Did you get any great deals during the recent holiday shopping?

This year, I tried to buy things that were on sale. Which I did for the most part, except for some toys for kids. For other shopping, I tried to take advantage of either discounted prices or gift cards.  Including in this “other” shopping category is stuff I bought for me. Yes, I did a little bit of holiday shopping for myself!

You just know you’ll find the items I purchased to be incredibly exciting. I mean, who couldn’t get excited over a purchase of socks? OK, it’s not too exciting, I agree. Admittedly, I didn’t exactly go overboard shopping for myself this holiday season. That was it for self indulgence – absolutely everything else was for others, which is probably how it should be anyway.

That being said, this ended up being my best bargain purchase, and I think it qualifies as another example of Squirreling Gone Wild.

Here’s what happened. I needed to buy some new socks, so while doing some gift shopping before Christmas I came across a nice pack of 3 socks on sale. These were high quality and of a very good brand, and the regular price was $26. Yeah, not cheap. However, they were on sale at 65% off, pack of 3 for $9.10. Does that sound better? It did to me.

It was a good deal, but I just picked up one pack since my hands were full with gifts anyway.  Then, I took all my items to the nearest register, to make my purchase. As I did, there was a line awaiting me. Additionally, the associate behind the counter seemed to be somewhat disinterested in fast service.

Well, after waiting for my turn, I finally got up to the register to pay for my items.  As the associate rang up each item, I watched each price. It’s a habit I have, which I don’t always do but seem to do more often than not. Basically, the benefit is making sure that I’m being charged the right price.

When he got through the other items, and came to the socks, I noticed a price of $2.27 coming up. I then did a double take and asked him what the $2.27 was for, since nothing I bought was at that price. He told me that it was for the socks.

Don’t ask me why, but I actually asked if that was the price per pair of socks. It just came to my mind right way. He looked at me kind of funny (understandably, I’ll admit) and told me that no, that was actually the price for the 3-pack.

Again, I clarified: “$2.27 for the 3-pack?”

“Yes”, he said.

At that point, I felt a wave of excitement. “YES!” I thought, it’s a small shopping victory. Then I felt kind of bad, and told the guy that I thought they were actually priced on sale, 65% off, at $9.10.  I don’t know, it just seemed like the right thing to do.  Nevertheless, the guy again told me that the price was $2.27, since that’s what it was showing up at.

Then, my guilt evaporated and I got excited about taking advantage of this. I asked the guy if he could hold on for just 30 seconds, as I wanted to go run over to the aisle where those socks were, and get some more. There were a few people in line behind me, that did not seem too patient. I felt bad, but I zipped over to that aisle and picked up 2 more 3-packs. Then, I quickly proceeded back to the register, where the guy was patiently waiting and the other customers were seemed slightly restless.

I added the two more socks there, and did the math: $78.00 regular retail price, but I paid $6.81. That’s over 90% off!

As I finished my purchase, the associate and I traded holiday wishes, and I turned and walked away. I flashed a quick, friendly smile at the lady who was patiently waiting behind me in line. Kind of a “happy holidays” type of smile. She didn’t flinch, and didn’t smile back at all.  I guess that extra 30 seconds I took annoyed her.  I wouldn’t have cared if the shoe was on the other foot (or sock, Ha Ha!). Ah, well….what can you do? I hope she had a nice rest of the day at least.

As for me, I got a great deal on things that I actually needed anyway. All while getting a greater than 90% discount. I was pleased:)

My Questions for You

Did you get any great shopping deals this past holiday season?

Have you ever encountered a situation where you thought you might have been undercharged? Did you silently take advantage of it, or did you bring it to their attention?

What would you have done in my situation?

Loopholes can be great, particularly if you’re the one taking advantage of them. What’s even better is when the loopholes are pointed out to you!

Recently, I visited a local Starbucks in order to catch up on some things. There are random times when it’s just easier to get work done in that type of environment, without the distractions of home. This was one of those times, and I was looking to have something to drink while staying there for a few hours working.  As I shared in a story about a previous effort to do this, you do get what you pay for, so I made sure to go to a place that I knew would be conducive to getting things done.  Thankfully, no freaky customers at this place, versus that other place:)

My Order

This probably won’t surprise anyone who regularly reads Squirrelers, but I was looking for something that was:

1. Reasonably healthy
2. Inexpensive

So, I surveyed the choices and decided on hot, herbal tea as my selection.  In my renewed enthusiasm for making healthy choices, I decided against anything loaded with extra calories, or even super high in caffeine. With respect to the former – as a sidebar – it’s astounding how fattening some of those drinks can be, compared to what many people might think! So tea it was for me, healthy and cheap.

