Less Gas. More Fun.

I am starting my third week since I bought my new, fuel efficient '08 Ford Focus Sedan and I still haven't put any gas in the tank. Not spending any money on gas has afforded me and DH to actually go out for a day and buy lunch in a restaurant. Saturday, we drove to a quaint little nearby town, went window shopping at all these great antique stores then stopped to have lunch at a fantastic organic, whole foods restaurant. The meal for the both of us came to $27, plus a $5 tip totaling $32 (which represents a week of stay-at-home gas in my old SUV crossover car). Afterwards, we stopped at a cafe, had 2 coffees and fresh baked amaretto cookies. All in all, it was the most loveliest of days. One that DH and I haven't experienced in months and months.

It reminded me of what our lives used to be just a few short months ago. In retrospect, I couldn't believe how drastically our lives have changed. I actually started missing my old life and wanted it back. You know, the kind of life where we had fun, enjoyed ourselves, went on vacation, bought clothes and food without thinking about the effects it would have on our survival. The days when we weekly deposited money into our IRA's and savings accounts. The days when we used to see positive returns on our investments and we had a positive outlook on our future. The nights when we actually had hundreds of television channels to watch or new DVD movies every single weekend. The nights when we used to sit down and relax over dinner and not argue over how much one was eating over the other or how we couldn't afford organic products anymore. Nowadays, we have to find satisfaction in that we are even sitting down and eating anything. Gosh, do I miss the good old days.

Yesterday, as I was driving home, I heard an advertisement on the radio that one of my gourmet food stores (which I can no longer afford to shop at) was having a chicken blow-out sale. Chicken cutlets were only $1.49 a pound (vs $5.45). I immediately wanted to go to the store. DH wanted to come with me and keep an eye on the car. I dropped him off at home because I knew he was tired and spends too much time traveling in vehicles (as part of his job). He warned me to park the car far away from everyone. Which I did. You know the next part. When I got back to the parking lot after picking up tons of chicken cutlets, there was my brand new car, alone with nothing around it, parked so far from the store, I had to walk a long trek to get back to it. There alongside the car was an empty shopping cart which placed a slight scratch in the cars' side. DH and I were devastated. But not surprised. No one has respect for cars or people's personal belongings anymore. Someone had actually tossed the shopping cart across the lanes rather than place it back in the enclosed cart corral.

Nobody really owns their own cars anymore. They are either leased, rented or have car loans against it. No one really knows what it takes to save up for a car, work hard to get the money together and purchase a car and own it outright. No one has any respect for anything anymore. I think that one point upset DH and I more than the scratch did. When I got home, DH looked at the scratched side panel, rubbed some compound on it and the scratch magically disappeared. Ah! The wonders of modern technology. I wished I could have erased the total-human-disregard-memory from my brain just as easily.

My new car gets 34-35mpg on the street and 40+mpg on the highway. It is going to be my lifeline to bring some sort of semblance and normalcy back into my new life right now. It was an expensive decision and one that neither DH or I will take lightly. We both respect the value and service the vehicle will bring into our lives. I just wish people felt the same.

And so it goes.

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Spring's The Thing.

Technically, it's springtime here. Or so they tell me. From the looks of it outside, brrrrrrr. Nope. It still feels like winter to me. Either way, I'm heading out to the beach house this weekend to start getting ready for the summer. I try to get all maintenance work done by Memorial Day weekend.

The projects scheduled for this year are: new storm door, dishwasher (yeah!) and new wiring to (and possibly a bigger) hot water tank. That's it. Next year, I've got to get the exterior painted and some shingles repaired but that's another post. The sailboat just needs to be spruced up, cleaned and polished and the teak has to be redone. That's DH's project. In fact, all the projects listed above are for him. I just do the washing and the scrubbing and the cleaning. Since the beach house is rather small (only 900 sq ft.) it doesn't take us long to do any of these projects.

I did make one mistake, I think. Our electric bills doubled from last year to this year for the months of January, February and March only. I may have left the heat on too high in the kitchen. I won't know what the problem is till we get there later on today. The amount won't change our budget plan BUT I need to revisit this next year. Even though the house was completely drained and prepared for the winter, I still wanted the heat on in the kitchen and bathrooms. Each room has it's own thermostat. I set the temp at 50 degrees. I'd rather pay the electric bill than have the house seize during a winter ice storm.

Have a great weekend. TTYL-on Monday.

And so it goes.

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The Buck Doesn't Have To Stop Here.

Our American Dollar is alive and well, thank you very much! It may not buy much abroad, but it sure can buy a lot here. I'm not talking about the dollar menu at McDonald's, Burger King, Wendy's, Taco Bell etc. (but they sure come in handy during these recessionary times). I'm talking about what a dollar can buy us in ordinary, run-of-the-mill, everyday stores. The American Buck is such an important icon in our society, that whole stores have been erected to it's glorification.

First up, is Dollar General. Use their store locator and find a Dollar General store near you. I used to shop at this outlet and was amazed at the bargains I would find there.

Next up, The 99 Cent Store. Again, use their store locator and find a place closest to you. You can find bargains in food, cleaning products, stuff for the kids and clothes.

The Dollar Tree. Toys, sunglasses, beauty products, Farmer's Markets, get-ready-stuff for the summer.

The Family Dollar Store. Brand names. Stuff you love. Great deals.

I'm sure there are many, many other dollar-type stores in your area. These stores are becoming so popular and such a staple of everyday life that the NY Times wrote an article about the 99 Cent Store. The article is entitled: How To Survive In New York On 99 Cents. The author, Henry Alford, existed solely in New York City, the most expensive city in the world, by shopping only at his local 99 cent store. He even hosted a dinner party serving foods he purchased at the dollar store. Here's a clip:

"So when I heard that the food you can buy at 99-cent stores is more diverse than you might imagine, I decided to conduct an experiment. I’d make dinner every night for a week using mostly ingredients bought at these stores and then, on the eighth night — once I’d gotten my game down — I’d prepare a meal for friends made only from ingredients bought at 99-cent stores."

