My Latte Factor
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I am a latte junkie. They know me by name at my local Starbucks, which is sad, when I really consider it. They actually have my coffee pre-made and waiting for me. Yes this is true. But recently with the economic downturn, I started to really think about how much my latte addiction was costing me. When I added it up, the cold hard truth was there. I could not believe how much money I was spending at Starbucks. At the rate I was spending I might as well have bought stock in the company.
The realization of how much money I was actually spending was truly a wake up call. I thought of all of the things that I could do with the money that I was spending instead of drinking my money. I was so shocked by the realization of what I was spending per week, that I decided to quit Starbucks cold turkey. I told the girls to stop having my latte ready for me. I was done. At first I frequented Dunkin Donuts, because their coffee was much cheaper, but I was still stuck with that latte factor. I knew that I had to do better.
Quitting Starbucks was so hard, especially in the late afternoon, when I was ready for that second pick me up. I stayed strong and stayed away. Soon, I started to drink the coffee that my office provided, I never realized it before but they were brewing Starbucks coffee. Ah, that sweet, sweet taste of Starbucks. Soon I stopped buying coffee all together, what was the point? There was perfectly good coffee at the office, which was free. As an office of serious coffee drinkers, they bought good coffee.
After I left my job to go back to school, I had the dilemma of getting my morning Starbucks fix. I resisted temptation and I did not go back to that delicious trap. But I had to find a substitute. The school has a cafeteria, where if you buy a cup of coffee, you get free refills all day. That was a good deal, seeing that the original cup only costs $1.25. The only problem was that the coffee was awful. I realized that I was going to have to find some way of bringing my own coffee.
I invested in a coffee maker that I found on sale, and a good thermos as well. Soon, I was back in business. I would fill my thermos and be good for the day. I had never really bought coffee at the grocery store, why would I bother, that’s what Starbucks was for. I found that I could buy Starbucks coffee and grind it fresh right in the store for about $7.00! That’s the price of 2 lattes! The coffee was delicious and the pound lasts a really long time.
I went cold turkey about a year ago, and I am still going strong. I stopped by Starbucks a week ago because someone gave me a gift card. I ordered my usual latte and the price had gone up. I was shocked that I actually paid that price for a cup of coffee! I didn’t want to go back, even though I had a gift card.
When I think about it, there is little value for money, when you consider the alternative of just making your own coffee and taking it with you. I will use the rest of the card so that it does not go to waste, I have been shocked strait. I do miss the creamy taste of a mocha latte from time to time, but my waist does not. I have tried to recreate the taste but, I haven’t had any luck. I came across a video of a woman named Renee who runs another frugality blog, she came up with this recipe to substitute her latte factor. It looks pretty good, I have yet to try it, so if you do and it’s good let me know.
What’s your Latte Factor? What do you regularly spend money on that you can cut out of your life to save money. Add it all up over year and see how much your Latte Factor is really costing you.
The One Question that will get you through the New Depression
What do I really NEED?
This should be the new attitude that will get people through the modern day depression. Americans are coming out of a time of enormous prosperity, and great waste. Sure the credit boom was fun, while you were on top, but at the bottom, it is no fun. Those plastic little cards are sneaky, its easier to spend money when you do not see the actual cash coming out of your hand.
Want is a four-letter word.
It’s a dangerous word that needs to be used sparingly. It is okay to want for things, but one must be thankful for what you do have. In our materialistic society it is ingrained in all of us from childhood. Those Saturday morning toy commercials are made to make children want. This disease of want continues into adulthood, but now a $10 toy does not satisfy the want, soon it’s cars and electronics or expensive designer clothing and accessories.
Want and the concept of reason do not coexist for many people. Often when want takes over, rationality flees in the opposite direction.
Now I am not saying that I do not want items that are not basic necessities at times, but I do not run out to the store to purchase that want. It is possible to have rationale in this matter. I must say that this was a long and hard lived trait.
