Frugal Tips for Today’s Economy

As we all strive to save every penny during this period of recession, you may have come up with a few creative ideas to keep your family budget on track. Whether it's utilizing discount coupons, canceling magazine subscriptions, buying groceries in bulk, growing your own fruits and vegetables, buying clothes at consignment shops and thrift stores, or conserving energy costs by going 'green,' there are many ways that can be used to can stretch your dollars. Here are a few ideas that you may also be helpful:

• Shop at dollar stores. Believe it or not, these neighborhood stores have seen a significant increase in consumer spending. As a matter of fact, according to AARP, "Dollar Tree merchandisers work with food suppliers to help them develop products at a cost low enough to allow the company to make some profit. Sometimes, a manufacturer has excess inventory that it's willing to unload at a discount. That closeout merchandise provides some of the brand names that Dollar Tree carries. In other cases, a brand-name manufacturer might make a special size that Dollar Tree can sell for a buck. The stores have a "freshness guaranteed" policy and pledge to sell no items past their expiration dates."
• Trading. Did you know that you can actually trade for things you need but can't afford? Two websites that you can use to facilitate this are BookMooch and SwapTree. If you have books that have already been read or DVDs that you no longer have use for, you can go to either of these two sites and trade them for other books or DVDs you might like to own. It's estimated that SwapTree users receive approximately $30,000 worth of free media every day by trading with each other. The only payment that's required is the cost of shipping; however, sending items via media mail is an affordable way to do that.

  Furthermore, if you have children, you might consider visiting Zwaggle. This site is for parents whose toddlers have grown out of their older clothes and shoes. You can trade the items no longer worn by your child for things that you may currently need, such as high chairs, strollers and larger clothing.

• Renting. Another unique idea is to rent an ensemble for that upcoming special occasion. Avelle (formerly known as BagBorroworSteal.com) and From Bags to Riches both rent designer handbags, while Borrowed Bling rents jewelry. Keep in mind, however, that these rentals are for a one-time event and not for an item that you plan to wear more than once.
• Borrowing. You can borrow items online at a site called Neighborrow. It's comprised of a network of individuals in your area that prefer to lend or borrow items instead of purchasing them outright.
• Taking. Taking unwanted items is another way to stretch your precious dollars; but we're not implying that you resort to stealing anyone else's property. As evidenced by the website Freecycle, it has become a very popular method of obtaining items that you'd like to have. Whether you need furniture, appliances, toys, coupons, or anything else you can't afford, this site enables its members to post items they want to give away. You can log on to determine if there's anything you want and, if so, you can make arrangements to pick it up. No fee is required.

  Please be aware that if you find any websites offering to give away items, but they ask for a fee, it's a scam. Also, do not, under any circumstances, give out any financial or personal information. Just ensure that the website has an email address, telephone number and address.

While we're at it, do you have a nonessential habit that seems to be costing you a pretty penny? Take a few moments to figure out how much you could save if you gave up that particular vice. Let's take a look at a few examples:

• Smoking. A pack of cigarettes can cost $5 or more (with taxes). How many packs do you smoke a day? Let's assume for the sake of argument that you smoke a carton a week. That comes to $50 per week for cigarettes. $50 x 52 weeks = $2,600. You can find better uses for $2,600 each year, can't you?
• Liquor. How much does it cost for a bottle of wine? Perhaps $7 to $10 a bottle or more, right? Do you often purchase hard liquor such as scotch, gin or vodka? Now, about beer – how much does it cost for a six pack these days? Can you foresee eliminating this expense (or, at least, drastically cutting it down) from your budget? These two examples alone show that giving up a few bad habits can save you quite a bit of money over the course of a year.
• Of course, not all bad habits have to do with 'things.' Some have more to do with our behavior. For example, when you feel stressed, do you overeat? This can increase your grocery bill by as much as two-fold.
• Are you chronically late for work? Having money docked for tardiness reduces your paycheck and sends a negative signal to your boss.
• Do you shop when you're depressed? Imagine how much money you spend needlessly just to get the instant gratification you're seeking.
• Do you take care of yourself? For instance, when you're not feeling well, do you ignore what your body is telling you until the symptoms get worse? If so, you could be spending more money on doctor's visits, tests and prescription drugs than you need to.

If you fall into any of these 'bad-habit' categories, you may simply need to change your mindset. Try taking a positive approach and address those bad habits head-on. Otherwise, you'll be throwing good money away as a result of those negative feelings and actions.

Finally, re-examine your household budget. Determine where you can make additional cuts. When you find them, add that extra money to your emergency savings fund. Difficult times may call for a few drastic measures. Above all, take positive steps to pay down your debt, and begin paying for the things you buy with cash only.