Posts Tagged ‘frugal’

Frugal Living: Fuel for a Libertarian Revolution?

July 13th, 2009

Frequent readers of my blog will know that I am not exactly happy with the huge growth of government we’ve seen of late, so this post shouldn’t come as a big shock. This was inspired by listening to a recent episode of The Survival Podcast, a favorite podcast of mine that discusses various topics related to sustainable living and self-sufficiency (crazy mountain men barricading themselves in underground bunkers with huge stockpiles of weapons this is not!).  

In the episode, the host Jack Spirko is discussing some of his philosophies about why he believes in this modern survivalism and makes an observation that while we are seemingly taxed at every turn we are making a choice to be subject to these taxes by our actions. We make the choice to buy the useless crap that we buy on which sales tax is collected from us, income taxes are collected on the profits made by the retailer, the manufacturer, and everyone in between, employment taxes are collected from the businesses and employees that made and sold us this crap, fuel taxes are collected from the shipping companies that transported the raw materials to the manufacturer and the finished product to the retailer as well as from us as we burn fuel to go to the store and buy this stuff, and the list goes on and on and on. And then on top of that our inability to stop buying useless junk (and even seemingly useful items we really can’t afford) requires us to work as hard as we can to earn a paycheck, which is subject to income and payroll taxes. Ultimately our consumerist ways continue to enslave us more and more to the government in the form of taxes, giving government even more power to run our lives and make us even more dependent on what the government is willing to provide for us.

But what if more and more Americans realized that what is now promoted as the American dream is nothing more than a giant hamster wheel in which we work for our government for about half the year, and that with certain changes in their lifestyle they can effectively get off the wheel? By eliminating our worship of stuff we would spend less money and pay less sales taxes, as well as eliminating the taxes that were generated as the stuff made its way through the manufacturing, distribution, and retail channels. By spending less money on stuff we become less dependent on traditional income, meaning we can live on a lower level of income which in turn lowers the amount of income taxes we must pay. The key is a return to a more self-sufficient lifestyle like the one our grandparents and those before them lived. We lessen our dependence on the trappings of modern life and save money as we:

  • Use our land to build gardens that can produce at least some of our own food.
  • Learn to take care of and fix the things we already have instead of just throwing them away and buying new stuff.
  • Distinguish between the things that we need and those we merely want.
  • Live what many would call a frugal lifestyle, using our resources wisely to build long-term peace and happiness rather than short-term pleasures.

More and more people throughout the world have made the decision to depend on themselves, as is evidenced by the exponential growth of The Survival Podcast and other venues like it. In working towards this more self-sufficient lifestyle, these people are also making the decision to be less dependent on the government whether they realize that or not. The interesting thing from a political perspective is that as these people do more for themselves presumably their activity in the traditional economy lessens, and with it so do the taxes generated by their economic activity. This results in lower government revenues meaning government is either forced to reduce spending or to delay a reduction in spending through enacting even more taxes on those still running in the hamster wheel or by issuing more debt. The government could just issue more debt as it always has, although as the world markets slowly recognize that this debt is becoming less likely to ever be repaid the market for even more debt offerings is limited at best, reducing the likelihood of this being a viable option. In this scenario increased taxes will further disenfranchise those still on the hamster wheel and encourage more of them to make the migration to the self-sufficient lifestyle to escape the ever-growing tax burden, which will ultimately come to a head in a demand from the populus to reduce the size of government as the base of taxpayers shrinks to the point they can’t possibly support the high level of government spending. The result is a taxpayer revolt ultimately leading to a smaller government more in line with the libertarian ideal. Of course the politicians could save us the trouble and just reduce the size of government now, but doing so reduces their power and is thus unlikely. But fret not, as at some point common sense will return.

So there is why I believe that frugal living and self-sufficiency is the fuel for a libertarian revolution. As we make decisions in our lives to become more self-sufficient, use our resources more wisely, and reduce our dependence on the government and others, we demonstrate that we don’t need Big Brother to take care of us and can do just fine if government will just get out of the way.