As I was ordering, the lady behind the counter asked me which size I wanted: Tall (small), Grande (medium), or Venti (large). I recall that Tall was $1.95 and Venti was $2.45, and don’t remember the price of Grande. Anyway, I thought “what the heck” and ordered a Venti. Thus, I spent $2.45 for the tea.

As they were preparing the tea, I chatted a bit with the lady behind the counter, and asked if I later I could get a refill of hot water. My idea was that I could get as much out of that bag as possible, of course! She said yes, that wouldn’t be a problem it get more water later. Cool! Extra glasses of tea for no additional cost, I like that!

The Loophole

Then she voluntarily told me about how there are customers that come in and try to game the system in other ways. What she shared is that there are some people who take advantage of the following loophole:

1. Order a Tall (small) tea, and pay $1.95 – instead of the $2.45 I paid for the Venti (large).
2. Ask for the Tall sized tea to be served in a Venti cup – which meant it was maybe 2/3 or thereabouts full.
3. Immediately as for extra hot water
4. Walk away with a large drink for the price of a small, saving $0.50!

Clever!

Now, I recall hearing about other tricks people try when it comes to getting extra value at such establishments. But I’ve never really thought about it, perhaps surprisingly. This time, it actually took the lady behind the counter to tell me about it on her own

After hearing her tell me all about this loophole, I laughed and told her that if I come back there, I’m going to do the exact same thing. What was interesting is how she and another employee there who overheard the conversation were both telling me that I might was well. If others try this, why don’t you? They didn’t have a problem with it. Plus, it’s yet another example of how it doesn’t hurt to ask for a discount, or at least think out of the box to try to get a better deal.

My Squirreling

The thought definitely crossed my mind later that I should have asked them if they could change my order to a Tall, which was a mistake I made. I was busy talking with them about the whole idea, and trying that next time, that I didn’t think of asking for the discount right away. The order was complete anyway and they rang me up, and next time would be fine anyway!  However, I did manage to get something small out of the deal.

I realized that they use 2 tea bags to make your tea. Right away, I saw a small opportunity. I asked her if I could only use one tea bag for this order. However, I wanted to keep the other tea bag and possibly have it later.

She smirked, and said that it would be fine. No problem. I asked if other people do this, and she mentioned that very few people ask, but some have.  So, I took that extra bag of “Passion” tea and brought it home.  Hey, every little bit counts, right? I’ve picked up coins at a drive through before, so I’m not above saving a few nickels this way either

My Questions for You:

Has it ever crossed your mind to think of a loophole when buying something at a retail establishment? If so, please feel free to share.

Have you heard of other people pulling off other “arbitrage” opportunities like this, whether at a coffee shop or anywhere else?

Saving money can be fun for some of us. The idea of spending less money that we would have otherwise spent on something brings a small dose of satisfaction. Usually, that means buying less, substituting a less expensive choice for a more expensive one, or getting something on sale.  Here’s a different way: bargaining and asking for a discount!

Admittedly, I’m not someone for whom this comes naturally.  However, I came to realize something recently. What might seem uncomfortable at first can actually be fun when you generate successful results!

Previous Unsuccessful Bargaining

My previous approach to asking for a discount can be illustrated by an experience on a trip overseas many years ago. I had to pass through Hong Kong – and stayed a few days. Perhaps it was being far away from home here in the Midwest in the U.S., and being in a place where nobody knew me – but I tried to bargain a couple of times. I did have a little success on a few things, getting a couple of deals. But then, I had a failure.

There was a street vendor selling t-shirts for $2 – might have been in Hong Kong Dollars. Anyway, I thought I could bring some back as gifts, so I made a bulk offer: how about 7 t-shirts for $6? I was trying to walk away feeling happy to get them for less than $1 each.

The guy said something I didn’t understand, as I did not understand Chinese. But clearly, it was not nice what he said! He then waved me off, gave me a nasty look, and said in English: “I’m not starving!”.

Maybe it was because I was younger, but I was actually a bit embarrassed. I walked away, and didn’t try to bargain with anyone there again. Not sure why I reacted so timidly, but I did.

Recent Successful Bargaining

I’ve been more interested in pushing for bargains in the last few years. Not often at all, but opportunistically. One example was just in the last few weeks.

First off, the purchase was a pure impulse buy. It wasn’t a need, but a want. So I’ll admit that up front.

We were at the local mall, and one of my kids noticed a kiosk with a bunch of stuffed animal pillows, and a few smaller animals.  She found one that she got really excited about, and asked if she could get one.  I guess we could say that she was successful in bargaining, because my heartstrings were tugged at and I didn’t immediately say no like I normally would.