I personally have found many, many stores in my area that cater to that all American U.S. of A buck (other than my own local dollar stores). There's a local ice cream store nearby, owned by a local dairy farmer that sells soft serve ice cream cones for $1.00! If I want rainbow sprinkles, it's a quarter more. Needless to say, DH and I frequent this establishment often. Then there is our local take-out chinese kitchen. A dollar buys us an egg roll or wonton soup or some other appetizer. $3.75 buys us a 3 course lunch (which I serve later for dinner). I can still get a cup of great coffee at my local coffee shop for only $1.25. I can also sign up for their frequent buyer program (which I do) that gets me the 10th cup of coffee for free. When I shop at my Wal Mart, I always stop by their take-out section and order up 1/4 of a pound of their boneless, honey chicken wings for around $1.35. Hmmmm. Makes shopping a whole lot of fun. (yes, I eat it right there!)

The dollar may be shrinking abroad, but it works just fine and dandy here at home. That little George Washington can buy you a whole lot of good stuff. And it's green! Go, greenback!

And so it goes.
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Festival Of Frugality #118 and the Bloggin Boomers #62

The Festival of Frugality this week is doing it by the ABC's. Check out all the ways to keep on saving money by clicking here.

The Blogging Boomers offer up some good points this week. Check them out by clicking here.

As always, happy reading!

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Financially Free At Last. Free At Last.

All the hard financial decisions people need to make today, DH and I made back in 2000-2001 during the last economic upheaval. We vowed right there and then to change our lives and become totally debt free. And it's paid off. Today, with all the financial unrest going on, we really don't feel a thing.

We have a mortgage free home that cost us $170,000 back in 2002. It's a smallish type home. We downsized from 8 rooms to 4 and it serves us well. Calculating in property taxes, insurance, maintenance and heating expenses, it only costs us $518 a month to live here. Even with today's housing mess, the home is worth $475,000. But we have no inkling to sell, so it really doesn't matter what it is worth. We have no credit cards, car loans or debts of any kind. So, it doesn't matter either to us about the tightening credit crunch, rising interest rates or exorbitant fees. If everything would stop today, we could last for 10+ years just on our savings alone. But, we keep working. Because we want to. Not because we have to. That is what I call 'true financial freedom'.

We have no control, however, over rising food and energy costs, living expenses, inflation and falling interest rates on saving accounts. But we have learned, through past experiences how to cut back, make changes and remain at status quo. Sometimes, just remaining in place is equivalent to an ascension. We've been able to shave an additional $530 off our monthly budget which equals an annual savings of $6360. That savings, however, will be tapped into by the end of the summer when our health and vehicle insurance rise to the tune of $700 yearly. Hopefully, by then we'll be able to make more adjustments to the budget and keep everything in balance.

So far, this past year, we have made the following adjustments:
Lowered heating expenses from $250 per month to $100 by insulating our attic (at a cost of $1600). Downgraded TV service from $60 premium to $19 basic at a savings of $29 per month. Purchase a new vehicle that afforded lower insurance premiums from $811 a year to $711 a year. Downgraded Netflix from $16 a month to Blockbuster at $4. Lowered gas consumption from $200 a month to $120 a month by switching to a more fuel efficient vehicle. Lowered monthly food expenses from $600 a month to $400 by cooking more from scratch, shopping sales only and rarely going to restaurants. I've stopped all clothes purchases except for essentials (like shoes, underwear) because to tell the truth, I really have enough clothes, in style, to last me for a full year (all 4 seasons included). I may need a new bathing suit this summer. But basically, we're done. Same holds true for furniture, appliances, sheets, towels.....whatever. If we need something now, I'm waiting for the yard sales (which I think will be plentiful this year).

If you are in a situation where you have to make painful decisions, make them! Do it! Get it over with. Make the brutal changes necessary to get your life back on track. You'd be amazed to find out how little you truly need in life to make it enjoyable. DH and I watch TV every night on our set that is over 6 years old and was hit by lightening one summer! It works fine. We also have a big screen TV that we bought back in 1995 that we use on the weekends to watch our rented (or library free) DVD movies. It has the sensa-round stereo speakers and works fantastically. We sleep on 100% cotton sheets that I bought years ago, on sale, for $29.95 a set. We cook on top quality pots and pans (Wolfgang Puck) that we paid $159 for vs. what an $800 All Clad set would have cost us. 6 years and counting. I wear basic boot leg jeans I buy at The Gap, throw on a few good quality tops and I am set for the year. Ditto for DH. (yes, we have dress-up, grown-up clothes for special occasions). I have top-quality furniture, that I bought either off the show room floor or at the end of the season. Good quality means it will last for many, many years. My style is a mix of Mediterranean and European with a dash of decorator Americano. Every room has been painted a different shade of pale yellow several years ago and we do not tire of it. It's a joy to be inside our home. It's uncluttered and only contains what we use and need. Nothing more.

Hopefully, next time the economy takes a dive (and oh yes! there will be more times) you'll be ready. You'll be financially free. Free at last. Free at last.

And so it goes.

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Things Just Seem To Be Better.

I did a little experiment these past four days. I stopped listening to the media and I stopped reading the daily news. I wanted to experience the state of living in these 'tough' times completely on my own cognizance.

