Thomas Nelson - The Frugal Womans Guide to a Rich Life

THE FRUGAL WOMANS
Guide to a Rich Life

STACIA RAGOLIA
EDITOR

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Copyright 2003 by iVillage Inc.

All rights reserved. No portion of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any meanselectronic, mechanical, photocopy, recording, or any otherexcept for brief quotations in printed reviews, without prior permission of the publisher.

Published by Rutledge Hill Press, a Division of Thomas Nelson, Inc., P.O. Box 141000, Nashville, Tennessee 37214.

Library of Congress Cataloging-in-Publication Data

The frugal womans guide to a rich life / Stacia Ragolia, editor.
p. cm. (iVillage Solutions)
Includes index.
ISBN 1-4016-0103-0 (pbk.)
1. Women-Finance, Personal. 2. Consumer education. 3. Home economics. I. Ragolia, Stacia, 1968 II. Series.
HG179.F78 2003
332.024'0082dc22

2003015084

Printed in the United States of America
03 04 05 06 07 5 4 3 2 1

CONTENTS

SINCE IVILLAGE WAS FOUNDED IN 1995, THOUSANDS OF WOMEN have come to the discussion groups on the Website to ask other women for help in paring down their expenses, and to celebrate their frugal victories as they discovered how to get more out of life for less. Theyve sought answers on cutting grocery bills, freeing themselves of debt, decorating their homes on a budget, and even (yes!) how to indulge themselves and their families without breaking the bank. In this book youll find the very best solutions women have shared with each other in iVillages online discussion groups.

iVillage would like to thank the members of ParentsPlace (www.parentsplace.com), Parent Soup (www.parentsoup.com), the Money Channel, and the Home & Garden Channel for sharing their words of wisdom and inspiration. Without them, this book would not exist. Wed also like to thank the hundreds of community leaders who host our online discussion and support groups for the care, concern, and support they provide to our visitors and members. And wed like to thank Justin Schwartz, who provided invaluable assistance in helping us gather advice from the members of the iVillage community.

INTRODUCTION
WHO IS THE FRUGAL WOMAN?

F rugal: adj. Economical in use or expense; prudently saving or sparing; not wasteful.

GIVEN THAT YOURE READING THIS PAGE, CHANCES ARE youve asked yourself at least once Do I really need all this stuff? And why am I paying so much for it? Maybe youre contemplating a credit card bill that outstrips your savings account by several digits. Or surveying a closet full of clothes worn once, and not worth the purchase. Or wondering why you just paid $7 for a sandwich that would cost you $1.50 to make at home. But could you really bring yourself to be frugal?

Isnt the Frugal Woman the old lady who reuses every tea bag five times? The one who regifts the junk from the back of her closet and wraps it in newspaper? The one who never spends a dime on anything fun or frivolous and alienates everyone she knows with her miserly ways?

News flash: Frugal Women across America are dressing their kids in brand-v name clothes, getting their hair done in salons, buying antique furniture, eating gourmet meals, giving gifts that wow their friends and familiesall while socking money away in their savings and retirement accounts, living free of credit card debt, and feeling secure about tomorrow while enjoying today.

On iVillage, thousands of women gather every month to trade tips about living well on less. They celebrate frugal victories and support each other as they look to redefine their lifestyles. Theyve embraced frugality for many reasons but the end result for all is that they enjoy their lives more. Heres what some of them have to say:

I still buy what I want nowI just do it differently. I replaced the malls with yard sales and consignment shops. I started cooking at home. Eating out is a special treat, not the source for everyday meals. Clipping coupons and watching for sales is fun now, almost like a hobby. Its a great way to challenge yourself. Ive always heard that necessity is the mother of invention. Well, living frugally is the mother of creativity. You learn to use what you have, and you appreciate things more. I am always thinking of new ways to use what I already have. Sure, I still like to buy, but I dont go into debt to do it.

A friend and I recently decided that its time to get a grip on our out-of-control spending habits. Weve both gone on a no-spending-money diet. For 30 days, weve decided not to spend money on anything that isnt a necessity. Were buying groceries and gas, paying bills, and thats it. No stops at the corner coffeehouse, no magazines in the grocery checkout, no drive-through burgers, no trips to the bookstore, mall, and so on. Three weeks into this, were amazed at the amount of money we have left at the end of each pay period. That money is going to help us catch up on our bills. Our contract is renewable at the end of 30 days, and I think were both going to go for another month. By then we should be com-vi pletely caught up, and we may have silenced the material girl that lives inside us both. It wasnt nearly as hard as wed anticipated. In fact, its actually fun. Weve gotten very creative when it comes to finding ways to get what we want. Im making iced mochas at home, were brown-bagging lunches, patronizing the public library instead of the bookstore, going for walks in the park instead of walking through the malllots of little changes, but they add up. The sense of regaining control has been a huge bonus.

Frugal Women come from all walks of life, and they have all sorts of reasons for embracing a sparer lifestyle. Its not just debt or excessive spending habits that motivate them. Sometimes frugality is as much about getting more value for the money you do spend as it is about spending less.

I am a middle-class, fairly well-educated professional who happens to be frugal. Im frugal because I do not like paying more than I have to for substandard-quality products simply because they are new or there is a great deal of advertising associated with the products. I seldom buy clothes at discount stores, not because I am a snob, but because I can find better quality in thrift stores and yard sales. If I am in a regular store it may well be a label store. I am there for two reasons: I need to know what things cost so I know what a good deal is, and sometimes label stores have unbelievable clearance sales. I pick the things that are important to me, and a frugal lifestyle allows me to attain the goals I set for myself.

I have always been frugal, though at some times more so than others. To me, being frugal means getting the most for your money. If I get something nice that I need or really want for a great price, then I feel good about myself. If I spend too much, I feel dumb. Its as simple as that. Being frugal isnt about being cheap, its about using your money wisely.

Ever think about how much time you waste trying to find storage spaces for all the junk you dont need? Or how much garbage is created by the packaging of the (pricey) disposable things you buy over and over? How much gasoline you use taking three trips to the store because you didnt make a list the first time? Sure you have.