Cutting More Expenses, New Diet, Update on Goals

 Much has been going on in the Frugal Miser's life.  

Diet

I've struggled with my weight my entire adult life.  I've successfully lost weight a couple of times and then gained it back.  But it's been 15 years since I lost any meaningful amount of weight.  I started on the keto diet on Wednesday, October 7th.  So far it has been very educational.  I had no idea how many carbs are in the foods I love.  The first few days was an adjustment period - learning what I can eat, trying to make the food I already have work (much of it did not), and getting used to eating more meat and fat than I have ever eaten. Now that the weather is starting to cool off I will start adding in exercise.  I plan to post progress updates regularly.

Reducing Expenses

A keto diet will probably cost more, but because it is really hard to follow this diet and eat at restaurants I am hoping to save money by rarely eating restaurant food.

I cancelled the satellite radio subscription.  I will receive a refund for the payment I made in September and the company offered me three months for a flat $2, so I don't even have to give it up.  I just have to remember to cancel in 3 months.

I also cancelled the Sling subscription ($56/mo).  My HOA approved a new package with our Internet provider that includes cable (I voted against it, but it was approved anyway).  I should be able to use the Spectrum app on the TVs at the Airbnb so that our guests continue having a cable TV option.  The HOA dues increased by only $20/month which means a net savings of $36/month.  Bonus:  after I cancelled, I found out I still have access to Sling Free.  The same app we had been using will provide free access to thousands of shows and movies.

I am looking at what else can go.  Just like recurring income can be your best friend, recurring expenses can be your worst enemy.  We lull ourselves into complacency when bills are just automatically paid as they come due.  

• I have a few recurring charges for entertainment:  $9.76 for Netflix, $48 for 2 AMC A-List memberships, and $119/year for Amazon Prime.  With the state of the exhibition industry and few new releases, it's possible we will cancel our A-List subscription.
• My alternative health insurance, Liberty Healthshare, just enacted a massive price increase.  I am now paying $479/mo for a plan I've never once used.  I will take another look at the ACA plans for 2021 to see if I qualify for something more affordable.
• It's time to revisit landlord insurance.  I would love to just cancel and "self-insure", but the management companies require I have insurance.  I plan to shop my business to find cost savings.

Goals

I set 3 financial goals:  $400/month deposited to my investment account, $1000/month to short-term savings and $1000/month to my home mortgage.  It's been two months since setting that goal and I am meeting it so far!  To force accountability, I automated two of the three goals to that the transfers happen automatically.  I plan to automate the last transfer once my checking account balance has stabilized.

Stand Up for Yourself and Negotiate (the ROI is amazing!)

Lately I've been frustrated by the high cost of some things.  Most people just pay whatever something costs, but whenever possible I try to negotiate.  The extra time and effort it takes to ask for a better price is often well worth it.  Just this month I've saved $300:

• As you already know, I've been remodeling my kitchen for several months.  I bought countertops at IKEA, and the first step was having someone measure my kitchen.  I thought I was ready for the measurement, but when the first person came to quote the price, he immediately said that my cabinets were not level enough.  He was in my home less than five minutes, and no special equipment was involved.  I even agreed to an appointment time that coincided with the estimator being in my neighborhood.  Since the cabinets weren't level, I was told I would have to pay a trip fee.  I assumed it would be well under $100 based on what an electrician or plumber would charge to diagnose an issue, but the bill from IKEA was $225.  I firmly told the employee at the store that this was not acceptable.  I was willing to pay something, but thought $225 was too much for a 5 minute visit at my house.  When IKEA stood firm, I threatened to pay the $225 fee but cancel the entire remainder of the project.  The employee said she would talk with management and the installer and give me a call.  A few hours later, she called and told me they would waive the entire fee.  I saved $225 where most people wouldn't bother to complain.
• When I signed up to drive for Lyft, I was promised a $50 bonus after my first 20 rides.  For some reason, I never received the bonus.  It took four separate emails over about two months, but my persistence finally paid off, and I was promised the bonus would be applied shortly.
• On the more classic side of negotiating, while we were in Cozumel we walked into town, but were worn out and thinking about taking a taxi the 1.5 miles back to port.  Based on what an Uber would cost here in Tampa, I knew the $8 I was quoted was more than I wanted to pay.  I had to ask three drivers, but I finally found one willing to take us for $5... but only after walking away did the driver beep his horn and tell us to get in.