First stop: the stores. The person at the check-out before me, on line at Wal Mart paid her $129 bill with a check. That means 'cash'. No credit card. No debit card. I hadn't seen that at a Wal Mart in a very long time. Next, was the grocery store. The person in line before me at the check-out rang up a $140 bill and she actually paid in cold, hard cash! At the grocery store!

Next stop: the shopping center. As I was pulling into a parking space I noticed that most of the cars were smaller. There was definitely a reduction in countable SUV's and trucks. There was also some available parking spots. I didn't have to keep driving and circling for a space.

Day Old Bread Center (and damaged fruit/vegetable) isle: I made 3 trips to this section of my local food store and each time I walked out with nothing. Either there were a lot of people buying OR the store economized and cut back on baking, buying and thereby selling (at a loss) damaged goods. I prefer the latter. I think the grocery store cut back on production and streamlined their costs. I actually bought fresh bread @$3.25 and fresh fruits and vegetables and found out I could afford it because everything was reasonably priced.

The Auto Show in NYC this past weekend was a big flop! Not that many people showed up to attend the show. Not that many people were interested in the big 8 seater SUV's or trucks. More people were interested in the smaller, fuel efficient cars that retail for under $20,000 (and are less profitable to the auto makers-until they get their act together and retool). This was a very good thing.

After I paid my bills this week and went food shopping I was amazed to find out that I actually had $50 left over!!!! This was a very big thing. I had fifty bucks to put away in my savings account. I hadn't had any money left over, nor have I been able to put anything towards savings in months. This may be the start of something big.

I've concluded, based on my own observations these past four days, that things have started to change and are looking up. My 6th sense is telling me that brighter days lay ahead.

And so it goes.
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Easter and the Economy.

So, I'm sitting here in my office and I'm thinking about things. I'm thinking about the housing mess; how just 5% of the mortgages are taking down 95% of the folks who pay their bills on time. I'm thinking about investment banks, like Bear Stearns, how last Friday they were bankrupt and their stock went from $150 a share just a year ago to $2 a share today. I'm thinking about all those gas guzzling automobiles that get 10 miles to the gallon and the preposterous, stupid people who keep buying them. I'm thinking about the doubly preposterous government who touts biofuels made from corn will stave off rising energy costs. I'm thinking how the increase in corn production for biofuels has led to higher bread, wheat, milk, pasta prices and possible food shortages. I'm thinking about the stimulus package which will stimulate everyone to go out shopping rather than take the money and use it to rebuild this country's infrastructure (think roads and falling bridges) and giving people jobs rather than a $600 shopping spree. I'm thinking about all the rate cuts, the lower investment interest rates, the dropping dollar value and the whole convoluted world in general.

I'm also thinking about the corrupt politicians. I'm thinking about several state governors and their filthy, despicable lives: sexual threesomes, prostitution rings, marital infidelity, unsafe sex, political payola kickbacks. I'm thinking about how the media is idolizing a prostitute and offering her millions of dollars to pose nude, write a book, appear in porn. Every little girl should aim so high, shouldn't she? And why not? Girls watched a First Lady of America stand by her cheating husband and his wandering cigars. I'm listening to the media channels bring in psychobabblists who claim sexual infidelity is the way of life; it's what to be expected. Has any news program brought in a priest or pastor? I haven't seen one. Have you? How could they? If they did, then we'd have to hear the truth: that infidelity, lying and cheating is WRONG.

Have you taken a good look at the condition of our life lately? Wall Street, as always, is corrupt. Our politicians, as always, are corrupt. Our lives right now have been turned topsey-turvey because of the greed of lenders and borrowers alike who rejected all aspects of right and wrong in their quests to become rich. People, rather than live within their means, borrowed and sold their very souls just to have granite countertops, big screen TV's and Manolo Blahnik shoes to impress some imaginary Jones family. How have we become so misguided?

This Sunday my family and I will be celebrating Easter. Easter is a sad time for me. It is a reminder of how the son of God, sacrificed His life and died for us, so that we could have eternal life (and peace) in Heaven. I've turned off my TV lately. I've stopped reading the news online and canceled my subscription to The NY Times. I don't want to know anymore about the absurdity of man. I find, as I always have, a sense of peace and comfort in my faith. The teachings of Jesus make perfect logical sense. Try as we might to change human behavior, we mere mortals can't come up with something new and different.

If you don't want to believe in God or Jesus, then just read the teachings of King Soloman. In the 10th century BC, King Solomon wrote the book of Proverbs, which can be found in the Old testament. Soloman is the fellow who came up with the saying "Eat, drink and be merry" after he lived life to the limits. His conclusions teach the sanctity of human life. True successful living is a concern to God and He has made provisions for everything. The book of Proverbs teaches that there is a divine wisdom given to man by God, but there is also a divinely given human wisdom, or common sense, and both must play a part in daily life. Practical sayings from many centuries before us are collected together in this book and it deals with such diverse matters as the discipline of children, social justice, foolish talk and money. It ends significantly with a description of a truly good wife.

Human wisdom is fine and necessary but no matter how skilled a person might be, without humility in the presence of God and a willingness to learn from Him, man will eventually go astray. Man has definitely gone astray.

And so it goes.

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Food. My #1 Priority.

I read a very interesting post yesterday that affected me. It was entitled: Recession Proof Your Diet: Food Strategies for a New Economy. It was written by Kris, the author of the Cheap Healthy Good blog. Up until I read this post I thought I was over reacting to the current food situation. Two words, which Cheap Healthy Good's author kept repeating throughout the post, struck home. They were: "Don't Panic". If the author took the time to emphasize this statement, then surely it was a primary concern of many, many others besides myself.

