Having come from a less-than-wealthy family, I grew up understanding there were limits to what one could have, what one should have, and what one really needed. We grew our own food (from beans to steaks), and we wore a lot of homemade clothes. I remember being so pleased with the dresses and pants my mother made us (especially the bell bottoms I wore as a young teenager – Mom rocked that pattern!), but I never felt lacking in any way. No, I had parents who made us understand that just because we wanted it didn’t mean we’d get it. Never was it mentioned that we probably couldn’t afford the indulgences. We were just thrilled with a few earned dollars each week that we spent wildly at the five-and-dime store.
Freelancing’s a lot like that. You may be swimming in paychecks this month, but next month you’re swimming in unpaid bills. After a while you learn – the money is not a given, and it’s meant to be saved for those lean times.
For me, it’s the lean times. There are a number of projects in the pipeline, but I never count on projects until I’m in the middle of them. So, time to live frugally. I will admit the indulgence of the convertible recently (lovely red number – used, of course) had me feeling decadent and almost embarrassed to own such an obvious indulgence. (I have since dubbed it my Menopause Mobile in an attempt to allow myself a little luxury.) And naturally, a week after I buy it, the first magazine job dries up. Then the following week, the other. That doesn’t seem so awful, but these two gigs counted for $20K of my income last year, so yea, I’m nervous.
This is where my childhood training comes in. I know how to be tight with a buck because I know what I really must have versus what I really don’t need. It’s easier than you might think, especially when you look at your bottom line and realize something beyond your sanity has to give.
No more pedicures. Oh sure, it’s a cheap luxury once in a while, but at $30 a pop, it’s about $120 I’ll save this year. (I did mention I’m tight – even my luxuries are few and far between.) I’ll do it at home.
No more shoes. Just shoot me now. For me, shoes are sex appeal and confidence in heel form. I have plenty. I don’t need more. I want more. Therefore, no shoes for now. I’ll just enjoy the scads I have.
No mall trips. I go to get out of the house, and inevitably I’ll buy something. So I change it up – I’m now getting out of the house and into the garden. Sprucing up the surroundings is just as uplifting as new peep toes. Well, almost.
No lunch out. My sanity has relied on at least one lunch per week somewhere else. Now I eat in. I do get out for my tea occasionally, but I won’t pair it with muffins or biscotti. If I take along the laptop, I’ll go somewhere there isn’t food to tempt me, such as the library.
Cut back at the salon. I’m okay with the stray gray hairs. I’m not okay with fuzzy hair, so the cut has to happen at some point. The highlights? Not so much. With summer here, there’s no need to go whole hog on hair that will just be windblown until cooler weather. If I invest in anything, it’ll be more headbands.
Cheap vaca time. Luckily, the parents spend their summers in Ontario. Also, we’re driving distance to the Jersey shore. No need to go abroad until August’s planned pleasure/work trip. That I can deduct a portion of that Scotland jaunt is a good enough reason to still go.
How about you? What are you cutting back on?
I had to cut way back on everything earlier this year, but things are picking up, and I'm breathing a sigh of relief.
I've ALWAYS lived paycheck to paycheck — even on B'way, the closing notice can go up every time.
So I don't have a lot of indulgences.
I've changed my book buying habits. It's limited how much I can buy new. I like to buy the books by living authors new, so they get royalties. But I'm limited in my book budget now.
I had to cancel a trip to Montreal in February. I'm still bitter.
But I get to go to Prague in Sept.
I did just buy two new pairs of shoes on sale, but they replaced shoes that were beyond repair.
I stopped getting my hair cut — it's longer than it's been in 8 years or so.
Always, when money is tight, the first thing that goes is health care. I am one of the 47 million uninsured. I stop going to the doctor, because I can't afford it.
Needless to say, I'm attending the health care rally in DC next week.
Oh, and I was looking for a yoga studio, but decided to retain just my home practice because the studios I've visited lately are so not worth the money — negative vibes. And I decided not to take a pottery class this summer — which turns out to be the right choice, since work has picked up so intensely.
Menopause Mobile – I love that! Better to have a car you can point to, than many of the other well used varieties on the theme!
I lost two major clients this year, and in the same month. I am always frugal, although I also had just bought a new/used convertible, Lori, after my other car started to break down repeatedly.
