From a financial perspective, this makes total sense. I’m putting my money to work. From a practical perspective however, it requires a lot of maintenance – I spend a portion of each week tweaking my budget to keep it at a zero base. Personally, I’m okay with this. I understand a lot of people wouldn’t be. Emotionally, it also has the drawback of making me feel like I’m permanently a bit short.

I am also very much an advocate of the “pay yourself first” concept. That is, every time you get paid (or at the beginning of each month, in my case) you put aside money for savings and investments. I’ll be the first to admit I have very aggressive savings/investment goals. So, when the need or desire arises to spend money on something I haven’t necessarily budgeted for in advance, I need to find money that I don’t really ”have”. 

Here’s how I do it without really noticing anything is missing:

1. Services - I’ve learnt over the years that many services we typically pay for are all about practice. Things like having your nails done or your hair coloured is just about putting the hours in. I can honestly say that I’ve never had anyone else do as good a job on a manicure as I can (and trust me when I say I’ve tried all price points). Getting the right tools and being prepared to put in the time to get it right can save you a small fortune.
2. It all adds up- I’ve said it before and I’ll say it again, small amounts of cash spent here and there can really add up at the end of the month. Don’t believe me? Have a look on your bank statement and see how many cash withdrawals you made last month. Going without whatever it is you’re frittering away your cash on can be tough though, so if it’s something you really need or want, find a substitute. For example, if you’re buying things in the vending machine at work – stock up at the supermarket on the weekend and keep a stash in your desk drawer.
3. Unused subscriptions- Often we convince ourselves that we need something we subscribe to – internet access, mobile phones and pay TV are all common ones. Whilst getting rid of it entirely is one option, just reassessing your usage is another. If you’re only watching one show on your premium level channels, why not consider downgrading your pay TV package and getting that show online or on video? Also look to see if the allocated bandwidth for your internet access is being used to the max and your mobile phone “included usage” is being fully exhausted. Downgrade accordingly. This doesn’t just apply to technology either – stuff like gym memberships can be cheaper if you only go on the weekends and newspaper deliveries are a fraction of the cost if you only read Thursday through Sunday too.
4. Utilities – Many utilities have an off-peak time. Have a look at your connection agreement and find out if yours does. (If not, consider switching). You can make interstate / international phone calls at cheaper times or set your laundry to run while you sleep.
5. Regular expenses – Reassess your regular costs to see if there might be a cheaper alternative. Say you drive to work. Ideally, you’d probably catch public transport, ride a bike or walk for the most cost-effective alternative. If these aren’t viable (or desirable) options, consider shopping around for different parking places. I drive to work one day a week. I recently found a different parking place only a little further from the office for $5 a day LESS than I was paying. Perfect! Other examples include gym memberships (is there another gym you could join for less, or will your current gym renegotiate?), a cheaper place to buy coffee in the mornings, or the option to subscribe to a magazine you usually buy at the newsagent.

By putting a few of these into practice, it’s often easy to find a bit of cash you didn’t really have without actually feeling like you’re cutting back. Nice.

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As we’re coming to the end of the year (and I have this habit of budgeting to a calendar year, not a financial year) I’ve been going over the year that was and planning the year to come. This has lead me to discover some astonishing things. Most noteworthy of these is the rather alarming fact that in my attempt to be frugal and find things at a more “reasonable” price point, I actually end up buying stuff I don’t use. Sure, I like it – but it wasn’t that thing I really wanted.

Sadly, it seems I’m not alone. According to a 2007 study by eBay, the average Australian woman has about $725 worth of unworn clothes in her closet (men, you’re not immune, averaging $375). Even more shockingly, these figures were based on average selling prices on eBay – not even retail prices! The study went further, outlining that:

“Among the most unloved wardrobe items is the humble t-shirt. The average female owns five t-shirts she does not wear, while men have three. Despite this, 47% of Aussie women still plan to purchase another t-shirt in the next month.”

Seriously?!

Perhaps then in looking to be frugal we need to focus on purchasing fewer things, not individually cheaper items. It’s long been said that whilst an item of exceptional quality may cost more upfront, it will pay for itself in the longer term by lasting longer. With the information above to consider too, however – perhaps items of superior quality pay for themselves in another way. Theoretically, if you have the one thing you truly want – why would you need five cheaper versions? Heck, think of the impact we’d have on landfill, consumerism and the environment too – if only we could all embrace this mantra.