Anyway, I wanted to ask the guy running the small kiosk how much this small stuffed animal was.  However, he was helping another customer who was excited over some other toy being sold. She wanted to purchase it, and asked him if he took credit cards. Clearly, he did, based on the reader right there.  However, the kiosk owner pushed back, and asked the lady if she wouldn’t mind paying in cash if she had it.  She said ok, and they made the transaction.

I took note of his interest in cash, and his own willingness to haggle a bit. Then, when it was my turn, I made my move.

My question: “How much is this?”

His response: “Uhh….$6.95″.

I paused for a second, then thought I’d lowball.

My response: Pulling a $5 bill out of my wallet, and saying “I can pay $5 cash”.

He paused, looked at me, and said “Ok fine”.

Success! It felt great to walk away paying less than the initial asking price!

At first I thought maybe he gave me an inflated price, but I then noticed that $6.95 was indeed the noted price.  So hey, just by asking, I got a $1.95 discount! On a percentage basis, that’s 28% off.

The Lessons.

In this case, it doesn’t matter that it was a want vs. a need, or that I willingly gave in to the ‘negotiation’ of whether or not to buy this toy. Also, I know it’s funny that as a grown man I’m getting excited about getting a deal on a stuffed animal.

Yeah, I know

So looking past that, what we can take away from this is that it doesn’t hurt to ask for a discount! In many cases, there’s very little downside.  Additionally, even when you just save a couple of dollars, it’s fun to successfully bargain for a deal!

Imagine how fun it would be to actually get a deal on something where you actually paid hundred of dollars less than asking price?

My Questions for You:

Do you like to haggle for a deal, or do you prefer to avoid such negotiating?

Do you have any tips for successfully getting a discount?

What’s the best deal you have gotten when asking for a discount?

The Pareto principle, sometimes known as the 80/20 rule, is a concept that has many applications.  The main idea is that 80% of the effects are resultant from 20% of the causes. Or put another way, 80% of the results come from 20% of the effort.  Lately, I’ve been giving some thought to how this way of thinking can be applied to our lives in terms of money.

The Pareto Principle and Business

The Pareto principle is often included in many business decisions. When working on selling a particular product, it’s generally not a good idea to try to be everything to everybody. In other words, your product will a good fit for some people, and not as good of a fit for others. Plus, there might be some potential customers that can be influenced to buy your product, and some that will be resistant to buying it.  Thus, it’s important to target sales efforts for a product (or service) effectively, so that your resources are used wisely. It’s often cost prohibitive to mass market most products.

The result: we might see that a large percentage of our sales come from a small concentration of customers. To apply the Pareto principle, we would say that 80% of sales come from 20% of customers.

Or, you could discover the following:

• 80% of sales come from 20% of marketing channels
• 80% of advertising-sourced revenue comes from 20% of your advertisements
• 80% of your customer complaints come from 20% of your products
• 80% of your productivity comes from 20% of your employees
• 80% of your referrals come from 20% of your customers

If you’re a blogger, to take another example, you might find that a significant percentage of your referrals come from a small percentage of referring sites.

The Pareto Principle and Personal Finance

While the Pareto principle has been oft-discussed in terms of business, I think it might be underutilized in personal finance.

In terms of how we spend our time with respect to improving our financial situation, and working toward our money-related goals, there are different ways to go about it.  A common theme I see throughout the blogosphere, as well hear in conversations, is the use of money saving strategies. People come up with all kinds of ways to save a few bucks, and will frequently take interesting measures to do so.

For example, you just know there are people that would drive an extra 10 minutes each way – 20 minutes round trip – to buy gas at place that’s 5 cents per gallon cheaper. They just can’t stand the thought of intentionally paying more for gas when a cheaper alternative is available nearby. The thought of spending 20 minutes to save maybe 75 cents is quickly rationalized, if thought about in the first place.

Don’t get me wrong, I’ve engaged in some unique practices too. My idea of picking up pennies at the drive-thru might be a bit extreme , though at least I donated what I found .  Additionally, as I’ve shown in the Squirreling Gone Wild series, there are plenty of interesting things people do to save money. There’s no shortage of wacky schemes out there!

Those schemes are often harmless and fun. Ok, admittedly (and obviously) and I get a huge kick out them:)

However, it’s when people invest a lot time into saving a few pennies or even dollars, I wonder if that’s the best use of time in terms of meeting money goals.  Now, of course saving is great, and is vital to personal finance success. You can make all you want, but if you don’t save anything, you have nothing to show for your accomplishments.  But in order to save, don’t we have to make money too? It’s all a balance.