If I really want something, I think long and hard about that purchase. I ask myself, will I really use that? How often will I use the product? What purpose does it really have in my life? Do I think the price is actually representative of the value of the item? Will it go on sale? After I take into account these questions, I discuss it with my husband. I am capable of making rational decisions on my own, but having someone to bounce ideas and thoughts off of is helpful.
When a big purchase comes along that my husband and want to make, it is always a joint decision. We save for what we want, and we pay cash. Recently, my husband said that he would like to upgrade our television to a new HD one. Our current television is old, buttons are broken on it, but the picture is still good. The remote has been lost for centuries.
After much debate, my husband and I decided that if we really wanted a new television, then we would save for it. A little money from each paycheck will go towards that television, into a specially designated savings account. We are grateful for the television we do have and we realize that we do not actually need a new one. But that doesn’t mean a new one wouldn’t be nice, after we’ve earned it.
NEED is the most important word in the English language. So many purchases are made with little to no regard of need. Most purchases are merely based on want. This idea of want is a dangerous one and it’s why the economy is in such trouble. There are many reasons why people shop, some actually need to, some use it as entertainment, therapy, or just a fun way to pass an afternoon.
Shopping is not an entertainment outlet, it is to get what you actually need. Need is a very basic concept, which is confused with want to many. There are 4 basic needs, water, clothing, shelter, and food.
That’s it.
An HD television is not a need, nor is the newest model of car or a designer pair of sunglasses. These basic needs do not have to be the best and most expensive, they have to sustain life, that’s all. I know that sounds harsh but, when you really think about it, it’s true.
Overall, I encourage all of you out there to think about purchases with your head, use rationale, don’t use your heart or emotion. I have to say that like any new way of thinking, this takes practice and time to learn. It took me a couple of years, and at first, I was miserable. I am guilty of being a shopper who enjoyed the entertainment of it. But I must say that I wish I would have been taught early on the difference between wants and needs. The sooner you start to separate these two words, the better and happier you’ll be.
10 Things You Can Cut out of Your Life
This is part of an ongoing series or articles on how to deal with the ongoing crisis in the world economy. Many are calling it a New Depression. Whatever you want to call it, news ways of thinking are being called for. Welcome to the New Austerity.
During this time of trouble, what are some things you can cut out of your life to save money and help make ends meet? What are the things you can live without the most? Believe it or not, there is plenty in your life that you can truly live without.
The Gardener
This one is easy. Mow your own lawn. Go down to the local flea market and buy a second hand mower. It won’t take that long to mow your own lawn. Google basic lawn care and how to care for your lawn.
The same goes for tending to your landscaping. The internet is an invaluable resource and you can find out anything you want to know about gardening and landscaping. Take the time and save the money.
Cable TV
You don’t need Cable TV, you really don’t. With the advent of Digital TV, there is plenty of TV broadcast over the air. You know the stereotype, 500 channels with nothing on. It’s really always like that. What shows you do watch you can download on the internet for free. However, high speed internet, be it cable or DSL, is essential as electricity and water.
Newspaper and Magazine Subscriptions
Your local paper has a website with the same content for free. Stop wasting money on delivery. What if you want the coupons on Sunday? Then get a Sunday only subscription or just pick it up in the store. Most magazines also have a website with the same content as the magazine. Start reading your news online and you won’t need either.
The Maid or Housekeeper
It does not take much time or energy to keep your house clean. Set a schedule and a routine and you can replace your made easily. Successful households require teamwork on the part of both spouses. Help your wife out and she will in return. You’re a team, tackle the current problems together.
The Nanny/Babysitter/Daycare
If your sinking a lot of money into a nanny or daycare, it’s time to investigate the cost effectiveness of having both parents working. If you’re essentially breaking even once you factor in childcare and other kid related costs, then it’s time for one parent to dedicate themselves to raising the kids full time.
Monthly Recurring Billed Services
Look at your monthly outgoings and find recurring monthly bills for stuff you don’t really need. Cut them out of your life and cut up the credit card they’re being billed to. Things like Tivo Service, Netflix, Credit Monitoring (you can do this for free) can all be snipped out of your life.
