This post may contain affiliate links. That means if you click and buy, I may receive a small commission. Please see my full disclosure policy for details.
Last updated – April 18, 2023
Can you use manufacturer coupons on Amazon? Read on to find out.
Most of us look to save as much money as possible while still trying to enjoy the finer things in life. It’s a good reason millions of people shop on Amazon every day. It has some of the best, high-quality products at generally reasonable prices. But as we all know, these prices can get even lower by using coupons.
Benjamin Franklin once said, “Be industrious and frugal, and you will be rich.” Not sure that using coupons will make you rich, but they can save you a great deal of money.
What you do with those savings is what matters. You could direct it towards getting out of debt or use it to buy more stuff. The choice is yours.
So, can you use manufacturer coupons on Amazon?
Does Amazon Accept Manufacturer Coupons?
Unfortunately, the answer to this question is NO! Amazon does NOT accept manufacturer coupons, physical coupons, or any coupons from competitors.
Unlike other big-brand stores such as Walmart and Target or even your local supermarket, Amazon does not accept coupons in-store and does not accept any competitor coupons.
This is probably because Amazon already offers extremely discounted prices on most products, and accepting competing coupons might not be feasible.
That does not mean you can’t use coupons on Amazon at all because you can.
Also see: Where can I find manufacturer’s coupons?
What Kind of Coupons Can You Use on Amazon?
Like any good retailer, Amazon does offer coupons for customers looking to save money when online shopping. There’s an actual page dedicated to just coupons alone.
On this page, you can find all kinds of Amazon coupons, with the most popular coupons appearing at the top of the page.
You can also filter through all the coupons on offer to find those that apply to your specific needs. You can even filter by category to find coupons for specific products.
Here’s a video showing you how to find and use Amazon coupons.
Also see: Best coupons apps to save money
Where Can You Find Amazon Coupons?
Simply navigate to the Amazon Coupons Page, where you can find all the coupons on offer. While this page is the go-to source for Amazon coupons, occasionally, you can find additional coupons and savings with “Amazon Daily Deals” as well.
Apart from the usual coupons on various products, other types of coupons can be found on Amazon. These include Amazon Pantry coupons as well as Amazon Subscribe & Save coupons. These coupons give you up to 10% off discounts and even free shipping for your daily purchases on the platform.
How Much Money Can You Save With Amazon Coupons?
While there is no specifically guaranteed amount of money you can save with Amazon coupons, they work like most other coupons. That means the savings you stand to make will be indicated on the coupon you choose when applied to the specific product as dictated by its terms and conditions.
As far as numbers go, you save anywhere between 5% and 50%, depending on the offer. These massive coupon savings are often very popular during big sales events like Black Friday.
Can You Stack Amazon Coupons?
Yes, you can stack coupons on Amazon, even on already discounted products. All you have to do is head to the Amazon Coupons Page and find the coupon for your desired product.
Now, if the product already has a discount on the platform, say a 10% discount, and you find a 5% discount on the same, you can clip that coupon and stack it onto the discounted product to get a 15% discount. However, this doesn’t happen very often. You can get lucky by keeping an eye on Amazon Daily Deals.
So, can you use manufacturer coupons on Amazon? No. But you can find wonderful coupon offerings on Amazon’s Coupon Page. The even better news is that these coupons apply across a wide range of the most popular product categories, so there’s a good chance that you can save on that product you have been meaning to buy.
The holidays are about six months away. Why wait until the last minute to shop? Answer: You shouldn’t. And you won’t have to if you have a decently stocked gift closet. Some people I know keep their eyes open starting on Dec. 26 and are finished by mid-summer.
It’s more than just the December holidays, though. A small selection of “evergreen” gifts (non-perishable, non-trendy) means you’re prepared for any birthday, anniversary or new baby that comes along.
Building your gift closet doesn’t have to cost much. I always trot out the example of the puzzle depicting the Sistine Chapel ceiling, the perfect gift for a jigsaw-loving relative. Still shrink-wrapped when I found it on half-price day at a thrift shop, it set me back a whopping 35 cents.
If you wait until the last minute, you’re likely to spend more. On the afternoon of the baby shower, you might be tempted to stop at the first store you see and grab the item that’s closest to the door. Compare that with, say, the 89-cent newborn outfit that I bought at a post-holiday clearance sale.
(It wasn’t junk, either, but made by Carter’s. And it was cute as hell. I made the girl-noise when I saw it.)
Incidentally, it doesn’t really have to be a closet. I keep my stash in a cedar chest that I bought for $15 at a garage sale. Not only are my gifts cheap, they’re guaranteed moth-free! Here are some ways to build an evergreen gift stash without breaking the bank.
Clearance tables. Both post-holiday and everyday “last chance” sales can yield amazing finds. In late December the department stores want to get rid of unsold hat-and-scarf sets, gloves, slippers and “executive” gifts (e.g., day minders or business card holders) — and all of these can be held until next year’s Christmas or this year’s Father’s Day. Classic toys (stuffed animals, puzzles, books) can be had for a song if you’re patient enough to wait until Target or Walgreens really wants to get rid of them. (I’ve seen discounts as deep as 90%.) Remember that clearance sales happen in a lot of places: hardware stores, craft shops, drugstores, souvenir stands, supermarkets, office-supply stores.
Tip: If you see a gift set (foodies, spa items) wrapped in a Christmas-y way, break it down and repackage the elements for a January birthday or for Valentine’s Day.
Deal sites. Dealnews, Eversave, My Bargain Buddy and other money-saving sites can be dangerous if you’re a compulsive buyer. Pick your spots, though, and you might see a lovely package of fancy teas that would be perfect for your sister, or a swell set of socket wrenches that would be perfect for your other sister. You’ll spend relatively little to get them, especially if you get site credits for having referred other members.
Social commerce sites. Whether you’re buying a gift item or a discounted gift certificate you can use to buy a gift yourself, Groupon et al. can really stretch your buying dollars. Recently I saw a $20 Old Navy gift certificate for only $10, which could translate into shorts, tank tops or other items (especially if you wait for clearance sales). You could also give the certificate itself, if it has a decently distant expiration date — a massage or a spa day would be a great gift for a babysitter, housecleaner or teacher. And a middle-school-aged niece or nephew might love to get $20 worth of buying power at Old Navy.
Thrift shops. It’s amazing what you can find in the secondhand store — and as noted above, some of it has never been opened. Extra frugal points if your finds are “tag color of the day” specials or found during half-off sales.
Note: GRS readers discussed at great length whether it’s okay to give thrift-store gifts. If this really makes you uncomfortable, don’t do it. But here’s my advice: Get over yourself. Nobody has to know where you bought the present unless you choose to tell them.