This is where I’m going to start thinking a bit more about what’s the most impactful use of my time:

If I’m spending 20 minutes going to a certain store to save money, how much is that really yielding?

If I’m spending an hour looking for an online bank that pays $0.001% more in interest, how much extra is that really getting me?

If I’m spending all day at work trying to get a routine task perfected, how far is that getting me? Could I do a visible, value-added special project instead?

What I’m getting at is that I suspect that many of us spend a lot of time doing things that ultimately don’t yield big results.  Even when aggregated, the little wins don’t always equal the big wins. Should we be focusing on getting better ROI on our time, spending it where we can truly get results?

In other words, maybe we should apply the Pareto principle (80/20 rule) to our efforts to grow our savings and net worth.  Focus our efforts where results will happen, instead spending time on low-yield activities.

Now, I’m not saying that I’m going to let making money guide my life, or choose daily activities in this way. I’m only talking about time that’s actually spent in the pursuit of money, one way or another.  Admittedly, after some reflection, I could probably improve in this area quite a bit.

My Questions for You:

What do you think of this concept of the 80/20 rule?

Do you ever think about this in your own life?

Do you have any additional examples of the Pareto principle to share?

Welcome to the Festival of Frugality! I’m glad to be hosting this 293rd edition of the Festival. The theme for this edition is money quotes! There are a number of really good quotes on money that are filled with widom (or wit), and I’ve shared a few of them below.

With that, let’s get this thing rolling!

Editor’s Picks

“He who doesn’t economize will have to agonize” – Confucius

Miranda presents How to Overcome Frugal Fatigue posted at PT Money Personal Finance, saying “Before you let frugal fatigue get the best of you, here are some things you can try to combat the feeling.”

Crystal presents Do You Have Enough Insurance? posted at Budgeting In The Fun Stuff, saying “Skimping on insurance is not advised even for the most frugal. It can cost you far more in the long run.”

Paula Wethington presents Monroe on a Budget ‘s 10 rules to play fair while shopping with coupons posted at Monroe on a Budget.

Fanny presents Extreme Couponing Tips posted at Living Richly on a Budget, saying “I hardly used coupons before TLC’S Extreme Couponing show. But after I saw what was possible, it motivated me to try some of their techniques. Here are the tips I learned.”

Other Recommended Posts

“Don’t tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are” – James W. Frick

Rather-Be-Shopping.com presents 3 Ways Frugal Living Leads to Weight Loss posted at Rather-Be-Shopping.com.

Money Beagle presents Just By Asking, I Saved Us $7.50 posted at Money Beagle.

Jay Fleischman presents 14 Steps For Saving Money When Negotiating With A Debt Collector posted at Money Health Central.

Matt presents 1st Annual Outdoor Fest: Creating your Own Economy Case Study posted at Living In Financial Excellence, saying “Over the last few weeks I’ve been talking a lot about creating,stimulating,or otherwise improving your personal economy. The goal:if we all strive to improve our personal financial situations en masse,the bigger economy will take care of itself. Today I want to highlight and support a local business who is doing exactly what we’ve been talking about”

Neal Frankle presents Angies List Review ? Can You Trust It? posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources., saying “I recently saw a commercial on TV for an interesting concept called “Angie’s List”. It seems like a great small business idea that has taken off. The service provides consumers with ratings on businesses in their local areas helping them to make an informed decision on the companies they chose to do business with. For example, if someone holds themselves out to be a pro electrician but is really only doing the work as one of his retirement hobbies, ostensibly, you’ll know about it before you hire him”

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” – Ayn Rand

Money Spending Mommy presents Financial Tips for Newlyweds posted at Money Spending Mommy, saying “There’s more to consider, including financial tips for newlyweds, than you may have first thought”

Jon the Saver presents A Programmable Thermostat is a Must posted at Free Money Wisdom, saying “When it comes to home cost, energy is one of the biggest concerns for every household. Whether it’s summer or winter, when the monthly bill comes around, we see the overwhelming cost of heating and cooling. There is an easy solution with programmable thermostats.”

Echo presents Should You Contribute To Your Retirement Account If You Have A Pension? posted at Boomer & Echo, saying “Should you contribute to your retirement account if you have a pension plan?”

Pat S. presents Great Discount Sites for the Not-So-Extreme Couponer posted at compounding returns, saying “Check out these sites for great, and easy discounts.”

One Cent presents 80 to ways to lose money foolishly posted at One Cent at a Time, saying ” 80 different foolish ways to lose money every day. Written for an average American family whose average income is $46000 and average debt of $10,000.”

