Dollarwi$E…$Aving $Mart: Living Better for Le$$

By Joan Foley Adducci

This book will help you be determined to save, to spend less, to stretch, to use the hints that follow, and then to start developing your own ideas. You will not only succeed in lowering your cost of living but you will also start a new adventure and contribute to conservation in the process.

Quite the opposite of being dreary, meeting the challenge of living on less can provide enormous satisfaction—an unexpected bonus. Few of us will ever meet and conquer momentous challenges. Few will ever stop a bank robbery, shoot the rapids of the Amazon, or climb Mount Everest. But the determined can gain their own kind of satisfaction by conquering challenges that chop away at ever-declining purchase power.

• Language: English
• Publisher: Xlibris US
• Release date: Aug 27, 2019
• ISBN: 9781796046205

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Copyright © 2019 by Joan Foley Adducci.

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the copyright owner.

The views expressed in this work are solely those of the author and do not necessarily reflect the views of the publisher, and the publisher hereby disclaims any responsibility for them.

Any people depicted in stock imagery provided by Getty Images are models, and such images are being used for illustrative purposes only.

Certain stock imagery © Getty Images.

Rev. date: 08/27/2019

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CONTENTS

Chapter 1 Introducing Dollar Wi$E $Aving

Chapter 2 $-T-R-E-T-C-H-I-N-G Food Dollar$

Chapter 3 Classy Clothing For Less

Chapter 4 Money Matters…Those BIG Expenses:

Chapter 5 Saving Energy, Saving Cost$

Chapter 6 Safe Savings On Health And Grooming

Chapter 7 Leisure Activities..Travel..Vacations

Chapter 8 $mart Tips and Super Savers

CHAPTER ONE

Introducing Dollar Wi$E $Aving

LEARNING TO S-T-R-E-T-C-H

When I was growing up in Denver, Colorado, my mother had an intriguing contraption that sat menacingly next to her washing machine. It was made of slats, with shiny, sharp pins sticking out all around it at one-inch intervals. To my young imagination, it looked scary. But it was really just used to stretch curtains (no permanent press then). It fascinated and intimidated me. I shuddered to think of those thousands of pins impaling me if I got too close, so I gave it wide berth. There were also two unwieldy pieces of metal on which Mom stretched my father’s work pants. Faithfully every week, Dad’s pants were tautly creased on them. Monthly, the curtains went on their stretchers, with crisp results, as were Dad’s pants every week.

When I grew older, I tried a few times to use the pants stretchers. But they ended up as twisted Xs. I never tried the curtain stretchers (no thanks!) Mom was the undisputed expert with her contraptions.

More to the point than my mother’s curtain and pants stretching devices, was her ability to stretch more important things. She was a skilled seamstress and made all the draperies and curtains in our home, in addition to major clothing contributions. These skills she and Dad taught us - stretching a dollar, a piece of fabric, or the ingredients of a meal to accommodate drop-in visitors. We often teased her about a New Year’s Day when my two sisters and I, and our families, all happened to drop in unexpectedly. Unflustered, Mom was able to satisfy everyone’s appetite quite well. With two baked chickens and magically-stretched side dishes, she fed all fourteen of us. We still refer to it as the second miracle of the loaves and fishes. My father was a professional stretching expert. An upholsterer by trade, Dad could cover a piece of furniture using less fabric than his partner, or anyone else for that matter, thereby saving his customers money on fabric. He did not like waste. Yet, he still saved what remnants did occur…a bit of trim here, a length of fabric there….tucked away in his workroom, knowing they would eventually come in handy for something. My son, then in high school, once made a bow and arrow case from fabric Grandpa found in his supply. That remnant of naugahyde had to have been at least twenty years old. But it was right where Dad had put it away, as if waiting to be used by a new generation. He was a recycler long before it became popular culture.

My parents lived through The Great Depression (emphasis theirs), learning well how to survive on little. Though Mom was a daughter of a successful building contractor, their lives changed drastically when Grandpa’s business was shattered. And he also lost the custom house he had built for his family. He did not sink into despair, though in Chicago, where they lived, men were jumping out of office buildings over their losses! Incentive enough, though, for my parents to tighten up their own belts to survive. Mom went from buying the latest fashions at Marshall Field to learning to sew her own dresses. Daddy went from a desk job at an insurance company to learning a trade, and trading his suits for workman’s clothes.

So… Mom and Dad never forgot afterward what it was like to live on the edge, from paycheck to paycheck. There were times when there was no extra money…..not even for a doctor when my sister Lois got pneumonia at the height of the depression. Their hard-won economies later saw the family through the shortages of the war years (WWII), but their priorities still provided parochial school educations, and weddings, for my sisters and me. They eventually enjoyed a comfortable retirement…..during which our teasing subject changed to one about their trips to various banks to deposit interest checks.