Cutting costs by cutting the cable cord

March 10th, 2009

Many of us are looking for ways to cut unnecessary expenses, and one area that many of us should look at is cable TV. Not too long ago those of us who did not have cable TV service were looked at as freaks, however there are new entertainment alternatives that can be considered as a substitute for cable, detailed in this article from Kiplinger’s:

  • Digital TV – Like analog TV signals this will depend on where you live, however if you are in range of the signal the picture and sound for over-the-air digital TV are crystal clear. What a far cry from the old analog signals that could result in scratchy sound and flickering picture.
  • Legal online streaming video sites – All of the major broadcast networks now offer streaming video of their shows, with the selection of shows expanding constantly. There are also tons of shows available to stream on sites like Hulu.com. And for you sports nuts out there, there is ESPN360.com, which offers streaming video of most ESPN programming if you subscribe to participating internet providers (AT&T is one of them).
  • RedBox DVD Kiosks – Selection is limited to mostly new releases, but their rental rates are super cheap ($1 a night). Of course $1 is just too much in my eyes, so look for the free codes out there at sites like InsideRedBox.com. You can even get a free rental code direct from RedBox every Monday by subscribing to text message alerts.
  • iTunes - If you are in a pinch, you can purchase a lot of content off of iTunes.
  • The public library – The library here in Houston sucks, but libraries in many areas offer a good selection of DVDs for free checkout.

Online streaming services are great, especially if you have a laptop you can hook up to your TV so you don’t have to watch everything on a small screen. We originally signed up for satelite service mainly for ESPN, and now that we are no longer under contract we will likely cancel service now that we are sure the ESPN360.com will display on our TV through our laptop. Monthly savings = $53.26!

Of course if you aren’t ready to cut the cord on your cable, you may be able to reduce costs by changing your programming package (do you really need HBO?) or just asking for a discount.

Cutting costs: Is a measured rate phone line for you?

March 5th, 2009

In this economy, many of us are looking to cut costs. As people become more reliant on cell phones, many are making the choice to abandon the landline altogether. But what about those of us who need the landline for home security systems or DSL? Well, there is an option that the phone companies don’t promote but exists due to regulations called the measured rate or metered line.

What is a measured rate line? It is basically the ultimate bare bones phone line that charges you based on usage (much like your cell phone). The savings aren’t huge, but it can add up. Prices vary by market, but here in the Houston market AT&T offers a measured rate line for $8.55 a month plus fees, which is $5.50 a month ($66 a year) less than the $14.05 charge for a basic residential line. Included in the measured rate fee is up to 25 outgoing calls per month and unlimited incoming calls, with additional outgoing calls being $0.05 each. So if you make fewer than 135 outgoing calls per month, you would save money with a measured rate line over a standard basic line.

If you are interested in changing to a measured rate, be sure to call and get the details on the charge and what is included. You’ll probably have to anyway because AT&T doesn’t have any details about the measured rate plans on their website. If like us your phone line is only to support your security system and DSL and allow the occasional telemarketer to call, this could be an easy savings.

Book Review: The Frugal Duchess by Sharon Harvey Rosenberg

January 29th, 2009

Earlier this year I received a review copy of The Frugal Duchess: How to Live Well and Save Money. The book is the first book by fellow personal finance blogger Sharon Harvey Rosenberg, who is probably best known in the blogosphere for her popular blog aptly named “The Frugal Duchess“. Sharon is also writes a weekly column appearing in the Miami Herald and numerous other newspapers around the country, and has written pieces for Money Magazine, Institutional Investor, and People magazine.

I thought the book was a good read and I would give it 4 out of 5 stars. Although many of the ideas and tips included in the book I had seen elsewhere, there were still things I had never seen before in my years as a cheap bastard, and it would be a great starting point for someone trying to shift to a more frugal lifestyle. Sharon makes a persuasive argument about how financially crippling an unchecked consumerist lifestyle can be using her own personal experiences, and sucessfully shows how a frugal lifestyle does not mean you have to miss out on the things many of us have come to enjoy. It would be perfect for a young person just starting out or the person adopting a more frugal lifestyle as a New Year’s Resolution.

My only criticisms of the book would be the following:

  • The way the subject matter was organized seemed a bit random to me, although that could just be the difference between the mind of an accountant (me) and someone with activity on the right side of the brain.
  • In places it read more like a blog than a book. It took me a little while to figure out the “M&D” referred to in the book was “Mom and Dad”.
  • Some of the tips seem very specific to South Florida, where the author is based. I’m sure a lot of these can be replicated elsewhere, but references to stores and locations specific to South Florida aren’t that helpful to most readers.