Sell a Car
If you have two cars and one is sitting around most of the time, get rid of it. It’s just costing you money. The inconvenience of having one car does not outweigh the savings.
Your Next Vacation
Trip to Europe or Vegas planned? Time to cancel it. If the trip is already paid for and you can’t get your money back, then by all means go. But if you can get out of the trip, now is the time to take a hit for the team and wait until the world financial outlook improves.
Eating Out
Stop eating out so much. It’s much more cost effective to eat at home. Make eating out a monthly treat that the family looks forward to. It will feel so much more rewarding to you and your family when they get something they have been working for all month.
Ditch a Hobby
Into model trains? Building RC Planes? Dungeons and Dragons? Collect stamps? Your hobbies are costing you money. It’s time to put your hobbies aside. They aren’t going anywhere. You can resume them when the economy improves. For now, stop spending the money and put it towards saving and living. I’ve given up comic books for now. It sucks, but the comics aren’t going anywhere. You can always take up a hobby that doesn’t cost any money.
If you have any ideas for things you could cut out of your own life and want to share, please leave it in the comments!
Austere Back to School Tips
This can be a very expensive time for families as kids go back to school and they need all the accoutrements that go with that.
A major problem that parents face is that often kids don’t know the difference between needs and wants. They don’t think anything of thinking they need the newest clothes and most expensive school supplies.
It’s the job of the parent to reign them in and teach them the values of austerity and to clarify needs and wants. This can be extraordinarily difficult with children, whom generally don’t respond well to reason. This is why one must be the parent in the relationship.
I won’t pretend to be an expert in parenting. My wife and I are waiting to have kids until we can afford it. Which is what many people in this country don’t do. They have kids left and right and don’t think it through. We have decided to buck the trend and put money away first, before they come along.
One of the main philosophical tenants of this blog is to deny yourself until you’ve earned it. And we have not earned children yet. To save and plan for something you really want makes it all the more rewarding when you stop denying yourself.
I bring this subject up because there have been many articles in various news outlets about parents becoming more frugal this fall because of the tough economy. Essentially, hand-me-downs are back in as is shopping at thrift stores. Parents are also seeking ways to get their school supplies cheaper.
Keep in mind, if you’re shopping for your kids, that there is always somewhere where you can buy something cheaper. Walmart generally has the cheapest of everything but they’re not the only place for a deal. While some people hate Walmart, it’s not a bad place for a deal and in the future we’ll be talking about the virtues of Walmart.
Times are tough and the retailers know this. They are tripping over themselves to provide you the best back to school deals. It’s your job as an austere consumer and responsible parent to take them up on it.
You Don’t Need a New HDTV to Get Digital TV
I won’t deny it, HDTV sure looks nice when properly presented. However, I’m in no rush to invest in a new television. We’ve had the same TV for almost ten years and it’s showing no signs of death, even though the power button broke off.
The desire for a fancy flat screen HDTV is very strong for both of us. But it’s something that we are refusing to invest in for the foreseeable future. We have TV now, why pay more to watch it when what we have works fine? This is a question more of us need to be asking ourselves before we make large purchases.
A big misconception about HDTV is that you will need a new HDTV to get through the HD transition or get HDTV at all. This could not be farther from the truth.
If you have cable TV, you do not need to worry about the digital transition. Your cable company already does it for you. As do satellite providers.
The government is also giving us two $40 coupons to buy Digital TV converter boxes that will convert the over-the-air HD signal to fit on older TV’s. Walmart has these digital converter boxes for $50. Minus the $40 coupon, HDTV costs you only $10 plus tax. Not a bad deal, though you’ll need an antenna. Go here to send away for your government digital tv coupon.
What about all those fancy HD only channels that aren’t over the air? A little secret is that most cable receivers can decode the HD channels and convert them to fit into a regular TV. Sure, the picture isn’t as great but the content is still there and still looks pretty darn good. I know for a fact that most Comcast DVR’s do this.
We’ll probably upgrade our TV when our current one dies and cannot be repaired. By that point, fancy flat screen TV’s will cost much less and we won’t have to pay the ‘first adopter tax.’
