Are you one of those people with several unused Groupon or Living Social vouchers in your account?  If so then pull up a seat, because this post is right on time for you.  Maybe you’re thinking that you save money with companies like Groupon, and maybe you’ve scored a few unbelievable deals. But the most expensive is the one you forgot to redeem.

Groupon Purchases Are Impulse Driven

Every morning you wake up with a new deal in your inbox.  And you probably think, “oooooh I could use that!”  Well the reality is that you don’t need it.  Unless this is a deal you’ve been searching for that aligns with your budget, then you should probably hit the x in the upper corner of your screen.  Rarely are the deals related to something that you actually need so think about how this impacts your financial goals.

This is how companies like Groupon and Living Social make money.  They depend on your inability to control your impulses and buy things you don’t need.  Trust me, they’ve researched your spending habits and like a rat, you’re aiming for the cheese.  But your budget gets snapped like a twig with every unplanned purchase you make.

30% Expire Before Ever Being Redeemed

30% of these deals are never redeemed.  Think about it, you bought the deal to save money and end up wasting it because it by never redeeming them. This takes money away from things you can really spend your money on to improve your financial life.

What Do You Do Now?

• Cancel your subscriptions. Those emails you get every morning?  Unsubscribe and don’t look back,
• Ask for a refund.  Groupon and Living Social are usually pretty good about refunds depending on your situation.
• Sell or trade the vouchers online.  Check with your voucher’s policy on transferring ownership before doing this as each site maintains their own rules.

Are you a deal-a-holic?  How many unused vouchers do you have in your Groupon, Living Social et al accounts?

The art of shopping has become quite a complicated affair. It has become an art form because on one side you have the business owner who has to keep selling or he or she doesn’t make a living, and the consumers on the other side who really only want to buy what they need but are tempted on all fronts to buy more. It is more than an art form.

This is a very real battle.

Much research goes on behind the scenes to find the most effective way to get you to buy more than you need. Business owners want you to part with your money and they are willing to give you a so called ‘bargain’ in order to win the battle of the wills. But you must stand your ground if you are to keep that last dollar in your purse for what you really want, not what you are told you want.

Extreme Couponing is For Suckers

Extreme couponing is a good example of you having good intentions when you go shopping but only finish up with cupboards full of products you don’t really need because you were told you had a bargain. You might not realize it at the time but the current clipping frenzy is sucking you in to buy things you don’t want and the business owner’s are laughing all the way to the bank.

The whole plan behind extreme couponing is to get you into the shop so you will purchase something at full price. The business owner feels it is worth sacrificing something of smaller value to him as long as you buy something of more value while there.

For instance, they hoped you will leave the store with a new outfit that you just couldn’t resist when you initially entered the shop to get a free bottle of perfume with a coupon on a pair of $20 earrings.  Sound familiar?

This is not to imply that you can’t play them at the same game, you can beat the system if you use self discipline:

• Make up a shopping list of what you want before you go shopping, go
  through your coupons to see which ones you can use to your advantage.
• Check newspaper ads to see where the bargains are and off you go. It is a fact that you can save a lot of money by
  being careful how and when you cash in your clipped coupons but the secret is only using a small
  amount at a time and don’t allow yourself to be sucked in.
• Make use of the frequent shopper program (sales emails) whenever you can as this is a way you will get told in advance of any bargains that are planned in the future.
• When shopping always be aware of the various marketing ploys employed by the different shops and their products. When rummaging through the dump bins keep an eye out for the price, you will often find a higher priced article thrown in among the bargains.
• Island displays are another to be wary of. The middle shelf is often where the higher priced brands are placed, very low and very high shelves usually contain the lower priced.
• Also, items that attract the impulse buyer are usually made more prominent than others, especially around the checkout counter.

By, keeping all this in mind while you shop you could save yourself hundreds of dollars a year.

Kristy Ramirez is a frugal freelance personal finance writer for Life Insurance Finder where she helps people sort through a range of different insurance types and find the best solution to meet their needs whilst saving money.

Over the last few weeks, several friends, family members and acquaintances have gotten engaged which of course has prompted discussions around wedding planning and the inevitable, how much will all of this cost?  Your wedding should be memorable, but it shouldn’t break the bank.  Check out the following tips on how to save in different areas:

Budget Costs and Save For The Wedding Before Setting A Date
This isn’t always possible for those who want to get married within 6-12 months.  However, for those planning on being engaged for 1-2 years before tying the knot,  it would be prudent to save the money based on your expected budget.  We’re in a recession and if you know that should one of you lose a job things would be on hold then it’s best to save and have the money set aside so the show can go on should you lose your job.  Never dip into your emergency fund for a wedding.  Go to Vegas instead!