These excellent role models started me on a predictable path to a saving lifestyle.

When I married, those saving habits learned from my parents eased many frustrations….over the small salaries that go with starting at the bottom of the employment ladder, while struggling to set up our first home, raising four kids, during several job-loss situations, and eventually easing into retirement.

We weren’t alone by any means. Some of the stories of others, shared with me over the years, made our situation seem common. There is a positive side. There were, and are, ways to cope, and to survive. We have developed many for our families through our own lean times. Most of them, like my mother’s curtains, involve stretching. Inflation and high prices threaten us, as they do most Americans. Salaries struggle to keep up with the dizzying rises in the cost of everything. At various times, the economic crunch has cost family members jobs, cut working hours for others, and evaporated sources of financial aid for college educations.

Prices continue to rise alarmingly. The good life that had seemed almost within reach slips away regularly. I began to think of my saving methods as Save-o-nomics - a name that seemed to fit the times as well as the situation. No matter what we might call them, I knew they would work for us, then and now, as they always have. It is more important every year to conserve (a valuable side effect), to save, to plan, than it was when I first began gathering these methods all those years ago. And conserving resources just makes sense. We owe it to the planet as well as to our grandchildren.

They (the methods and tips) can help you too. Use them based on your own priorities.

The trick is to have an organized and deliberate method, to plan carefully, to search out every possible way of stretching and saving, even if it seems insignificant. Because all the methods, those trivial ones as well as major ones, add up to making it - just as all those little grains of sand make up my favorite beach. It’s a mind change…an attitude of saving.

If you are determined to save, to spend less, to stretch, to use the hints that follow and then start developing your own ideas, you will not only succeed in lowering your cost of living, you will have started a new adventure….and also contributed to conservation in the process.

Because, quite the opposite of being dreary, meeting the challenge of living on less can provide enormous satisfaction - an unexpected bonus. Few of us will ever meet and conquer momentous challenges. Few will ever stop a bank robbery, shoot the rapids of the Amazon, climb Everest. But the determined can gain their own kind of satisfaction by conquering challenges that chop away at ever declining purchase power.

WHO AM I, AND WHY DO I THINK I CAN HELP YOU?

If you are going to trust me to help you to meet your challenge, perhaps I should tell you a bit about myself, and about how I accumulated my methods. My husband, Bob, and I raised three daughters - Dina, Linda, and Dona, and one son, Anthony - all born before our fifth wedding anniversary. They are grown now, with families of their own. We fed and clothed our family, furnished our homes, and the quality of our life has always been comfortable, if not luxurious. We have been fortunate enough to attain the American Dream of our own (modest) home twice, which some fear may remain a dream for many young people today. For example, at twenty-five, our grandson Dominic found it difficult and frustrating to find a home to buy in an expensive and highly competitive housing market. Yet it was a vital goal he and his wife Allie continued to pursue. I never doubted his determination, nor that of all my children and grandchildren. At this date four of my grandchildren – Laura and Mike, Dominic and Allie, Andrew and Angelica, and most recently Morgan and Tim – have, against odds, found homes they actually can afford in this crazy market.

Bob and I did not made large salaries (especially in the beginning), and I have worked in several professions to contribute income. We have always managed to have nice vacations, sometimes several a year. We lived what you will find here.

When the kids were grown, I returned to college part-time for the degree that marriage postponed. After years of training, experience, and study, I am a Certified Kitchen Designer (CKD) and often work with my son in the remodeling business. My husband Bob recently passed away, so now I am facing (quite well, actually) the challenges of a single income home.

Our ability to stretch has often been put to a test:

• During early-marriage when we started with nothing, entry-level jobs, and little else (common enough).

• When the babies were small and the demands high.

• During the years when we had four growing teenagers.

• During the planning of our oldest daughter’s wedding.

• And during the times when for one reason or another, I didn’t work.

For that is one of the ways we cope. I have regularly added the income of that second salary, as do most others who want to survive. To make it, you have to cut costs and raise income, so a second income for a family is usually important. Those experiences, however, added not only income, but valuable lessons and resources to my stretching repertoire, as well as leading to a number of professional careers. For example:

1) During many years in the home furnishing field. As a decorator; a lighting consultant and as a kitchen designer (the latter two certified by industry organizations), I found and developed valuable ways of saving on home furnishings: Carpets, draperies, lighting, furniture, appliances, hardware, accessories, etc.

2) As executive secretary for a large commercial construction firm I discovered sources for materials and how to save on remodeling and building projects, though my husband’s and son’s skills have been valuable contributing factors. Today, our combined efforts focus on kitchens and custom projects.

3) As Assistant to the Director of an arts center/theater complex, I honed organizational, planning, and management skills, and was part of a vibrant entertainment and education dynamic.

