Beating Broke

Personal Finance from the Broke Perspective

Are You a “Frugaler”?

By 1 Comment

Ok, I’ll admit it, I made that word up. Well, at least as it would be a name instead of an action/habit.  It occurred to me while watching an episode of Wife Swap on Friday evening.  You’ve seen it, or a show like it, I’m sure.  They take the wives from two families and then the wives swap families.  The producers make sure that you get maximum drama by making sure that the families and wives are polar opposites.

In the episode that I watched, the one family lived in Florida and basically partied all the time.  The other family, however, was a different story.  They were “Sweepers”.  No, they don’t use a broom or even a swiffer.  A “sweeper” (article on sweeping) is someone who devotes a large block of time on a regular basis to entering sweepstakes.  And this family was nutzo about it.  They claimed to spend 8-10 hours a day on sweep related tasks.  From sending letters off to entering them online, they had made it a full time job.  They even went about collecting pop tops and candy bar wrappers for chances to win those contests.  Crazy, right?

Sure, but maybe not as crazy as you think.  In the end, the “sweepers” agreed that they maybe, might, kinda have a bit of an addiction.  And the cut back a little on the “sweeping”.  Nearly happy endings for all involved.  The husband still gets antsy when the mail truck doesn’t stop with new sweeps to enter.

This all led me to think about things that can become just as much of an addiction.  Actions for making a quick buck or getting something for much less than normal.  That’s what “sweeping” is.  It’s the action of entering contests and sweeps in an effort to win things that you couldn’t normally buy.  Something for nothing, or little to nothing after you figure in stamps.  We won’t talk about the time spent.

You know what else that sounds like though?  Frugality.  Being “frugal” is the action of finding the best/easiest ways to save oneself some money.  To get something for much less than normal.  It’s the action of using coupons and sales and saving methods in an effort to pay less than retail for an item or service.  Something for nothing, or little to nothing is the goal.

Does that sound familiar to you?  Do you spend time on a regular basis surfing through the deal forums in search of a great deal on something you need?  Do you clip every coupon you get in case you need a Belgian Waffle Maker someday before the coupon expires?  Or, do you clip every coupon you get for the purpose of trading them with others for coupons you need?  Or, maybe you refinanced your $300 loan for that 0.25% rate drop to save the $1 in interest. (that’s not a scientific calculation, please don’t try and correct it. It’s for dramatic effect.)  You just might be (gasp!) a “Frugaler”.

Them “Sweepers” don’t sound as crazy now, do they?

Recession Perception

By 1 Comment

It’s officially official.  We’re in a recession.  And it started almost a year ago. Way back in December of 2007 in fact.  But how much of the recession is in current perception?

How would you or I know that we were in a recession?  Well, most likely, we’d learn by being told.  Of course, it’s possible that we’d have some idea based on some indicators in the economy.  Many of which exist right now in the economy.  But is it made worse by knowing that it’s there?  Is there some part of us that, knowing we’re in a recession, buckle down harder and become more frugal than if we hadn’t been told?  Is that sensible?

One thing that has/will come from this “recession” is that many people will have become much more frugal than they were before.  Many of the people who made it through the Great Depression are credited as being the most frugal people ever.  When you’ve gone through extremely lean times like they did, you learn to squeeze every bit of value out of everything.  Even today, I’ve met people from older generations who rinse and reuse their ziploc bags.  Who wash and dry their paper towels.  And those same people are likely not really sweating the current state of the economy.

My wife and I have been following (albeit loosely) the teachings of Dave Ramsey’s Total Money Makeover for almost two years now.  Our financial standing is amazing compared to when we began.  We also live in a part of the country (North Dakota) that doesn’t really feel the violent mood swings of the economy.  We feel some of the ripples, but the real waves are in places like Los Angeles, New York, and even the closer Minneapolis.  And, while we are thinking about the effect the economy could have on us, we aren’t sweating it.  It’s a wonderful feeling to have.

Now, for some positive thinking.  A brighter perception of our economy.  I have no doubt that our economy is a bit in the dumps.  I have no doubt that the dip we’re in is going to last well into 2009.  But, I think we’re on the bottom peak of it.  Somewhere in the first quarter of 2009, many companies will begin to release their earnings for the holiday season and most of the analysts will be surprised by the numbers.  Despite the perceived recession (real or not), we’ll have spent the same as we did last year and a bit more.  Slowly, our economy will regain it’s footing and begin operating more efficiently.

So spread a little hope this holiday season.  It’s been worse, and it’ll get better.  But don’t forget to learn a lesson from it all.  A little bit of frugality never hurt anyone.

Mobile Barcode Scanning for Frugality

By 1 Comment

Did you know that you can scan a barcode at a store, run it through a program on your phone, and have it tell you whether the item is at a good price or not?  There are apps available for both the Apple iPhone and the G1 that allow just that.

These apps allow consumers to compare the prices of merchandise on a store’s shelf to competing stores in the area just by taking pictures with their smartphone’s camera. The prices are instantly retrieved and displayed on the mobile phone so consumers can know before they buy if they’re getting a good deal.

Pretty cool.  If only I had a phone that was that smart.  Of course, like anything that empowers the consumer, the stores are already thinking real hard about making their stores cell phone free zones through policies banning them or through cell phone jamming devices.  Use them while you can.

Have you been using one of these programs?  Let us know how it works for you!  Or give it a try and let us know!