So, come 2010, I’m going to be embracing quality over quantity. Higher prices and less stuff. Out with the sale season and in with the new season. At least for the most part… surely the occasional bargain is good for the soul. And your wallet… or something like that.

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Think it’s all in my head? Carrie Bradshaw in Sex And The City once famously announced that she’d spent $40,000 on shoes and as a result had no money for a home deposit. Recently, an Australian publication, Shop ‘Til You Drop promoted a new diffusion line from a local Australian designer for a chain store and tacked on the end of this information “sorry, bank manager”. My fiancee’s assessment when I mentioned this amounted to the idea that ‘Shop ‘Til You Drop’ is not a financially sensible title. What did you expect?’.

It seems to me that there is an ongoing belief that if women are passionate about something; cars, fashion, sport, whatever then they can’t enjoy it in a fiscally sound way. Perhaps this is a throw-back to days gone by where women were largely considered to be incapable of managing financial affairs. Today though, we cling to this notion as though it’s not okay, as a woman, to say you’re financially secure and damnit, you can afford the designer shoes on your feet and the car that you drive.

When coupled with the instant gratification mindset that has gripped society in the last 20 years, this ongoing innuendo that encourages financial irresponsibility has the power to not only prevent women from achieving financial independence, but also has the added affect of making us financially dependent if we don’t recognise it for what it is. That is, the vocalisation of society’s belief that women can’t handle money. Moreover, that it’s not only OK – it’s almost expected that you can’t mange your cash sensibly. But then, perhaps it’s the truth.

Did Destiny’s Child teach us nothing?

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1. Never buy clothes for when you’ll lose weight… Lose the weight, save the money and buy when you’re at the weight you want to be. It’ll act as motivation to actually lose the weight, and it’ll prevent you from ending up with a stack of ’skinny clothes’, still with their tags on at the back of the wardrobe if you don’t actually lose it.
2. Do sale recon – if you want to shop the sales, fine, but visit all the stores you’re likely to buy from and try everything on when the stock first arrives. You can try it all on in peace and quiet and you’ll be less influenced by reduced prices. Work out what you want, then when the sales hit you can pick up the things you really want and you know fit you and look great, not the things you think you want when you’ve got sale goggles on. And you won’t have to tackle fitting rooms with about a thousand other people. Bonus.
3. Want that high-end designer item? Fine, but if you want it that badly, it’s worth saving and waiting for – so make sure you’re paying for it in cash and not at the expense of your future or present (bills, savings, investments, etc.)
4. If it’s something frivolous, don’t fork out a substantial amount over it. If you’re going to get a lot of wear out of said item on the other hand, it’s worthwhile choosing the very best you can afford. Yes, it will cost you more upfront, but it will cost you less in the long run.
5. Read the care label, and if in doubt go for the most gentle method of cleaning and ironing you can. It’s all about getting the most life out of what you buy.
6. Don’t go cheap on your cleaning and ironing solutions. If you’ve saved up and buy a Burberry trenchcoat to last you ’til you’re 80, it’s not the item to take to the discount drycleaner.
7. If you’re tired of something that’s already in your wardrobe, consider revamping it – adding new season buttons, shortening it, dying it, relining it and even turning it into a completely new item (a dress into a skirt and top, for example) can all be much cheaper than buying something new.
8. If you really can’t revamp it, store it. If you genuinely loved it when you first bought it and you haven’t outgrown it, chances are it will come back in style or you’ll fall in love with it all over again.
9. If it can’t be revamped or stored, but it’s a fabulous piece, seek out a swap party near you – trade your unwanted items for something you’ll love. It’s practically free shopping!
10. If you can’t revamp it, store it or swap it, consider selling it on eBay – it’s genuinely amazing what people will purchase (one person’s trash is anothers treasure and all that) and it’s money you can put toward something else.
11. Learn the art of vintage shopping. If you’re one of those people who screw up their noses at the thought of vintage because it’s secondhand, think again – and learn what deadstock means. There are bargains with serious style cred to be found if you know what you’re looking for. (And for the record, I’m the happy owner of a genuine vintage silk Hermes scarf that I bought for $3 about 12 months ago).
12. If you see a look you love in a magazine but the things you’re admiring are too pricey, break down the look and search for substitutes in high street stores or via online boutiques and auction sites such as eBay. You’ll be surprised how often you can replicate a look for a fraction of the price. Just don’t purchase knock-offs. They support a plethora of illegal activities and promote the use of labour in appalling conditions. And no amount of prettiness is worth that.
13. Consider shopping for the next season in your alternate hemisphere online. A lot of my wardrobe lovelies come from the US and the UK during their sales seasons. This has the added bonus of seriously minimising the likelihood that you’ll end up seeing everyone in the same thing as you.
14. Ponder the following: if your grandmother would admire it or could have worn it at some point, it’s stylish. If not, it’s fashionable.
15. Learn what suits you aesthetically and what you enjoy wearing in terms of physical and psychological comfort. Purchase accordingly.
16. Considering number 15, purchase classic basics before getting into the latest look. You’ll thank yourself in approximately six months when silk jumpsuits are so six months ago.
17. Keep a list of wardrobe items you need (eg. hoisery). If you feel the need to go shopping, purchase from the list. At the very least, you’ll come home with things you actually needed rather than that tie-dyed tunic the sales assistant talked you into.
18. If you purchase an item and end up wearing it constantly, consider going back for more in different colours. Particularly during a sale period or with some sort of promotional discount.
19. Should you find yourself continuously purchasing items from one store or brand, sign up to their newsletter and find out if they have a loyalty programme. You’ll be kept informed when sales start and in many cases be sent exclusive discount vouchers or coupons (which helps with item 18 on this list too).
20. Take a professional styling course to clue yourself up in the style stakes – you’ll always be able to put together something to wear from your wardrobe and you’ll never waste money again on things that get unworn and don’t go with anything else in your closet.