4) Early stints in various sales and office management positions, and even an experience as reporter and editor for my college newspaper, have all contributed.

Always I have looked for, and experimented with, ways to save on everything, while buying the best quality I could afford. I stress that quality is important. Saving by buying cheap anybody can do. It’s not about obsessively clipping coupons, or buying everything at the dollar store. It’s about getting the best quality and living the best life possible with the resources we actually have, which may be limited.

I’ve studied and saved hundreds of articles and tips, kept stacks of notebooks and files, read everything I could get my hands on. My files overflow. Knowing of my intense interest in the subject, my sister Janet once gave me a book on "How to Live on Nothing". But I didn’t get much past the first few chapters of the predictable 1960s experiments of commune living and herb and grain diets. Even I could go only so far!

Friends and family were often struggling too, so we shared ideas. The notebooks and files bulged with clippings. These, and long-used methods, are the basis of The Plan, even if I do not always remember from where the original idea came. From Mom? Was it a creative inspiration? An idea from a magazine? From a friend, or a TV show?

Whatever the source, I have gathered them together, over many years, to be shared with others who may be struggling as we did, or who just want to live smarter. They could almost be called a diary of my family life. Together our experiences, yours’ and mine, will equip you to be a survivor…a smart survivor.

It makes common sense to be good stewards of our resources, one of which is how we allocate our money. There is a freedom when you live a life thrifty enough in everything to travel life lightly, freed of the burdens of debt and worry. You may recognize some of the methods as your own familiar ways.

THE KEY TO THE METHOD…….MY LITTLE BLACK BOOK

The core of my method is in organization through my Little Black Book. I carry it with me everywhere. It is my organizer, secretary, instant reference, life-saver, friend. Get one. Adapt ideas from mine that appeal to you, then plan your own. This little notebook will become the skeleton on which to hang the flesh of the DOLLARWI$E SYSTEM. It is an important element of the first principle: PLAN AND PREPARE - how to shop purposefully instead of just buying automatically, an important difference. Your planning notebook will prepare you, remind you, encourage you, and reinforce the DOLLARWI$E SYSTEM. You will use it to plan all elements of a sensible purchasing plan: From food to household items, from gifts to decorating.

I personally prefer a compact five-and-a-half inch loose-leaf notebook as it fits into purse or pocket. The loose-leaf format allows flexibility to add and subtract entries, a soft or hard cover for permanence and durability, and it is easy to retrieve from the bottom of purse or briefcase.

Now, recent years have been dominated by dependence on smart phones. But… this book is about saving money wisely. Not everyone can afford six or seven hundred dollars for what is actually a luxury. Keep that in mind when comparing a method using a simple notebook to a $600 phone. ‘Nuff said for now on that subject for the time being. Just stay with me while I present this method, which works more economically.

Let’s look for a minute at mine to get an idea of how your notebook can be used:

On the front inside cover are scraps of upholstery and drapery fabric, stapled next to a snip of carpet; one-inch squares of different wallpapers; card samples of paint and accessory colors. This mini collection is helpful during shopping when colors need to be matched. Try it yourself. Just snip an inch or so from leftover fabric, if you have it, or off an inside seam from upholstery and draperies. Add a small scrap of surplus carpet (cut from a closet corner if you don’t have scraps), wallpaper and paint samples (handy little cards from paint stores), etc. Staple or tape them into your notebook, or on an index card to slip into it. You’ll be prepared for future purchases, which we will be referring to later.

On the back inside cover of my notebook are stapled scraps of clothing fabric: skirt plaid to match for a jacket, blouse print for a skirt, etc. These change as items are purchased, preparing me to take advantage of clothing bargains (more in Clothing section). Separate sections of the notebook are labeled with index tabs for quick reference:

With index tabs or sticky labels, set up yours like you used to do your school notebooks, only in miniature. Since your (smaller) notebook will contain many entries, sections will make it easy to find what you need and to add new categories as needed.

You can see that the Little Black Book is information and organization, a personal reference source. Into it you will put a wealth of portable data. Use it to record the information (under RECORDS) that’s probably in ten different places now - like vaccination schedules, insurance policy numbers, phone directory, mileage figures, etc. When my purse was stolen, the item I missed most, and replaced first, was my Little Black Book. I needed its information.

Now, I know that you might have stored some of this information in your smart phone, and that is great. But a simple notebook can work for those of us without a smart phone (gasp) as well as an adjunct for phone users. I find the information in a notebook easier to read and simpler.

WHAT INFORMATION?

I. YOUR BUDGET

Since the first thing that must be addressed in any Saving Plan is how much you have to work with, the first section of your Little Black Book will determine your BUDGET. Don’t panic. You cannot save money, or stretch it, without knowing what you have to work with, where it goes, and what demands will be made on it. It is not hard. Use the chart below to plan your own budget if you are not using another method. If you already follow your own budget, copy it into your little notebook. It’s important to have this information easily available, and portable.