“Be fearful when others are greedy. Be greedy when others are fearful” – Warren Buffett

Britney Hope presents Primp your pad for pennies posted at TotallyMoney, saying “Simple and cheap home decorating ideas.”

Kelsey presents Pinch Pennies With Homemade Laundry Room Products posted at Money Mum, saying “There are ways to cut the costs on laundry basics by making these store-bought products yourself. Not only will you save money in the long run by going homemade, but you will cut down on the amount of harmful chemicals in your home and will eliminate toxic hazards for your children”

Mike presents 5 Ways to Lower Home Energy Costs posted at Saving Money Today, saying “Discover 5 simple ways to lower your energy costs.”

FMF presents Is Teaching at a University a Way to Save on College Costs? posted at Free Money Finance, saying “Is this a valid money-saving idea? It is at some colleges — and can end up saving you a fortune!”

Jacob @ My Personal Finance Journey presents Need Some Help Getting Out of Debt? Consider Debt Eye! posted at My Personal Finance Journey, saying “If you’re looking to save money and reduce your overall financial risk, reducing (or eliminating) your debt balances is a good place to focus your efforts. This post shares my experience with a new debt management tool that just launched called Debt Eye.”

“We don’t have a trillion dollar debt because we haven’t taxed enough; we have a trillion dollar debt because we spend too much” – Ronald Reagan

Dr. Dean presents Dog Food Factoids: Ten You Need To Know posted at The Millionaire Nurse Blog, saying ” Information is one of your greatest tools against spending more than necessary. Here’s what I learned about buying dog food and how it can help you.”

Grace Carter presents 5 Ways to Maximize Your Financial Aid Eligibility posted at CreditDonkey.

Glen Craig presents 9 Ways For Students To Get Textbooks For Less posted at Free From Broke, saying “College textbooks are expensive! But there are a good number of ways a student can save on their textbook expenses. Here are nine ways to help get textbooks for less.”

Amanda presents A Confession: I Have a Status Symbol posted at My Dollar Plan, saying “Why I pay more for my cell phone contract instead of switching to a “pay as you go” plan…”

Paula presents My Not-Chic Life: Everywhere You Go Has Valet posted at AffordAnything.org, saying “When you’re forced to valet … my frugal car and fancy parking”

“A bargain is something you have to find a use for once you bought it” – Benjamin Franklin

Jon presents Is Saving for Retirement During College Wise? posted at Outlaw Finance, saying “Financial advisors keep singing the same tune: Saving for retirement works best when the saver is young.”

Matt presents Five Simple Ways to Buy Everything Cheaper and Save Money! posted at Stupid Cents, saying “There many simple ways to buy everything cheaper and get great deals on nearly everything! Why not save the money if you can?”

Tim Chen presents NEW: Southwest Airlines Credit Card with 25,000-Point Bonus posted at NerdWallet Blog – Credit Card Watch, saying “Not all credit card promos these days are for solely for big-spenders. Southwest is offering a great signing deal for those who prefer more frugal travel”

Alan presents Fuel Economy Tips & Tricks posted at Canadian Finance Blog, saying “These fuel economy tips and tricks will help you save money when you use cruise control, take advantage of the terrain and use Gas Buddy to find gas.”

Annabelle presents Day 220: Does back to school mean spending money? posted at The Year of Shopping Detox, saying “How many new school supplies do you really need to buy? Also: am I the only one who would happily wear a perfume called “Eau de New School Supplies”?”

Have you ever had one of those little moments of luck, finding some money just laying around? Well, I had one of those days this past weekend.

I had just gotten a meal at a Chinese restaurant a few days prior, and at the end of the meal, got the customary fortune cookie. Along with the bill, of course:) Anyway, as I opened the cookie to look at the message, I smiled. Now, I’m not 100% certain what the exact words were, but it said something like:

“You will soon obtain an unexpected fortune”

Cool!

Yeah, it was just a fortune from a silly fotune cookie, but I got a kick out of it and smiled. Then, subsequently forgot about it a minute later.

Fast forward to a few days later. We had gone to the park, for kids to play. For much of the time, I was following kids from station to station, watching just to make sure all was ok but also following along because I kept hearing “Daddy, watch this!” or “Daddy, check this out!”  It was fun, the type of moments that make life so great.

After a while, I felt like sitting down, so I headed to a picnic bench that was about 10 yards away. I figured I could keep an eye on things from there while resting a bit. No worries, right. All is good.

Well, all was not just good – it got really good! As I sat down, I noticed a dollar bill on the ground right behind the bench seat.  There was no mistaking this for a wrapper, or any other paper – not to this Squirreler. This was money! Cold, hard cash!