Yard sales. We’re heading into the prime garage-sale season. I’ve found beautiful books, stationery and card sets, candles, book-and-toy combos, journals and other items — all new or seemingly unused — that became birthday or Christmas gifts. None of them cost more than $1.
Tip: Toward the end of the day, go back to the yard sale — they might be ready to haggle.
Rummage sales. The ones held indoors are even better than garage sales, because you’re not sweating in 95-degree heat while you shop.
Social media giveaways/contests. Companies will do anything to get noticed — including hand out free clothes, books, sporting equipment, jewelry, TVs, computers or big bundles of cash. (Believe it or not, I once saw a contest whose prize was a year’s worth of health insurance.) To find such contests, try using Twitter hash-tag searches (“#giveaway” or “#freebie”) or checking a Facebook app called “Wildfire.” Or do it the easy way: Find yourself a good freebie blogger and watch for the giveaways you really want.
Tip: Free software such as Roboform will fill in contact info automatically, making your entries more efficient. Also: Google “second-chance drawing” — contest junkies, aka “sweepers,” know that the odds are much better than in the initial drawing.
Take online surveys. You have to be choosy, since some companies ask for a lot and give back relatively little. But some people make a decent little side income answering questions. Depending on the site, you can redeem points for physical prizes, gift cards or even cash. I’ve had a lot of luck with Clear Voice Surveys and Valued Opinions, through which I’ve obtained dozens of Amazon gift cards in the past few years. (These days I don’t keep them, though; I give them away on my website.)
Rewards programs. Got a credit card that gives points? Cash some in for gift cards you can use to shop or that you can give outright. Or join a rewards program like Swagbucks or MyPoints, which let you earn gift cards, prepaid debit cards and other items. I’m particularly fond of Swagbucks, myself; right now I’m squirreling away Amazon gift cards until Black Friday. I’ve also given Christmas gifts obtained through My Coke Rewards: magazine subscriptions, a NASCAR hat, a set of barbecue tools, T-shirts, movie tickets.
Tip: Ask family or friends to save My Coke Reward points for you. Check the recycle bins at work, or outside your apartment house, too.
Gift swaps. Got a gift you don’t want? So do a lot of people. Invite family and friends to bring over items, then trade to your hearts’ content. Try not to be sad, though, if someone brings a package of teas or socket-wrench set that look awfully familiar.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
32k salary is a solid hourly wage; above most minimum hourly wage jobs.
For most people, an entry-level job would be pay just over $32,000 a year. The question that remains is can you make a living off $32k a year.
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divided the money out evenly between all of the people.
But, the question remains can you truly live off 32,000 per year in today’s society since it is well below both the average and median household incomes. The question you want to ask all of your friends is $32000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $32000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $32k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$32000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 32k a year hourly. That way you can decide whether or not the job is worthwhile for you.
For our calculations to figure out how much is 32K salary hourly, we used the average five working days of 40 hours a week.
$32000 a year is $15.38 per hour
Let’s breakdown how that 32000 salary to hourly number is calculated.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $32000 by 2,080 working hours and the result is $15.38 per hour.
32000 salary / 2080 hours = $15.38 per hour
Just above $15 an hour.
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $11K to $43K per year, it would increase your hourly wage to over $20 an hour – a difference of $5.29 per hour.
To break it down – 43k a year is how much an hour = $20.67
That difference will help you fund your savings account; just remember every dollar adds up.
How Much is $32K salary Per Month?
On average, the monthly amount would be $2,667.
Annual Salary of $32,000 ÷ 12 months = $2,667 per month
This is how much you make a month if you get paid 32000 a year.
$32k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $32k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$32000/52 weeks = $615 per week.
$32000 a year is how much biweekly?
For this calculation, take the average weekly pay of $615 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x 52 weeks = 260 working days
Annual Salary of$32000 / 260 working days = $123 per day
If you work a 10 hour day on 208 days throughout the year, you make $153 per day.
$32000 Salary is…
$32000 – Full Time
Total Income
Yearly Salary (52 weeks)
$32,000
Monthly Wage
$2,667
Weekly Salary (40 Hours)
$615
Bi-Weekly Wage (80 Hours)
$1,230
Daily Wage (8 Hours)
$123
Daily Wage (10 Hours)
$153
Hourly Wage
$15.38
Net Estimated Monthly Income
$2,036
Net Estimated Hourly Income
$11.75
**These are assumptions based on simple scenarios.
32k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you make below the average household income, the amount of taxes taken out hurts your hourly wage.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 32000 a year after taxes?
Gross Annual Salary: $32,000
Federal Taxes of 12%: $3,840
State Taxes of 4%: $1,280
Social Security and Medicare of 7.65%: $2,448
$32k Per Year After Taxes is $24,432.
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$24432 ÷ 2,080 hours = $11.75 per hour
After estimated taxes and FICA, you are netting $24,432 per year, which is $7,568 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $32000 income can range from $21,872 to $25,712depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $32,000 income.
32k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences of living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $32,000 a year is going to be extremely difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can afford the cost of living and maybe save more money. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $32,000 a year is well below the average income that you would find in the United States. Thus, you have to be wise with how you spend your money.
What a $32,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to rent in a decent neighborhood in LCOL.
You should be able to meet your basic expenses each and every month.
Not be able to afford many of the fun spending luxuries.
Start saving with the 200 envelope challenge.
Ability to make sure that saving money is a priority, and very possibly save $1000 in 52 weeks.
When A $32,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 32k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending and extra expenses.
Break the paycheck to paycheck cycle.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$32k Salary To Hourly
We calculated how much $32,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
So, here is a handy calculator to figure out your exact hourly salary wage.
$32K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage 32k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $32000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$187
Savings
15-25%
$480
Housing
20-30%
$693
Utilities
4-7%
$107
Groceries
5-12%
$213
Clothing
1-4%
$16
Transportation
4-10%
$107
Medical
5-12%
$133
Life Insurance
1%
$10
Education
1-4%
$6
Personal
2-7%
$24
Recreation / Entertainment
3-8%
$60
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$631
Total Gross Monthly Income
$2,667
**In this budget, prioritization was given to basic expenses and no debt.
Is $32,000 a year a Good Salary?
As we stated earlier if you are able to make $32,000 a year, that is a low salary. You are making around or just above minimum wage.
While 32000 is a decent salary just starting out in your working years, it is a salary that you want to rapidly increase before your expenses go up or the people you provide for increase. If not, you will be left working multiple jobs to make ends meet.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $32k salary would be considered a lower class salary. You must make each dollar count in your budget.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 95 percentile globally for per person income (source).