If you do not follow a budget now, it is time, and essential, to try one. My own budget method started out simple many years ago and I have kept it that way. It is not an executive’s budget but an average wage earner’s budget: simple and fairly painless. It will be our example, though it is far from perfect. Until you perfect your own budget plan, you might want to try mine for starters.

First, I prepare a larger budget book to lay out all my financial information, using whatever will give me a total picture of my (your) situation, such as all possible bills and what financial assets I have available from check stubs. The Budget Chart shows a typical page (See BUDGET CHART #1…Budget Book, below). Each month gets a separate page, for entry of upcoming expenses, gift needs, insurance as due, etc. If you prefer, just extend columns for each month. I know, it’s really basic. But sometimes simple is better…even better than electronics.

I set up my budget for six months ahead. My Fixed Income line equals total after-withholding taxes (adjusting as necessary for added or lost income). Since I usually worked on commission most recently as a designer, this is flexible enough to accommodate fluctuations in commission income, which for me can be Estimated Income.

Fixed Expenses are listed next, such as mortgage or rent, credit or car payments, and other set amounts. Then, Savings….. pay yourself now. It’s smarter than accepting what’s left (if anything) after bills are paid. Then, Utilities, estimated from past bills. I use the highest amount from past winter bills as my budget entry figure. It allows me to build up a bit of a cushion, using the savings from the lower bills of summer to save for the higher ones of winter.

Now deduct the amount of Fixed Expenses from your Fixed Income. Assign the amount left to expenses that can vary (Discretionary Income), such as clothing, personal spending, repairs, etc. I cannot tell you how, and would not try, to assign actual amounts. That is too individual (and this could change, hopefully, as you apply Stretching Methods). You might decide to assign a percentage to each entry, i.e., 10% to clothing, 5% to spending, etc. Do set dollar amount limits to all categories. In black and white (you can do it).

You determine the amounts and priorities. Your budget is up to you.

Obviously, the Expenses should be less than the Income. You are in trouble if your outgo is larger than your income. No surprise there.

If there is a problem, you have to reassess the amounts of flexible, or discretionary, expenses and assign priorities. We will be working on how to cut down on expenses so that your outgo will not be as high. That is the point.

See, I told you this was not hard. I don’t claim to be a Finance Expert, just an ordinary woman trying to make it in difficult times and good times, and the simpler the better.

Next, transfer the condensed version of the budget into your little black (?) book.

(See below)

1.jpg

ADJUST…

If You have expenses not shown on the BUDGET CHART (the list is merely an example/guideline) such as child support or music lessons, anything, be sure to add them to your BUDGET CHART.

Adjust to your life and commitments as needed.

If you have a yearly or quarterly expense, such as house and auto insurance, or tuition payments, list the total amount to be paid on the page for the month it is due. Then backtrack to see how many months you have from now until these are due. Divide the total amount you will owe by the number of months until due. Put aside this amount each month so you have the total saved when the due month arrives. (pretty simple.) Works for me anyway.

OR……..A Little Stash?

Another way to accomplish this plan ahead budgeting for future expenses is to keep envelopes for anticipated or long-range bills. Each month place the monthly amount (i.e., one-third, one-sixth, one-twelfth) for that item in an envelope marked for the purpose…insurance, vacation, etc.

You can use cash, but I write out the checks for each month’s amount and hold them. Once I’ve written a check for a future expense, even though I may hold it for six months, I consider the money gone from the checking account and I cannot spend it. Cash is too easy to borrow. If you send six checks for the amount due on car insurance, no problem. Do you think the insurance company will complain? Mine does not, and neither will yours. Better to send six checks than to face a large expense during the month that semi-annual or quarterly expenses are due. (or at due date just write that one total check and tear up all the others…no problem)

You can also use cash envelopes as a help for day-to-day expenses, like gas, entertainment, lunches, etc., if it will help you to stick to a budget. This is especially helpful if you get paid monthly. Sometimes, if all your money for the month is accessible in your wallet, it disappears far too quickly and there may be none left at the end of 30 days. If you apportion out a week at a time per envelope, you can be sure that you will have money put away for these expenses by the third and fourth weeks of the month. This helps if you don’t otherwise have the discipline to be sure there is cash left at the end of the month.

If this works for you, try it for six months or a year. If the amount of an annual bill is large enough …like property taxes, and house and car insurance… put it into a special savings account for later payment, and possibly earn a bit of interest at the same time. I have a special savings account for house and car insurance and property taxes; I budget a set amount each month for these yearly expenses, deposit in the accounts, and the money is there when the bills come due.

My Budget is uncomplicated but it does have advantages. It’s simplicity, for one thing. It may or it may not appeal to you. It is a suggestion.