Be honest.  Be firm.  Know what you will do next.  That's all it takes to score a better price.  At IKEA, the employee told me that because I did not cause a scene and was professional with my concerns, they appreciated that I was standing on principles and that was the reason that they helped me.  I didn't raise my voice or try to lie about why the estimator had to make a second visit.  I just calmly stated that the price was too high (and swallowed my pride by admitting I made the mistake by not leveling the cabinets properly).

Have you had success with negotiating the price of something or with complaining about an unfair situation?  What was the outcome?

Ways I am Reducing Expenses (my Personal Burn Rate) in 2015

One of my 2015 goals is to reduce monthly spending, net of vacation and home repairs, to $1,250.  In order to do this, I need to look at costs I can control (such as eating out) as well as those that are relatively fixed (like insurance).  Some thoughts:

• I've already reduced my health insurance costs by shopping for a new plan.  Last year I did not take advantage of the new plans being offered under the Affordable Care Act.  I spent Monday afternoon evaluating my eligibility and my options.  While I will have to change doctors, I found an HMO plan that has a lower deductible and lower out of pocket fees for things like doctor visits and prescriptions.  I qualify for a voucher that gets me this better plan for $105/month less than I paid in 2014.
• In 2014 I reduced auto expenses by replacing the S-10 with an Aveo.  Another, unanticipated, savings came from moving to a new house a few miles away.  I'm in a more central location, so I drive less.  In 2015 I will save money by reducing the amount I drive.  Between the bicycle and my 2012 Piaggio Fly 50 scooter, my driving will mostly be limited to income-generating activities including mystery shopping, hospitality work, and tending to my rental properties.
• While it isn't included in monthly spending, and I don't regularly post the expenses associated with my rental properties, I plan to shop my property insurance needs for the first time.  I spent over $7,000 on insurance in 2014, and that's with $5,000 deductibles on every property and no claims history.  It's time to find savings and I am confident that investing some effort here will be worthwhile. 
• Finally, there's food.  While eating out is a simple pleasure, it costs so much more than cooking at home, which is also usually healthier.  I think one of the reasons we eat out is because we don't have food available at the house that appeals to me.  By spending a bit more on groceries to add variety, I hope to reduce the amount we spend in restaurants.  Overall, this should reduce the amount we spend on food.

Keeping my Personal Burn Rate low

Last week while visiting Birmingham I sat down with the former CFO of the software company where I used to work.  One of the topics he brought up was the concept of a Personal Burn Rate, which is basically an individual's recurring monthly expenses.  We talked about how lifestyle inflation limits the options people have to pursue opportunities.  He recently left the company and spent several months traveling Europe and sailing with his wife.  I asked what his next move was, and he was elated to have options because he has kept his Personal Burn Rate low.

If your fixed expenses are too high, you won't have the flexibility to choose when you want to work or how you want to invest your time.  I see this all the time in the mystery shopping industry:  desperate shoppers with a mountain of bills accept piddling jobs just because they are trying to stay above water.  But instead of this being an "every little bit counts" situation, the shopper is just digging a hole that's harder to get out of.  That $7 job might cost $10 in vehicle expenses alone when you take into account depreciation and maintenance.  Sure, it's $7 today, but now the shopper has to come up with $10 in a couple of months because they took the $7 job.  It's insane.

I've been spending these last days of 2014 looking at my own Personal Burn Rate.  I ask myself, "Where can I reduce expenses with the least amount of pain?"  As I do this exercise I am keeping a list of how I am reducing my Personal Burn Rate.  I'll share some examples later this week.

Remodeling Update

We've spent the last several days working on the master bedroom (photos to come).  Skimcoating the walls was labor-intensive.  I wanted smooth walls where there was texture before, and it took massive sanding followed by 4-5 layers of skimcoating (which is thinned-down mud that you roll on and then smooth over with a squeegee) to get it to look smooth.  The ceiling had no insulation nor any drywall, plus the ceiling fan was threatening to plummet to the ground every time I turned it on.  I replaced the junction box with a stronger one and then we hung all new drywall.  Hanging drywall on a ceiling, without any tools to hold it in place while screwing it in, is something I never want to do again.  It was physically demanding and mentally frustrating.  But it's done, and we didn't have to hire anyone.  Next, we plastered over the cracks and the nail holes.  Since I'm just an amateur, it was obvious that a smooth ceiling was going to reveal the joints between sheets of drywall, and I refuse to stare at those imperfections every night in bed (talk about insomnia!).  So, I "settled" for a popcorn-textured ceiling, the amateur's best friend when it comes to hiding imperfections.  I bought an amazing power sprayer called the Wagner Power Tex, and we are midway done applying it to the ceilings.  It's quite messy, but the work goes fast and so far I am happy with how it is looking.