If you have any further suggestions, I’d love to hear them! Hit the contact link at the top of the page and drop me a line.

Stay stylish!

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No problem, we thought – we’re in a recession. We’ll be doing our part by stimulating the economy and supporting local business. Surely we’d be fighting off potential painters with a stick!

How wrong we were. To date we’ve had two people come to quote and made a few more phonecalls. Getting a tradesperson in Melbourne is apparently like getting blood out of a stone. It doesn’t stop there either - we’re also trying to get a bookcase built. Just getting someone to return your calls at the moment seems to be an outrageous ask. If they do return your phonecall and come and quote, the prices they give are hilariously inflated. When was $7,000 ever a reasonable price for a bookcase?

Now I watch the news. I know what’s supposed to be going on. We’re supposed to be in the middle of the biggest recession in decades. So what’s the deal? Is the media simply overinflating the severity of the situation? Go to your local shopping centre on the weekend and tell me people are hard up for cash. There’s barely elbow room in a department store on a Saturday!

Recession? What recession? Clearly we haven’t got the memo.

PS – If you live in Melbourne and you’re a handyman, painter or similar and need work – feel free to get in touch.

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Unsurprisingly, I still managed to spend it. I stayed working at that department store for the next two years (a casual job during my first years of university). My salary went up with each birthday (to be in line with the award rate for my age) but still I managed to spend it. I didn’t get a better car or eat more expensive food or even really buy more expensive clothes. It all just got spent like it had when I earned less. This continued on – my first internship in the summer of my second year of university I earned bucketloads compared to my casual jobs… fancier Christmas presents were bought and I went on my first international trip.

Fast forward to about five years ago. I had a few credit cards and a line of credit. The line of credit was originally a consolidation loan for the credit cards, but I’d forgotten to close the credit cards and money had been spent on them again. Yes, I earned more but it got spent the same as when I’d got paid just $6.25 an hour. Sure, I’d moved out of home and had other bills, but if I had the knowledge I have today perhaps I’d at least have not been in debt too.

I see stories like mine every day. People consistently fall into the trap of what I call ‘lifestyle inflation’. As their salaries increase, so too do their credit card limits and they redraw on their mortgages to renovate houses or buy second cars. They have the means to get the things they previously only dreamt of having, so they acquire them and then move the goal posts again, ready for the next increase in income.