Arrange entries in your notebook to suit your needs, using the following as an example.

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This (very) simple budget can be adjusted for special purchases and for extra payments on accounts, increased for gifts closer to Christmas time, and allows for dropping optional purchases such as clothes or cleaning. Planning for leeway, in the form of a balance, allows for dealing with unexpected expenses. Clearly, my unsophisticated way of budgeting is not for everyone (or everyone’s income). But it works for me and for my daughters, who have used similar budgets. Adjust yours to your way of life, needs, and income. A savings plan without a budget is like a trip cross-country without a map. Be sure you have your map.

My mom used the original version my budget is based on. Before checking accounts were common, my father brought home a pay envelope with his wages in cash. Mom divided it into envelopes, marked for Insurance, Food, Utilities, Milk, etc. Then she paid bills from them, going personally to the utility company, and paying the milkman and insurance man when they came to the house to collect. (Echoes of a simpler time!) Mom and Dad eventually used checks, of course. But she still liked envelopes for some things. In later years, she even kept a $100 bill in an envelope for periodic trips to our mountain casinos for Slot Machine Fun. (Even Mom wasn’t always rigid about economies.) .

Try the envelope system if it appeals to you. What can it hurt? Keep track in your notebook of the amounts needed and what has been saved in each envelope. Using this method, and my envelopes of checks, I was able to plan six months ahead for Dina’s wedding expenses. As each bill came due, I paid immediately with the check I had earlier put away for it. Even a simple wedding takes a great deal of planning, shopping, and money. With my notebook for planning, my special budget entries for wedding expenses, and checks written in advance and put away for later payment, all went smoothly. I had no debts lingering at the end.

It worked so well, I used it to plan my kitchen remodel….. and, seven trips to Europe.

THE PAYOFF….BENEFITS

An advantage of my combination notebook and envelope budget is that I can tell if I can afford special occasions or expenses coming up during specific pay periods, or whether to take advantage of a sale. I am somewhat flexible, but not too much. Some entries, especially fixed expenses, must remain untouched.

With a budget in your notebook, you can see at a glance what your expenses are, what you can afford, what to anticipate for future expenditures. Or, if the budget can be stretched for theater tickets, a new suit, or a weekend trip. You know where you stand and what you can afford.

Keep your budget up to date. I usually work mine out for about six months in advance, starting a new set of pages a month before the current budget expires. My budget is not rigid or scientific, but I like it that way. It’s better (for me, at least) than reactive spending. After using your budget for a while, you may want to make adjustments, eventually working out an individualized plan that is comfortable for, and suited to, you. If you have never had a budget (and many have not) it’s a relief to see that even a simple one can work, and that it can eliminate a lot of the stress over financial unknowns.

My daughter Linda was relieved, when she first moved to her own home, when her budget showed that she could make it on her salary if she adjusted here or there, or was patient until next payday. Dona and Anthony both were able to purchase vehicles soon after high school graduation by budgeting money that could have been slipping through their fingers each month. Dina put herself through beauty school, and later she and Michael were able to purchase a new car, a townhouse, and eventually a bigger home - all carefully budgeted and planned. Anthony, flush with his money management success and that new pickup, soon proposed to his sweetheart, Ronda. They had a beautiful wedding and honeymoon, and moved right into their own new patio home - all possible with budgeting. They are all many years along now, but they had those good beginnings. If my method doesn’t fill your needs, you may prefer to send for a more scientific budget from:

CONSUMER CREDIT COUNSELING SERVICE

Budget Form B

450 Seventh Ave

New York, NY 10001       Send a Stamped, Self-Addressed Envelope (SASE)

BUDGETING TIPS:

1. Be realistic. Don’t set goals so hard to attain that you give up the whole thing in frustration. At the same time, know you can accomplish anything you determine to do.

2. Aim for 5% to 10% off the top for SAVINGS.

3. Don’t forget long-range goals, such as vacations, college for the kids, retirement, etc. Start planning by socking away funds for such items now.

4. If you have credit card balances, pay them down. Pay first the ones with the highest interest rates. Transfer charges for the higher interest ones onto lower interest ones, if you can do so without paying high costs for the balance transfer, or cash advance fees, to make the payoff. Never pay only the minimum payment. On just a $2000 debt minimum payments would take eleven years to pay off!

5. If you can get a credit union loan at a better rate of interest than any of your outstanding bills (and in most cases they are lower than bank cards and department store accounts), consider such an arrangement to pay off higher-interest bills and credit cards.

6. Simply…Pay Cash. It is proven that those who do spend less, especially on non necessary stuff. Severely cut back credit buying. If you charge that sale item, the savings could be nullified. And using credit can cause upwards of 30% more in spending. Credit is an illusion.