I've also been working on the master closet.  The previous owner used bifold doors, which I really dislike, as well as awkward wood shelves and wooden closet rods.  I tore out those shelves and extended the wall so that there is now a smaller entrance and have installed wire shelving.

Next up is painting the walls and laying floors.  The concrete floors will require a thorough cleaning, as there is drywall mud and popcorn texture everywhere.  I'm using vinyl plank flooring, which is about as easy as it gets in terms of installation.  Once that is done, all that is left in the master bedroom are miscellaneous tasks such as tinting the windows and adding blinds, installing the new fan, moving furniture in, and enjoying the new room.  It's so close to being done and I am so excited.  Since we moved to this new house, I've been sleeping on a mattress on the floor in a tiny room.  Sleeping in a real bed will be amazing.

Frugal Travel Tip: Keep Checking Rates

By revisiting rates for the hotels and rental car I reserved, I was able to upgrade our accommodations and save money.  Originally we were paying $202 for a rental car and $451+tax for 5 nights lodging.  Now we are paying $122 for a rental car and $373 for 6 nights in upgraded lodging.

I've been in Miami for a few days staffing a registration desk at a conference.  I agreed to the job assuming we would be able to find inexpensive hotels, but was caught off guard when I looked at the astronomical rates.  Since there are two of us sharing a room, we did not have to book the lowest end hotels, but even the mid-tier properties (like Hampton Inn) started in the $150/night range.

Begrudgingly I began making reservations.  Ideally we would have stayed in one hotel throughout the conference.  It's much easier than having to pack up every day to move to the next hotel.  But because rates were ridiculous, that wasn't practical.  Right away, I reserved a Sleep Inn for the last two nights at $76 per night (it was full the other nights).  That rate was acceptable, it was in a decent location, and the reviews were good.

But for the other 3 nights, rates were simply too high.  Originally I booked two nights at a Super 8 in Florida City, which is more than an hour away.  The third night I swallowed my pride and reserved a $143+tax room at a Hilton Garden Inn near the airport.  I already knew I'd be checking hotels as the event neared to see if rates dropped.  As luck would have it, they did.

First two nights:

• Originally $78+tax at Super 8 in Florida City, 88 miles roundtrip each day, plus tolls.
• Replaced first night with Hilton Garden Inn MIA, $142, 26 miles roundtrip, no tolls.
• Rate at Hilton Garden Inn MIA dropped to $130 on 4/2 so I re-booked at lower rate.
• On 4/3, Homewood Suites MIA dropped to $118.  I changed hotels.
• Replaced second night with another Hilton property that I mystery shopped:  FREE ROOM!

First two nights changed from $156+tax for a lousy Super 8 an hour away to $118+tax for higher end hotels nearby.

Third night:

• Originally booked at Hilton Garden Inn for $143+tax
• On 4/2, rate dropped to $130, so I re-booked at the lower rate.
• On 4/5, a nearby Hampton Inn reduced rates to $103, so I changed to that hotel.

Rental Car:

• Reserved with Enterprise by my house.  I used a 10% off coupon and booked a weekly rate.  With tax, it was just over $200.
• On 4/2, rates at the Clearwater Airport dropped significantly.  It's further away, but by changing my reservation we are saving $80 on our reservation for the same class vehicle.

Bonus Sixth Night:

• We were coming home on the 9th, but I found a second mystery shop.
• Sixth night at a chic boutique hotel in South Beach.

It Pays to Shop Around for Auto Repairs

$110.00, $162.41, or $178.00?