The question you need to ask yourself with your 32k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in many modest cities a 32,000 a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a decent living at 32,000 per year.
If you are looking for a career change, you want to find jobs paying at least 35,000 a year.
Is 32k a good salary for a Single Person?
Simply put, you can make it work.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Learn exactly what is a good salary for a single person today.
Your living expenses and ideal budget are much less. Thus, you can live comfortably on $32000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 32k a good salary for a family?
Many of the same principles apply above on whether $32000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains is can you provide a good life for your family making $43,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 32,000 per year, then the combined income for the household would be over $64,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on 32000 Per Year?
As we outlined earlier in the post, $32,000 a year:
$15.38 Per Hour
$123-153 Per Day (depending on length of day worked)
$615 Per Week
$1230 Per Biweekly
$2667 Per Month
Next up is making $35000 a year!
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a lower-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 30,000 a year, that is a-okay place to be getting your career. However, if you have been in your career for over 20 years and still making $32K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
One of the best ways to improve your personal finance situation is to increase your income. Here are a variety of side hustles that are very lucrative. With time and effort, you can start enjoying the lifestyle you want.
As an Amazon Associate and member of other affiliate programs, I earn from qualifying purchases.
Learn how to supplement your daily, weekly, or monthly income with trading so that you can live your best life! This is a lifestyle trading style you need to learn.
Honestly, this course is a must for anyone who invests. You will lose more in the market than you will spend this quality education – guaranteed.
Read my Invest with Teri Review.
If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!
This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own business from scratch.
Learn how to buy and resell items from flea markets, thrift stores and yard sales. They will teach you how to create a profitable reselling business quickly
…no matter how much or how little experience you have.
Our friends Cody & Julie of Gold City Ventures are experts at creating five figures of passive income selling printables. Learn how to create your online printables business from scratch with our programs and templates.
Are you passionate about words and reading? If so, proofreading could be a perfect fit for you, just like it’s been for me! I’m excited to share how you can create a freelance business as a proofreader, just like I did.
The ultimate discounted bundle of my 4 best-selling courses and WordPress theme on how to build and grow a profitable blog.
Learn the best SEO practices and how to monetize your blog quickly!
Designed as a 101-level course on freight brokerage, you’ll learn the basics of freight brokering in this online course.
This course is designed for freight brokers in any setting, regardless of their employment status.
If you want to start your brokerage, we’ll show you exactly how to do it. If you are an agent or employee of a brokerage, we’ll take you through sales and operations modules designed to help you source more leads and move more freight.
You can make money as a freelance writer. Learn techniques to find those jobs and earn the kind of money you deserve! Plus get tips to land your first freelance writing gig!
This is the perfect side hustle if you don’t have much time, experience, or money.
Many earn over $10,000 in a year selling printables on Etsy. Learn how to get started by watching this free workshop.
The Empowered Business Lab teaches you how to sell your digital products naturally with strategies that just make sense.
Monica helped me find my momentum and my want to pursue my business again.
After taking a second job as a driver for Amazon to make ends meet, this former teacher pivoted to be a successful stock trader.
Leaving behind the stress of teaching, now he sets his own schedule and makes more money than he ever imagined. He grew his account from $500 to $38000 in 8 months.
Check out this interview.
Know someone else that needs this, too? Then, please share!!
Save more, spend smarter, and make your money go further
There’s not much that can make the pain of tax season less taxing, but restaurants sure try.
Come April 15 (tomorrow!), once your return is filed and the check in the mail to Uncle Sam, be on the lookout for tax-themed freebies and deals.
Be on the lookout for more offers from both national chains and local spots as tax day approaches—many restaurants announce their deals at the last-minute.
For now, add these to your list of possibilities:
Boston Market
The “Tax Day Chicken Meal Deal” offers two half-chicken individual meals for $10.40, no coupon required.
Each meal comes with half a rotisserie chicken, two sides and fresh cornbread. Available at all locations.
Bruegger’s Bagels
Sign up through the eClub or Facebook page by April 10 to get a coupon for a $3.50 “deduction” on the chain’s Big Bagel Bundles.
That brings the price to just $10.40.
Cactus Jack’s
Tax-day diners can redeem a special “1040 dining certificate” for $10.40 off the purchase of two entrees.
Good at any of the company’s Great New Hampshire Restaurants.
California Tortilla
Make a purchase on April 15 and say the code word “taxes shmaxes.”
You’ll be rewarded with a free order of chips and queso or salsa with your meal. Available at all locations.
Cohen Restaurant Group
On April 14 and 15, the California-based restaurant group has a coupon for $10.40 off the purchase of two meals and two drinks at participating locations.
Great American Cookie
Through the “Incomes the Sweetness” promo, tax-day visitors will receive a free original chocolate chip cookie.
Participating locations only, and only while supplies last.
Per the company’s announcement, “No purchase or proof of completed taxes is necessary.”
Hard Rock Cafe
Diners can sing for their supper on April 15.
After 5 p.m., pick a song and sing it in its entirety on the restaurant’s live stage, to earn a free entrée.
Participating locations only.
Muckleshoot Casino
The Auburn, Wash., casino’s Spice Bay Buffet will offer a special lunch and dinner buffet for $10.40 per person.
Available 11 a.m. until 11 p.m.
Orange Leaf Frozen Yogurt
Print out a coupon from the chain’s Facebook page to get a cup full of frozen yogurt and toppings for just $4.15, about 50 percent off the usual price.
Participating locations only.
Frugal Foodie is a journalist based in New York City who spends her days writing about personal finance and obsessing about what she’ll have for dinner. Chat with her on Twitter through @MintFoodie.
Save more, spend smarter, and make your money go further
Previous Post
What Happens If I’m Denied Credit?
Next Post
MintFamily With Beth Kobliner: Financial Literacy for the Entire Family…
Save more, spend smarter, and make your money go further
Are there items in your home that haven’t been touched in years?
If so, you’re not alone! Sometimes, things seem great in theory (especially when you see them at 2 AM on an infomercial).
But when they actually make it into your home, they become official dust collectors.
Watch out for these 7 tempting items – they’re famously not worth it!
Home Fitness Equipment
Average Cost: at least $30 (probably more!)
Pumping iron at home sounds great in theory (who wants to deal with a gym?) but when it comes down to it, many of us ignore the thigh master and treadmill that’s taking up space.
In fact, Consumer Reports found that nearly 40 percent of people used their home exercise machines far less than they had planned.
Instead of spending cash on at-home equipment, consider using a free app like Sworkit or Fitocracy.