The worst part is that it often happens so incrementally that it’s hard to tell when it starts. Retrospectively,  I’ve created a list of ways you can see if it’s happening to you:

• Things that used to be bought for a treat or on special occasions are being acquired more more frequently or have become an everyday purchase.
• In a pinch, you’re forced to ‘downgrade’ something (use a less flashy mobile phone, wear cheaper stockings, etc.) and find you don’t miss your expensive alternative… or find yourself enjoying the familiarity because you used to use it.
• Your circumstances haven’t changed in the last year or more, but your expenses have increased more than inflation. eg. you still live on your own, but you moved to a more fashionable suburb and your rent went up.
• You make unbudgeted purchases that are within your means, but you use the excuse that you (or the person you’re buying for) ’deserve’ it.
• In real dollar (not %) amounts, you’re saving the same amount each month as you were a year or more ago.
• You’ve told yourself that things will be easier when you earn more money. You start earning more but the problems seem the same.

Don’t misunderstand me, there’s absolutely nothing wrong with enjoying the benefits that can come with earning more money. However, there needs to be a line in the sand where enough is enough. Your savings and investments too should increase as your salary does (in real dollar amounts anyway - the percentages may not vary).

So how can you stop it happening to you? Being aware that it occurs is a darn good start. Here are some of the ways I look to prevent lifestyle inflation deja vu:

• Scott Pape of the Barefoot Investor puts it well when he suggests that you evaluate future purchases against the joy and pleasure derived from previous ones. For example, say you’re currently toting around a chain-store handbag that cost $200 (sorry gents, I’ll use handbags as an example because I’m somewhat of a handbag connonsieur). You lust after an Oroton or Coach handbag for $600. Scott’s method put into practice here would be to ask if the Oroton/Coach version would actually provide you with three times the pleasure that your $200 version would. Alternatively, think of the one thing in your life that provides you with the most joy. For Scott, it’s his dog. So he evaluates all purchases against that. If his dog cost $800 upfront and another $800 a year to look after, he has to ask himself – will this $800 thing I want to buy provide me with the same delight?
• Set yourself some rules and stick to them. The authors of  ‘The Millionaire Next Door’ have a rule that if you ever want to be wealthy, you shouldn’t take out a mortgage any more than 2.5 times the total income of everyone responsible for paying that mortgage. You can whinge about whether or not that’s possible in your city to your heart’s content. Doesn’t make it any less true. As a bare minimum, I also aim to save (for investment purposes – not ’stuff’ purposes) at least 25% of my income.
• Believe in delayed gratification. In Robert Kiyosaki’s “Cash Flow Quadrant” he discusses a survey that was conducted on an international scale of people who represented the top and bottom 5% of the population in terms of net worth. Consistently across all countries, the people in the top 5% practiced delayed gratification whilst the bottom 5% sought immediate gratification. This is about making sure you meet your rules, mentioned above, before you go and buy fancy things… also often described as “pay yourself first”.
• Always think frugal. Have you ever seen Melinda Gates? Despite being married to the richest man in the world, she has one of the world’s most understated wedding bands, and doesn’t wear an engagement ring. In “The Millionaire Next Door” there is a story from one of the millionaires they interviewed for the book about the day he gave his wife $500 million in stock in the company he’d been building over their lives together. She smiled, thanked him and said it meant a lot… then went straight back to clipping coupons for their grocery shopping. Just because you increase your means, doesn’t mean you should stop caring what you pay.  

Above all though, remember – despite the title I’ve given this post, lifestyle inflation is a choice (albeit often a somewhat subconcious one). If you’re reading this post and thinking the damage is already done, well – there’s always lifestyle deflation! 

Questions? Comments? Feel free to email or tweet me.

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Why Most People Won’t Try

I’ve talked about this with many people over the years, and it’s become clear that a lot of people won’t even ask for a discount in any way, shape or form for two major reasons: 

1. They think it sounds like they can’t afford it and they don’t want to seem ‘cheap’. Let me tell you a little secret that only people who’ve worked in retail for a while will know. The people that treat sales assistants like rubbish and act like they own the store are the ones who whip out their regular credit card to pay for their purchases and often have the transaction declined due to “insufficient funds”. Conversely, the people who are lovely to you, but ask for a discount on every little thing are the ones who pay with a black Amex. Solution: Get over it. 
2. They don’t want to insult the person they’re asking by effectively devaluing the product or service they provide. You know what? Any smart business is going to build a discount factor into their pricing. Moreover, asking for a discount shows you’re interested and gives the salesperson a chance to close the sale. Think of it like this: if you were a salesperson and you were selling someone something and they walked away without purchasing it because the price was 10% more than they wanted to pay, wouldn’t you have at least wanted the opportunity to meet their needs? Solution: Understand that it’s not insulting. 

