skipping lunch, to prove to the boss that you are indispensable. In my case, my boss rolls in around 9:30, so getting to work early would be a waste of my time. . . .
• Protect your portfolio: if you own any stocks, hold onto them (there are, of course, always exceptions to this advice), because at this point you will probably be selling low and later buying high, which is pretty much exactly the opposite of what successful investors do. My stock portfolio is tiny (the remnants of an investing group I joined many years ago) and I wouldn’t know how to sell even if I wanted to.
• Protect your pocketbook: ahhhh, this is the one I can relate to! Pay off debt (I’m trying, I’m trying!) and think about refinancing the house if you can get a better rate to reduce your monthly payments. This latter suggestion is something I’m toying with. My monthly mortgage payments make up between 50-60% of my net income (when my second job is included). That’s way too high. I either need to sell the house, or decrease the payments in some way.
• Protect your psyche: realize that recessions come, and recessions go. They are a normal part of the economic cycle, apparently. By paying down debt, considering ways to increase your income, and increasing savings, you can increase your emotional or psychological sense of security.

Regardless of the general state of the economy, these are all ideas that I’m either implementing already, or am considering as I try to change my habits and improve my chances of attaining financial independence.

This is a blog devoted to frugal living.  After over twenty years of blindly spending more than I brought in, I recently decided to (drumroll, please) live below my means (what a concept!) With this blog, I invite you to accompany me as I work to pay off debt, increase savings, and finally find financial independence!

So far, I’ve paid off almost $5,000 in credit card debt.  Now I have my student loan debt ($56,000 and growing daily) and mortgage to repay.  I’m working two jobs for a total of 50 hours per week, all while going to school to get a degree that will hopefully allow me to obtain a job that will pay more.

I used to shop like a maniac, spending upwards of 110% more than I actually brought home each month.  Using frugal, simple-living strategies, I managed to get a handle on my spending and am now actually living beneath my means, while sending upwards of $400 a month to savings. As I share my own struggles I’d love to hear your own stories of debt repayment, frugal strategies, and tales of success in a society that is focused on consumption.

Stay tuned for adventures in frugal living!