Big or little, it’s the thought that counts

Recently, Ramit from “I Will Teach You To be Rich” challenged Trent, from The Simple Dollar, to prove whose money saving tips were more effective.  Ramit argued that many of Trent’s frugal tips are erroneous, since putting time into frugal living will not yeild any significant savings worthy of your time.

He says:

Focus on big wins that matter… By reducing the number of things to focus on — and picking major, important items — you don’t need to worry about that one-off latte or extra $20 you spent on shoes. If you’re handling your major goals, the minor details fall out of that. Whether it’s spending $21,000/year going out or going out to a nice restaurant, you can handle your goals and use your money without feeling guilty.

The “major, important” items might be reducing the interest rate on your credit card or negotiating rates for a cheaper cable, internet or cell phone rates. Ramit makes some good points, but after some consideration I have to say I disagree with his over-simplified approach.  I’ve never believed that there is a one-size-fits-all solution to making or saving money, partly because we all lead lives with different complexities, and party because we have different values, and values are intricately connected to our financial decisions.  

Frankly, I think his challenge is irrelevant and he is using aggressive language to sell his money saving tips on the internet. He provides a list of 30 tips that will save you $1000 in 30 days.  Some are so obvious that any frugal person would already be doing them, like packing lunches or turning down the thermostat.  Others are just silly.  For example he recommends changing the date of Christmas AND abstaining from buying ANY gifts for Christmas.  I think the readers on Saver Queen have proven that Christmas can be frugal, fun AND held on December 25th.  (I also don’t see why you would change the date of Christmas if you aren’t buying any gifts, nor how that tip would help you save money in the middle of February.)

But I digress.  Mainly I am taking issue with his point that most frugality tips are useless, or in his words, “make me want to vomit”.

Reasons why I think focusing only on the “big wins” is a mistake:

1.  Why choose an either/or strategy when you can do both and save even more? 

2. What constitutes as “big stuff” might surprise you.  Ramit says not to worry about the latte factor, but it adds up.  A latte at Starbucks costs $4.  If you buy a latte every day for one year, that’s $1540 annually.  (Anyone want to calculate the compound interest on this for 20 years? I started but got lazy).

3. Not everyone is in the same financial position.  Ramit assumes that everyone has “big items” they can cut back on, like gym memberships, cars and cell phones.  Not everyone is in such a position; some do not have these items to cut back on, and others need to save every penny they can.  In fact, the savings of $100 or $200 per year might mean little to Ramit, but could be valuable to someone who is unemployed or struggling to keep food on the table.

4. Being frugal can be deeply satisfying. Learning to be happy with what you have and who you are without the constant barrage of new “stuff” is tremendously fulfilling.  Furthermore, learning how to cook, repair your own clothes or perform maintenance on your car can be both fun and empowering.

5. Being frugal often coincides with being environmentally friendly.  Both blogs poke fun at those who re-wash their Ziplock  bags but these little steps are important if we are going to take responsibility for the impact our daily choices have on the environment.  

6. Saving on the little stuff means you can save on the big stuff.  For example, by being frugal and saving up for a down-payment on a home will mean that you can avoid the premiums and additional interest that you would otherwise pay with a small down-payment.  It’s true that negotiating the interest on your credit card will save you money, and is a great first step to take, but paying down that credit card faster will save you even more.

7. People value different things. Ramit assumes that a new pair of shoes and a latte are pleasures that shouldn’t be sacrificed.  Maybe in some cases that’s true.  Personally, I tend to focus on saving in areas that are less important to me, so I can afford what really matters.  For example, I buy generic foods.  I rarely buy coffees from coffee shops but make my own instead.  I turn the lights off when I’m not using them.  I wear handmedowns and buy clothes from funky thrift stores or stock up on year-end sales.  These don’t really feel like big sacrifices to me, but they add up to savings that can be spent on something really important to me, like traveling to Sweden to see my best friend get married, which I will be doing this July.

I guess what bothers me most about the whole debate is that it’s not really just about how much you can save.  It’s about mindfulness.  Frugality is about paying closer attention to what we have, recognizing all of the vast resources that we have within our reach besides money.  Being frugal means you value everything you own and take little for granted.  It also means recognizing the resources you have within yourself, to learn new skills, to be more creative, to try new things.  The frugal philosophy also encourages sharing and community-building.  