7. Include older children in budget planning. Set aside funds in your budget for allowances and their needs. Show how you arrived at the figures, and where they are in relation to the over-all plan. Help them to start learning early to budget their own money. You can establish an important bond of shared experience with them. If you have become their ATM machine, reconsider….set a reasonable amount for them and expect them to live within it too. You will be doing them a favor.

8. If you find it difficult to save, see if your work place, or bank, offers payroll deduction plans. A percentage of your check can be automatically deposited into a credit union or bank savings account. Raises are the perfect opportunity to do this. You won’t miss the extra money if it goes straight to savings before you ever get used to having it.

9. If your employer offers a 401K Retirement Savings Plan, sign up now. IRAs are an excellent way of saving for retirement, since they are deducted before taxes, which are figured on the amount remaining after any 401K contributions. This gives you a decided tax advantage in addition to saving for the future. I found that my take-home pay was little affected even though I had 10% of my pre-tax income deducted for a 401K.

10. Another way to save: Once a bill has been paid off, keep paying that same amount into your Savings Account. Again, you’ll not miss it, but it remains yours in the form of savings. When my income includes both salary and commission, I budget just my salary and save my commissions, or use them for projects.

11. Financial planners suggest a good formula for budgets, called 10-70-20. Assign 10 Percent of your income toward retirement, investments, or other savings; 70 percent to regular monthly expenses; and 20 percent to reducing consumer debt, establishing an emergency fund and short-term savings. (more in Money Matters)

12. Pay bills using the Budget Plan you set up, checking off amounts in your notebook as paid. You can see ahead to what is to be paid next. If unexpected expenses arise, you can fit them into upcoming pay periods if you have allowed enough flexible and/or leftover funds.

13. If too many bills are due around the same time, and you find yourself in a juggling act, see if due dates can be changed to allow breathing room and to enable you to pay on time. One or more of your creditors should be willing to work with you. Keep trying until they all agree..

14. Investigate paying insurance premiums monthly. This can be a better way to budget this item, and you won’t get hit with the large expense at an inopportune time.

15. Start a Gifts savings account, similar to a Christmas Club. Or tuck away a few dollars in an envelope each pay period to be used for gift occasions…planning that’s especially appreciated when unexpected gift needs arise.

16. Some financial experts would disagree, but we have nevertheless always taken fewer deductions on our paychecks to insure an income tax refund. Even though the government does get to use our funds without paying us interest, we find that this is a painless way to save for vacations or special projects. I have always taken a 0 deduction. Combined with itemizing deductions at filing time, we received a refund every year.

17. However, if you need more money to live on each month, you may be better off by raising deductions, providing more take-home pay. Get advice from a tax expert on this strategy, though, because it could backfire and you might owe taxes at filing time. Having extra money each week might not be worth it tax-wise (if it means you owe money), even if you were VERY disciplined and put the extra funds in an interest-bearing savings account (few actually do this).

18. Ask your utility company if they offer Budget Billing, which averages previous year’s utility charges, and divides the cost equally over the next twelve months. Your cost is always the same. Budget Billing greatly simplifies budgets, especially if utility charges vary greatly by seasons.

19. Promise yourself and/or your family a small reward for sticking to a budget for a year and for lowering your living costs. Keep the reward reasonable so you don’t blow the rewards of cost cutting. Unless, of course, the reward is exactly WHY you are cutting costs in the first place.

20. It’s easy to fritter away money on small purchases, like coffee ($5 coffee, for goodness sake?), lunches, checkout line impulses, break snacks. Limit these and save some cash by setting a weekly allowance just for these extras. You will be better aware of what you are spending.

21. Avoid impulse buying on any purchase, especially larger ones. Wait two days before actually making the purchase and think it through: do you actually need the item? Can you actually afford it? Your impulse to purchase will likely pass by the end of two days. If not, you at least made a calm and better informed decision.

22. Do you nevertheless have credit card balances? Do your best to pay them off. The interest rates will eat you up, especially those charging up to 17% and more. Pay off the ones with highest interest first, working through diligently until you can pay them all off. It won’t be easy, but being debt free is a great feeling and a worthy goal.

23. Better yet, pay cash for any purchases. Don’t charge.

II. LISTS OF NEEDS AND WISH LISTS

In the next part of your notebook, list the things you need, or want, to buy, when you find a bargain. Such as pillows, towels, hardware, paint, accessories, building products, replacement parts for repairs – those items you and your family might need during the year - your short and long-term purchase goals. You can enter decorating wish lists, carpet and drapery requirements, household projects, planned landscaping, etc.

I have a need list and a wish list near the front of my own notebook that I add to as circumstances change. The lists help eliminate impulse buying or wasting unexpected windfalls. Gift money, tax refunds, bonuses and extra commissions usually are spent on things from my wish list or go into savings. With great pleasure, I cross off items as they are purchased.