It was time to replace my spark plugs and spark plug wires.  I prefer to do things myself when I can, but after watching half a dozen Youtube videos and visually inspecting my Chevy S-10, I did not want to take on this project.  With many vehicles all you have to do is pop open the hood, untwist the old wires, unscrew the plugs, and screw in the new ones.  But the S-10's spark plugs were located behind the wheel well, beneath a rubbery flap and around a number of other wires and tubes.  One look at it and I just knew I was going to screw something up if I did this myself.

When I had the catalytic converter replaced on my truck last month, the big chain shop that did the job offered to replace my plugs and wires for $300.  Their labor charge was $162; parts were $138.  Starting with this as my baseline, I looked online for my parts.  Since I had a 50% off coupon for Advance Auto Parts, along with 5.5% cash back by clicking the link at Ebates.com, I did not have to shop around for my parts.  Instead of the $138 that Tires Plus wanted, I managed to secure what I needed for just $39 with tax.  I bought the highest rated exact-fit parts (including AC Delco spark plugs).  This alone saved me $99.

Then I called around for labor estimates.  I don't know why it has taken me so long to realize that small independent repair shops are 1) almost always less expensive and 2) more trustworthy.  In addition to the $162 quote from Tires Plus, I received three other quotes:  $110.00, $162.41, and $178.00.  The $110.00 quote happened to be from the shop closest to my house (less than a mile) and was the only independent shop I called.  The owner/mechanic answered the phone when I called and said he could take care of it the next day.  Low overhead should mean lower prices and in this case that was quite the case.

As an aside, I checked out online reviews for the independent guy before I brought the S-10 in.  Every one of the reviews cited the mechanic's honesty and his low prices.  One example was from a guy who had received a quote of $1,500 for a repair at a national chain.  The same repair was just $700 at the independent shop.

If you are like me, you hate it when something breaks.  Often I can figure out how to fix something myself, but when I can't, it is nice to know I don't have to be ripped off.

My Frugal Grandfather

One of my readers suggested I post about my grandfather, who I lost recently.  So much of who I am comes from how he lead his life, so I bring this post to you in his memory...

Granddad worked in the same occupation, at the same company, for almost his entire life.  In the 1950s he was offered the position of plant supervisor for a new location his company was opening.  My grandparents and my mother (who was a toddler at the time) packed up their bags and moved from Omaha to a small town in Alabama.  They built a home which my grandfather lived in until we moved him to a nursing home.  He retired from the feed mill in the 1990s.

When my brother and I visited as children, there were days when we saw very little of Grandad.  He woke up at 3 AM every morning and left for work.  He usually got off work mid-afternoon and headed to another job.  The side jobs included maintenance at a marina and shopping center in town, cutting grass for several people, painting, and eventually ownership of a bowling alley.  Bowling was his only hobby, and he and three friends invested in building a 20 lane facility that included a driving range, go carts, miniature golf and batting cages.  He never made much money with that business but he loved it.

My grandparents were generally thrifty, but they spent money on experiences.  They were thrifty in their day to day habits.  My grandmother sewed, so she altered their clothes as needed, made some of her own outfits, and created amazing Afghan blankets.  My grandfather did all the repairs around the home.  He built a tile shower in the basement so he could bathe downstairs when he came home from work instead of dirtying up the home.  He liked cooking out and relaxing outdoors so he built a screened in porch, which he enlarged more than once over the years (it's pretty big!).  They rarely ate out.  When my brother and I visited we might walk to the Dairy Hut for a snack; occasionally we would go somewhere for breakfast or lunch.  We always ate dinner at the house.

They did spend money on certain things.  My grandmother only drove new Buicks with leather seats.  They took a lot of vacations, including trips to Vegas, Reno or wherever a bowling tournament was being held.

As far as investing is concerned, they were conservative - more so than I will ever be.  The vast majority of  assets were held in bank CDs.  Even so, there was a respectable (but modest in my opinion) estate left after he passed away.  And Debt?  I think the only debt my grandparents ever had was the mortgage on their house.

My grandfather was always working.  That's what I remember most.  But I do remember he did things to show his love.  When I was 18 I bought my first house.  My granddad came down for several days over the course of a month to completely remodel my bathroom.

I learned the value of working for what you have from my grandfather, but that it was okay to spend some of your earnings every now and then.  It's okay to spend money on nice things that you will appreciate and enjoy so long as you pay in cash and be frugal where it counts.