Unfortunately, our societies have become rather wasteful and self-serving. Now we frequently look outward instead of inward for solutions.  Why are we asking questions like, ”why bother reusing that bag“?  Shouldn’t we ask, “why not reuse that bag?” Why do we assume that throwing away is naturally the best course of action?  This kind of wastefulness has led to environmental destruction, financial debts, and in my opinion, much unneeded stress and focus away from things that matter and/or bring great joy.

The bottom line: It’s not really about how much money you save by washing that plastic bag, as it is about the consideration that goes into looking at that bag and seeing a purpose beyond it’s immediate use.   It’s about recognizing our potential as well as our responsibility in the million different choices we make each day. This kind of mindfulness will not only help reduce our financial baggage but will be also a mandatory change of course if we are to build a sustainable life on this planet.

What small frugal steps do you take that add up to significant savings, reduced environmental footprint, or a more fulfilling life?

Reusing plastic bags

I came up with these cute ideas for re-purposing button bags.  In a recent issue of Real Simple, they presented the idea of re-using these little bags to hold pills when traveling.  But I realized they were quite handy in the kitchen, too.  They efficiently store bread tags and elastic bands in one central location.  I like this because I reuse all this stuff.  It especially comes in handy when you bake your own bread loaves.

I also finally finished off my last box of Ziplock bags.  I stocked up when these sold for less than $1 on a lucrative shopping trip to Price Chopper last spring. Using these bags sparingly means that my stock-up lasted nearly a year.  I admit I rarely wash them, just because I have not found an efficient way of drying them, so if anyone has any ideas I’d love to hear them.

I will be reusing the box to store bread bags.  I also reuse lettuce bags and other kinds of vegetable bags too.

Do you have a kitchen organization tip to share?

What are you wasting?

I just discovered a wonderful blog called Crunchy Chicken.  The author has been running an exciting Food Waste Reduction Challenge, encouraging all of us to reduce the amount of edible food that we throw away or compost, by keeping track of the waste we are producing.  It got me thinking about the things I have been doing recently to decrease my food waste, and my grocery budget as well.

Here are some ways that I reduced waste in the last couple of weeks.

I made a big list of everything I could possibly make with what I had.  The list turned out to be surprisingly big!

I turned little leftover crumbly bits of cheese into a delicious cheese dip.

I saved stale bread and turned it into bread crumbs.

I salvaged a homemade pretzel recipe gone amok and turned that into bread crumbs also.

I chopped up veggies that were about to go bad and froze them for a veggie stir-fry.

I butchered my own chicken wings, freezing the undesirable parts for chicken stock.

I preserved my salad and herbs better so they would last longer.

I used leftover chickpeas in a pasta dish.

I froze the bits of leafy bits of celery and sprouted garlic for a stock.

I finally used up the old blackened bananas that I bought at 50% off in banana bread and shakes.

I used up the lemons that were about to turn in salad dressings and in a lemon loaf.

I used up other veggies that needed to be eaten in a shepherd’s pie.

I found a more efficient way to store my leftover bread bags and vegetable bags.

I used the netting that the oranges, avocados, garlic and onions came in for an art project.

I noticed that an orange was about to go bad, so I simply squeezed it using my antique juicer and made freshly squeezed orange juice.

I made a batch of granola bars that didn’t quite work out, but saved it and ate it on top of yogurt, instead.

I used up soy milk that was about to go bad by putting it in shakes and in my coffee (I had run out of milk and cream).

I made a fish chowder to use up fish and veggies that weren’t being eaten. 

I used frozen veggies on a pizza when I ran out of fresh vegetables.

I started washing out mini-yogurt containers and saving them to hold paint when painting (they are best for watercolours, btw).

Josh made cookies using up some baking supplies, since we both refused to buy store-bought cookies

I think I may start noting how much food goes to waste in our house.  I would be interested in seeing how much we waste and thinking of new ways to cut back our waste even more.

What did you do this month to reduce waste?

Can you save money on your warehouse club membership?

