Big Long-Term Savings By Substituting No-Name or Store Brands for Premium Brands

 General  13 Responses »
Apr 152013
 

We all have our favorite brand names.  No matter how value-conscious we might be, each of us – consciously or subconsciously -Coffee! probably has a few brands that we for whatever reason trust over the alternatives.

In some cases, there’s real merit to it.  There are some brand-name items that taste better , and some brand-name products that simply work better.  I’ve had my share of both of those.  But, I’ve also seen a few examples recently where there was seemingly little difference in the actual items other than the price.

Here are two examples:

Coffee

Yes, we know the notion of doing away with a gourmet coffee drink every day is one of those popular examples used in showing how little daily savings can add up.  It’s a good point I agree with, in the case that you want to give up something entirely.  Which, of course, makes sense quite often.

If you want to keep what you like, but want to save money, there are ways to save money.  I previously shared my extremely frugal coffee savings method, which was of course over the top.  However, if you simply want to enjoy a regular coffee each work day, there are legitimate ways to save.  Simply buy a less expensive brand.

A great example was at a prior workplace where there two types of coffee offered in the cafeteria: premium, and “no-name” varieties.  For a medium cup of  premium (with a known brand name), it came out to about $2.40.  Not exactly inexpensive!  However, the no-name “house” variety went for about $1.30 for the same size.  Interestingly, talking to the cashier, there were people that regularly bought the more expensive coffee every day.  For me, I could detect little difference between the two, having tried each.

So, if somebody gets coffee every working day, the cost of getting the premium version can really add up.  Over the course of a year with 250 working days, that comes out to $275.  Just for buying a branded coffee over a house variety, with both being the same otherwise.

First Aid Products

Okay, so this is quite a departure from coffee! Yet, it’s another area where I noticed a difference in prices that made me wonder why people would spend so much more.

I was in the first aid aisle of a local retail/grocery, and came across what I was looking for: a topical anti-biotic ointment.  Good to have around, in case of cuts or minor injury.  Anyway, I saw a small tube of a premium brand selling for about $4.50.  Nearby on the shelf, there was a store brand version for sale for about $2.50.

Now, when it comes to health care, I’d be instinctively more likely to think about a brand name I trust versus something else.  However, in looking at the ingredients of the two items, they didn’t seem to be different based on the labeling.  In this case, why pay $2 more?

This can all really add up!  Well, think about that coffee example. That’s $275 right there.  Then go back to the grocery example.  If you can save $2 each week by making substitutions on household goods or food, that comes out to another $260 per year.  Just those two changes – switching coffee varieties and $2 in grocery savings a week – can add up to $535 annually.

In this example, just imagine if you did this every year for 25 years.  It’s $13,000 saved by simply doing a few painless substitutions.  Now, if you took those annual savings and invested them along the way and got a decent 8% annual rate of return, that $13,000 could increase by a lot more.  As in, to more than $42,000!.  Enough to buy you enough to buy you a couple of cars over those 25 years!

All for making a few painless substitutions in terms of brands!

Music and Money: It’s Apparently Not Cool to Be Frugal

 Current Events  10 Responses »
Aug 232012
 

How often do you hear people in mainstream media celebrate frugality, as opposed to sensationalizing people spending money on lavish homes, cars, engagement rings, and the like?

While there are some instances where frugality is discussed, such as home makeover or couponing type shows, we hear a lot more about lavish lifestyles celebrities have.  The idea of having money and spending it on fun things just seems more interesting, and worthy of celebrating, than being frugal. Actually, more so than even simply being financially responsible and paying bills on time!

I had previously shared my thoughts on a Katy Perry song “Last Friday Night”, where it discussed maxing out credit cards.  Actually, the lyrics said “maxed our credit cards”, but you get the idea.  A fun song about a fun night out just had to include references to spending like that.  Nothing about getting a deal, saving for retirement, etc.  Clearly, my expectations are way too boring :)

Well, I recently heard another song that included a reference to money that wasn’t exactly celebrating frugality or a conservative approach to financial responsibility.  Did I say my expectations are boring?  Anyway, this time the song was by Nicki Minaj, called “Starships”.  In the song, the following lines jumped out at us:

And I ain’t paying my rent this month

I owe that

Clearly, my definition of cool is way different than what I assume it is for the typical audience.  Except my young daughter, who upon hearing that line (in a thankfully clean version on the radio) immediately brought it to my attention.  She said “Daddy, did you hear that? Maybe you can write about it.”