That way, you can skip the pricey home equipment and the gym membership.
Banana Slicers
Average Cost: $10
We admit that this kitchen gadget looks cool, but let’s be real – how often do you really need to slice bananas?
We’re guessing probably not enough to justify a $10 fancy slicer.
Instead, use a knife! It’ll get the job done.
Note: Banana slicers aren’t the only kitchen gadget you should never buy.
Baby Wipe Warmer
Average Cost: $25
When you’re a first-time parent, the number of things you need to buy for a baby can be overwhelming, and it’s tough to know what’s really necessary.
We’re here to simplify life (at least a little bit): skip the baby wipe warmer.
Instead, warm a cold baby wipe in between your palms before you use it.
Your baby’s bum will stay warm, and you’ll have one less baby-thing to buy!
But listen, if you want to splurge on the wipe warmer to avoid any potential extra tears/stress/middle of the night soothing sessions, we totally get it.
Dog Bed
Average Cost: $50 – $80 (depending on the size of your dog)
Don’t get us wrong, we think every dog deserves a comfy place to sleep, but there are a lot of ways to make a dog bed without going to the store.
(And Spot will enjoy them just as much.)
Try making your own dog bed with pillows and old blankets or towels. Not only can you control how soft the bed will be, you’ll save some cash.
Tip: If you’re skeptical about the aesthetics of pillows and blankets, consider putting the makeshift bed in a suitcase.
Wine Stopper
Average Cost: $10 – $15 (and up!)
Someone once said that popping a cork is one of the few sounds in the world that brings true joy to the listener, but we don’t think it’s necessary to plug that bottle back up with a fancy-schmancy wine stopper.
Instead, just use a cork. Once a cork is back in the bottle, it does a great job preserving your wine.
If you want something a little more attractive, make your own stopper with leftover corks.
We love this geode version made by Emily at Cupcakes and Cashmere.
Alarm Clock
Average Cost: $20 (and up!)
Waking up in the morning can be tough, and an alarm can save the day if you’re prone to oversleep. But, you don’t need to buy a separate item just to wake you up.
Just use your cellphone! You don’t even need a smartphone to set an alarm – flip phones have an alarm built in, too.
DVD Player
Average Cost: $35 (plus the cost of renting DVDs…one at a time)
Do you remember when DVD players were luxury items that cost $100 or more?
Yeah, that’s because they were useful. Now, there are a slew of other ways to get your Leonardo DiCaprio fix.
Like Netflix!
You can get a membership to Netflix for $7.99 a month and have endless entertainment streamed directly to a computer, tablet or other device (like an Apple TV, PlayStation or Xbox). BrightNest is a free site that provides tools and tips to homeowners to help them save money, get organized and keep their homes in great shape. Sign up for a free BrightNest account today!
Save more, spend smarter, and make your money go further
Previous Post
Study Shows Teaching Teens Financial Literacy Pays Off in the…
Next Post
American Family Budget: Battling Frugal Fatigue
According to the Motley Fool, the average American family has $7,630 in credit card debt, $11,244 in student loans, $8,163 in car loans, and $70,322 on a mortgage.
However, before you think the above amounts seem low, these figures include those who don’t have any debt. So, for example, when you only factor in those who actually have a credit card balance, the average amount shoots up to over $15,000.
All of the above shows that the average family has a lot of debt.
You’re different, though. If you’re reading this post, you are either close to paying off your debt or already have.
Paying off your debt, whether it be from credit cards, student loans, a mortgage, or something else, is an exciting time. A person works extremely hard and sacrifices many things in order to beat the “norm.”
But, what’s next?
Many don’t think about what to do after they pay off their debt. This can be a mistake and may even lead to someone falling back into debt.
As everyone probably knows, debt is easy to fall into, and that’s the last thing anyone wants after they have worked so hard to pay it all off. Here are my tips for life, after paying off your debt.
Carefully celebrate your debt-free life.
I recently heard about someone who paid off their debt and then threw a HUGE party to celebrate. This person bought drinks for everyone, had a caterer, and more.
I can only imagine how much this newly debt-free person had to pay for this kind of celebration and whether or not it put them back into debt. For some, this may be a fun way to celebrate, but it’s definitely not for everyone.
There are plenty of ways to commemorate your new, debt-free life. You don’t need to spend a ton of cash, or go back into debt to celebrate.
Here are several examples of how you can celebrate your new, debt-free life:
Throw a frugal potluck. Just as much fun as a catered party!
Have a nice family dinner at your favorite restaurant.
Pay for a fun experience with cash that you’ve saved up, such as a vacation, skydiving, a visit to a theme park, or something else.
Do a debt-free dance.
Scream “I’M DEBT-FREE!”
Think about getting rid of your credit card.
If you fell into credit card debt but still have a credit card, you may want to think about getting rid of your credit card completely.
While there are many benefits of having a credit card, there are negatives as well. For some, credit cards can easily lead to racking up more debt.
You should carefully examine your credit card behaviors and decide if having one causes you to spend more money. You may not truly need one.
The last thing you want right now is to fall back into your old spending habits and go back into debt!
Start an emergency fund.
Only 40% of families have enough in savings to cover three months of expenses, and even fewer families have the usually recommended six months worth of savings.
The percentage of people who have emergency funds while in debt is even lower. Many of those paying off debt don’t have emergency funds whatsoever, or they just have very small ones.
Well, now that you don’t have debt, you should focus on building an emergency fund.
These are just a few of the many reasons why.
An emergency fund is there to ensure you don’t fall back into debt due to unexpected expenses.
It can help you if you lose your job.
It is wise to have one if you have a high-deductible health insurance plan.
It is a good idea to have an emergency fund if you have a car. Your car may need a repair, get totaled, or some other unpredictable expense may occur.
It is necessary if you own a home. We all know, one of the lucky things homeowners often get to deal with are unexpected home repairs.
Emergency funds are always helpful to have, because they offer peace of mind if anything costly was to happen in your life. Instead of building onto your stress, you will know you can afford to pay your bills and focus on more important things.
Related: Everything You Need To Know About Emergency Funds
Keep your budget.
After you pay off your debt, you may want to get rid of your budget, as you probably have a little extra cash. However, right now is the perfect time to keep budgeting.
This wiggle room may have you tempted to spend all of this extra cash, but now is the time to be smart and think of something useful to do with it.
I recommend putting this extra cash towards a new financial goal of yours, such as one listed below.
Work towards a new financial goal.
Just because you’ve paid off your debt doesn’t mean you are done with your finances. Right now is the ideal time to start a new financial goal, because you are likely very motivated after finishing your debt payoff goal.