I had been noticing from several of my readers (as well as myself) that there was a hint of panic in all of us. For me, I had gotten myself downsized to a point that food consumption was the last frontier. I downsized my home, my energy consumption, my job, my car, my expenses, my lifestyle and cut my food expenditures down to half. I readjusted my portfolio right before another downturn would have cut into my principal. I was teetering on the edge. I was started to actually panic because I was doubting if my maneuvers were good enough, early enough or just plain enough.

Until I read Cheap Healthy Good's post, I hadn't realized that Kris (the author) had touched on something profound: that we have entered a new economy and the rules of the past had changed. The old style of doing things weren't going to work anymore. I had always thought (and advised) that we Americans had to be more like the Europeans in today's economy. But even that is still cutting it short. We really have passed a milestone and we really have entered a new economy and the rules of the game have changed.

Several of our top U.S. airlines made announcements yesterday that they will be replacing older jets with more fuel efficient models, discontinuing service at several minor hubs, stopping flights to unprofitable cities, charging for extra baggage and leg room, all in an effort to cope (and remain profitable) with higher gas prices. Already the price of a barrel of oil has come down reflecting the reduced demand for the commodity.

In New York City, hundreds of one bedroom apartment renters are downsizing into studio apartments in an effort to seek shelter (literally) from the rising food and energy costs (and potential job losses).

Everything is changing. Everyone is adjusting. It is a new New Economy. One that I am just beginning to discover. My main concern right now is food. There are many new bloggers out there who consistently keep coming up with new and fresh ideas to rein in food costs. The first one being to keep a price notebook nearby. The other is to shop the sales. Plan out your meals. Stockpile the sales. Use coupons if possible. Learn to cook from scratch. Bake your own bread. Brown bag your lunch and bring along your own cup of coffee. Start a Victory Garden and can your own fruits and vegetables. Discover the proteins of beans.

And so, food has become my #1 priority. Now, if I can just master that 'don't panic' mode, I'd be fine.

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Festival Of Frugality #117 and the Bloggin' Boomers#61

The Festival of Frugality is up this week. It was hosted by "I've Paid For This Twice". You can read this week's plethora of submissions by clicking on this link.

The Blogging Boomers #61 is up also. You can click on this link and read what the Boomers have to say this week. "Gen Plus' was the hostess this week.

Happy reading.

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The Not-So-Great-Depression.

There's been a lot of talk lately about the Great Depression of the early 1930's. You know the one? The one that happened right after the stock market crash of 1929. The talk about the Great Depression today is that well, today's today feels a lot like the yesterday of the 1930's. Ben Bernanke, our new Federal Reserve Chairman, is actually an authority on the Great Depression. According to this article from the Wall Street Journal, Bernanke started his career in 1983 by becoming a Great Depression buff.

Here's a quote:
"Mr. Bernanke's fascination with the economic earthquake never abated. "I am a Great Depression buff, the way some people are Civil War buffs," he wrote in 2000. "The issues raised by the Depression, and its lessons, are still relevant today."

Alan Greenspan, our previous Fed Reserve Chairman and predecessor to Bernanke, as reported in the French International News, commented on Friday that our current economic crisis might turn out to be the worst since World War II.

Here's a Greenspan quote:
"The crisis will leave many casualties," he said, his remarks coming after Bear Stearns, the fifth largest US investment house collapsed Friday and was taken over by JPMorgan Chase for a fraction of its value of only a week ago."

Up until this point in time, no one has been speaking like this. At least no one in authority. We've been told that the subprime mess was only 3% and that employment was strong at 4%. But you and I know better. We feel it. We see it each and every day. Life today is feeling like it did back in the days of the Great Depression and after World War II. Even though I wasn't alive back then, I've read and seen enough video to know what it looked and felt like. If the USA's top two Federal Reserve Chairmen are recounting days long gone by, you and I now both know we're in deep doo doo.

OK. OK. OK. I've accepted it. I've positioned myself to endure what's going to happen. As the months proceed money is going to get tighter and scarcer. Many economists are advising parents who have growing children to go out and buy clothes for them now, in increasing sizes because come next year or the next, the parents will not have the money to buy their kids clothes. Other economists are advising to stockpile canned foods and other goods. Financial experts are touting 'keep the change' literally in jars at home because paper money is going to be worthless. I've personally repositioned my cash holdings, made severe budget cuts, eliminated all debt and have batten downed all the hatches. Now, it's just a game of endurance.

Our government took on a lot of debt with our tax money by buying up those worthless Bear Stearns mortgage-backed securities. If Bear Stearns can't pay out on those loans, guess whose going down? You, me and Uncle Sam. There is tremendous global pressure that Euros will become the new monetary standard rather than the dollar. What do you think will be the standing of America when the switch happens? We will no longer be the world's super power. Much like Great Briton, Rome and France, America will drop a few pegs down the universal ladder. You can wait for the demise or you can start to prepare now. American's need to learn from their European brothers and sisters and live more like them.

From what I can foresee with our economy, we will have a few tough years ahead of us. Folks will be adjusting their lives off the credit card merry-go-round. Just like our European neighbors, we can expect to pay 55% to 60% of our income in taxes and be left with 40% for discretionary spending. That means we will be driving smaller, more fuel efficient cars, living in smaller homes and apartments, eating smaller (but healthier) meals and finally, finally, finally living within our means. We probably will have Universal Health Care and capitalism will be a thing of the past. The wild, heady days of a corrupt Wall Street will only be visible in books or videos for another generation to view. It might not be such a bad thing after all.

And so it goes.


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Netflix DVD & The 'Very Long Wait'.

To anyone who has a Netflix account, have you noticed something strange lately? Every single new release DVD, such as Michael Clayton, No Country For Old Men, No Reservations etc. when you place an order for them come up with the caption "Very long Wait" or "Long Wait". I found this to be very odd until I started looking at my Pay Per View choices with Dish Network. All of the above mentioned movies were available immediately! At $4 a view, I might add. Other than a conspiracy, what's going on?