So, here I am after listening to her.

At the obvious risk of sounding old, I wonder why in the world these popular songs that clearly resonate with younger listeners have to include references to maxing out credit cards and not paying rent that’s owed? Music and money seem to go together when it comes to spending. What about lyrics on something like what expenses to cut, or celebrating the ability to spend wisely?

Again, being responsible must be too boring :)

My Questions For You

  • What do you think of such lines in music, listened to by impressionable kids?
  • Why do you think it is that spending seems to be glorified in many cases?
  • Have you ever heard a song where people talked about saving money or getting a deal? I can’t recall one off hand!

Saving Money by Paying Tickets Late?

 Saving Money  4 Responses »
Jul 262012
 

First off, let me say that in no way do I encourage actually getting parking or traffic tickets or purposely avoiding paying them when you’re clearly wrong.  If you’re a grown-up, and you know you did something wrong, I’m sure you’ll do the right thing and pay up.

That being said, there are ways to save money on parking or traffic tickets.  One way is to successfully contest a ticket, as I shared in a prior post. When you were not at fault and didn’t deserve the ticket, it’s worth contesting it. Just do it the right way, and you might get a postiive result as I did.

Another way to save money on a traffic ticket, depending on where you live, might be to pay it late.  I’m not sure what I think of this, but apparently in California, per this article in Moneyland, some people with unpaid tickets can save 50% of what they owe.  Now, there are a number of stipulations and restrictions that are noted, but for those that qualify, it appears to be an opportunity to save on money owed.

It would seem that the state would get some extra money and reduce the amount of unpaid tickets that are out there.  For an entity such as a state, one can imagine that it would be a good thing to bring in that additional revenue that would have otherwise been collected.  For the ticketed individual, he or she could get a nice reduction in the amount of money that was owed for the past transgression.  Win-win, right?

Well, maybe.  Or, maybe not?

I guess this could go either way.  The other side of the coin is that people who diligently pay for a ticket right away (which I would do if I legitmately owed it and didn’t contest it) might end up paying far more money than a person who was delinquent and waited a long time to pay.  In other words,  there is almost  and indirect reward of sorts  to those who didn’t pay when they were supposed to.  Instead of paying more or getting interest accrued, they would pay less over time!

That brings me to the following questions:

1) If you thought that there was a  good chance that  a ticket you  that you justifiably received  would ultimately fall under some kind of discount/amnesty type of program such as the one described, would you intentionally wait to pay your ticket?

2) What do you think of this program of offering discounts to those with outstanding tickets, who meet a set of parameters?

Is it Important to Buy Organic?

 Health and Money, Updates  39 Responses »
Feb 032012
 

Hello everyone! This post was originally intended to be a recap of January here, with some acknowledgements, but I thought I’d first bring up the topic of buying organic. I’m curious what your thoughts are on the subject.

Buying Organic – How Often is it Truly Important?

This came to mind from a couple of places. First, the notion that seemingly everywhere we go in a grocery store, we’ll see some foods being labeled as organic. Be it fruits, vegetables, dairy, meat, or anything else – it appears that there may be a really solid market out there for products sold as organic. The second place this topic came from was a conversation I had recently with someone, who strongly believes in organic as much as possible when it comes to diet, thinking it’s more than worth the extra cost.

Now, I do subscribe the the notion that investing in quality, fresh, nutritious food is a smart move. Obviously, your health will likely be better off with such purchases being consumed. Additionally, taking a financial angle, making smart choices each day can lower health care costs over the long run. It’s clear that choosing good nutrition can positively impact the quality of one’s life.

That being said, my thoughts have been that this more the case when choosing between alternative types of food. For example, choosing a frugal breakfast of oatmeal is likely a better choice than eating a bagel. It’s healthier and likely cheaper too.  However, when choosing between the same food – but one option is organic, and the other regular (non-organic) – the decision gets a bit fuzzier to me.

Here’s an example: if I want buy blueberries, and a container of regular berries costs $2.50, but organic berries cost $4.00, is it worth paying $1.50 for the organic version? Keep in mind that the quantity of berries is the same.