Where Can I Bargain, Haggle & Negotiate?

I honestly don’t believe this is an activity to be pulled off anywhere and everywhere. Others will disagree with me, but there’s a time and place for such things. So, where can you ask for a discount and resonably expect success? 

• With any relatively large volume purchase. I use the term ‘relatively’ intentionally though. Did you know you can successfully walk away with a bag of free stuff when updating your kitchenware at David Jones or get a discount on your latest clothing haul from Cue? The trick here is to group purchases. Rather than buying things on an ad-hoc basis, make yourself appear to be a valued client by grouping purchases. So if you’re renovating your house, rather than buying paint as you need it for each room, get organised and buy enough to do the whole house at once. The key though, is to understand what ‘large volume’ means though – large for you might not be large to the business.
• When dealing with trade or service people.
• Any store that is closing down or moving.
• Smaller stores that have more control over their pricing (or more to the point, the person behind the counter has access to the person setting the prices – it’s them or their boss).
• Any time an item you’re interested in is damaged.

Where is it a bad idea (ie. you’re unlikely to be successful) to ask for a discount?

• Milk bars.
• Chain stores (except in the event of the relatively big-ticket or large-volume purchase listed above).
• Department stores (see above exception).
• Any business that specifically states it does not compete on price.
• Supermarkets (see last item on the above list for exception).
• Petrol stations. 
• Movie theatres.

How Do I Do It?

Before you get ahead of yourself, make sure you know what you’d be willing to accept instead of a % or $ discount. For example, free shipping, an extended warranty or some sort of product upgrade? Your tactic for getting a discount or free stuff depends very much on the situation, and I’ve boiled it down to four main ways here.

1. The item is damaged. It’s this easy: “This item has <insert fault>. Can you give me a discount?”.
2. Smaller stores that control pricing themselves or are the importer/manufacturer of the item. There are two ways to do this. One is to find out the price and then make a counter offer – eg. “Will you take $x?”. The other is much more subtle and it might be the state of the economy, but I’ve found this works better than ever lately. It’s simple! Just ask the price, then don’t say anything. Not a single word. Just look at the item. Not at the floor, not at other things, not at the person, just look at the item. Nine times out of ten, the salesperson will counter offer themselves. In the last month alone I’ve got a 15% discount on a piece of furniture and an additional 33% off an already discounted pair of shoes using this technique.
3. Market stalls / trade and service people / any big ticket items. Find out what price the salesperson is proposing, then just ask “is that the best you can do?”.
4. Large volume purchases. The average number of items purchased per person at a cosmetic counter is 1.6. If you buy four items, you’re a very interesting customer straight away. The trick here is to indicate you’re only interested in a couple of items, but would be willing to spend more if the conditions were right. So, when you’ve picked out two items, simply ask “can you give me a discount if I purchase four items?” or the more subtle “do you have any promotions on at the moment?”. Even if they can’t give you a discount, you’ll often get samples or freebies thrown in. 

If you’re really serious about getting a discount, you have to be prepared to do one big thing. Walk away. This is particularly true when the economy is thriving. If the salesperson or business think you’re willing to forgo the purchase they’ll be that much more likely to give you what you want (within reason).

I’d love to hear any tips or tricks you have for bargaining, haggling and negotiating – just email or tweet me!

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In the last two years or so though, I’ve learnt to budget like never before. I watch and record every single cent I spend and this has lead me to find ways to let go of less cash, allowing me to put more into other (more important) avenues. In this way, I’ve become someone who is truly frugal. But where does one draw the line?

There’s a segment on a local radio station here called “Tight-ass Tuesday” whereby listeners call in and tell tales of people they know who are ‘tight-asses’. These stories are usually about coworkers who take their ‘allowance’ of toilet paper home with them and folks who turn their cars off when driving downhill so as to safe on the fuel. Today though, as I was recycling the clingfilm from my sandwich I brought to work for lunch, I wondered… have I gone from frugal to just downright cheap? And what (if any) is the difference anyway?