I also noticed that Netflix changed it's way to look at new releases. No longer can I log on every Tuesday and view (and choose) current new movie releases. I have to scroll through a roll bar now and most of the new 'so called' releases are really 6 months to a year old. I have to physically type in each new movie's title under the search window in order to locate the film and place a rental order. When I check my queue I find the film with the caption 'very long wait' next to it. I've only been able to rent older movies lately with my membership. I think this has to do with either Netflix can't get the movies, are so busy with massive customers that there really is a long wait for the movies or Netflix cut a deal with online/television moguls to hold back recent releases so that people could see the movies through Pay Per View and thus pay quadruple for them. Take your pick. I choose the last option.

I've been subscribing to the 2-per-month membership with Netflix whereby I view only 2 new release movies per month @$4.99. I supplement my video viewing with classics from the free library. Since DH and I only watch one DVD per Saturday night, the system was working out fine for us. I felt connected to the real world by seeing a late release 2 times a month (or 3 times, if I paid an extra dollar to Netflix before the month ran out). I also changed my television provider from Direct TV @$60 per month to Dish Network Family programming @$19 a month. In exchange for less commercial channels, Dish Network not only provided a pay-per-view option (that if I am not careful with my remote control, I can very easily order a movie by mistake and have my account charged accordingly) but they also included over 11 shopping channels for my viewing pleasure. I'm bombarded with HSN, QVC, the jewelry channel, the precious gems channel, the Shop latino channel, the sports shop, the TV super store channel, SHOP, LSHOP, GEMS and SHNBC.

My old Direct TV had a final payment of $18 due March 17th. On Friday, March 14th, I got a bill in the mail from Direct TV that stated in addition to the $18 I was being charged a $5 late fee. I called Direct TV and impolitely asked how I could be charged a late fee on a bill that wasn't due yet? Customer Service agreed, took off the $5 late fee and I wanted to pay the bill, right there, over the phone. The Rep told me there was a $10 fee for a live person to take the payment over the phone. Frustrating, to say the least. I was told that if I recalled and followed the prompts to pay-by-phone I could avoid the $10 penalty. What they didn't tell me that since my account had been closed, I went through the prompts five turns before a real live operator could take the payment and WAIVE the $10 fee.

It's a conspiracy, I tell you. A real honest-to-goodness conspiracy. As this economy falters, you are going to be nickeled and dimed by every single financial entity that is out there! Service is going to be reduced, terms of contracts are going to be changed without your consent, hidden fees are going to be embedded in your invoices, prices of pre-paid bills will suddenly evaporate as more and more companies struggle to stay alive. What does one do? We must now be ever vigilant and look at each and every financial exchange we do each and every second of the day. You will even have to start counting your change when you do a cash transaction.

Cases in point: every time I use a certain bridge and pay a certain toll, unless I give exact change, I am shorted a dime or a quarter. I actually sit at the toll booth and count my change before I leave the gate. Buying a cup of coffee with cash gets me back Canadian or foreign, worthless coins. My heating oil company was severely overcharging me on my budget plan. They were actually holding almost $1000 extra of my money, interest free (to me) and not calculating my reduced consumption into my annual plan (yet they saw the decline in usage). I've sinced canceled the plan. These are just some of the many examples I can recount to you.

Which brings me back to Netflix. I logged onto Blockbuster and discovered that not only did they have the recent release movies instantly available for me to rent, they only charged $3.99 for the exact same monthly membership. I immediately opened a Blockbuster account and canceled my Netflix. My Netflix conspiracy was confirmed when I answered the compulsory exit interview upon canceling my account. One of the choices I was given to select, as for my reason to depart was: Did the DVD 'very long wait' or 'long wait' cause you to cancel? Yes, was my reply. Another question: have you gone over to Blockbuster? Another affirmative response from me. Obviously, I wasn't the first one leaving for greener and more available pastures.

Just another routine day for me, in my constant daily quest, to hold onto more of my money for just another day. It's getting to be quite a jungle out there. I can hear the hungry lions roaring already.

And so it goes.

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I Can't Afford It. Or Can I?

Lately I've been finding myself saying "I can't afford it" or "I can't afford it any longer." There's no doubt about it that I have been feeling the squeeze. I've been getting hammered on all sides now. According to this article from The NY Times, apparently, I am not alone. Here's a quote: "Almost everything seems to be going wrong for the American economy at once. People are buying less, but most things are costing more. Mortgage rates are rising, the dollar is falling and prices of key commodities like oil are leaping from one record high to the next."

So, what's to do? What do I do? I have been practicing Voluntary Simplicity for the past 7 years now. Practice time is over. These tight economic times have compelled me to perfect Mandatory Simplicity now. I no longer get to pick and choose how I want to live. I have to switch my mode into survival. At first, it was a bit upsetting. Now, I have just accepted it and keep moving on one day at a time.

To readers who have been following my blog, they know I am debt and mortgage free, live a frugal lifestyle and do everything from scratch or on my own. I voluntarily chose this lifestyle after suffering from the last economic downturn in 2001 when the dot com disaster struck. This recession, however, is dramatically different because I find myself concentrating just on 2 things: food and gas. These two items take up most of my financial expertise. It's a challenge to put food on the table, gas in the fuel tank and keep the house warm.

The food part I've mastered because I cook everything from scratch. This spring I'll be starting a vegetable garden and I will probably be canning some produce for next winter. Granted, yes, I prepare less organic choices, buy more generic products and started using coupons, but nonetheless, I still seem to prepare wholesome, nutritious meals. I've added blown-in insulation (at a cost of $1600) on the second floor of my home, up through the attic which cut down my energy costs substantially. One of my cars is a fuel efficient, manual transmission model that gets 33-35 mpg, so that's another bonus. Which brings me to my second car.

