A Frugal Journey

I've been asked by people, why chose a frugal lifestyle?  I suppose for each person it is different, but for me, it was a chance to stop the endless cycle of debt.  I had student loans, car loans, and credit card debt that circled like a cloud over my head that I could never seem to escape.   I was using credit cards to pay for clothes, gifts, emergencies, car repairs, co payments on health care, and the inevitable yearly Christmas shopping.  I was stuck on a financial merry go round, and I had no idea how to get off.   I knew I was paying out a lot in interest every year, but it wasn't until the credit card companies started listing how much I was paying yearly in interest on my bill did I really sit up and take notice.  I started reading things from the experts, tried to create a budget, and tried to pay off my highest balance credit card first,  all the things that you are supposed to do.  I failed miserably.  At the end of the first year, I was no further ahead then when I started.  All that money I worked so hard to pay off, I charged back up again, when I ended up out of work for 4 months.  It's embarassing to admit that I failed. 

I've learned a few things about how money works in the meantime, and I am once again working toward my goals of being debt free.  Instead of paying down my credit card debt down right away, I put money aside for emergencies in a savings account I can't access easily.  That way I won't end up right back where I started.  After that I started paying down my debts.  I cut out all the incidental spending.  I stopped going to the gas station for coffee on my way into work,  I stopped eating fast food for lunch and getting a Route 44 drink everyday from Sonic.  I no longer run to the convenience store at the corner and spend 3 times more for the item than I should, just for the convenience. I stopped drinking soda, and now make my coffee at home and take it to work in a reuseable cup.  I bought a tap water filter so I can fill my reuseable water bottle right from the tap.

Not only do I set a budget each month, I plan out my shopping. The sales ads I used to toss in the trash are now checked weekly for items that are on sale.   My pantry and freezer are stockpiled full, as are the toiletries cupboards in the bathroom.  What might really surprise you is that most of it is name brand items.   I've learned to buy several of one item at a cheaper price, when things are on sale, and matched up with coupons.  The key really is planning. It takes an extra hour or so of my week, but is worth every second of that time.  When I want or need something, instead of going shopping, now I search out used items on Craigslist and Listia. Sometimes I go to garage sales with a list of things I am looking for.  I made almost all of the gifts I gave for Christmas.  Instead of buying books, or renting movies, I go to the library where I get them for free.

I finally feel in control of my life and my spending has stopped spiraling out of control.  I am learning to live within my means, with a little help and encouragement from friends.  I still struggle, and I am still tempted, I desperately want to buy a new car, but I have promised myself I will not take on anymore debt until I can afford to do it comfortably.  It was a good thing too, because recently I had to leave my job, and I am in the process of starting a new journey.  I started this blog to share my journey, and pass along the little tips that are helping me along the way. 

So frugal friends, what are you trying to accomplish on your journey? 

Saving Opportunity?

Saving for College Or Paying Off Student Loans

A college education is expensive! The cost of college tuition increases between 5% and 8% every year, which means it could cost double the current amount of tuition in just 10 years.  If you have already graduated, you know the pain of paying back student loans.  Most of us also shop on a regular basis, so why not take advantage of a tax free rebate program that allows you to save for college for yourself or a child, or pay off your student loans.  UPromise has been around for a number of years and has gradually increased the number of products and companies that you can purchase from in order to receive rebates, although they have moved more toward online shopping, but they do have restaurants that provide rebates, and if you purchase gas at Exxon, you get a small rebate per gallon. 

It takes about 20 minutes to set up your account and link your debit and credit cards to the account, along with any shopper’s cards for participating companies like Kroger and CVS.  You can also access several hundred online sites of companies that participate in the rebate program through the UPromise website.  You can view the list of the participating companies here: http://shop.upromise.com/mall/view-all-companies

Here’s how it works from the UPromise website:

When you make a purchase with an Upromise partner, the earnings are linked to your Upromise account.

· If you're shopping online, you must click through to participating partners from the Upromise website to get the credit for your transactions.

· If you're going out to eat, you must pay with any credit or debit card registered in the Upromise Dining program.

· For participating groceries and drug store items, you must swipe your store card registered with Upromise.

· When purchasing through other partner retailers and services, you must pay with a registered credit or debit card. Be sure to check with partners to ensure your transaction is eligible for Upromise earnings.

After the purchase is verified, the money is deposited into your Upromise account. Then, once you've accumulated $25, you have choices to either invest your earnings for growth in an eligible 529 account or use them to systematically pay down your student loan(s), you can even request a check directly from Upromise to cover school expenses or invest on your own.

What’s more, you can have family and friends sign up, and donate their rebates to a specific individual;  yourself,  if you are a student or paying off student loans, or for a savings account for a child(ren).  As a casual user, you can save a couple hundred dollars a year, and if you are truly dedicated, you can save about $1,000 a year.   

So what do you think Frugal Friends?  Do you think it’s worth it to shop specific stores to save money for college or toward student loans?