Image from answers.com

I have been reading the Tightwad Gazette III recently - you can see the book reviewed by Trent at the Simple Dollar - which contains heaps of money saving tips and tricks.  This version was published in 1996 - so a few of the tips are outdated (but not as many as you’d think!)  Of course, those which are outdated are also incredibly funny, so the book turns out to be an incredibly worthwhile read.

One of the tips that struck me was from a woman in Pennsylvania who explained that she simply allows her warehouse club membership to lapse and doesn’t renew for another three months.  She stocks up before her membership lapses and simply renews after that, essentially reducing her membership fees by 25%.

I do not belong to a warehouse club - since there is just the two of us, I figured that the costs of the membership would outweigh any potential savings, especially since I already shop the sales and use coupons. 

I just wondered if this tip would apply to anyone who belongs to a warehouse club.  Do you have to pay an initial sign-up fee that might outweigh the benefit of letting the membership lapse?  

New this week…

I just published my first article on ehow.com. My article is called, How to find great Canadian coupons. If the mood strikes, please feel free to recommend me, rate my article or leave a comment.

Also be sure to check out the Guelph Mercury’s new food blog, Fuel.  Although some of the content is local, the majority of the posts will have appeal to anyone interested in food, especially Canadians.  It was birthed just last week and already I’m enjoying its witty, thoughtful and informative commentary.

Oh, one more thing: I will be gone from February 28th through March 8th.  I am setting up some fabulous guest posts and already have a number in the works.  But if you have a topic you’d be interested in writing a guest post on that has to do with frugal living, I’d love to hear from you.  Send me your idea to saver queen at gmail dot com.

A frugal discovery: cheap finds for the home, garden and workshop

Looking to save on home repairs and renovations? Furniture? Art supplies? Last weekend I made a great frugal discovery: Habitat for Humanity ReStores. If you are looking for cheap paint, doors, sinks, desks, windows, cocking, putty, or really any kind of home repair equipment or furniture, start here before you go anywhere else, as it almost guarantees you the very best price.

How did I find out about this hidden gem?  It all began when I was thinking out loud about how to find an affordable canvas for my latest art project.  I want to do another great big painting - one that will fit nicely above the bed.  Unfortunately, large canvases can cost upwards of $100. I started wondering if I could find a cheap piece of wood from Home Depot when Josh mentioned building supply stores.  We soon found the Habitat for Humanity ReStore, a short drive from our house.

What is a ReStore?  They describe themselves this way:

Habitat for Humanity ReStores are building supply stores that accept and resell quality new and used building materials. They generate funds to support Habitat’s building programs, while reducing the amount of used materials that are headed for overflowing landfills! They are an environmentally friendly store that makes sense!

They almost sell themselves short in this description, as they do not only contain building materials, but furniture, too.  I even found a certified working sewing machine for $15.

As we walked into the store, we were greeted with large 50% off signs, due to a moving sale.  I found the perfect piece in minutes - a closet door that was painted on one side.  The raw wood side was in reasonably good condition and had no doorknob hole.  The price? $5 - with 50% off it came to $2.50. The best part?  The money was a donation to Habitat for Humanity.

Lucikly Josh remembered to bring bungee cords and we got the door home safely.  Nevertheless, while driving I worried that the door was going to slip out and crash through someone’s windshield.  I told Josh that I didn’t want my $2.50 frugal find to turn into a million dollar lawsuit.  Thankfully, it did not.

So, what kind of work did this peice of wood require?  First, I needed to remove the hinges.

Easily accomplished.  I also trimmed down the area that was peeling.

Next, I needed to do a little sanding. Even though I was working with a little piece of sandpaper, it didn’t take long.  If you were using a brick sander or electric sander, it would take even less time.

Although there were only a few rough patches and scratches, I ended up sanding the entire thing.

Needless to say, it needed a bit of a washing. A damp rag was all that was needed.

If you were using the door for its original purpose, then your next steps would be to paint it and replace the hinges.  But since I was using this for a canvas, the next thing I did was take a big brush and laid a good coat of gesso down to cover it entirely.

Since I was making a textured canvas for a multi-media peice, I laid down some of the fruit and vegetable netting and other materials (all free of course) and stuck it to the gesso.