If you haven’t already, there are many other financial goals you may want to start working towards. These include possibly saving for:
Retirement.
An emergency fund.
Travel.
Starting a family.
Buying a home.
Buying a car.
Have you ever fallen back into debt? What happened? How much debt do you currently have?
Over the weekend, a friend and I were enjoying a couple of beers in my neighborhood. As we sat outside people watching, he drooled over every fancy car that drove by.
“That’s a whatever-whatever,” he would tell me. “It costs $100,000.”
I live in Los Angeles, where these symbols of affluence are common.
“I can’t help it,” I told him. “All I can think of when I see a car that expensive is that the driver made a terrible financial decision.”
“But what if the driver is rich and can afford it?” my friend argued.
We then got into a conversation about fancy cars, happiness and frugality. I argued that, no matter how much money I might make in the near future, I plan on driving my Corolla into the ground.
“You wouldn’t trade it in for a nice, sleek Mercedes?” he asked. I said no, and he looked suspicious. But here’s why I think I’ll drive my car until it wears out.
It’s Got Sentimental Value
The non-money answer is that I love my car because it used to be my brother’s.
Both of us had Corollas. I paid for the down payment on mine and spent five years paying it off completely. Since college, Old Trusty and I had been through a lot together; he had a good 150,000 miles on him. So I wanted to take him with me when I moved to California, but my parents thought he was unfit to make the trip. My car was a 2004, and my brother’s was a 2008 with considerably fewer miles. For some reason, when my brother went off to college, my parents bought him a new truck (how come I never got a new truck, guys?). Mom and Dad insisted I accept his newer, less worn-out Corolla, saying it would give them peace of mind.
Who am I to turn down a better car and worry my parents? I said goodbye to Old Trusty and drove my brother’s car to LA.
Maybe it’s sappy and weird, but this car reminds me of home. My apartment and pretty much everything in it (even Brian) came from LA. My car is one of the few things from home that I still have with me.
Car Payments Scare Me
“You wouldn’t want a car with heated seats and a comfortable interior?” my friend asked.
Of course I would. But as comfortable as heated seats are, they don’t feel nearly as good as not having car payments.
If my car was on its last leg, or if it was severely uncomfortable and I had a two-hour commute, it might be a different story. But for me, upgrading simply for the sake of upgrading isn’t worth the expense.
I’ve always found it odd that many people consider car payments to be a constant. For lots of people, paying off their car loan means trading in their car for a newer one with all new payments. I guess if you can work it into your budget, maybe you can afford it. But I’ve always been a fan of the Dave Ramsey school of thought:
“When it comes to money, normal is broke. You want to be weird, and weird people don’t have car payments.”
My Cost of Ownership is Low
Last year, my auto maintenance expenses totaled $523, but that included a new set of tires. Granted, I don’t drive much (mostly on weekends and road trips). But I still think this expense is relatively low. In fact, Edmunds shows that the total estimated cost of my car’s annual maintenance (not including the tires) is $150. For a Mercedes C-Class, it’s $260.
Let’s say I did buy a new car this year — even a new Corolla. At least until its eighth birthday, depreciation is the car’s biggest cost. At year one, the cost of depreciation is obviously at its highest — 57 percent of the total owner cost, according to Consumer Reports. Considering my current driving habits, my car would incur higher-than-ever depreciation while it sits in a parking spot. Seems like a waste. At five years, depreciation is still my largest expense, but at least it’s not depreciating as much (48 percent) while it mostly just sits there during the week.
This is a unique example, and perhaps it depends on perception, but the point is, the costs over time should be considered.
My Car Still has Value
I don’t consider buying a new car to be an investment. It doesn’t make sense to think of it that way, because it’s not an asset that has the possibility of appreciating. Yes, if you buy an expensive car, you can later sell it for more money than you could a cheaper car, but the same can be said for apair of boots.
I simply think of my car as part of my Stuff. Sure, I kind of need it, and it’s worth more than most of my other Stuff, but the bottom line is, I bought it to be used, not to watch its value increase. Thus, wouldn’t I want to get as much out of my money as possible?
While I don’t think of cars as investments, they also aren’t like the rest of our Stuff; usually, they’re a lot more expensive to replace. In an age when cellphones and computers are always upgraded, I feel like it’s easy to believe your vehicle needs an upgrade, too. I’m surprised at how many people say it’s “time for a new car” simply because they haven’t had a new car in a while. That’s a costly treat. Though some would argue upgrading a perfectly usable phone is a costly treat, too.
But What if You’re a Gazillionaire?
“But if you’re a billionaire, why not just buy a new car? It would be nothing to you,” my friend argued.
I’d like to think that,your idea of value often changes. “Comfortable” isn’t what it used to be, and you experience lifestyle inflation. This is where my friend and I came to a standstill — where do you draw the line? At 20, spending a couple of hundred bucks on a phone seemed like a huge waste of money, but nowadays, it’s just part of my budget. “You could just live bare bones, but why else do you have money?” my friend argued.
But then again, a $100,000+ Porsche Carrera is pretty far from bare bones. That’s an extreme example, but I see a lot of them around town, and I often wonder about the mind-set that went into spending that much on a vehicle.
Getting Off My Frugal High Horse
Having control over my finances makes me happier than any luxury vehicle could. But not everyone has as much fun with frugality. I also don’t get than new car itch. But plenty of people do, and I itch for other things that some people might see as a waste.
I’m about to take a pretty pricey vacation. I’ve been saving up for it, and I’m relishing it, the way many luxury car lovers would relish their purchase. I forget there’s an important difference between me and people who buy fancy cars: they like fancy cars.
There are plenty of practical reasons for not buying a luxury car. But we all have the urge to splurge on different things.
I’ll end with a question a GRS reader once posed. She wondered whether she should buy a new, luxury car. She could afford it, but she didn’t need it.
This comment was singled out as a favorite:
“If you can really afford it — you’re paying cash, you’re already putting enough money into your 401(k) to get the full employer match, you’re putting extra money into an IRA, you’ve got three (or six) months extra cash saved up, you don’t have any looming debt — then I think you should go for it. That’s what money’s for: buying things. […]”
I would agree with the above comment. When you’re financially free and fully prepared for your financial future, money is for buying things.
It’s a great comment. But I would have closed it with:
“Unless the car costs six figures.”
Even dismounted from my frugal high horse, I still can’t fathom a vehicle being that expensive.
Last week, I wrote about a conversation with my investment adviser. In the article, I mentioned that my current income roughly covers my current spending except that I’ve been spending an average of $2,000 per month on travel. Because of that spending deficit, I’ve been drawing down my medium-term savings, which should last me until the end of 2014. Meanwhile, I’m exploring a variety of options to bring the income and spending into equilibrium.