This example can be applied to any type of food, whether fruit, vegetables, dairy, etc. The idea of paying more for the same type of food that looks the same, but has the “organic” label, always makes me wonder. Personally, for the kids, I might get organic milk and cheese. That seems worth it, when I think about hormones and dairy. But I really wonder about some of the other types of foods, and often think that we can wash things thoroughly. I mean, if I buy a non-organic apple, for example, am I really doing something unhealthy? Is there that much of a difference between an organic apple and a regular one that’s been washed?

When you look at the potential volume of food that we can buy organic, the incremental costs could really add up. That gets me wondering how we should pick our spots buying organic, and how important it always is. I mean, I’ve seen cotton being noted as organic!

Feel free to convince me. I’m focused on nutrition now, and would like to hear any thoughts on this topic. If you think I’m wrong, please feel free to tell me why. I’m open to change :)

My Questions for You:

  • Do you place a high value on buying organic, or do you look the other way
  • If you do buy organic, what do you purchase in that category and why?
  • Do you have any advice or suggestions for others deciding on whether or not to buy organic?

12 Expenses to Cut: What’s Your Take?

 Saving Money  34 Responses »
Jan 162012
 

Can you cut expenses with these?

It’s nice to find ways to cut out expenses, and operate a bit leaner financially. That is, as long as the changes don’t impact your day-to-day life too much:) Then, it’s a matter of viewing them as trade-offs.

A recent article in on Yahoo! Finance discussed 12 things that people can choose to stop spending on in the new year. Now, I often think that it’s worthwhile to consider how much time one spends on trying to save money, as it’s necessary to make money first before we can save it.  That being said, if we’re going to spend some time focusing on saving on consumer purchases, we might as well do it with some type of framework.

Recall that I recently posted on the topic of trying to spend wisely, where I suggested that we ask ourselves the following questions before purchasing:

  1. Do we truly need the item?
  2. Can we easily find a lower cost alternative?

Keeping that in mind, I’m going to go through the list of what to cut from our budgets (from the aforementioned article), and will answer those two questions for each one. Then, I’ll describe what I’ll actually do in practice.

  1. Coffee Shop Visits
    • I don’t truly need to do this, though I enjoy it
    • A lower cost alternative is available, such as home brewing
    • What will I do?: I will keep visiting. I suppose it might seem like I’m going against the system I devised, but I look at the visits as more than coffee. Which, by the way, is simply black coffee and not one of the more expensive drinks. I view it as renting space where I can get some work or writing done while enjoying a drink. The combination works for me in terms of productivity, so I’m going to keep doing it occasionally.
  2. Incandescent Light Bulbs
    • I don’t really need to buy these exact type
    • Not sure a lower cost alternative is available, unless you operate on sunlight:) Well, longer-term the energy-efficient ones are supposed to be cheaper anyway.
    • What will I do?: Buy the energy-efficient ones, and save money in the long run. Besides, the others are effectively being phased out.
  3. Disposable Water Bottles
    • I don’t need to buy these bottles
    • Lower cost alternatives are available, such as carrying a reusable bottle or using a water fountain. Remember when that was the norm? If not, maybe it’s just people that aren’t super young anymore:)
    • What will I do?: Use reusable bottles. I’ve bought a few, and will use them regularly. The disposable bottles I have bought were purchased in bulk for maybe 10 to 15 cents each – as opposed to the $1 or more rip off for single bottles many places. But still, once you get past the initial investment in a reusable container, it eventually represents the cheaper choice.
  4. Baggage Fees
    • Usually, for shorter trips, I don’t need to check a bag
    • A lower cost alternative is available: packing lightly, and carrying on
    • What will I do? Going forward, on personal travel I will be sure to pack lightly and avoid such fees. Of course, I had previously discovered an alternative way to avoid checked bag fees that I won’t try on purpose, but thought I’d share anyway:)
  5. Subscriptions You Don’t Use
    • We don’t need to spend on things we don’t use!
    • A lower cost alternative might be available if you choose to read - going online is one way
    • What will I do? Continue to go subscription-free. One can go online for much information, or go to the local library and read hard-copy periodicals in many cases
  6. Baby Food
    • I’m a parent, but past the baby days. But if you have a baby, store bought baby food technically isn’t a need
    • A lower cost alternative could be making it at home, so yes – one is likely available
    • What would I do? In that case, being in the position of being a parent of a baby, I would still buy some pre-made baby food. Now, I do think that it seems like a good idea to mix in some homemade food. However, with the demands of daily life for many working parents, time is valuable. Speaking from experience, I think buying at least some baby food is worth it for working parents.
  7. Credit Score Fees
    • I think checking one’s credit score is very important, probably a need
    • Apparently, free options are available
    • What will I do? I like the option of getting something for free.
  8. Cable
    • I don’t truly need cable
    • Yes, there are plenty of lower cost alternatives for watching shows and movies.  Hulu and Netflix were a few mentioned.
    • What will I do? Good question. Cable right now offers some things kids really enjoy, which has tipped the scales in its favor. But wow, it’s not cheap. I’m contemplating ending it, with other options filling in the gaps.  It’s not a need.
  9. Landline Phone
    • I don’t need a landline phone
    • There are lower cost options, and alternatives that are arguably more necessary
    • What will I do? I don’t have a landline phone, and haven’t had one for a while.
  10. Cleaning Supplies
    • I think they’re needed
    • There might be lower cost options, in terms of homemade concoctions
    • What will I do? I think there’s room for swapping out chemicals for more natural options for certain things, but I don’t have the time to devote to making my own cleaning supplies at this time. I’m sticking to primarily store bought items.
  11. ATM Fees
    • ATMs are useful, but their fees are not necessary
    • There are lower cost options, such as finding an institution that doesn’t charge you fees along those lines
    • What will I do? What I currently do, which is limit ATM usage to my own bank, where I don’t pay any such fees
  12. Home Repairs
    • It’s necessary to do home repairs, but only sometimes necessary to pay someone to do them
    • There is a lower cost option: DIY
    • What will I do? My past history has been to do repairs for the basics, but then call a professional for something that’s bigger and time consuming. I’m fine with paying when needed for such things, where it makes sense of course. No reason to stubbornly avoid paying other people or having a false sense of bravado when it comes to fixing things.