Wedding Dress
Get what you love and make sure you swoon when wearing it!  But, don’t break the bank.  Ebay has quite a few custom wedding dress makers who can make exactly what you want or pretty close to it fir $200.  It is best that you start this process early and test out some vendors by looking at previous work.  Ebay also has overseas sellers who will sell you the dress at an insane discount because they sell their stock dresses to the same companies who mark it up 300-700% and sell it back to you.

Wedding Invitations
People throw these out once the day is over so there’s no need to spend more than $150 in this area depending on how many guests you’re planning on having.  Vista Print has an awesome deal for wedding invitations at $75 for $200 invitations.  If you really want something fancy for your own memories then create that special invitation just for you and maybe your parents but otherwise, paying for something your guests will eventually toss in the trash is a waste of money.

Target also sells wedding invitations that can be printed out at home.  Again, you may spend the same amount of money as Vista Print depending on how many guests you plan on having.

Bridesmaid Dresses
Whatever you do, please don’t make your bridesmaids spend $300+ on a dress.  They will hate you for it especially if they can’t wear it again.  Trust me, I’ve been there a few times!  Give them information on how to rent a bridesmaid gown/dress as prices start as low as $65!  Do them a favor and rent the dress!

DJ-Music
This is one area that has come down in price over the years with the advent of the iPod and other music devices.  Unless the DJ is coming with his own equipment, talk them down to a decent price.  Today, I would pay no more than $600 for a DJ at my wedding.  When  got married, they were charging $1500 for 4 hours.  I didn’t go with that option and I am glad we didn’t.   Bottom line is I would get a schedule of music I want played and have an iPod savvy friend or family member work the iPod during the course of the day.  At the most you may need to rent speakers and other equipment but that’s it.

All in One Catering Hall (location + food/catering in one place)
This is often the best bet when trying to secure a catering hall with a wedding location.   You pay for everything in one price rather than going a la carte when you find a location that doesn’t offer catering.  Wedding caterers are known to jack up the prices because they know how to pull at your heart strings given the enormity of the big day.  They will charge you extra down to the type of fork you use, so be savvy about this and get everything done for one low(er) price.

I was fortunate enough to be able to use my uncle’s home as he has a rather large estate at 10,000 square feet and 8 bedrooms.  Therefore we were able to save $4000 on the location and move some of that money towards the caterer.  You can even check with large estates that have gone empty if they are on the market.  Check with the Realtor to see if the owner would be open to renting out the home for your big day.

Something else that helped cut costs is that  since my family is Vegan, we did not have the cost markup that can come with having meat on the menu.  Before you gag, no one knew the menu was vegan!  Based on some of the selections, let’s just say the meat eaters thought we had meat on the menu!  And to this day, people talk about the menu on our wedding day, it was indeed delish!

Photographer/Videographer
I tend to think that this is an area where you should splurge because this crystallizes all the memories of your wedding day via video or pictures.  This is not the time to  skimp and go with a photography student or a novice in the field.  I’ve heard horror stories of people not showing up or forgetting film etc  This isn’t limited to newbie video/photographers but personally, it isn’t a risk I would take. Still paying more than $2000 in this area is a bit much.  Make sure you understand what you’re getting and talk to other brides to get a sense of their experiences.

Destination Wedding
This is my favorite option and I even wish we did this instead of staying stateside.  Looking back, the whole wedding would have cost us no more than $7000 if we went this route.  Brides are often concerned about some family members not being able to afford this option but if money is tight, do it.  You can always have a party when you get back to announce your nuptials formally.

Looking at the Ritz Carlton in Jamaica (where I totally want to have a vow renewal ceremony!) and based on the numbers it would cost no more than $5000.  I’m a little older now so it doesn’t bother me that certain people wouldn’t be able to make it.  If they think you are important enough then they will make it their business to be there.  And, if they can’t, that’s OKAY too.  Remember, everyone who is supposed to be at your wedding will be, don’t sweat the people who can’t or won’t come if you choose this option.  This is your day, own it.