Some GRS readers were taken aback by this.
“Maybe the name of this blog should be changed to Get Poor Quickly,” Marsha wrote. Brian from Debt Discipline expressed the common concern that withdrawing from my investments seems like a step in the wrong direction. And Greg wrote that this blog must be losing its way if I’m writing about “stealing from the future to maintain a current lifestyle of travel.”
Other readers, however, took a different view.
Frugal Scholar noted that there’s nothing wrong with taking withdrawals if my total savings can support them. The always-perceptive Sam wrote, “If J.D. is living a life of semi-retirement, which it seems to me he is, then it would make sense to pull money from investments as that is what one does in retirement.” And EMH was even more direct: “Why have all those investments and not use them?”
I spent a lot of time replying to comments on last week’s article. In doing so, I noticed that I’d done a poor job of sharing all the facts about my situation. I’ve been timid about total transparency, which means readers don’t have all the info they need to make a judgment. Today, I want to change that.
It also occurred to me that there are differing opinions about what savings are for. On some levels, those differing opinions are a result of each of us having different plans and priorities. But I think something that gets missed is that money is used differently at different stages of life.
The Stages of Personal Finance
In February 2009, I wrote a meditative article about the stages of personal finance. This then led to a series of articles on the subject. Here’s how I defined them:
In the zeroeth stage of personal finance, we’re fumbling in the dark. We have no financial skills and has no idea how to best use our money. We live impulsively, reacting to life around us.
In the first stage of financial development, there’s a candle in the darkness, and we’re drawn toward the light. We become aware that certain actions produce better financial results. We learn basic skills like frugality and saving and debt reduction. We still make many mistakes, but we now have some idea of where we ought to be headed.
During the second stage of personal finance, we can see the light at the end of the tunnel. We’ve moved beyond the basics to create a solid foundation for future growth. We’ve eliminated debt, built up our savings accounts, established emergency savings, and begun to set aside money for retirement. We learn that we are in control of our financial future and not at the mercy of some vast, uncaring universe.
In the third stage of financial aptitude, you light the way for others. (Boy, my metaphors were strained!) Our foundation is solid, and we now spend years (or decades) constructing a financial edifice that will support us for the rest of our lives. That generally means paying off the mortgage, supercharging our income (and thus, our saving rate), and preparing for the ultimate goal…
The final stage of money management is financial independence. At this stage, we no longer need to worry about money. We have enough saved to do whatever we please. Because we each have different goals, strengths, and weaknesses, financial independence means different things to different people. Financial independence is really just another way to say “retirement.”
When I started this blog, I had just progressed from the zeroeth stage of personal finance to the first. Over the next few years, I documented my progress as I achieved greater knowledge and control of my money. Today, I am fortunate to be in that final stage of personal finance. I am financially independent.
What do I mean by financially independent?
Some people believe you’ve achieved financial independence only when you can live off the dividends or interest your savings produce. Others — including me — take the stance that you’re financially independent if, given reasonable assumptions (4 percent inflation, 6.5 percent long-term real return on stocks, 4 percent withdrawal rate, etc.) you’ll also draw down your principal.
As I shared in the comments last week, I could stop working today and live off my savings for the rest of my life. In essence, I could choose to retire early — if I wanted. But I don’t want to, and for several reasons:
By continuing to work, I earn more money, which does two things. When my income exceeds my expenses, I add to my stockpile. When my expenses exceed my income — as they do now — income mitigates how much I need to draw down my savings.
Work gives me meaning. I enjoy writing about personal and financial freedom. It’s fun. Plus, the emails I get indicate I’m able to help other people pursue their dreams as well. So long as work gives me purpose, I’ll continue to work.
For me, work creates social connections. I get to meet readers and colleagues and financial professionals, which helps me expand my knowledge and learn about lots of other things.
And so on.
When people choose to continue working even though they could call it quits, they’re said to be semi-retired. I think that’s an apt term, and that’s how I classify my current state. I am semi-retired.
What Are Savings For?
Saving is a key part of personal finance. In fact, I’ve come to believe it’s the key part of personal finance. When we save money, we build smart habits today while protecting and providing for our future.
That said, saving plays different roles in different stages of personal finance.
For instance, when you’re accumulating or repaying debt, saving ought not be a high priority. Aside from a minimal emergency fund (of $500 or $1,000), your money is better directed elsewhere. That’s why in my beloved Balanced Money Formula — which urges folks to spend less than 50 percent of after-tax income on Needs, more than 20 percent on Saving, and the rest on Wants — debt repayment is actually classified as saving. There are few uses for money that provide a better return than paying down credit cards and other high-interest loans.
Once debt is eliminated, however, saving becomes a high priority. During the second and third stages of personal finance, we work to build three types of saving:
Short-term saving, such as in an emergency fund. Most experts urge people to save between three and twelve months of their current spending so that they’re prepared if something unexpected happens, such as a job loss or catastrophic illness.
Long-term saving for retirement. This is why we save in a 401(k), Roth IRA, and other retirement accounts. We’re saving for the far future when we’ll be unable to produce income at the level we can today.
Medium-term saving is what I commonly call targeted saving. For most folks, this takes the form of saving for a car or a house or a vacation or for college education. But other people use medium-term saving as a way to fund sabbaticals and mini-retirements. Others use this money to quit their job and take a chance on a new business or a new career.
We save money for two purposes: To protect against an uncertain future and to help us fulfill our dreams.
Short-term savings and long-term savings are generally defensive. They’re a form of self-insurance to shield us from the slings and arrows of outrageous fortune. Medium-term savings is used more for offense; it’s to pursue the things that provide us pleasure and purpose.
There seems to be a subset of people, however, for whom it’s never acceptable to spend savings. We’re all familiar with folks who spend too much and never save, but there are also people who save too much and never spend. They’re mocked in books like A Christmas Carol and Silas Marner. They’re demonized in movies like It’s a Wonderful Life. But for some reason, in real life, these types are often considered heroes. This puzzles me.
I see nothing heroic about dying with a fortune. I see nothing noble about saving and saving and never spending. Money is a tool. Its purpose is to provide comfort and pleasure for ourselves and for others. Saving isn’t an end in and of itself. We accumulate savings so we can do the things we want to do.
My Own Situation
In the past, I’ve been close to the vest regarding my financial situation. My attorney, my accountant, and my ex-wife all wanted me to keep things quiet. However, after some recent conversations — including one with Pat Flynn — I’ve decided to be more transparent. I can’t (and won’t) reveal everything, but I’ll share some broad info.