My Questions for You

Are there any of these expenses that you are fine taking on, as I am? If so, which ones?

Or, do you actively try to avoid expenses even if it means extra time and effort?

Can you think any other similar items that can be included on a list of expenses to stop paying?

 

Carefully Watch Prices – They Can Vary Significantly From Store to Store!

 Saving Money  16 Responses »
Sep 122011
 

Recently, I had to purchase a box of envelopes after discovering that I didn’t have any at home. With online bill pay, the need for envelopes just isn’t top of mind in my home. However, once in a while you need to actually send a check via mail.

Anyway, I added buying envelopes to the list of things I needed to get done on that day. So, on my way to a local Wal-Mart, I spotted an office supply store very close to my destination and immediately thought “Envelopes!”.  So, I stopped on in and searched for envelopes.

Once I found the aisle with envelopes in the office supply store, I narrowed my search to the standard security-lined variety.  In doing so, I was searching for the best value. After all, an envelope is an envelope, right? Now, I didn’t want to buy in bulk and buy too many, so I settled upon a box of 45 for the price of $4.49.

After I paid, I got back in the car and drove over to Wal-Mart. As I walked into Wal-Mart, I quickly went through the store picking up the few items that I needed.  Before I got to the checkout area I thought about my envelope purchase just 20 minutes ago from the other store. That got me curious about what the cost would be for envelopes from Wal-Mart, so I walked over to the supplies area to look for envelopes and satisfy my curiosity.

As I found the envelopes section, I quickly found a box of security-lined envelopes. A glance at the price yielded a surprising figure: $0.97. That’s right, 97 cents!

I did a double take, and it was definitely $0.97 for a box of envelopes. I then looked at the box, and yes – it was for security lined envelopes. I very quickly thought “what about the number of envelopes in the box, maybe there are less”. Well, I looked at the box and it indicated that there were 40 envelopes in the box.

So let’s revisit the prices again (excluding taxes):

Office Supply Store: 45 envelopes for $4.49 – about 10 cents per envelope

Wal-Mart: 40 envelopes for $0.97 – about 2.5 cents per envelope

Basically, it cost me 400% more to buy envelopes from the office supply store vs. Wal-Mart. But wait – isn’t the former an office supply store after all?