Next to each item on the list are sizes, colors, brand name preferences, and comparative prices. Because of my notebook, I will remember to pick up the parts needed for projects, or the stain, or drapery fabric. I can check to see how much house paint is needed, as the amount has already been figured and entered in my notebook, along with the color and paint brand last used (in case a match is needed). Paint samples are stapled to the cover of the notebook.

Preparation eliminates guess work.

III. SIZE INFORMATION

The next notebook section will list the information needed to shop effectively -- family members’ sizes, dimensions of rooms, windows, and other size information that would help to avoid shopping mistakes. As children grow, change size notations accordingly. Keep your size list up to date.

Prepare your charts similar to the sample chart that follows. Adapt it to your needs and your family. Put it in your notebook where it will be used often and to good advantage.

With this information, and your own color and fabric samples stapled to your notebook, you will have the information to make logical purchases. Here is the beginning of your Plan, with correct measurements at your fingertips.

CHART # 3: FAMILY SIZES

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CHART #4: ROOM AND WINDOW MEASUREMENTS

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With the information listed above, and the color and fabric samples stapled to the inside covers of your notebook, you will always have the correct measurements and information at your fingertips when needed to make purchases of all kinds. The scope and versatility of your notebook is limited only by your imagination. With its preliminary information and the beginnings of a plan, we will utilize it in each section.

LEARNING TO SHOP WITH A PLAN

A Smart Saver (that’s you) plans purchases, gets the best prices, buys with deliberation rather than impulsively, and winds up satisfied. The success of the DollarWi$e Plan hinges on six important methods. They are basically pretty simple. We will see how to expand them to apply to nearly everything needed for daily living.

THE MAJOR METHODS OF $AVING $MART:

1. PLAN CAREFULLY. ANALYZE AND CONSIDER ALL POSSIBILITIES, USING THE LITTLE BLACK BOOK.

2. BUY NOTHING UNLESS IT IS ON SALE…EXCEPT FOR SPECIAL OCCASIONS.

3. COMMIT TO ALTERNATIVE BUYING:

a. GENERIC

b. OUTLETS, WAREHOUSES, WHOLESALE, AND OTHERS

4. LEARN TO DO-IT-YOURSELF. YOUR LABOR SAVES YOUR MONEY.

5. USE EVERY BIT AND SCRAP OF EVERYTHING. RECYCLE.

LEARN TO S - T - R – E – T - C – H.

6. REALIZE THAT OFTEN THE BEST WAY TO SAVE MONEY IS TO BUY THE BEST QUALITY YOU CAN AFFORD AT THE LOWEST POSSIBLE PRICE; WAIT UNTIL YOU CAN FIND THAT PRICE – OR IT GOES ON SALE.

WHEN TO SHOP

We Planned (#1) by preparing the Little Black Book. Plan also the best time to shop. Timing is important in everything, even more so when shopping for the best bargains. Did you know that, for example, the worst time to buy Christmas gifts is, typically, during December? That is because it is the major retailing month of the year and merchants want to maximize their profits. This usually makes it the worst time to buy. Be alert, however, since this may not always true. Recently, stores have run sales several weeks before or close to Christmas.

So, buy Christmas gifts, being alert to special buys and sales in all the months following Christmas. Whenever I see something valuable, and a good gift idea, at a discounted price, I buy it then and store until the time needed (for Christmas or birthdays). Keep track of these purchases (note them in Little Black Book on month- needed page of your budget) so you don’t forget you have them stored in your gift stash.

Do you know the best time to buy tires, or blankets, or furniture? Retailers have a pre-conceived plan for sales on nearly every category of dry goods, based on consumers’ demand and on merchants’ habits and judgment. Knowing when these sales are held every year, and watching for them, prepares you to become an informed consumer.

Take advantage of these special sales, shop the items on sale carefully, and benefit from lower prices. You may be buying summer clothes in September (great close-out sales on summer items in all categories), rather than in April. Planning ahead for next year and storing purchases for later use, will be well worth the extra effort in the form of savings. Shopping at the times shown can save 30 to 40 percent, or more.

MONTHLY SHOPPING CALENDAR:

JANUARY: White Sales, After-Christmas Clearance Sales, shoes, hats, dress fabrics, handbags, luggage, lingerie, books, furs, and cutlery. Furniture, appliances, refrigerators and freezers, clothes dryers. Men’s clothing, resort wear; Toys, Radios, and stereos.

FEBRUARY: Presidents’ Day Sales, Valentine’s Specials, Winter Clearances. Bicycles, Bedding, curtains, china, silverware, glassware, men’s shirts, and dress fabrics. Floor coverings, hand tools, carpets, furniture, house wares, appliances, air conditioners, infants clothing and supplies.