I’ve already shared that I’m currently outspending my income by about $2,000 per month because of travel. That’s what got some people riled up last week. I’ve also shared that I have enough medium-term savings to maintain this deficit until the end of 2014 (meaning I have about $25,000 saved for this purpose). I also have about $5,000 in emergency savings. Plus, I’m fortunate to have over a million dollars in long-term retirement savings.
Note: Yes, it’s true: While writing a blog about how to get rich slowly, I got rich quickly. This irony is not lost on me. One commenter last week suggested that this could cause problems since I didn’t have time to build the necessary mindset to manage the money. This is a valid concern, and one reason I’m trying to be cautious and make only “small moves.” I’ve read plenty of horror stories about people who squander sudden wealth.
In an ideal world, I’d be earning an income that meets my expenses. And, in fact, that was the whole point of last week’s article; I’m looking for ways to bring earning and spending into alignment. At the same time, I feel no shame about outspending my current earnings by $2,000 per month. Why not? Because that’s what my money is there for.
If I were still in debt, this $2,000 monthly deficit would be a concern. If I had only minimal savings, it would still be a problem. But I’d argue that even for somebody in the third stage of personal finance, deficit spending for a short time is perfectly acceptable. And if you’re in the final stage of personal finance? Well, then that’s actually how you’re expected to be living. When you’re retired, you’re drawing down your capital.
Note: Last week I wrote that Mr. Money Mustache would probably advise me to be more frugal. I was wrong. After reading the article, MMM e-mailed me to say: “Just enjoyed your latest post on GRS. I think you might be underestimating your passive income from savings…Since this is more than your spending by a wide margin, I would feel very confident that all your work income is 100% optional. Of course, you should still do enjoyable work because it makes you happy just as it makes me happy. But the paycheck is really just some icing on the cake.”
In fact, the fundamental problem of personal finance is figuring out how much to save so that you can live off your investments in retirement and die with a zero balance. (Or, if it’s your intention, to leave money to others.) A quick calculation (using conservative assumptions) shows that I could choose never to work again and even if I lived until 80, my assets would allow me to live on about $4,000 per month for the rest of my life. If I sold my condo, that number would climb to $5,000 per month.
And if I chose to spend $2,000 per month, which was the idea that created such a fuss last week? According to FIRECalc, my money will probably never run out! And, in fact, because of the extraordinary power of compounding, my savings will continue to grow forever.
The Bottom Line
Last week’s discussion was fascinating. If I were to draw down my savings in one fell swoop in order to buy a car or to purchase a house, I doubt anyone would object to my actions. After all, that’s how we think savings should be spent. But because I’m choosing instead to use my savings to fund travel and to buy time while I look for additional ways to make income, some people think I’m being foolish.
I suspect that even after this long discussion of saving and retirement, there will still be folks who believe it’s irresponsible for me (or anyone else, for that matter) to draw down savings for this sort of thing. If that’s you, tell us what you find objectionable. Under what conditions do you believe it’s okay to draw down savings? Does it matter which phase of personal finance you’ve reached? How do you decide when it’s okay to use the money you’ve saved to do the things you want to do?
Frugality isn’t just about saving money—it’s about using your money efficiently. And some methods of saving cash take more time and effort than they’re worth. Worse, some habits actually encourage you to spend more.
“What’s a worthwhile money-saving strategy and what’s not depends largely on your personal circumstances,” personal finance expert Stefanie O’Connell tells mental_floss. “For example, when I was making less than $30,000 a year, I would spend hours hacking costs—couchsurfing, taking public transit, DIY-ing everything. At that time, the extra $5 a day or $20 here and there really did make a significant impact on my financial life, even if it took an extra two hours to get somewhere or get a task done.”
O’Connell says that as she started to earn more money, her time became more valuable. The frugal habits that once worked in her favor no longer made sense. “Before I could meet all my monthly expenses and financial goals, I never dreamed of conveniences like taking a cab to the airport,” she says. “I only began to consider convenience over saving once I could more than meet my monthly expenses and financial goals.”
Your own mileage will vary, too, but we asked a few personal finance experts which money-saving habits generally aren’t worth it.
1. CLIPPING COUPONS
Depending on your method, couponing can be quite a bit of work. “You’ll spend valuable time, attention, and mental bandwidth tracking and organizing your coupons,” Paula Pant of Afford Anything tells mental_floss. “But at best, you’ll save only a small amount of money, and at worst, you’ll wind up buying items you don’t need.”
Pant has a point. Coupons actually encourage consumers to spend more, and they usually succeed in doing so. A 2003 study from NYU [PDF] found that customers actually spent more money on items when they shopped with coupons. According to the study, “When coupons were not clipped, [the households surveyed] were very value conscious and paid an average of $0.51 for soups but when they purchased the category using coupons, their average spending increased to 0.66.”
Personal finance writer Victor Lim has made his own case for resisting the couponing trend: “The thought of spending time searching for coupons, clipping them, and driving around town to score a whole bunch of free toilet paper makes my head spin,” Lim tells mental_floss. “While saving a buck or two is nice, I’d rather focus on bigger and consistent savings.”
2. BUYING SECOND-HAND PRODUCTS
While buying used items can save you money, the risk might in some cases outweigh the reward. Jonas Sickler of ConsumerSafety.org says the most important thing to keep in mind when looking to buy second-hand is to consider the dangers associated with buying certain products—especially baby items like car seats, cribs, and strollers—without knowing the items’ quality or where they came from. “Frequently these items might be recalled, or simply outdated and no longer meet today’s safety standards. They may also be damaged, worn, or missing certain parts that make them unsafe for babies,” Sickler says.
You can look up recalls for all kinds of consumer products, from appliances to children’s products, on Recalls.gov.
3. BARGAIN SHOPPING
It’s fun to hop around garage sales and yard sales—just don’t fool yourself into thinking you’re saving money when do you so, says Pant. “Scavenging from sale to sale consumes hours of your precious free time, locks you into a consumer mentality, and baits you into buying items you don’t need.”
The same goes for outlet shopping. Just because you score a great deal on a bunch of stuff doesn’t mean you’re “saving” money. Before whipping out your wallet, ask yourself whether the items you’re about to purchase are ones you actually need.
4. GOING OUT OF YOUR WAY FOR GAS
“Once or twice a week, a lot of folks will ‘take the long way home’ to fill their gas tanks at an off-brand gas station that usually has the lowest prices in the area,” says Timothy G. Wiedman, a retired Associate Professor of Management & Human Resources at Doane University in Nebraska. Wiedman suggests considering a couple of factors in order to determine whether this practice is worth it.