The Evolution of a Thrifty Miser

Last week my grandfather passed away.  His demise was not a surprise to my brother and me.  We placed him in a nursing home in 2011 after his dementia started threatening his well-being, but since the start of this year his health started declining rapidly.  At 86, he lived a long, productive life.

My frugal ways have been heavily influenced by how my grandparents lived.  One generation removed from their German roots, a strong work ethic was always obvious when we visited as kids.  My grandparents moved to a small lake town in Alabama from a rural town just outside Omaha when my grandfather's company offered him the supervisor position at the local feed mill.  They built a house and stayed in that house their entire lives.

After his day job was over, my grandfather did side jobs.  Lots of them.  He was the maintenance supervisor at the local marina, building docks even though he couldn't swim and was scared of the water.  He also was the maintenance person at the shopping center his lawyer friend owned.  He cut grass for most of the neighbors on his street.  He wasn't afraid to put on a new roof, build a shower, or add an enclosed deck to a house.  When I bought my first house at the age of 18, he came down to Birmingham nearly every day for two weeks to help me remodel the bathroom.  I use the term "help" loosely:  other than handing him the tool he needed or driving to the hardware store for supplies, I was mostly an observer.

For fun, my grandfather loved to bowl.  The vacations my grandparents took were usually to attend tournaments.  Granddad won hundreds of competitions over his career.  I'm sure the prize money helped to subsidize their trips.  Eventually, in the late 80s, my grandfather and three of his friends opened a bowling alley. It was awesome going there growing up.  There were the batting cages, the go cart track, the mini golf and the arcade.  We didn't use the driving range.  By investing in his hobby, my grandfather was able to enjoy bowling whenever he wanted at minimal cost.

Now that I have had a few days to reflect on his life, I realize where my own habits started.  It's funny that it never occurred to me before.  Between my own father and my mother's father, I learned how to live a good life that doesn't cost much to live.

Where do you get your inspiration?

My Experience Sleeping in My Car

Monday night I slept in my car for the first time.  It didn't make economical sense to stay in a hotel, plus I'm stubborn.  Originally I had a trip planned which included an overnight stay in Birmingham with my mom.  We've never been on the best of terms and because I do not wish to detail the story here, I will just say that my plans to spend the night at her house fell through a few days ago.

When my plans changed I did look at hotel rooms, but the least expensive rooms were $50 per night.  I also looked at redeeming loyalty points but even that did not appeal to me.  Why redeem 25,000 points for a place to lay my head for a few hours when I could save them for a frugal vacation?  Then I started thinking,

What's the worst that could happen if I slept in my car?

I did some online research - where to park my car, how to make the car more comfortable, the risks involved.  What I found was that truck stops and Wal-Mart parking lots were overwhelmingly favored by folks who do this thing regularly. Based on my research I decided to fold down the back seat so that I would mostly be sleeping in the trunk of the car.  I just couldn't imagine sleeping in the front seat or snuggled up in the backseat.  I drive a Toyota Corolla; it's too small for that.

I shopped five gas stations Monday night on my way from the Atlanta conference to Birmingham.  At the last station there was both a McDonald's and a Wal-Mart in the same parking lot.  This was my spot.  I hung out in McDonald's while I entered my shops and surfed the Internet, then I pulled into the Wal-Mart lot behind the restaurant.  Logistics were straightforward:  I brought two comforters, three pillows and a sheet.  I folded down the backseat, draped the sheet above stretching across the folded down area to conceal myself from prying eyes and shield some of the lights, and made myself a bed.

It wasn't the best night's sleep I ever got, but I didn't expect it to be.  Fortunately the weather was perfect.  I prefer cooler weather when sleeping and it was about 65 degrees when I fell asleep.  But still, I saved $50 or more and didn't sacrifice much if anything.  This wasn't such a bad experience.  I had a day of mystery shopping to do when I woke up, so I freshened up in the McDonald's bathroom and began the day.

Sleeping in my car turned out to be a frugal adventure, and I imagine I will do it again if the circumstances are right.  I wouldn't recommend it if you have to be dressed up the next day or in a very public setting because taking a bird bath at McDonald's won't cut it, at least for me, and this wasn't the most comfortable sleep I've had.  It's probably something that takes a little getting used to.  For example, I woke up several times and I think it was more out of anxiety than actual noises around me.