Well, it might be, but that doesn’t mean that prices will be lower there. Now, for all I know the envelopes from Wal-Mart might have been a bit lower quality. Who knows? But as I mentioned before, an envelope is an envelope for these purposes, right?  To pay 4 times as much at an office store seems a bit crazy.

Doing so would almost be like ignoring coupons or coupon codes that could instantly help save money. For example, for a different type of purchase in an entirely different store - let’s say soaps, lotions, etc – you could take advantage of a coupon code to save money. So clearly, across product categories and stores, there are ways that we can save money.

Anyway, back to my specific experience – I went ahead and bought another box of envelopes, this second one from Wal-Mart. I had to go back the other direction anyway, and then stopped at the office supply store and returned the envelopes I had bought there.

Lessons Learned:

  • Just because a certain store specializes in a certain type of product, it doesn’t mean that it offers a better price than a general retailer
  • Prices for given products can vary significantly from store to store – even as much as 400%! :)

My Questions for You:

  • Have you ever bought something at one store, then discovered that you could have purchased it cheaper somewhere else?
  • Have you ever noticed any products for which there’s a wide range in prices, depending on where you buy them?

Inexpensive Summer Fun for the Family

 Family and Money  25 Responses »
Aug 122011
 

In some lucky parts of the country, the weather is warm all year. Outdoor activities aren’t curtailed much during the seasons. Lucky for you folks! For the majority of us, however, summer is a great opportunity to fully enjoy the outdoors before the weather gets cold.  Of course, there are outdoor activities year round, but the range of what you can do in 80 degree weather with many hours of sunshine in greater than what you can do in 15 degree weather with less sunshine!

With that in mind, we recently spent a day driving a few hours each way for some outdoor fun. In lieu of an overnight vacation, I’m focusing on activities that are within driving distance and seasonal. Anyway, we set out to go from Chicago to the Indiana/Michigan border for blueberries and the beach.

Blueberry Picking

Just as you cross the border into the southwestern tip of Michigan, there are a number of blueberry farms. There, we picked fresh berries! Coming from an urban area, it’s almost a novelty to pick fresh fruit and vegetables. Thing is, it’s educational for kids to see where their food actually comes from. In this case, I thought blueberry picking was a good choice because it was right in the heart of the short season, and they’re quite the healthy food!

Anyway, we had a blast going out in the field and picking blueberries. For my oldest child, it was fun being able to run around and hunt for the best blueberries, and filling up the bucket with as many as she could.  For me, I was thinking about how tasty fresh picked berries would be, and how cheap they were:)

How cheap were they? Well, if you picked, they were just $1.40 per pound. What a deal! After we finished, we came out to nearly 2.5 pounds, totaling $3.45. As we were ready to pay, we discovered that you could buy berries that they had just picked for $1.90 per pound. So, we bought two more pounds.  In total , we paid $7.25 for 4.5 pounds of blueberries!  Compare that to a typical supermarket, where 4 pounds of blueberries might cost up to $40 all told. More than anything, it was a lot of fun.

The Beach

Then, following blueberry picking, we went to the beach.  Some of you might be wondering, “what kind of beach can be in Michigan?”. Well, I’ve been to 47 of the 50 states, have seen quite a few areas, and think this particular beach is a hidden gem. The name is Warren Dunes State Park, you can google it for more information.

The warm season to enjoy the beach is probably just a few months, but it’s a nice secret. There is a huge stretch of soft, sandy beaches, about as good as you can get if you’re not on the coasts.  Additionally, there are massive sand dunes adjacent to the coast. One reaches heights of 236 feet! We enjoyed the beach and got some great exercise climbing that massive dune.  It’s quite the challenge climbing something when your feet are sinking in deep sand!

Lots of fun for anybody healthy enough to spend time outside. Total cost: $8. Yes, for just an $8 entrance fee for our vehicle, we enjoyed a great beach, sand dunes, Lake Michigan, and a fun day outside.

Overall Assessment

We spent $15.25 between the blueberries and the beach/dunes park.  On top of that, we probably spent close to $25 in gas. Our food costs were no different than they would have been otherwise. So, for about $40, we had a great family day. We got to leave Chicago and go 2 states away for a totally different environment and great outdoor, summer fun.