First, you want to consider the amount of cash you’ll actually save: “If my 3500-pound SUV only gets 16 MPG in city traffic and I’m driving a total of 14 miles out of my way to tank up, is saving 9 cents a gallon when filling a 24-gallon gas tank cost-effective?”
Second, you want to consider the value of your free time. Is it worth the savings? “A lot of folks who consider themselves to be frugal, are actually penny-wise and pound foolish,” Weidman says.
There’s a case to be made for all of these habits. Maybe you like couponing or thrift store shopping—there’s certainly nothing wrong with spending money on things you enjoy. At the same time, you want to be mindful of your money habits, and that means acknowledging the time and effort involved with them.
My shower is broken. The water comes out just fine, and it doesn’t leak. But the temperature control is busted, so it only comes out at one temperature: as hot as it gets.
Here’s the embarrassing part: It’s been like this for a year.
Frugal or Lazy?
When the temperature thingy broke (and here you see that household plumbing is not my strong suit — a year after this thingy broke, I still don’t know what it’s called), I made some small adjustments. I went downstairs right away and lowered the temperature on the water heater so that the water coming out would be hot but not scalding. That means no super-hot water anywhere in the house, but since we have small children I was keeping it on the low side anyway.
I let my husband know what had happened, and he declared that he would fix it himself. Household plumbing kind of is his strong suit; he fixed a similar problem with the shower at our old house. It’s kind of a difficult job, though, so I offered to have a plumber come in just to spare him the hassle. No, he insisted, he was up for doing it. Just not right away.
Then the task kind of got lost in his chore cloud. We grit our teeth and take hot showers. Every night when the kids take their bath, they make a game of dumping a few buckets of cold water into the tub to get it to the right temperature.
For months I’ve been embarrassed by this state of affairs. What kind of real grown-up lets a basic household repair go for a year? Clearly, my husband and I are being irresponsible ignoring the broken thingy.
Then yesterday morning, while taking a shower, I thought, “Maybe we’re not being lazy and irresponsible. Maybe we’re being frugal.” After all, the broken thingy isn’t getting any worse. It’s not leaking into the walls or damaging the house. It just makes showering extra hot. So far, we’ve done a fine job of making it do, leaving us free to put our money and time into other things.
Frugality is About Choices
Now, I’m not suggesting that frugality is about ignoring regular home maintenance. One of these days, we’ll fix the shower. (And probably soon now that I’ve confessed to the world that it’s busted.)
What I am suggesting is that frugality is about making choices. Every frugal person focuses on what’s important to them, and cuts away the excess to do so. In this case, experience shows that being able to adjust the water temperature in our shower isn’t very important to my family. We’d rather spend our weekends playing music and gardening than get into this messy, time-consuming repair project. I could hire a plumber to do it, but I’d rather spend the money on yoga classes or a family camping trip. These fun things might seem like trivial luxuries next to the shower repair, but the truth is they add more to my quality of life than being able to adjust the temperature in my shower.
I suspect that every frugal person makes some odd choices like this one.
J.D.’s note: I think so, too. Our clothes washer has a broken knob, for instance. Over the past five years, we — by which I mean Kris — have used a pair of pliers to select the laundry cycle. When we bought this house, the windows were caulked shut. They stayed that way until we could budget to fix them. And so on.
One of the tricks of frugal living is to recognize that with careful planning and savings, you can have anything you want but you can’t have everything you want. Making a commitment to conscientious, intentional personal money management means making some choices. You need to develop the skill of discerning what best serves your goals, and keeping your spending and attention focused on those things.
Another part of being frugal is being able to pare back your sense of what you need. My former, spendthrift self would have fixed the shower immediately, the next day, even if it meant paying the plumber with a credit card to do it. I’d have seen it as a need. I would also have needed to immediately replace several kitchen gadgets that broke over the winter, and to take my bike to the shop for a spring tune-up.
There’s nothing wrong with doing any of those things. It’s not spendthrift to fix a shower or replace a vegetable steamer. But nowhere is it written that they’re mandatory either. I’ve been getting clean just fine with a broken shower, cooking up a storm without those kitchen gadgets, and safely riding the bike that I maintain myself. Turns out, I don’t really need any of that stuff.
In contrast, I’ve been going to yoga classes three or four times a week. I paid for these with a deeply discounted Groupon, but I’ll probably buy a full-price membership when that runs out. Yoga is expensive. A few years ago I would have considered it an unaffordable luxury to pay for yoga classes. I could just do yoga workout tapes at home. Even a few months ago when I made it a New Year’s resolution to get back into yoga, I was unwilling to spend money on this studio. Now that I’ve tried it, though, I see what a big difference it makes to my quality of life. It seems like a bargain. I’m calmer and happier — more focused. Not only are those good things in themselves, but they support my career. I’m doing more and better writing because I’m so healthy. That translates to more money. I could argue that the yoga classes pay for themselves.
For me, this gets at the core of frugal living: realigning all my spending to fit with my values. At first glance, the shower seemed like an essential, basic home repair. For me, it turns out, fixing it is really a luxury. I haven’t done it yet because it doesn’t directly support any of my financial or personal goals. I won’t be a better writer after it’s fixed, nor will I be closer to living debt-free. As long as we can make it do, getting it fixed is really an extra. One we haven’t decided to indulge in yet.
How to Make Frugal Choices
The mechanics of conscious spending are pretty simple. Before you buy anything, ask yourself some simple questions:
Do I have the money to cover this expense, or would I be going into debt for it?
Does this expense forward my financial goals?
Can I get this need or desire met without spending money on it? Could I spend less money?
Does this money need to be spent now, or can it wait thirty days?
These questions can be very useful for curbing impulse buys and keeping you focused on financial goals. I’m finding they can also help with less obvious resource sinks.
In getting ready to plant my garden, for example, I found that several of my large pots had broken during the winter. My first thought was that I needed to replace them, right now. On second thought, I was able to dig up a bunch of old plastic storage bins that will serve perfectly well as replacement containers for my garden. They’re not as pretty as new flower pots, but they were already here. Now I’ve got less clutter, more money, and a garden that’s ready to plant.
The core motto of frugal living is “use it up, wear it out, make it do, or do without”. How you’ll choose to live that motto is up to you. It’s important to question every expense and ask yourself how necessary it really is. Sometimes, the answers will surprise you.
J.D.’s tangential note: You have no idea how excited I am that after all these years, I’m finally able to link to my chore cloud concept. The chore-cloud is well-known among my friends, who find it amusing, but I’ve never found a way to bring it up at GRS. Now my life is complete.