In my first post I mentioned being a "squirrel" and that I would post more on that. Well, today I am going to go into more depth on that. First, the term, squirrel, was first given to me by my husband, James, to describe my super saver and frugal mentality. There are many ways that my squirrelness manifests. First, because I am ever hiding or squirreling away any unexpected money that comes our way (ie: rebates, tax refunds, etc.). Second, because I am thrifty (we buy many things second hand at resale stores, auctions, garage sales, and on craig's list). Third, because when we make large purchases we do the research do buy the best item we can afford so that it lasts a long time. Lastly, because we are free of consumer debt and the only loans we have are our mortgage and one vehicle.
So, more on the squirreling. I believe that having a reserve fund for a rainy day and or making unexpected purchases--like when our lawn mower quit last summer and we had to get a new one. I use several methods of saving, first is a high yield savings account which pays between 4.5 - 5% interest. This way, we receive monthly interest on our investment. However, the money is readily available for when it is needed. The second way of saving is for the long term, I have a simple IRA account set up through my employer which I put in about $80 a month and which is matched dollar for dollar. So, automatically, I double my investment, the money that is invested reduces my taxable income and to tell you the truth, we never miss the money because it is gone before we get the paycheck. Next, I save for the kids. They both have their own jars which we put all extra change and cash into and then quarterly I take the money to the bank and round up the amount to the nearest hundred dollars and split it apart evenly into their respective investment accounts. This way, the kids learn the benefit of saving at home, but they get to have an account for the sum of their money to live and earn interest. I am always assessing the way we save to make sure that it is working the best for us. If I find an account which makes more interest, I switch accounts.
My second trait is a newer one. I have not always been thrifty, it has come about from necessity. In fact, I once was an avid mall shopper and would even think about buying second hand. I have been converted by the fact that we only have a certain about of income each month and I would like to stretch every dollar to make them count. After all, my kids still need to be clothed, we had to furnish our house coming out of our apartment and so fourth. I have found a wealth of treasure in places like once upon a child, good will, salvation army, antique shops, vintage clothing stores, auctions and garage sales. (I will post photos some of my favorite finds in this post!) Other ways I am thrifty is with DIY. I bring my lunch 99% of the time to work (saving $5-$10 a day!! = about $2000 a year!!) I have given up getting my car washed by others (saving $10 each visit) and wash at home, I have given up nail salons and either go natural or polish my own (saving $15-$45 each visit); I have given up the mall (except for very few purchases) which is overpriced and filled with anxiety when you have two kids. For clothing, I shop TJ Maxx, Marshalls, Kohls, Target, Walmart, vintage shops, and of course my favorite source is hand me downs from friends. I welcome getting cast offs from other's closets for both myself and my kids. They are generally in great shape and are good quality. I have become a regular at the tailor for alterations. (I don't throw a pair of pants out just because they rip (ha ha), or they are too long, too big, etc.) Also, I don't dry clean clothes very often. One because of the environmental hazards, two because I am usually too lazy to take them there and three because of the cost. I typically favor work clothes that can be washed on the gentle cycle and then hung dry. Basically, I haven't given up my love of certain brands or good quality items, but I have been enlightened that they may be found for much, much less in other places!
The third trait, is making strategic purchases. So, yes we have 42" LCD tv, but it was only purchased after our 20 year old tv went all plaid on us and started to make us nauseous to watch it. When it was time to make the purchased we started researching tvs online looking up what was the best at the time, comparing models online and reading consumer reviews. Then, we hit the streets and did some in store shopping and compared models in person. We then visited a few other stores with information in hand and made our final purchase. We borrowed a vehicle to pick up the tv and brought it home ourselves. Thank goodness I have a handy hubby, because he was able to get it all set up without a pro. And the unit it sits on is a interesting find! We bought it from our next door neighbor's moving sale. It is actually a kitchen hutch, but with some minor modifications (sanding, and paint and a few holes for wires) and it was good to go! What I like about it is that it was only $60, it is solid pine, it is quality made and it looks good. We looked at countless tv units and they were either cheaply made and poor quality or they were very expensive. So, we balanced out our big purchase with a thrifty purchase. I am all about that.
Lastly, the most sensitive topic for most, debt. My avoidance of debt comes from my parents and their strict spending control, and from watching others put themselves into big trouble due to irresponsible spending. My golden rule is to never buy anything (other than this house) if I can't pay cash for it. This is avoidance does not mean that I don't have or use credit cards, but at any one time I am able to pay the balance due, and I pay the full balance to avoid interest 95% of the time. Benefits of using credit cards responsibly are earning points or rebates, and building your credit rating. I am proud to say that our credit score is around 799. We use our debit cards for most purchases, especially groceries and gas. If we don't have the money, we don't buy it. This brings me back to my other squirrel traits, I often buy used items so that I can get the things we need or want without having to go without. So, I haven't given up my old ways completely about being about immediate gratification, but I have found smarter ways to go about things.
I am all about the future and being in a better position later than we are right now. I know that we won't always be living on a single salary and perhaps we can afford some luxury, but being cognizant of ways we can cut expense allows us to live better with less and to save for the future. I would like to one day be able to travel to Europe and do things like that, so my goals now are to save for things like that down the road.