Dictionary.com defines frugal as being ‘economical’ and ‘not wasteful’ whereas cheap is differentiated by terms like ’stingy’ and ‘miserly’. So perhaps the true difference is just logic and commonsense.

In this way, frugal is about an optimal use of resources, where neither money, time nor material goods are ever wasted but simply put to their best possible use. In terms of being fiscally savvy, this is about minimising wastage and spending your money on things that will help you achieve your goals and bring you and your family happiness. For example, catching public transport or walking to work every day instead of driving because you want to use the difference in cost to save up for a holiday.

Conversely, cheap would then be about unreasonable under use of resources. Whilst money, time and material goods might not be wasted, they’re also not put to good use. For example, refusing to pay for health insurance citing cost as an excuse, despite having ample resources to do so.

Either way, it seems to me there certainly is a difference between the two… and on these definitions I’d prefer to stay on the frugal side of the fence!

If you’ve got a view on where the difference lies between cheap and frugal, feel free to email or tweet me.

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So, with that in mind I thought I’d share 10 ways my household saves money on groceries.

For background, my younger brother is 6′8″ and with an appetite to match. During my university years, one of my chores around the house was to do the grocery shopping and cooking for the family. When I moved out of home, I “budgeted” (more on why that’s in inverted commas another day) $100 a week in groceries for myself and never really gave serious thought as to whether that could be any less and basically spent whatever my limit was (and often more). Today, my fiance and I spend an average of $75 a week doing our grocery shopping, which covers breakfast, lunch and dinner for two adults for six days as well as household goods like cleaning products and toilet paper. 

Without further ado, here’s the list (in no particular order):

1. Shop at markets / co-ops – this is perhaps the biggest single reason our grocery expenditure is so low. Whilst they don’t enjoying the buying power of large supermarket chains, market stalls don’t have the overheads of them either. Better yet, their produce is generally sourced locally so you’re supporting local farmers and getting fresher food. As an added benefit if you live in my area your Vietnamese will improve exponentially too!
2. Make a list – on Saturdays, my fiance and I sit down at the kitchen table (whilst he is doing number 3 on this list, generally) and I write down the days of the week on a piece of paper. We work out what days we’re doing what – eg. he’s at a work dinner on Thursday night, we’re visiting his folks on Tuesday night, Monday I have a work lunch, Friday we’re going to an engagement party and on Saturday morning we’re having breakfast out with friends. . With this sort of little ‘calendar’ in place we can plan our meals out to minimise wastage. I’ve heard many people argue against this strategy with the claim “but how will you know what you feel like eating?” or “what if I want to do something spontaneously?”… the answer is simple. Put meals on the list that you like. You don’t have to necessarily follow exactly which meal which day, but you’ll be able to do your shopping knowing you have enough for the week… and if all else fails, see tip number 7. Once you’ve got your meals written down, check your pantry and your fridge and write down all the ingredients you don’t have. You can do this around the other way too – check your fridge and pantry for anything that’s nearing expiry and create a meal around that to use it up. 
3. Read your junk mail – this is pretty easy for us, as my fiance is a big fan of the stuff. The premise is simple, if you have convenient access to several supermarkets, read the junk mail and work out where the discounts for the stuff that you buy is this week. This only works if you don’t have to go out of your way to get to said supermarket as with fuel prices these days you could end up seriously eating into your savings if you travel too far. 
4. Buy home brand – alarmingly often, the ingredients in home brand alternatives are identical, if not more nutritionally sound than their brand-name counterparts. There are always exceptions to this rule, so read the labels carefully. This is particularly true for basics however, and the ‘You’ll Love Coles’ range even has organic options that are cheap, nutritious and flavoursome. Some great stuff to try if you’re in doubt is: flour, sugar, salt, organic dry spaghetti, organic corn chips, canned tomatoes (although check the tomato content), bottled water, clingfilm, cotton buds and cup noodles. Just don’t buy home brand toothpaste. Take it from me.
5. DIY - making your own stuff from scratch can save you a small fortune in actual cash, although it does depend on two major variables: 1. your ability to cook / prepare food and 2. the value you place on your time. Things like sorbet, doughs and pastries, tomato paste and curry paste are actually deceptively quick and simple to make. My dad is a huge advocate of homemade museli. The cost per item produced will inevitably be a fraction of the cost of something premade… and better yet you can control exactly what goes into it so you’re not consuming uknown additives and preservatives.
6. Grow your own – for many people it’s not particularly practical to run an orchard, a vegetable garden and a farm from their back yard. However things like herbs take up a small amount of space and are one of those things that you’ll rarely get through a whole bunch of before they go limp and you throw them out. Moreover, at the markets a few weeks ago a bunch of coriander (not in season) was $3 at the cheapest stall. Later that day at Ikea we saw whole plants for $2.80.  Growing your own can be cheap to get started and make a fabulously positive impact on your weekly grocery expenditure (as well as reducing the amount you throw out)!
7. Love your freezer – it took me a very long time to convince my fiance of the benefits associated with freezers, but we’re getting there. The benefits of freezers are twofold – 1. it can often be cheaper to buy things like meat in slightly larger quantities and then break them up into consumable portions and freeze – we break it up into 250g lots and bag it up so it can be defrosted as we need it 2. you can put things like bread in the freezer to get longer life out of the packet and enjoy fresh bread every day. This is particularly true if you’re only using it as toast anyway – it can be toasted from frozen! Even perishables like stock can be frozen into ice cube size for use later.
8. Embrace your flaws – all the above considered, there’s no point buying fresh stuff from the market and so forth if you’re just going to let it sit in your fridge or pantry and go bad. So with this in mind if you’re just not the sort of person to be disciplined about your usage of food then make sure it has a good shelf life. For me, this means that I know from years of trying that I’m not going to cut up fruit to put on my cereal every morning on any sort of consistent basis. I shudder to think how much fruit I wasted over the years intending to cut it up and just plain running out of time. I’ve learnt from this and instead buy tubs of fruit already cut up that I can keep in my fridge and spoon over my cereal in the mornings. It has a life of about a ten days after opening and is quick and easy for me to use.
9. Look for other ways to get discounts – back in the day, being a shareholder in coles myer would get you a % discount on your grocery shopping. Not anymore. However, I work for a large Australian company that I’ve recently been pleased to discover offers a discount on gift vouchers for major supermarket chains. Et voila, buy the gift voucher and you get an instant 8% off your groceries. Happy days. Do some investigating and find out if your social club, sports club or anything else you’re a member of has such an arrangement. If not, perhaps it’s time you got your negotiating shoes on and found out if this is something you can organise!
10. Price check – we’ve had it drummed into us for years that the bigger the packet the cheaper the product will be per unit. So theoretically a six pack of a product will be cheaper per item than buying individually. This is not always true. The Australian government has recently implemented a legislation that will require supermarkets to disclose the price of products / unit. eg. 30c/100ml – until then, and even then – make sure you do the math and work out if the product you’re buying is actually the most cost effective option. 