Despite some shortcomings, it is still a worthwhile read. The price is quite reasonable at a list of $14.95, and you can get it from Amazon.comeven cheaper.

My apologies to Sharon for the lateness of my review. Nothing like a layoff, a job search, and two hurricanes to keep you away from your reading list. Hopefully this will provide a small second wave of publicity.

Frugal, cheap, or just plain weird?

June 11th, 2008

There is an interesting thread going over at FatWallet Finance discussing the “cheapest” things people do. Some are good frugal suggestions, some are just plain cheap, and others are just plain weird. Here are some of the ones I thought were most questionable:

  • Pooping at work to save on toilet paper.
  • Taking extra condiments and napkins from fast food restaurants for use at home.
  • Diluting whole milk with water to make two gallons into three.
  • Order water with plenty of lemons and then squeeze the lemon juice into the water and add in a few sugar packets to make a poor man’s lemonade.
  • When traveling, take the extra roll of toilet paper from the hotel room each day to bring home.
  • Go in after lunch meetings at the office to eat all the leftovers.

And a few that are most certainly inappropriate on some level:

  • Going to other floors in your office building and stealing a couple of rolls of toilet paper each day, sneaking them out in your lunchbox.
  • Covering up the return address on the business reply envelopes to use to send to other recipients.
  • Using items and then returning for a refund before the return period is up.

Anyone else care to share your odd money saving tips?

The ultimate frugality: dumpster diving!

June 6th, 2008

Blame it on the hard economic times and the growing acceptance of the frugal lifestyle, but the personal finance blogosphere has seen quite a few dumpster diving posts of late. For a group that prides itself on frugality, it only makes sense that we’d see a few postings on the subject. After all, what is more frugal than free?

As icky as it sounds to many people, there is a good bit of logic to the idea of dumpster diving. In many ways our society has become accustomed to the idea of just throwing stuff away after it is no longer useful to us. Having lived in apartment complexes before, it is simply mindboggling some of the stuff people will throw out either because they don’t like it anymore or just don’t feel like taking it with them when they move. Myself I have found lamps, picture frames, filing cabinets, and numerous other items that were perfectly usable that others decided to leave behind. I could also add to that list a couch as well, except I came upon the people throwing it out as they were leaving it and convinced them to help me bring it up to my apartment. The word in dumpster diving circles is that around the end of college semesters is one of the best times to dumpster dive on college campuses as students often just throw stuff to the curb rather than try to haul it back home for the break.

Businesses waste probably more than individuals. Ever wonder what happens to that item you brought back to the store because it had a minor scratch on it? In many cases the store would send it back to the manufacturer for credit, but for many items may be instructed to simply throw it out since it would cost too much to ship back. Many stores have policies against reselling the items out of fear that defective returned items could prove to be a legal liability if customers somehow injure themselves with the product. This would be an advantage for store employees, except many have a policy that strictly prohibits employees from taking home returned products even if they are headed to the dumpster, with the penalty often being termination. So the result is that many perfectly usable products end up in store dumpsters.

So what should you know if you want to make someone else’s trash your treasure? I would recommend checking out tips provided by The Debt Defier and Queercents, but the main points would be the following:

  1. Dive only where permitted by law. Dumpster diving is legal in most places, however be sure to check your local laws to be certain. Also avoid locked dumpsters (this is most certainly trespassing).
  2. Dress the part. You’re not going to be jumping into a bed of roses, so make sure you wear appropriate clothing. Make sure the clothing fully covers your body and is something you don’t mind throwing out afterwards.
  3. Leave the area cleaner than you found it. This is kind of like camping. You are a guest, so make sure you clean up after yourself. Inconsiderate dumpster divers leaving a mess all over the place are one of the reasons many stores lock up their dumpster areas.
  4. Be prepared. For dumpster diving, this would mean bringing flashlights, a stepladder (or something else to stand on), and something to reach in and grab stuff (you can usually find these in Walmart and drugstores, or you could make your own).
  5. Bring a buddy. It is always good to have someone else to help you with heavy items, serve as a lookout (although diving is legal, it is usually best to avoid confrontations), and be there to help if you hurt yourself.

To answer the obvious question, this is not something I typically do, but I will admit I find the practice quite fascinating. I mainly don’t do it because it is illegal here, I don’t have a diving buddy, and I’ve got enough crap already.

For more information and some good laughs on the subject, be sure to also take a look at the official dumpster diving thread over at FatWallet.