Above is the final prepped canvas.  (I will show you the final work when I’m done. I have plans for an abstract winter night rolling around in my head.)

I used about 1/10th of my gesso.  A big jug costs about $26 so I used about $2.60 worth.  That combined with the cost of the sandpaper (I used approximately 1/4 of a peice worth $1.50 (or 38¢ worth) and the canvas ($2.70 including tax) gave my canvas a total price of $5.68. Not bad for a starving artist!

Do you have a frugal tip to share on home renos, repairs, or art supplies?

My search for the perfect frugal snack: A mystery solved

By jove I did it! As most of you know, I have been searching for a homemade snack that satisfies my cravings.  My latest pretzel endeavour didn’t go over so well so I’ve been hunting for a tasty alternative.

Finally, I found a delicious snack that satisfies deep junk food cravings, and costs, well, nothing! It’s easy to make and uses up leftovers - that’s my favourite kind of cooking!

The answer? The homemade cheese spread.

First of all, let it be known that I love cheese. I mean it’s really the cow’s gift to humankind. So when Alton Brown (yes, I realize his name has come up quite a bit on this blog, but I spent last weekend on an Alton Brown bingefest, so forgive me, please) provided a recipe for his favourite cheese trick - a homemade cheese spread - I was intrigued. 

You know all those cheese bits you have lying around? The teeny chunks leftover from cheese platters you served at parties, or in my case, just bought for yourself to enjoy? Maybe the rinds of parmesan that didn’t get eaten right down to the nub, or the extra mozzarella that didn’t make it on the homemade pizza? Those crumbly little bits from old cheddar, too awkward to slice into sandwich? These lost little cheesy bits can be saved from them from their destiny of winding up, undigested, in the garbage can.

How, you ask? It’s easy!

Simply gather these bits and throw them into a food processor. If you have any particularly hard cheeses, such as parmesan, grate it first. (This is important because otherwise it will stay in a clump.) If you have a pound of cheese, add 1/4 cup dry white wine (I actually added a little extra), 3 tablespoons of unsalted butter (I added a little more, once again), some parsley, and one small clove of garlic. Blend in the food pro until smooth. Presto, you have yourself a delicious - and I mean delicious - cheese spread.

I love this because it uses up the old bits of cheese, along with any leftover wine you have (as Alton points out, it’s quite common to have leftover wine from a wine and cheese party, but it’s also easy to find that you have just a little extra wine in a bottle.) Since it uses up these extra ingredients that might otherwise go to waste, you’ve got yourself what is essentially a free snack.

My only suggestion is to eat while it’s fresh.  Alton says that you can refrigerate for up to a week.  I refrigerated for a few hours and, while it was still tasty, the texture was too firm - the cheese cracked - and the flavours seemed to diminish a little.  

What to serve it with? If you have a leftover crusty bread or baguette, follow my recipe to make baguette chips -they are ever so satisfying and perfect for a spreadable cheese. Plus, if you make them because you are using up leftover bread that has gone stale, you are once again using up a product that will otherwise have a date with the trash can.

Don’t forget to save your plastic containers. This leftover container from spreadable goat cheese fit the bill perfectly.

Eat and enjoy!  After all, not only are you saving money by eating in and using up ingredients instead of consuming expensive, store-bought snacks, you are relishing real, pure, good food.  The flavours of good quality cheese and wine will definitely satisfy the craving for a rich, flavourful snack.  This outshines a $3 bag of chips any day.

How to get great scholarships

Are you or your kids applying for scholarships?  Getting a great scholarship is your best way to get a sustainable source of income while in school.  It takes a relatively small investment of time on your part, and if you play your cards right, can provide you with income throughout your entire scholastic career.

I speak from experience.  When I started my undergraduate degree, I had already secured an entrance scholarship that would be renewed every year, provided I maintained an 80% average.  Did I keep the average up?  For all that cash, you bet I did. The total worth of this scholarship was $10,000 (this seems less valuable now with the cost of inflation, but the point is you can get a sizable chunk of money.)

When I was in graduate school, I turned out to be the only Masters student in my department to win a SSHRC grant (the big guns, worth $27,500). Turns out many people didn’t even bother applying!