So, whilst $75 per couple a week might not be achievable for you, chances are you can examine your grocery habits and find some fat in there (no pun intended) to get your bill down!

If you’ve got any further tips, please feel free to email me or tweet them – www.twitter.com/moneypennyme.

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Say for example you decide you want a tshirt and find one for $15. Given that $15 includes the store’s markup of at least 50%, what do you think that tshirt cost to make? What do you suppose the person that made it was paid and what were their working conditions like? Understandably, not everyone has the means to buy expensive items although there are plenty of cheap options out there that are environmentally safe and made by people who were paid adequately in good working conditions (to continue the tshirt example, American Apparel provide such options).

For that matter, in case you didn’t get the memo… what’s old is new again. Women have been using the term ‘vintage’ for years as a euphemism for clothing from a bygone era finally seeing the light of day again. Whilst often just being a nice way of saying ’secondhand’ vintage also encompasses clothing known as ‘deadstock’ that has never been worn and still has its tags attached. It seems this trend has expanded into other categories now, as a glance at eBay will show you a plethora of secondhand furniture options ranging from reupholstered Eames furniture to antique restoration projects-in-waiting.

Then there’s the DIY option. Many cleaning products can be recreated at home using products you already have in your pantry, like baking powder, bicarb soda and lemon juice – making them both environmentally friendly (although this probably doesn’t do much about the person making them being paid well! .

The bottom line is, in your quest for frugality, keep in mind the wider ramifications of your choices. There’s no point being fiscally savvy if the purchases you do make are supporting terrorism (for example, fake designer goods), keeping workers in poverty or having a detrimental impact on the environment.

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