I picked up the bill, and to my pleasant surprise, it wasn’t a dollar. Nope. It was a five dollar bill.

Very cool!

Now, I have to admit, the very first thing I thought of was what this $5 could turn into if I invested it. A little surprising to me now, thinking about it, that this is the first thing that came to mind. But it was. I looked at that $5 and envisioned $10 down the line, after time and compunding take effect! Clearly, I’ve been getting ingrained in personal finance, maybe too much:)

Then, the thought came over me. Most likely, someone dropped this while sitting here. I mean, it’s not like $5 came crashing down from the sky just for me. Somebody left it here, dropping it directly, or maybe it fell out of a purse. Who knows?  So, I stayed there at the bench for a little while, watching the kids play. All the while, I was waiting for any grown-ups to come by looking for that $5.

Nobody came by for the next 15 minutes. Nobody was even anywhere near that part of the park, and the people that were on the other side of the park had just gotten there a few minutes ago anyway. I concluded that whoever dropped the $5 bill had left the premises a while ago.

At that point, as we were getting ready to leave, I just figured that I might was well keep it. Besides, didn’t that lucky fortune cookie predict that this would happen? 

My Questions for You:

How often do you actually find bills, instead of coins? For me, it’s usually coins I notice, rarely bills. Same for you?

Ever get a fortune, from a fortune cookie, that you got a kick out of?

The following is a Guest Post

In a perfect world, everyone would practice frugality like it was a religion. Why? The benefits range way beyond each individual and extend across continents, affects the environment and the economy. More and more people are taking stock in this economy and realizing they can live a fulfilling life with less, not more.

Strategies For A Frugal Lifestyle 

The word “frugal” might be a little intimidating, but all it means is being more economical, taking advantage of sustainable practices and embracing a minimal lifestyle. There are many strategies and options available to those looking to cut expenses, save money or just wanting a simpler and less stressful life. The underlying philosophy can be summed up by the statement, “More isn’t always better.”

Here are some strategies you can utilize to start living a more frugal life:

1. Reduce your credit card debt. This is probably one of the biggest hurdles you can face when looking to downsize. One strategy is to evaluate the best credit card deals, choose the best one for your situation and taking advantage of 0% balance transfer credit cards and consolidating all your credit cards into one payment. Pay as much as you can on the principal every month, and you’ll get the balance down faster than you think.
2. Consider alternate forms of transportation. If you are lucky enough to live in an area with public transportation, utilize it. You will save wear and tear on your car, save in gas money, and may qualify for a discount on your car insurance.
3. Have a 24 hour “cool off” before purchasing big ticket items. When you feel the urge for the latest technological gadget, a bigger television or an upgrade on appliances, wait a day and see if you still feel the same. You might want it, but a want is much different from a need. Take a day and sleep on it.
4. Re-use, recycle, re-purpose. Take it easy on your wallet and on the environment. Re-use something if you can, or donate to someone else. Recycle grocery bags, plastic, metal and paper. Instead of throwing something away, use your imagination and creativity and re-purpose that dresser into a potter’s station, for example.

A frugal lifestyle doesn’t mean going without. It means focusing on what you have and not on what you don’t have. Extend this philosophy to other aspects of your life, including downsizing your home, car, cable package, grocery bill. If everyone was frugal, there would be less strain on the environment and a lot less stress to deal with on a daily basis. Give it a try – you really have nothing to lose.

On a warm day, doesn’t an ice cream cone just hit the spot sometimes? A nice cold, flavorful treat can do wonders to break the heat.

Well, we had experience with something close to ice cream – gelato – which did a great job in cooling us down from the heat on a warm day a few years back. Nothing remarkable about that, right? Well, that’s certainly true, but the fact that we did not spend even a penny for multiple flavors of gelato made it even sweeter! This 15th edition of Squirreling Gone Wild explores how we got the gelato for free, and the merits of this approach.

First off, I have to say that gelato can be pretty darned tasty. I had never had any of it until I was fortunate enough to visit Italy some years back. After getting a taste of it in one Italian gelateria, I was hooked. It got to the point where I was having a scoop twice a day. One day, I had a double scoop in both the afternoon and evening.

Anyway, I don’t get gelato like this on a daily basis, here at home:) Mostly fond memories from a trip abroad. That said, a few years back – while vacationing within the U.S. – we came across a place that had gelato for sale. It was one of those types of days when you want a cold drink or an ice cream cone to break up the day, so this place was a welcome find.