Whether you (or your kids) are planning on attending school for the first time in the fall, are currently in school or are thinking about graduate school, here are some tips that helped me fund my 6 years in school.

1. Plan Ahead.

If you are a high school student, plan ahead! What does this mean?  Get your grades up, but don’t ignore all the other capital you have to increase your scholarship potential.  For example:

Show leadership.  Don’t just volunteer - show leadership in your volunteer work.  Get other students involved.  Take initiative to fundraise, start a group or club, or draw attention to an important cause.  Do something above and beyond putting in your mandatory volunteer hours.

Foster relationships.  You need your teachers to know who you are and why you are special.  Stay after class to ask questions and inquire about what you can do to raise your grades or get extra credit.  Inquire about better study techniques.  Volunteer information during class, raise your hand and participate.  The more involved you get in the classroom, the better your teachers will get to know who you really are.  This may not seem important now, but when you ask for a reference letter, believe me, it will be.  You want a knock-out reference letter from your teachers and the only way to get this is to show your teachers that you are enthusiastic, dedicated, and ambitious.  If you want until the last minute, it will be too late.

Be creative.  Everyone has special skills and it just takes some creativity to figure out what you can do that’s different.  If you are interested in broadcasting, volunteer at your university’s radio station.  Interested in journalism? Write a blog, or volunteer to write articles for the school or community paper. Want to become an artist?  Look for places in the community, like new restaurants or the public library, that will hang your artwork.  Essentially, you want to find ways to do things a little differently.  They don’t have to be big things, or wildly successful, but they should show that your passions drive you to take initiative that others may not.

2. Use the right words

When you are writing the scholarship application, the important thing is to highlight your involvement in your school or community.  This means using the right language for maximum impact.  Squawkfox wrote on how to write a great resume - this is worth a read because many of the same principles apply.  

Here is an example.  A friend of ours used to have punk rock, straight-edge shows in his basement.  In reality this meant that we gather on weekends to hear bands play music so loud and obnoxious it was a miracle the cops weren’t called on a regular basis.  But the musicians promoted drug-free living and raised awareness on issues like racism and poverty.  On his application this turned into something like:

“Promoted drug-free living and social consciousness amongst my peers by organizing and hosting regular concerts by drug-free musicians.”

It was entirely true! 

Another example: In graduate school, having published work is very important.  But even if you have not published in academic journals, make a note of everything you have published in grey literature or even the popular media.  I had published work in a national nonprofit magazine and advocacy newsletters, for example. Did these publications go on my application?  Absolutely.

The bottom line:

Don’t forget about the “alternative” things you have done that might not fit the conventional bill. The point is to spin your extra-curricular activities in a way that highlights your best features. Don’t dismiss them.

When I was in highschool I started an animal rights club, wrote a punk straight-edge zine, and attended punk shows.  At the time it seemed very unconventional but on my application, my club “promoting animal welfare and ecological awareness” and my series of “independently published magazines promoting a healthy, drug-free lifestyle”, became great assets on my resume. 

3. Do your research.

Find and apply for as many scholarships as you can.  If there is tough competition, apply anyway - just do your very best to make your work outstanding.  Check out the websites of corporations, banks, the government, and of course, the schools you are interested in.  A good place to start is Scholarships Canada, a search engine for Canadian scholarships.

4. Apply.

Unfortunately, many students assume that the only students who get scholarships are those who are those who are all-stars with perfect grades, so they don’t bother applying.  Others figure it’s too much work and just don’t bother.  But if you can spin your extra-curricular involvement the right way, and put a little upfront effort into your application, you may find yourself with thousands of dollars towards your tuition.  

Have a question? Ask away!  On the flip-side, please share if you have a tip for getting great scholarships.

*Photo courtesy of Gallatin County School.

The unsuccessful hunt for a tasty homemade snack

Snack foods are expensive.  If you want to trim down your grocery bill, snack foods are a great place to start.  Not only are they filler foods, loaded with preservatives, sodium, and well, all kinds of crap, they are unbelievably over priced.  I just saw a sale from a nearby grocery store showcasing chips that were being sold, two for $6.  When did $3 get to be a good price for a regular sized bag of chips?