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Comparing Utility Bills from One City to Another

Continuing my fascination with my utility bills, I thought it would be prudent to compare the rates I pay now in Birmingham, AL to what I will be paying in Clearwater, FL.

I started with Water and Sewer, since it's common knowledge that Birmingham has the highest sewer rates in the nation.  I have our corrupt former county commissioners to thank for that.  Of course, they get free water service where they are now, but those of us not incarcerated are left to pay for their criminal activities.

If I use 4,000 gallons of water, my bill in Birmingham, AL would be about $69.34.  In Clearwater, FL, the bill would come out to $49.88, a savings of $19.46 per month, which represents a 28% savings.

On to Power.  Currently my energy usage is a combination of natural gas and electricity.  I use gas for hot water, the fireplace and heat.  In Clearwater, everything will be electricity.  What most people don't realize is that it is actually hotter (only slightly, but still...) in Birmingham in the summer.  The winter weather is milder in Clearwater, and I suspect I won't have to use my heat at all, even though my real estate agent thinks otherwise.

Electric rates are higher in Clearwater - a bit more than $.11/kWh versus about $.08/kWh in Alabama.  However, I believe the milder winters in Florida will mean we can save a meaningful amount of electricity from December-February since we probably won't use any heat.  I guess I'll have to wait and see what the difference is for power.

How Much Electricity Does the Average Home Use?

Back in January I posted about my average utility bills.  In 2011 I spent an average of $47 per month for electricity.  This is the equivalent of about 275 kWh per month.  For most of last year we were a family of two although the last couple of months there were three of us.  Everything in my house is electric except my hot water, fireplace (which I never use) and piggyback heat (which only switches from electric to gas if outdoor temperatures drop below 30 degrees.


I admit I am a nosy neighbor and sometimes I check the meter next door to see how much the neighbors use (which is usually about twice as much as I do), but I wanted to know more, so I did a little digging.


In 2010, the average annual electricity consumption for a U.S. residential utility customer was 11,496 kWh, an average of 958 kilowatthours (kWh) per month. Tennessee had the highest annual consumption at 16,716 kWh and Maine the lowest at 6,252 kWh.


In the last 12 months I have used 3,739 kWh, so about 1/3 the national average but only 22% of my neighbors in Tennessee.  I'm proud to be a frugal energy user, because it frees up my cash to use for other things.  More importantly, I don't feel like I am sacrificing lifestyle in order to keep my costs down.  We keep our thermostat at 81 in summer and 60 in winter.  The TV stays off when we aren't watching it, and our computers are also shut down when not in use.  Lights go out when we leave the room.  It's all common sense stuff, so I'm left wondering why the "average" user is so much different than me. 






Source:  U.S. Energy Information Administration
http://www.eia.gov/tools/faqs/faq.cfm?id=97&t=3

Common Sense Frugality: Stop Buying Crap

I wanted to wrap up the week with one of the best tips I know: Stop Buying Crap.

• First, I question the need for expenses most people take for granted.  Six months ago I shaved my head.  I haven't paid for a haircut (which was $7 a pop at the cosmetology school) since.  I haul my garbage ($48 every 3 months) either to the dump or to a dumpster at one of my condos.  I've also learned that clothes last a really long time, especially if you wear them more than once before washing and air dry them on a rack or clothesline.  
• Second, and this is something I'm working on, I try to pay for quality when I do purchase something.  Not long ago my primary criteria when shopping for something was finding the cheapest option available.  But I've been burned by refrigerators that go bad after 3 years, vacuum cleaners that last under 12 months and shoddy work by a cheap HVAC installer that flooded a room, requiring the carpet to be replaced.  I've learned to read online reviews before I buy something to better understand which products are made to last.  I also look at guarantees and warranties to determine which companies stand behind their products. 

Paying for quality over price is new to me, but I'm having a ton of fun learning what to look for in products that are built to last.  Are parts made of plastic or metal, and how thick is the plastic from one product to the next?  Is it pressed wood or solid?  Can I return it if it breaks, and do I have to pay a processing fee to return the item that is nearly as much as the replacement cost?  These are all questions I've begun asking when I buy something.

A perfect example of how I have deployed my "quality over price" mantra was last month when I bought a new bathtub for one of my rental properties.  The old me would have found the cheapest tub, or might have used one of those re-bath outfits that spray a coating over the old tub.  The new me looked online to find the highest rated, most durable tub available.  I want this bathtub to last 25 years, particularly considering how expensive installation costs are.  