Car #2 was chosen because of it's safety rating. It's an AWD, 7 passenger vehicle that gets approximately 22-25 miles to the gallon on the highway. City driving is another thing. It's not good locally. But it was purchased solely to do long distance driving in comfort and safety. Unfortunately, with gas reaching $3.50 a gallon here and soon to topple $4.00 by the summer, the vehicle was being used less and less and my family was piling into the fuel efficient model more and more. So much for the safety rating. Apparently, fuel costs trumped being safe. It was getting to the point that I would stay home more and more and wait till my DH got back home with the fuel-efficient Ford Focus and use that car for my errands rather than use the AWD. Yesterday, it dawned on me that there was no point in owning a safe vehicle if no one would use it. We've owned our Ford Focus, new from '05, and it's as good now as it was when we first bought it. I did some research and found that the '08 Focus got the greatest fuel economy of all the years so far. (I had originally thought of an '07 or '06). Since I pay cash for all my cars, I had a lot of equity in the '06 AWD. I did some research on it's trade in value and price costs of a new, out-of-the-showroom '08 Ford Focus.

Yesterday I went to my local Ford dealer (DH and I are BIG Ford fans. We will only buy American cars. Never a foreign vehicle because #1 import pricing is higher, #2 foreign vehicles do not fit American bodies, #3 American parts are less expensive than foreign imports thus keeping down repair and maintenance costs, #4 Ford has never let me down). Over the past few years, I have purchased a Contour, Explorer, Freestyle, Focus from this particular dealer. All for cash. I just pay with a personal check. The Ford dealer knows when he sees me, that there is going to be a deal. I was able to trade in my AWD, buy a brand new '08 Ford Focus ($500 off sticker price and $1000 rebate) for only $3000 out of pocket. I wrote out a check from my emergency fund and am back in the driver's seat. Literally.

I know you're not supposed to buy new cars out of the showroom, but gas mileage was all I had on my mind. This new car get 35 miles to the gallon. The '07's and '06's got less. This new car also has 6 airbags, anti-lock brakes, state-of-the-art stereo (I never had that before) and some newer technological bells and whistles. If I had followed my original plan of keeping the AWD till it tanked (say 5 years more), I would have had to cough up $20k by then to replace it. I estimate I can hold onto this car for 7-10 years and delay the next purchase till then, thus allowing me to save up for it over a longer time period. Based on my annual mileage, the new car will be saving me over 34.6% in gasoline prices (or $1000 a year @$4 a gallon). I'll recoup the $3k within 3 years. Who knows where gas prices will be in 3 years anyway. It's guaranteed that it won't be going down. Insurance costs have been lowered with the new car and maintenance costs have been reduced to $48 a year (oil changes). The AWD needed new tires @$500 and an extended warranty @$1200. The new car has a 6 year, 75000 mile warranty so my out-of-pocket expenses have been curtailed for now.

How do I feel? Elated. I will be using less gas (which helps the environment and oil imports), the new Ford Focus has zero pollution (which helps the environment again), is safe (thanks to the steel reinforced doors, anti-lock brakes and 6 airbags) and I can now drive to places I had stopped going to because I couldn't afford the gas. I can attend the free Italian courses at my local community college (that I couldn't go to last semester because I was concerned about the gas). We can drive back and forth to our beach house weekly instead of bi-weekly or monthly. I don't have to stay home more often anymore. I am free!

Finally, I can afford it!

And so it goes.

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Hey Eliot! Phone Home.

New York's rootin'-tootin', hip shootin' governor, Eliot Spitzer, will leave office Monday after being caught literally, with his pants down in a prostitution ring. I'm no stranger to the pent up hatred we New Yorkers felt towards this governor. I wrote a diatribe against Spitzer back in October 2007 when he was steamrolling to give all illegal aliens in New York State drivers licenses. I also do not feel much sympathy for his down trodden looking wife, Silda. She may have looked beaten and pathetic standing next to the Love Gov while he made his exiting confession of $5500 an hour condom-less sex but sources say Silda begged hubby not to give up his day job. Obviously, Silda and Eliot deserve each other.

I'm not going to write a rant on our ex-gov. In fact, I am not even going to mention his name from this point on. What I want to discuss is the balance of good and evil and how it is affecting the world we live in today. When this story first broke, my first reaction was one of disgust. It's getting pretty hard out there to find anything to believe in anymore. Hope is becoming quite elusive. I was beginning to think that evil was winning over the battle between good vs evil. The housing mess has highlighted Wall Street's continual greed. The Federal Government has had their interfering hands in inflation, the falling dollar, job loss and huge budget imbalances. The Feds thought biofuels would solve our energy problems. Instead, we now face food shortages and higher energy (and food) prices. Nice try, guys. Too many days are passing by with stories of political corruption, sexual indiscretions and financial imbalances.

Enter: 'The People'. The Good People of these here United States of America. It was an employee at Capital One-North Fork Bank in Long Island who noted the frequent wire transfers from a bank account, alerted the F.B.I. thus uncovering Spitzer's web of deceit. It's the outcries from the people clamoring for the resignation and not forgiveness (as Spitzer and Silda were hoping for. After all, paying for sex is not against the law, so they reasoned) that finally led to Spitzer's disgraceful resignation from a powerful political post.

The point of this post is this: we the people still have our morals, our love and respect for the family, our country and our laws intact. What stands for one, stands for all. Our constitution was written for us. It is up to us to demand that our representatives and elected officials walk on the side of good. When they falter and lean towards evil, we should stand our ground and get them out.