But we all need some junk food now and then.  Besides, the winter months bring increased movie watching and board game playing, which pretty much require a plate of snacks within reach.  I’ve written on my favourite homemade snack foods before in the post “Snack Happy” in which I share my secrets on making salsa, hummus, guac, Babaganoush, microwave popcorn and more.  But salsa is expensive to make these days because tomatoes are out of season, and avocadoes are not cheap either.  So I’ve been on the lookout for tasty, cheap homemade snack recipes.

On the weekend, we took the plunge to try out Alton Brown’s pretzel recipe.  This was fun.  Rolling out long pieces of dough and twisting them into pretzel shapes, how could that not be fun?  In the end, though, it didn’t work out.  Yes, the pretzel dough itself was tasty.  The process was fun and fairly simple.  But two major errors were made.  One, we didn’t roll the dough thin enough. We were supposed to roll each pretzel stick into 14″ pieces but just estimated on the length of our pretzels, and, once I realized we were only rolling them to about 11 or 12″ pieces, it was too late.  As you can see, they turned out looking like bread sticks, which made the pretzels just a little to thick to enjoy as a light, crunchy snack.  

Furthermore, we improvised using organic sea salt, which was chunky, almost like rock salt, instead of “pretzel salt” - yes, there is such a thing.  Apparently kosher salt is far too fine.  Unfortunately, our salt was far too crunchy.  One bite would have you puckered in a salt overdose; another bite would be bland and boring.

Not satisfied with seeing anything go to waste, the pretzels are currently sitting in an open faced container, which will then be transfered to the food processor to form a nice pretzel crumb coating for a lucky piece of chicken or pork.

The recipe could be salvaged with thinly rolled pieces and proper pretzel salt.  So if anyone wants to give it a go, be my guest.  (We may even try it again another time.)  

In the meantime, please share:  What is your favourite recipe for homemade snacks?  I need something to replace the crunchy, salty goodness of the over-priced potato chip.

TFSA or RRSP - which to choose?

I’m pleased to present another guest post by Canadian financial expert Gail Bebee, part two in her series for Saver Queen readers.  (Not a sponsored post.)

Tax Free Savings Account or Registered Retirement Savings Plan?

By Gail Bebee

Personal finance speaker and author of No Hype - The Straight Goods on Investing Your Money

E-mail:  gbebee - at - nohypeinvesting - dot - com
Web:  www.nohypeinvesting.com  

It’s RRSP contribution season, but you would hardly know it. No print ads boasting about the great returns of mutual funds (no wonder; most lost bundles of their client’s money last year). No TV commercials about how fund managers travel the world looking for great companies to buy.  Instead, the financial industry is selling Tax Free Savings Accounts (TFSA). 

Canadians should look past the TFSA hype and make sure they invest their hard-earned money to best serve their own personal situation. That could be an RRSP, a TFSA or both.  

Those who have the money to contribute to a TFSA ($5000 per year max) and RRSP (up to 18% of your previous year’s earned income) should in most cases do so and take advantage of two of the few legal ways to pay less tax. 

If you have only enough money to contribute to one of these savings plans, the following are general guidelines to help you decide what to do:

• Consider making an RRSP contribution and using the tax refund for your TFSA.
• If your present and future tax rates will likely be similar, the TFSA is usually the better choice because it is more flexible.
• If the money will be withdrawn from the plan when you expect to be in a higher tax bracket than present, a TFSA is probably the better option. E.g. saving up to buy a car
• If your current income tax rate is higher than the rate you expect to pay when you need the money, an RRSP contribution likely makes the most sense. E.g. usually the case if the money is for retirement years
• Those saving to buy a house or to return to school should investigate government programs which allow you to borrow money from your RRSP for a down payment on a first home (Home Buyer’s Plan) or for educational purposes (Life Long Learning Plan).  In these cases, an RRSP contribution may be the better choice.

You can put money into a TFSA anytime. You’ll need to act by March 2, 2008 to make an RRSP contribution which creates a tax deduction for the 2008 tax year. So, take the time now to review your finances and determine, which the savings plan(s) best suits your situation.

Are you taking advantage of the RRSP, TFSA, or both?