Common Sense Frugality: Use Less Electricity

In 2010 the average household spent $110.55 per month on electricity.  Alabama, where I live, claims the highest monthly bill in the lower 48 of $147.69, thanks in no small part to our oppressive summers.  But at the Frugal Miser homestead, the bill clocks in at an average $46 per month.


How do we keep our electric bill less than 1/3 the average for my state?

• Most important, we let our bodies adapt to the temperature instead of rushing to turn on the A/C or the heat.  In the last six months I have turned on the thermostat fewer than 5 days.  In the winter, dress in layers, drink hot drinks and wear socks!  In the summer, drink water constantly.  Most people don't drink enough water anyway, but this is the best way I know to cool my body in the summer.  We also use ceiling fans to circulate the air, but only when the room is occupied.  It is a complete waste to run a ceiling fan in an empty room.
• We unplug most things instead of just turning them off.  Energy vampires, which are those appliances such as the TV or your computer that continuously use a small amount of power when plugged in, account for a not insignificant up to 20% of your monthly power usage.

I've learned to leave the TV off when I'm not watching it.  Seems obvious, but before I might be sitting at the couch checking emails while the TV was on, completely oblivious to what was actually showing.  When I'm out mystery shopping, sometimes I'll bring my laptop with me and enter my reports at the library, using their electricity.  Once you make a habit out of being energy efficient, it takes almost no effort to save real dollars.  By choosing NOT to be the average household, I am saving about $1,200 per year on my electric bill alone.

Common Sense Frugality: Stop Wasting Water

If you've never watched the documentary Tapped, do yourself a favor and check it out.  I streamed it free on Netflix.  After watching it I feel stupid having ever purchased a bottle of water.  Really, with a little planning is there ever a need to buy this stuff within the confines of the US of A?  The water that comes out of your tap is  just as good, if not better.  In fact, often all you're getting from bottled water is what comes from the tap: Dasani is 100% tap water.  That $.99 you pay at the gas station is for the convenience of having it served cold in a plastic bottle.

Once you've stopped paying for other people's water, it's time to look at ways to reduce your water bill.  Here are a few things you can try.  Remember, at home you are most likely paying two bills when you turn on the tap:  water AND sewer.

• I wash my car when it rains.  This is how Warren Buffett washed his car when he was younger.  Zero water used, plus it's faster than rinsing it myself.  
• I skip a shower from time to time during colder months.  If I haven't exerted myself, I'm not dirty, and a hot shower dries your skin out.  
• To cut down on laundry I wear clothes more than once before I wash them.  This works particularly well for pants; not so well for t-shirts and underwear.  Most of our clothes are air-dried, as the clothes dryer is one of the most expensive appliances in the house, energy-wise.

Once upon a time I would have thought it was penny-wise but pound foolish to focus on saving money by saving water.  But in my home, our water bill is the most expensive utility bill we pay.

Common Sense Frugality

I'd like to think that I've found the right balance between making frugal choices and living a "quality" life.  Sometimes I read suggestions on blogs like "make your own deodorant" and "order takeout so you don't have to tip the server" and think how ridiculous it sounds, at least to me.  Really what I think about the person who says it is that surely they have too much free time.

Common Sense Frugality is all about being naturally frugal.  I used to think that I had to use a certain amount of deodorant, for example, or I'd stink.  By drinking a ton of water and cutting out red meat I'd like to think I don't need as much as before.  Even so, who pays more than $1 or $2 for a stick of deodorant, anyway?  I get about six weeks out of one stick and at $2 we're talking less than a nickel a day.   Making my own deodorant doesn't move the needle.


I also tried an experiment where I completely turned off the water to my toilet and used water from my rain barrel instead.  I've since stopped doing it.  It's not that it was a bad idea - there was little effort involved, frankly.  Rather, it's too subtle a change.

You might be asking whether I've abandoned my frugal ways altogether, and the answer to that question is a firm NO.  I've just refined my practices to be both efficient and meaningful.  This week I plan to highlight some of the meaningful ways I practice Common Sense Frugality.