Goes to show that fun doesn’t have to cost that much money. There are many times when we can have cheap fun.  In summer, when we can comfortably spend time outdoors, there are many opportunities to do so. We just have to find them!

My Questions for You

What are your favorite ways to spend time outdoors and enjoy the summer, without breaking the bank?

Did you get a chance to have any fun getaways this summer? If you’re a Squirrelers reader, I’m guessing you found ways to make it affordable:) Please feel free to share.

5 Steps to Increase Your Savings

 Saving Money  17 Responses »
Jul 292011
 

We all would like to have more money, right?

Well, maybe all is a strong word. Some people are totally content with what they have, and don’t think they need more. However, most of us fall into that first group. We would like to have more money!

Here are 5 steps for increasing your savings:

  1. Discern wants from needs.  Figure out what you truly need, and distinguish these needs from what you want. Do you need a car? That’s probably the case, for most us.  Do you need a new car that costs $35,000? No. You could always buy a lesser brand that’s still reliable, and pay $20,000, for example.  Or, better yet, spend even less on a quality used car. The brand name is a want. The ability to safely get from Point A to Point B is a need.
  2. Track your expenses.  Instead of spending indiscriminately, track your expenses. If you track cash outflow down to the penny, you can get a really good idea of where your money is really going. This can help you figure out where you can cut the fat, so to speak.
  3. Live within your means.  OK, if you follow Step #2 above, you know how much you’re spending and on what you’re spending, right? Now you need to make sure that this fits within your income. Most people have a much better idea of what they earn than what they spend, it seems.  If you have both pieces of information, you can make sure that you’re spending responsibly.
  4. Maintain a gap between income and expenses.   Once we’re able to live within our means, we can take steps to make sure that there’s a gap between our income and expenses that results in savings.  Of course this means income exceeds expenses, not the other way around:) Many people say 10% is a good figure, but I think that is way short for most people. Working up to 25% or more is more realistic, in my opinion, for today’s reality of a self-funded retirement.
  5. Preserve and grow income.  Thus far we’ve focused on keeping control of expenses. That’s certainly important. That being said, we need to actually have money to save, before we can work on saving it! Let’s not take for granted the cash inflow part of the equation.  Working to maintain income first, and then working to increase income, are vital to our overall financial situation. Doing this, while keeping expenses under control as detailed in Steps #1 to #4, can supercharge our savings efforts.

The net result of increased savings is more money in our bank accounts.  From there, we can choose the best accounts for our needs. Ultimately, taking the money in these accounts and investing intelligently with a good rate of return (and time on ours side), we can work toward a bright financial future.

My Questions for You:

What steps have you taken to increase your savings?

Where do these steps above fit into your savings efforts?

How Much Do You Pay For a Haircut?

 Saving Money  31 Responses »
Nov 192010
 

Each of us has our own level of interest in our hairstyle. For some of us, our hairstyle is a big deal in our lives. For others, it’s mostly important to look good but not something we think about that much. Some people just don’t care at all.

Personally, I’m in that middle category when it comes to my hair. I want to look professional at work, and keep a low-maintenance hairstyle. It can’t be a bad haircut, but as long as it meets a certain standard, I’m cool with it. Therefore, it’s not high on my list as far as things that require a large expenditure.

Bottom line: I’m not looking to spend much for a regular men’s haircut

A friend of mine (great guy), however, has always seemed to care about haircuts….just a little too much for me to comprehend, actually.  He was recently telling me a story about a place where he and his wife both go, where the person cutting their hair has had a few higher profile clients. One of those was a past professional basketball player. This is likely the reason he brought up the whole topic, just since we are both big sports fans and have been for years.

Anyway, I remembered this conversation for 3 reasons:

  1. The sports connection stuck in my mind
  2. I found it interesting that he goes to the same place as his wife for his hair.
  3. The high profile nature of that place’s clients must mean that it was expensive.

Recently, after getting my own haircut for $15 – including tip – I recalled the story my friend told me. I decided to send him a random text with just the following question:

“How much do you pay for a haircut?”

He responded back by telling me that he spends “only” $50 on a haircut, and that he cut back.

Huh?

I responded by instead asking “Why so much?”