The place was more like a free standing kiosk, shaped like a rectangle. Picture gelato being sold on each side of the rectangle, in the cold refrigerated displays, with a mini “wall” dividing the two sides of the kiosk. This divisor contained supplies, such as cones, cups, and other items. Essentially, if you were a customer or employee on one side, you couldn’t see what was going on over on the other side.

As we approached the mini-gelateria, we went off to the left side of it, and peered into the display. Lots of good flavors were there, and we couldn’t decide what to get. So, we asked for a sample “taste” of a flavor. Then another. Then, yet another.

At that point, you almost feel obligated to get something. At least I would. One sample is ok, but three means you’re serious:)

So, what did we do? We decided to go to the other side, just to see if there were any new flavors. There weren’t, as it was basically the same selection as on the other side. There was a different person working on the other side, however.

While on the other side, we decided to try out one more flavor that we saw initially, but didn’t try. That’s four total samples at this point. You just have to get something now, don’t you think?

Then, we looked up at the price: $6 for a scoop.

Yes, it was $6 for one scoop. $12 for two. Just for this glorified ice cream. Sure, the samples were good, but $12 for two scoops? Are you kidding?

At that point, I thought “Hmmm….you know, I have had enough of the gelato already. Why pay so much when the taste buds were satisfied by the samples, and I’m cooled down now. Besides, the guy here on this side only gave us one sample, so we won’t get that look that we would after walking from four samples….let’s just walk away?”

That’s what we did: we walked away. The net result: $12 in tasty (albeit overpriced treats), for ZERO! Not bad.

Now, I have to say that it wasn’t my intention up front to get free gelato and then to walk away without buying. The intentions were good, and totally legitimate. It’s just that the price was so shocking, that we walked away. That’s how I can rationalize it – I never would have paid that kind of money for the dessert if I had known the price.

While I didn’t do this intentionally, many folks do this with no problem. Anyone who has been in a Costco has seen people swarm to the free samples that are given away. They go from station to station, and eventually try to come back for more if they like what they sampled. There are plenty of other places where samples are offered – and some people take them without intending to even consider a purchase.

What do you think? Do you ever go for multiple samples with the idea that you can get a mini-meal for free? If yes, where do you draw the line?

Those of us who are personal finance bloggers or blog readers know that it doesn’t necessarily take remarkable luck and good fortune for someone to eventually become a millionaire. Sure, those things are a tremendous help, there is no question about that. However, an individual or family with a more modest level of income and not coming from wealth still has a chance to get there, provided they start saving early enough.

Yahoo! Finance had an article on 7 common millionaire myths that are commonly held. Below are those myths, with my comments:

1) Millionaires Don’t Pay Their Taxes.

As the article states, they already do, and this is not likely to change in the near term. While we all want to be millionaires, there’s no need to hate on those who are, just because they’re millionaires!

2) Millionaires Just Inherited Their Money

Some sure have, but the viewpoint that all have inherited big money is simply not true. Many of them have worked hard for their money. I think that this myth is one that’s perpetuated in order to make people feel better about their own situations. Believe me, I’m no millionaire but I’m not going to stick my head in the sand and think that all millionaires just had the money handed to them. Some did, but not all. Sometimes that’s evident.

3) Millionaires Feel Rich

I’m not a millionaire, so I can’t tell you exactly how they feel. It would be nice to find out from personal experience someday! That said, from what I have seen, I suspect it’s the drive to cover life’s necessary expenses, and a bit of ”paranoia” about being broke, that has driven people to get to the point of being wealthy.  

4) Millionaires All Have High-Paying Jobs

No, they don’t. Some people are able to live within their means, maximize the savings minus expense gap,invest properly, and avoid big financial and life mistakes. With a mixture of discipline (and in some cases a little luck), there have been innumerable middle-class people who have accumulated wealth.

5) Millionaires All Drive Fancy Cars

Many people became millionaires by living within their means, and being able to discern wants and needs. If I had a million dollars handed to me today, I still wouldn’t buy a new, upscale branded car. Rather, I would buy a reliable used car.

6) Millionaires Hang Around the Golf Course All Day

If they did this, they had better be worth well more than a million dollars! Otherwise, their millionaire status would be gone in a hurry. This myth is a bit strange.

7) Millionaires are Elitists

Some may be, and I’m sure many are out there. I have also seen a few that are outwardly just like the average person, but behind the scenes when you get to know them their hidden snobbery comes out. Also, I have seen a few that are not elitists and frankly, don’t want to spend any money at all if they could help it. I think it’s tough to generalize about the attitudes of millionaires.

What do you think of this list?

I think there is much wisdom to be gained from those that are. Having a mentor, role model, or millionaire teacher are ways to get help and wisdom. In order to absorb that wisdom, I believe one must cut out biases, perceptions, and jealousies, and focus instead on embracing reality.