$19 for Unlimited Phone, Text and Data - Republic Wireless Customer User Review

I've been using my Republic Wireless service for two months already and thought I should update you on my experience.  First off, one of my core values is expense reduction:  I am continuously looking at ways to reduce expenses that do not help me generate income.

What I Like

• Saving Money.  Last year with AT&T I spent around $100/month for my plan.  Now I pay $19 + tax.  I am saving about $80 per month, plus my calls, texts and Internet usage are unlimited.
• Burning Calories.  One collateral advantage to this new plan is that I am exercising more. Why?  Since I'm not worried about going over on my Internet usage I can stream Pandora and NPR on my phone.  I get excited about walking now since this phone is also an MP3 player.  
• No contracts.  I had to pay $165 to divorce AT&T.  If things don't work out with Republic I won't have to do that.

What Could Improve

• Sprint's Coverage.  Republic relies on the Sprint network, which doesn't cover as expansive an area as AT&T.  I've been without service in some areas.
• Small Annoyances.  I ported my number to Google Voice but when I send a text message it uses the number I was assigned by Republic, so people don't always know it's me.  When I access voicemail I have to enter a password.  I'm not a fan of anything that slows me down.

Overall I'm not looking back.  I have an extra $80/month now to pay off debt... what's there to complain about?

Staying Warm

Even in the Deep South the temperatures have suddenly dropped.  As I write this it is 38 degrees outside.  So far I have managed to keep the heat off.  The house is well-insulated and as long as the daytime highs stay in the 60s it is enough to warm the house up.  When it does get colder I have an electric blanket.  I've owned it for over 25 years and it still works fine.  I also have a radiant heater which works really well without consuming too much energy.  Turning on the central heat will be a last resort, something I always wait to do as long as possible.

This week I have several mystery shopping assignments lined up.  It's not a full week of work by any means but it's enough to earn a few hundred dollars.

Frugal Sacrifices

My frugality seems weird to some people, but after a while the frugal ways become second nature and are hardly a nuisance, especially since I save money. Examples:

• Wednesday is garbage day at my house. But unlike my neighbors, there's a bit more to waste removal at my house. Rather than spend $17 a month for the privelege of leaving my trash at the street, I find other places to dispose of it. Lately that place has been the dumpster behind the restaurant. I also have the key to the dumpster at one of my rental properties.
• I stopped using my clothes dryer for everything but towels. I would air dry them, too, if I could figure out how to keep them from smelling. When a load of laundry is ready, I hang the clothes on a plastic hanger and then hang them on my back porch on my clothes line.
• I haven't had cable TV in forever. And since the switch to digital TV, I have more channels to choose from. I even found a music video station the other night. Between that and my $10 per month Netflix subscription I don't see the need for cable.

I don't look at these things as a way to save money and just stop there. Saving money means I can retire sooner or not work as hard. Since I like to work I use the savings to pay off my debt.

Cutting the Electric Bill - 6 Month Goal Results

It's hard to believe it's been almost six months since I set a goal to reduce my electricity usage by 20%. Technically, it's been a little less than 6 months but my goal was over 6 billing cycles, which is over now.

It was a HOT summer, and I didn't do well at all for the first four months. It wasn't from lack of trying: I set the thermostat to 81 degrees when I was home, and it was completely turned off during the daytime. I also made an effort to zap vampire energy by unplugging things like my TV when they weren't being used.

Here's how I did:

June 2009: 288 kWh

June 2010: 396

Difference: +108

July 2009: 431

July 2010: 428

Difference: -3

August 2009: 314

August 2010: 582

Difference: +268 (ouch!)

September 2009: 290

September 2010: 448

Difference: +158

October 2009: 264

October 2010: 203

Difference: -61

November 2009: 189

November 2010: 187

Difference: -2

RESULTS

6 months of 2009: 1,776 kWh used

6 months of 2010: 2,244 kWh used

Difference: +468 kWh ( over 26% increase)

My goal was to reduce usage by 20%. Instead it increased by 26%. That's horrible. What happened? Two things: According to Science Daily, 2010 was the fourth hottest summer on record. Second, in 2009 I worked full-time either in an office or on the road. In 2010, I was at home much more. When I wasn't out myestery shopping I was at home writing reports and looking for work.

I'm going to continue my goal of reducing usage by 20% each month. Even though these last 6 months were discouraging, I know it helps keep me focused if I have a goal in mind.