As always negotiate prices in each area where you can!  Nothing is set in stone as all vendors are eager to get your business.  Most of the time they are expecting you to negotiate and have a price in mind based on your request.  As the day nears, compose yourself and be mindful of your spending, but don’t forget to stop and soak it all up!  You have one chance to get it right so don’t let anything mess it up!

Last week I got my gas and electric bills only to be surprised that the utility companies owed me money in the form of a credit on my account.  I set up my bank’s bill pay system to pay all of my bills so I didn’t really notice that I was overpaying until I logged into the account.

Well, to my surprise my bill went down.  Way down.  Keep in mind at any given time over the last 2 months there have been at least 4-6 people in my home.  This includes house guests in addition to my husband and I.  I’m used to bills that hover around $350 for gas and $200 for electric which used to drive me batty.  Who wants to pay that much to a utility company?  I don’t!

Here are a few tips that helped reign in those electric and gas bills.

Keeping the Temperature Low

Here in the DC area we recently had a dip in temperatures and normally anything below 70 degrees prompts me to turn the heat on.  This time I didn’t and instead invested in a few plush Sherpa blankets which keeps me warm and toasty at night.  My massage therapist gave me a tip – get a tempur-pedic mattress top plus a Sherpa blanket (heated is optional) and you’ll stay warmer (and cozier) at night.  I did just that and she was right!  Normally, on any day of the year I am walking around my home in shorts and a tank top and while that hasn’t changed, I’m warmer at night.  Before I would keep the thermostat at 80 degrees even though it meant my heating bill would soar.  Never again.

Cook All Meals On Sunday Night + Invest In A Toaster Oven

Our regular oven exploded over the summer which left the glass on door shattered and rendered the oven dangerous to use until we got it fixed.  In the mean time while we waited on the estimate and parts to get here we got one of those super toaster ovens.  You now the ones that broil, bake and toast bread on the counter top?  Yep, one of those babies.  It turns out that instead of using our regular gas oven to bake and broil everything, this smaller toaster oven uses less energy to prepare our food.  So now, I cook all meals on Sunday night within 3 hours instead of slaving over the pot on my stove for 1-2 hours each night.  Saves me time and money!  We like that!

Get Everyone On Your Energy Bill Page

We turn off lights and plug out appliances when not in use.  I have not an extra red cent to give to the utility company (sorry Pepco!) so I tell people to turn off lights or I will gladly go behind them to do so. Energy saving bulbs, power strips and the whole nine!  If it saves me money on the bill then I am on it!

Seal All Windows and Doors (Door Draft Stoppers or Bubble Wrap)

We haven’t done this yet this season but this has proven to be a great way to save on energy costs during the winter months.  Our door has a serious draft which causes the main level to get really cold.  I’ve already sealed the windows downstairs and just need to get one of those door draft stoppers to put under the front door and that should help with the draft.  Since heat rises, the 2nd floor is pretty warm, even toasty at night.

Get On Budget Billing

Ahmad from Victory By Design recommended we do this way back over the summer but I only completed this task last week.  Mainly because I hate owing the the utility company after the cycle is over.  Right now the real bill is actually lower than my budget bill but I know that will change in a few months when temperatures get frigid and the thermostat and I start bargaining again.  But this will help when the real bill gets higher (not too high!) and they will just put the extra towards the overall amount owed next year on the budget bill anniversary.  Getting on budget billing allows me to pay a set amount every month while figuring out different ways to lower costs.  Gas is by far more expensive where we are and I am just figuring this out.  The less we use it (stove and heating our home) the more we save!

What do your winter bills look like and how do you plan on taming them this winter?

Im sure we can all relate to opening up that email or paper bill from Verizon, TMobile, Sprint or AT&T and gasping at the huge bill.  I know I do.

Last year we switched from the strong arm of AT&T and the iPhone in favor of Sprint and the HTC EVO.  I’ve been in love with the Android OS and the super high end HTC EVO phone ever since!  I was tired of the higher priced phone and data plans along with the politics that came with Apple and their Walled Garden.

I was done.  So, we switched to Sprint.

Minus a few issues here and there we’ve been quite pleased with the service.  The cost?  Still leaves much to be desired.  Paying an extra $10/month for 4g/EVO and $30/month for the Sprint HotSpot (wireless tethering for 1 or more devices) stings my wallet every time.  Every month the bill comes to around $220 for two phones on a family plan sharing 1500 minutes (we share landline and mobile to mobile are free) with free nights and weekends.  We are both heavy cell phone users so there’s the occasional charge for going over the minutes.