I also think that some people who want to be wealthy try to act like they’re already there. You know, driving a car that’s really a step or two above what they should be driving, buying a home that’ s not a good fit based on their income and savings, or purchasing designer clothes despite not saving much money.

A buddy of mine who is in his mid-30′s and dating shared with me a story about a woman he went out with who told him about her vacation preferences. She said that when traveling, she preferred to stay in 5-star resorts and get pampered as that was her standard. She just wouldn’t stay in someplace lesser. His take was that this was a huge red flag, and the relationship never got started. Clearly, to him, she was someone with very high tastes that was living well beyond her means. He’s not stingy at all, by the way. He’s a good guy that would be generous to anyone he is with (in case you’re reading, my friend!).

Anyway, I think that outside of those who inherited or got extremely lucky in some way, many people who are millionaires got there because of hard work. In addition, they got there by living within their means, saving a significant percentage of their income, making smart health choices (such as deciding to stop smoking), and being responsible overall in their lives. For example, making smart decisions such as saving enough money in tax-deferred accounts, and only making an IRA withdrawal when the rules are clear. Furthermore, these aren’t necessarily extraordinary income earners, either.

What do you think? Do you agree that these are generally myths? Do you have any examples from your own life to prove or disprove these assertions?

This article was included in the Carnival of Personal Finance at Budgeting in the Fun Stuff

We have all seen people who go to extremes to save money. Ok, I’ll admit, I have taken part in the sport of frugality on occasion:) 

That said, I do have some ground rules for saving money. I often talk about not taking advantage of others when trying to save – very important in my book. Additionally, I won’t intentionally make life hard just to save a few bucks, and this includes anything which compromises health.

Of course, we are all different - which is why there are occasional examples of people employing, shall we say, “interesting” ways to save money. In this 10th edition of Squirreling Gone Wild, we’ll explore the idea of eating food that has seen better days!

The first example that comes to mind, and the one that got me thinking about this article, was a guy I worked with earlier in my career. This guy was a very bright individual, carried an MBA from a top program, and was respected for his quick mind. He was also quite quirky, and this extended to saving money.

One day, at lunch ironically enough (as I would find out), he was talking about being frugal. I think the rest of the table thought it was a weird topic, except me of course; I enjoyed hearing him talk about his money saving ways. As he kept talking, his quirky side came out. While he lost the rest of the table long before, he lost me when he talked about ways to avoid spending on his kids. He proudly told a story about how he had some yogurt that had expired, and had a cottage-cheese like consistency and some “fuzzy” stuff on top. He didn’t want to waste it, so he scraped off the fuzzy growth and gave the kids the spoiled yogurt.

Blechh! I just can’t play that game.

Another example comes from a person with whom I worked some years back who was telling a story about having his inlaws over for a barbecue, but  noticed the day they were to arrive that the meat that was a bit spoiled. Mmmm, rotten hamburger! Anyway, he didn’t want to go to the store and spend any money on new food. He claimed to have used a marinade for the burgers, grilled them very well done, and loaded them with condiments to mask the taste.

He served them the spoiled meat. He claimed that he didn’t know for sure whether or not his inlaws felt a little bit sick afterwards or even noticed, but he was giddy with excitement over not having to throw away the spoiled meat. What a son-in-law.

Can you imagine doing things like that, serving kids or anyone, for that matter, spoiled food? Are you kidding me? I’m guessing (hoping) most of us wouldn’t ever engage in such nefarious practices. I certainly wouldn’t.

This got me thinking – while these examples sound bad as they involve others, how closely do all of us actually follow expiration dates when it comes to ourselves?  Not necessarily extreme cases like the above examples, but even food that is just past the expiration date.

Personally, I don’t like to eat or serve food that’s past the expiration date. Now, I’m not talking about the “sell by” date, but the “use by” date. If food is past that date, I’m not eating it.

Now, I realize that’s probably a strict approach. Frankly, there are people that might think that I’m wasting food by taking this approach. Not so frugal, they might say!

Well, not so fast, I say! When taking a big picture approach, I don’t think it’s worth the health risk to eat food that’s past expiration dates. Let’s say, for example, that you may be ok 99 out of 100 times. Fine, but that 1 time may be a very unpleasant experience. And I know that when I’m really sick, I don’t care about money or anything else, I just want my health.

What do you think? Do you eat food that’s past the expiration date? Have you gone as far as to follow the example of the characters above, and serve food well past the expiration date to others?

This article was selected as an Editor’s Pick in the Carnival of Money Stories #61 at Out of Debt Again