MARCH: Spring and Easter promotions. Winter coats, sportswear and sports equipment. Luggage, house wares, china, storm windows, kitchen cabinets, silverware, laundry appliances

APRIL: Easter Clearance on clothing. Men’s and boys’ suits, infants’ wear. Paint, building materials, wallpaper, garden items, cleaning supplies, housewears. .

MAY: Mothers’ Day, Memorial Day Promotions. Camp clothing. Blankets, rugs, carpets, white goods, garden and cleaning supplies, fans, air conditioners, outdoor furniture, tires, television sets. Travel.

JUNE: Fathers’ Day and Graduation promotions. Summer clothing, hosiery, sportswear, lingerie, camping clothes and equipment, summer fabrics, bridal gifts. Furniture, TV sets, building supplies, typewriters. Tires, cars.

JULY: Fourth of July promotions. Storewide Summer Clearances. Bathing suits, shoes, hats, handbags. Air conditioners, appliances, garden supplies, outdoor furniture, sports equipment, radio and stereo equipment.

AUGUST: Summer White Sales. Final sales on summer clothing. Furs, children’s clothing, summer sportswear clearance, coats, fall fabric. Home furnishings, lamps, outdoor furniture, garden equipment, house-wares, camping items, furniture, bedding, school supplies, auto sales.

SEPTEMBER: Labor Day Sales. Back-to-School promotions. Fabrics, door furniture, hosiery. Garden supplies, china, glassware, furniture, bedding, silverware, rugs and carpets, home furnishings. Automobiles. Some specials on theater or concert season tikets.

OCTOBER: Columbus Day Sales. Model close-outs on Automobiles. Children’s fall clothes, hosiery, women’s coats and suits, fall and winter sportswear, boy’s outerwear. Bicycles, fishing equipment, pre-season ski equipment, auto batteries, electric blankets, kitchen cabinets, china, silver, glassware

NOVEMBER: Veteran’s Day Sales, Thanksgiving Sales, After Thanksgiving/Pre-Christmas Sales. Men’s shirts, suits, and coats; women’s winter clothing. Furniture, home improvement supplies, china, glassware, linens, blankets, paint, hardware, ranges, water heaters. Used Cars. Bulbs, trees and shrubbery for late fall planting.

DECEMBER: Typically, nothing until after Christmas except for the occasional sale. Then: After Christmas Sales and End-of-Year Sales. Stock up on wrapping paper, cards, tags and gift items for next year. Shop sales for toys, furniture and clothing after Dec. 25th.

NOTE: These are traditional sales. Some stores, however, are not traditional in their merchandising and marketing. Some stores do run excellent sales during the Christmas season, recognizing that people have tightened up their buying and need to be wooed with sales even during the best retail season. Recognize those aberrations to traditional times.

Knowing the sale dates of items has value if you are flexible. But it might not help that building materials are on sale in the spring if your project is planned for September. So remember to always be an alert consumer. Shop around for the best price at any time of the year. In addition, since there is fierce competition for consumers’ dollars, you may find a sale on what you need at any time of year if you are alert and watch the ads closely.

TIP: Find a friendly sales person at a likely store and ask them to call you when any item you need goes on sale. That could be your best sale source.

SHOPPING STYLE

Take maximum advantage of sales. Timing is important when buying anything. You need to be at the right place at the right time, so quickly scan newspaper ads daily for sales, which might be advertised only once. You could miss it if you don’t watch daily. Some of the best bargains are out-of-season, closeout, and discontinued. They are seldom advertised. Shop stores often enough to take advantage of these exceptional sales for items you actually need. Outlets run their seasons closer to when you actually want things, instead of the way the rest of retail does.

But do not become a sales junkie! A sale is no bargain if it is an impulse, or not needed

Even outlet’s best sales are held at the end of seasons…..like mid-September for summer things, mid-March for winter things, etc. Outlets need to clear shelves for incoming merchandise. They do not store unsold merchandise, and do not carry over until the next season. They want it all OUT at the end of the season. This could bring markdowns as low as fifty cents for blouses and gloves, and a dollar for boys’ pants (as I’ve actually found). I have also found incredible bargains on outlet skiwear in March and summer clothing in September. The following are some guidelines on:

HOW TO SHOP SALES: (More specific ideas will follow in Classy Clothing for Less)

1) Shop early. The best buys, quality, and selection are available at the beginning of a monthly store sale. Arrive soon after the sale begins. Both regular stores and alternative shops have the best selection at the beginning of the season, but the best prices at the END of a sale. You take a chance by waiting till the end, as selection might be limited, if not gone. The best prices are at the end of a season, or end of a sale when outlets must clear out merchandise.

2) Monitor regular retail prices. Make notations of the usual price of any needs in your notebook for comparison against sale prices. Read ads in newspapers and flyers. Closely observe prices while you are shopping so you will be prepared to compare.

3) Visit likely stores often, if you are looking for a bargain, to be in