As I watched 'you-know-who' read his goodbye speech this morning, with his ego-maniacal wife standing next to him, I actually felt quite happy. Evil has been outed and ousted. Now, New York can get back to business and work with Lt. Governor, David A. Paterson, who will be sworn in on Monday, and balance out our 5 billion dollar deficit and impending health care cuts you-know-who was going to address. If he ever got out of that Mayflower Hotel room.

And so it goes.

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Festival Of Frugality #116 and the Bloggin Boomers #60

The Festival Of Frugality has another week's worth of money saving submissions. Check them out by clicking on this link.

The Blogging Boomers also have a week's worth of posting to check out. Click here to read their entries.

Happy reading.
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Eating Out Tonight? Not When You Hear These Cuisine Cutbacks?

Restaurants are feeling the pinch of higher food costs. They know if they raise their menu prices, diners won't be frequenting their eating establishments. From McDonalds to Le Cirque, I'd think twice before I'd order up an old favorite. Providing, your old favorite is even on the menu.

The Wall Street Journal published an article today, along with pictures (make sure you click on the pictures) and menu substitutions, illustrating what restaurants now have to prepare in order to keep their doors open. Here are some quotes:

"Meat scraps that used to get ground into hamburger are now listed as a $12.95 steak tartare at Murray's steakhouse in Minneapolis. At Gramercy Tavern in New York, the caviar-topped hamachi appetizer has been replaced with a tuna-and-beet tartare topped with sliced radishes. Uptown at Isabella's, a pasta dish is squeezing out a sirloin."

McDonalds has changed their dollar menu title to "Dollar Menu & More." Some restaurants are charging almost $7 bucks for a hot dog justifying the price with extra (cheaper) toppings. Racks of lamb are being replaced by stir-fry lamb, imported olive oils and wines are being replaced with oil blends and American varieties. "Buy American" has become a new battle cry.

"Joachim Splichal also is feeling pinched by olive-oil costs. His Patina Restaurant Group operates 60 venues in the U.S. and uses as many as 60,000 bottles of extra-virgin olive oil a year, says Mr. Splichal, chef and founder. Prices are up 43% from last year to $20 a bottle. He is tasting olive oils from Napa and Sonoma valleys in California, as well as from Mexico and Argentina, to find high-quality substitutes. He has started buying more domestic wines as the price of European bottles goes up. For restaurateurs, Mr. Splichal says, "the slogan should be 'Buy American.' "

I've been invited out to dinner this upcoming week. I'm going to think twice before I order something. If prices and ingredients keep changing, going out to eat will take on a whole different meaning. Sitting in a restaurant will be more like a theater experience than an eating experience. Going out to dine will be a social event, not a means to satisfy your hunger.

You'd be wiser taking your cash and cooking at home. At least you'd know what you are eating. Don't know how to cook? Sign up for a cooking class pronto. Doing so would serve up twofold: you'd learn how to prepare your own food AND you'd get some social interaction thrown in gratis. Buon appetito!

And so it goes.

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Things I've Learned This Month.

My notebook system that tracts my grocery shopping has been working out well. I keep a running total of how much I have been spending on food and it's been keeping me mindful of my expenditures. This method has helped me lower my monthly food bill from $600 to $350. I like that. I also learned that food shopping with coupons just hasn't worked out for me. Last week I used coupons and spent $106. Yesterday, I shopped without coupons and spent $56. Instead, I look at my local grocery chain's weekly sales online, write down the items that are heavily discounted and buy those instead.

February and March have been 2 brutal months for me because all the property taxes, insurance payments etc. were all due at once. Since I put away money each month for these expenses, I usually just pull the amounts out of my savings and pay them. Lately, however, I've noticed how difficult, if not almost impossible it is to put any money away in a savings account. So this time I forced myself to do something different. I went on an extreme austerity program whereby DH and I went nowhere, bought nothing and lived on rice and beans and socked as much money away so as NOT to touch our savings. I played a head game and tried to come up with $4000 cash in 8 weeks. DH worked longer and I came into some extra money. I am happy to say (but not fully satisfied) that we managed to come up with $3000 and only withdrew $1000 from our savings. That means that $3000 of earmarked savings would not be touched. If I seemed a little bit cranky these past few weeks and complained and ranted, this was the reason. It's done. It's over. What's next?

We changed our TV service and downgraded to just basic service with another provider. That lowered our costs from $60 a month to $20. I did add in one luxury and that was DVR service for an additional $5 a month, so the monthly total is $25. I didn't know how this deprivation was going to affect me but amazingly, it worked out just fine. The remote control can be set to just give me the channels that I paid for so I never missed what I couldn't see. The DVR worked out fantastically because basically by 9PM there really wasn't anything on TV I wanted to watch. I don't like regular programming. So, I would record stuff that was on during the day or weekend and then view it later each evening. I also could fast forward through commercials. This choice turned out to be a good decision.

I found a free way to deal with all the daily stress. It's almost impossible now to go anywhere or see or read anything that doesn't discuss the gloom and doom of this economy. Even though I am not affected by the housing mess, the credit crunch, the job market or anything else, I still find what is happening now in the USA to be very, very disturbing. I read an article in Money Magazine that claimed taking bubble baths can soak the worries away. I bought a lavender baby bubble bath from WalMart for only .96 (yes, ninety six cents) and started taking bubble baths. I am happy to say that it's working out fine. It really does help take away anxiety, depression and worry. Try it. (even DH has started taking baths sans bubbles)

Well, I'm off now to go get my $5 haircut (at the local beauty school). On the way back home I'll be stopping at a wine gallery that sells slow-moving wine for only $3.99 a bottle. I always find some great choices and usually buy around 6 bottles. I found a coupon from them that gives a $2.50 discount on purchases over $30. If I buy 7 bottles, instead of 6, it will be like getting the 7th one free with the coupon. In this instance, the coupon is a very good thing.