I do not get manicures or anything, but I stopped getting highlights last year and grew them out. I'm hoping to teach my husband to trim my hair, but I haven't actually gone through with that one yet.
I cut out going to the movies and going out to eat, but I don't have too much wiggle room for budget reduction. That's the most frustrating thing of all!
Mei, I've found it easy to cut even from a budget without wiggle room. Try reducing some of your cable services. Borrow library books instead of buying them (yes Devon, I can't stop buying books, either!). Plant some vegetables. Cook from scratch (no more processed or pre-packaged foods at ALL). Carpool. Take the bus/train/subway. Turn off the AC and open some windows (today it's 75 here – the AC is off and the windows are open). Hang clothes on the line to dry (cuts your dryer usage/energy consumption by tons). Recycle your clothes – make do with the clothes you have and only replace what is worn.
When I lost my job six years ago, I dropped my cable bill from $95 a month to $30. I removed all extras from my phone service – another savings. I stopped going out to eat and I made one trip a week to the store instead of several. I dumped the newspaper delivery and put my student loan on deferment for six months.
I had $30 in my wallet the day I lost my job. Two weeks later I had $42 (I returned a purchase I'd made the day before). I just didn't spend. I'm in that mode right now. I had to buy groceries this time around (we take turns paying). Lots of fresh veggies and staples. I love to cook from scratch anyway, so we're not going to notice that change!
As I mentioned a few days ago, I just reduced my cable bill by $20 a month by cancelling services I didn't even know the company was now charging for–and that I never wanted anyway!
I also just switched my T-Mobile package from an unlimited call and text service that was $119 a month to an unlimited call plan for $60 a month. I debated that one, thinking there was a big catch because T-Mobile called me to offer the switch. The catch was that I get no free texting, but I never text anybody, anyway.
I also use a Chicago public pool every morning, and it costs $15-$20 per quarter. Talk about health club savings!
Devon, I'm not as bold as you in going without health insurance. But my policy has a $5,000 deductible, which means I won't lose everything if I have a catastrophic event. I pay about $260 per month for the coverage, and then I pay for basic things like an annual mammogram and other tests on my own.
I'm overhauling the lot and have entered into a financial management plan to help.
I've joined the local library (I moved to this part of the world 5 years ago, so wasn't a member anywhere yet) and that will be the biggie. My personal reference library is a million times better than any I would find in a public library, but I have to get over my stupid new book fetish and make do with used books for a while.
I'm lucky, my day job is as editor, but in the current economic climate I can't help thinking the company magazine might be the next thing to go …
Diane, I can imagine you're having some stressful days – the magazine gigs were my first to go. It's tough being a print pub these days.
Gabriella, that sounds like a sensible health plan. The goal is to get coverage for major medical. The out-of-pocket stuff is still crippling, but the big, unexpected stuff could bury a family in bills for decades.
We just saved $800 a year by switching to another auto insurance company. (If I told you who, it would sound like one of their ads.) Our previous carrier was a better deal when we signed with them, but premiums just kept going up. It really pays to check.
Like Diane, I have somewhat steady income from proofing, editing and writing copy for an ad agency who produce a magazine. The magazine keeps getting smaller, the ads fewer, and my invoices less. I'm trying to (subtly) persuade the owner to have more of a web presence – for her sake and mine!
Everything. No shoes, no clothes, no nothing. BUT I'm going to Nationals in DC next month so I have to be frugal too. The next purchase I make will be luggage because I have none and I need some.
But I really want a netbook and a new digital camera and a Kindle. 🙂
I just saved a ton too, Cheryl. Same way. :))
Michelle, I want an iPhone only because they're cool, not because I'd actually use it. (I don't like the width of them.) I want a new laptop – same reason. I want a SLR camera – just because. I want to redecorate this study (that's more for my own sanity – beige walls are SO depressing!).
I'm saving up for a vaca/work trip.
The good news is the work is trickling in again. Four projects in the pipeline – none signed on, but one definite and three other strong possibilities. But of course the money for those comes in probably late August/early September. Hence a frugal summer.
Oh well – I enjoy homemade sangrias much more than a $9 margarita.
The danger is when you start spending too much time being frugal, that it cuts into the time you could've been earning money.
I agree that it's important to keep a check on spending, but at the same time, don't deprive yourself of the luxuries, especially if you're working hard to earn it!
Oh, and reuse shopping bags as trash bags 🙂