He responded by telling me that he and his wife go there because it’s great quality at a reasonable cost. Plus, he says $50 is worth it as it helps him look his best at work, and it’s worth it for that alone. He’s gunning for the highest levels. Fair enough, but $50?

He’s a longtime friend, so I told him that I spend $15 a month, which therefore means that I’m spending $35 less per month less than he is. Annualized, that’s $420 less. Actually, it would have been more, as he later said that his figure was not including tip – while mine was.

His response to me: “Haircuts are like anything else, you generally get what you pay for.”

I smiled, as I picked up on his defensiveness and his thinly veiled shot at me. It was all in fun, by the way.

Aside from the fact that 2 grown, married men were texting about haircut costs (please ignore that for the moment!), does something strike you as unusual here? To me, it was that he spent $50 on a haircut. I don’t think it’s worth it for most guys to do that.

Now, I do understand that we all have our quirks, and our own sense of priorities. A great haircut may be more important to some people than others. That said, I don’t think the difference in quality between a $50 cut and a $15 cut is that great. Why do I say that? Because when I was younger, I regularly paid $35 to $40 for a haircut. I wouldn’t go anywhere else at the time. Once I tried a lower cost place, I discovered that you can get a cut that’s not easily discernable from one that’s more expensive – as long as you kept a simple, straightforward hairstyle to begin with. As a fan of frugal living, it seemed like a good deal to me.

Plus, as a typical guy who’s no longer a kid anymore, I just don’t care that much anyway. As long as it’s normal, and they aren’t shaving bald spots in my head or giving me a mohawk, I’m cool with it :)

Now, I realize that things might be a lot different for the ladies. I can’t speak to that with a lot of experience, obviously, so I won’t go there:) But for guys of normal means, it seems like $50 is a lot.

What do you think?

  1. If you’re a guy, how much do you spend on a haircut?
  2. If you’re a gal, how much does your guy spend on a haircut? Am I being too cheap frugal here, or do you think it’s worth it for a guy to fork over that much more for a haircut?

One more thing: Ladies, please feel free to add what you pay to get your hair done…if you’re open to sharing. Might make for interesting comparisons.

Shameless Frugality or Just Plain Weird?

 Saving Money  18 Responses »
Aug 062010
 

I have encountered a number of penny pinchers throughout my days. Most of us have known at least a few, if we think about it. In fact, if you’re reading a personal finance blog, you just might be one yourself….or at least close to being one:)

Of the people I have known that practice something approaching “extreme frugality”, most are great but just a very small few have done some things that I just can’t respect. Even then, at least I can have a good laugh at how crazy they really are.

Here’s a story I came across from The Washington Post with unfortunate, not at all funny news about of how a dog died in a parked car on an overheated day. These happen a lot, and it’s really too bad these dogs’ owners don’t care for their pets properly, with the result being a sad ending. Like I said, not funny but unfortunate.

Per the article, in this situation the pet owner – who had obtained ”custody” of the dog after separating from her husband of 38 years – left her dog in the car while she was shopping at Costco. The weather was hot that day, with temperatures reaching as high as 104 degrees. She apparently bought the dog some food, treats, and bedding while in the store. When she returned to the car, the dog was dead.

What makes this a story related to money, however, is what she did after finding out that the pet died.

According to the story, after finding out that her dog died after sitting in a 104 degree car while she shopped, she then went back in the store and tried to ask for a refund for the items she just purchased for her dog.

Again, this is right after she found out the dog was dead. She left the dead dog in the car while going back in to get her money back.

I have to admit, the first thing I thought of (besides feeling bad for the dog, of course), was how bad this woman might have felt to see her dog dead.

After thinking about it, however, I came to another conclusion: how can anybody be so callous as to return those items immediately after seeing one’s pet dead? Really remarkable.

I see these reported actions as being shamelessly frugal. There are times to return unused items, but a time like that is one where you would think that shock and sadness would be the dominant feelings, not the need to recoup some small expenditures.

Maybe she was just sad, felt bad and didn’t know what to do. I like to give people the benefit of the doubt. But this one…..I’m not sure.

What do you think?

  1. Do you see it the way I do, that it’s an extremely shameless attempt to save a few bucks; or
  2. Do you think that the lady probably felt bad and didn’t know what to do about it, so it’s harsh to call her actions poor?

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