And so it goes.


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Earn A Million? Be Prepared To Be Taxed More.

In another effort to close the budget gap, New York State is preparing to pass legislation that will increase the tax to anyone who earns more than a million dollars per year. This type of legislation will not be limited to the state of New York. Plan on similar legislation coming to a town and city near you. Here's a quote:

"The Democrats will introduce legislation next week that would impose an income tax increase of nearly 1 percentage point for the next five years on anyone who earns more than a million dollars a year. Democrats estimated that the plan could bring in $1.5 billion in the first year alone."

To me, such attempts to tax the rich (and there will be many more to come) just confirms my decision NOT to be a millionaire. I usually laugh at proclamations touting get-rich-schemes or at anyone's desire to even be a millionaire. What for? You're only going to have it taken away by some sort of taxing authority. My dad died with 6 million dollars. 55% of that was taxed by the Feds. The state got the remaining 45%. Throw in the CPA's, attorneys and what-have-you who retained their fees out of the Estate Tax Exemption and you're looking at a pitiful legacy. My dad, as do most of us, work and toil all our lives only to have the government take it all away in the end.

Yes, there are ways and loopholes to protect your money, which I won't go into now. But is that how you want to spend your time? First you work hard to earn the money, then spend your time learning (and paying) for ways to hold onto it? I have a better way. It's an effortless, uncomplicated and straighforward way to live your life:

You just earn what you need and need what you earn.

I watched a PBS special the other day entitled: Stay Rich Forever and Ever, hosted by Ed Slott, a CPA who specializes in Estate Planning. Did you know that if you do not have a beneficiary named for your IRA's or 401K's, the government gets your money, regardless of who you named in your will? According to Slott, the majority of people have neither a beneficiary named or updated their beneficiaries once they marry, remarry or have children and grandchildren. Is that you? Do you know what the number one financial instrument is so you can pass your inheritance onto your heirs and will never be taxed (yet)? It's life insurance. People foolishly think that their loved ones will inherit houses, investments, stocks, retirement funds, so they feverishly toil to fund these accounts. All the while, the government silently sits there, like a spider, waiting to tap into the trillions of your lifelong earned money. A simple life insurance policy can be passed on without any government interference. (My dad did NOT have life insurance.) Instead of funding your IRA, go out and buy life insurance. We're all going to die. If you want your family to remember you with kindness (rather than the disgust I feel towards my own father's mismanagement of his hard earned money) make sure you have an adequate life insurance policy in place. And watch Ed Slott's show next time it's aired in your area. (Or get his books, free of course, at your local library.)

As for wanting to be a millionaire, I'll leave that to the fools. Fools who spend their time chasing money and dreams rather than enjoying life, living in the present and simply preparing for a future that ends with their last, happy breath.

And so it goes.


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Festival Of Frugality #115 and the Bloggin' Boomers #59

It's that time of the week again. The Festival of Frugality is posting their #115 carnival hosted by Broke Grad Student.

The Bloggin' Boomers post their #59 entry by So Baby Boomer.

Lot's of good reading.

Enjoy!




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Freedom Of Choice Must Be Preserved.

Despite how many times we tell a child not to touch a hot stove, somehow they always seem to reach out their hand and touch that stove. Once they feel the heat, experience the pain, only then does that child learn the lesson. Try as we might to protect that child, there comes a time when their freedom of choice, their right to experience must be preserved. So, we must let them go.

As in childhood, so too in adulthood, in order for a democracy to work, individuals must be permitted to pick and choose their own lives AND suffer the consequences of their actions. I wouldn't be where I am today if I did not fully suffer at the hands of my own decisions. My rise from the ashes created a 'better me'. I had to come to the conclusion that my own financial decisions and destructive disregard for debt led to my own demise. Despite what anyone told me, I still had to lay out my arm and touch that stove. Some people can be led to the water and drink; some others can not. In retrospect, I am glad I had the choice and the opportunity.

President Bush stated on February 28, that he is going to veto the Foreclosure Prevention Act of 2008 and not bail out the homeowners nor the lenders. I think this is a very wise decision. As brutal and as harsh as my statement may seem, I think Bush is right. His first objection to the bill is that it will change the bankruptcy law and let judges reduce the amount of principal and interest on mortgages. If that's the case, a buyer will never have to beware. Sign whatever you want in life; don't worry about any consequences because there will never be any. Lenders will be penalized for stupidly loaning you money to buy a home. Bush's second objection is the $4Billion provision that let's state and local governments buy up the foreclosed homes and rehabilitate them. Doesn't matter if the homes are worthless and never sell. The government just paid billions of your tax money on properties the original owner abandoned. Borrowers again, will not be responsible for their actions and will not suffer any consequences. What will the end result of such behavior be? Will anyone learn to be responsible now and in the future? All we are doing is prolonging the inevitable.

"The Senate is considering legislation that would do more to bail out lenders and speculators than to help homeowners keep their homes," he said. "The Senate bill would actually prolong the time it takes for the housing market to adjust and recover, and it would lead to higher interest rates."

Freedom of choice must be preserved. Supermarkets sell junk food, candies, cookies and ice cream. Should the shelves be stripped in the pretense to protect the thin? Drug stores sell cigarettes and OTC medication that if used improperly, can be dangerous. Video and book stores, newspapers and magazines sell materials for all tastes. Should we close the stores, ban the books? Or do we allow all to enter to pick and choose their own lives.

I've been very honest here on my blog regarding ho