Scrooge's Penny-Pinching Tips
Thursday, December 18, 2008 | Bob De DeaRating:
In this season of gift-giving and pausing to reflect on the year past, I’m going to take a little break from writing about investing to talk about scrimping and saving. Take it or leave it, and don’t think of it so much as advice as “Pointers from the Pen of Bobby D”.I am not a wealthy man. I’m a performer and, for better or for worse, the arts are not highly valued in our society. I’m left to scrounge out a living – albeit doing the thing I love – and thereby exercising what I like to call my “impecunious impulses”. (Imagine, if you can, interviewing for a new job every month, without end. Such is the life of an actor, with no guarantee of employment - even health care eligibility is based on either income or weeks worked. Circumstances notwithstanding, I am a proud member of all three actors’ unions.) On top of all that, growing up the son of Depression-Era parents has left an indelible thriftiness on my artistic soul.
So I confess I love those articles that describe “Ten Things You Can Do to Save Money Now,” because I’m always on the lookout for additional ways to curb expenses. The trouble is, when I go down through the “Ten Things”, I more often than not end up thinking, ‘I know that one. Doing that one. Uh-huh.’ I get to the end of the list and shout out, ‘I’ve got five more for you!’
Today I’m going to give you some tips to make your life simpler and less costly. This is a selective list and in no way meant to be comprehensive. And I won’t bother with the ones that everybody talks about: Turn down your thermostat, use compact fluorescents, recycle, compost, get new windows, drive more slowly, and so on and so forth. I’m getting down to the nitty-gritty of use and reuse. Some of these will save you tons of dough. Others just make sense. So here we go:
First of all, invest in a good espresso maker and stop buying a $3 cup of coffee every day. You can make lattes and cappuccinos at home. Buy a good organic coffee (beans or ground) and establish a ritual at home every morning. You’ll appreciate that glorious smell and that robust taste even more. Savings (after you’ve recouped the cost of the maker): Around $750 a year.
Don’t buy plastic bags for food. Ever. We use 88 billion plastic bags annually in the U.S. alone. For those who care, that’s about 12 million barrels of oil. “But, Bob, what will I put my sandwich in for lunch?” First of all, kudos to you. Making your own lunch is another of my high-on-the-list tips (Savings: From $1,250 to $4,000 a year, easy). What I would say to you is, “Do you eat cereal? Do you buy bread?” Reuse the bread bags for sandwiches. Reuse the bags that cereal comes in as well – the plastic is strong enough to be used in the freezer and can be secured with a bag clip or binder clip or – get ready for it – a clothespin. (Even better, for a cool way to keep that chip bag closed without a clip, check out this video: http://www.instructables.com/id/SFRS6NCF2297C17/.) Savings (assuming a use of three bags a day, which are tossed after one use): $100-$200 per year.
Two corollaries to the above: (1) Break the habit of using paper towels. Use old cloths or hand towels or reusable microfiber cloths. You’ll save a chunk of change and a tree or two. (2) Buy a bunch of 99¢ reusable grocery bags (like the recycled plastic or cloth ones you can get from Trader Joe’s or just about any grocery store or pharmacy now) and use them to haul groceries, beach stuff, extra clothes, books – you name it. They’re sturdy and often waterproof and easy to clean. You may not save any money, but you’ll be drastically reducing your use of plastic and paper grocery bags.
I keep a few of these in my car at all times and they are handy.
When it comes to credit, get a rewards or a mileage card. Use that one credit card to pay for everything. And then – and this is the most important part – pay off that credit card every month. The highest rate of interest is charged by credit card companies. If you are a home owner, get a HELOC – a home equity line of credit – then, if you fall behind, use money from the HELOC to pay off your outstanding credit card debt. The money borrowed from the HELOC will be at a much lower interest rate and any interest paid is deductible on Schedule A of your taxes. If you’re not a home owner, seek out a low-interest credit card with no annual fee (credit unions are a good bet). Go to www.bankrate.com and click on “Credit Cards” for a host of tools to find the best card for you. Savings: potentially hundreds of dollars a year.
Now here’s one you won’t see anywhere else, because it’s also a quality of life issue. According to a Nielsen survey:
Television watching has hit an all-time high, with the average American watching 142 hours of television monthly, up 4 percent over last year. The average home now gets 119 channels.
Whew! That’s almost five hours of television a day. So ... just turn it off! Play some cards or Scrabble or Monopoly with your wife and kids (we grew up playing Tripoley, or Michigan Rummy, so my dad got in a little poker playing in the mix). Or take a walk or do some star-gazing or read a book. You’ll save money and generate good will. Best of all, years down the road, you won’t feel like your precious gift of time was funneled into a black hole at the expense of more important things.
Remember, however, that by the end of the story, even Scrooge found new meaning in spending his wealth. Scrimping on unnecessary things makes it possible to give generously to the people and causes that matter most to us, during the holiday season and throughout the year.
Footnote: During this time of year, I’d just like to say that I’m grateful for the opportunity Tycoon Publishing has given me to change my financial position through its educational programs. ETF Master Trader has been a godsend. Thanks to the staff and team at Tycoon, and Happy Holidays to all.
[Editor's Note: Tycoon readers, what are your favorite money-saving tips? Leave your comments by clicking the link below!]
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Bob De Dea
Guest Contributor
The Tycoon Report