Lately I’ve been seeing more and more ads for Cricket, Boost Mobile and Virgin Mobile.  After conferring with the man, we deicded that it’s time to look a little deeper into Virgin Mobile since they tend to have more midrange Android phones and maybe moving towards the higher end devices pretty soon.  The other options, not so much.

The plan?

Since Virgin Mobile does not have a contract requirement, we’ll get a phone and test it out for a few months.  And, since we will be traveling for both business and pleasure over the next few months there’s opportunity to test it out for a few months before dropping Sprint altogether.

Now, there are a few things that give me pause about Virgin Mobile but I’ll have to see for myself.  These include the lack of flash video support on the Virgin Mobile LG Optimus V, lack of a front facing camera, camera picture quality and data service.  I also need it to be as fast and responsive as the EVO.  I understand Virgin Mobile rides the Spring network as they are a subsidiary of SPrint. I’ve read reviews where this can be a problem as many users note a “Service Busy” message during peak usage time.  We live in a large metropolitan area so I need to see how this plays out before dropping Sprint like a bad habit.

The cost?

As I said earlier, my current charges with Sprint and the EVO are around $220/month.  With Virgin Mobile if my husband and I get the $40/1200 minutes plan then we would pay no more than $100 per month after fees and taxes for both phone plans.  That would be an extra $120 in savings per month! Comparing the savings to other carriers, check out the chart below:

I keep telling myself it’s a cell phone for heaven’s sake and I should just switch and take the lumps that come with a midrange phone but I am a heavy mobile user so I need certain things to be in place like good data coverage.  I don’t really use the 4G right now so I am more concerned about the 3G data coverage as their phone coverage seems to be excellent in this area.  There’s the option of severely restricting our current plan but I’m certain that it wouldn’t be realistic given our heavy use.  I just don’t think cell phones should cost this much and  I cringe when I see the bill every month!

So tell me what do you know about Virgin Mobile and their service?  Is it good?  Should I stick with Sprint or go with Virgin Mobile?

photo credit: bchow

By now you’ve watched the TLC series, Extreme Couponing about how a family pays less than $10 for over $500 worth of groceries.  And, while I admire the technique, time and patience it takes to cut costs in this manner I don’t believe that it’s for everyone.

Processed Foods Dilemma
Unless you’re into eating loads of processed foods like chips, canned foods and cereal then I’ll pass as this is my number one reason for not utilizing this in my grocery shopping routine. I primarily shop at Whole Foods and Trader Joes and 90% of what I buy are organic fresh fruit, vegetable and meats. The other 10% of what I buy are from CVS and Harris Teeter for toiletries and cleaning supplies.  I follow a clean eating diet unless I am eating out so most of the foods in my kitchen are perishable fruits and veggies.

Buying More Than You Need Just Because It’s On Sale

Totally defeats the purpose of buying what you need to save money. From what I gather on the show, extreme couponing requires that you buy high quantities of certain items forcing you to stockpile in pantries, basements and garages them even if you have no immediate use for them.  It’s a waste of money to have your home double as a mini-mart in the name of saving money.   Still, I understand that some extreme couponers do so to help others, and if that is the primary goal then I get it.  But to overstock my pantry just because I can save some money on a can of peas?  Nah.  I like to buy what I need as I go along.  Now if I see something that I can store in the pantry on a major sale, I will buy it but that usually doesn’t happen for me since most of what I buy is perishable.

Time Consuming

Extreme Couponing takes time which I simply don’t have.  My friends that do this tell me that it takes at least a year to get all the coupons you need to save as much as you see the families do on TLC.  Then there’s the actual time needed to search through the papers and shop at various supermarkets hunting down deals. One accounts details the couple spending 4-5 hours in the supermarket? Do you know what I can get done in the supermarket? It takes me 45 minutes to get in and out of Whole Foods for 2 people. 4-5 hours is just onerous.

Extreme Couponing Fraud?

I’ve watched the news clips about the methods with great interest and read some forums about just how this is done.  There seems to be some question as to whether or not the methods used are indeed above board. Some would call it coupon fraud?  Here’s an example.  Let’s say you have a coupon for $1.  It says you can use the coupon  on a 20 oz can of coke instead of the 12 oz can of coke.  Cashier doesn’t pay attention and you look the other way and voila, there you have it.

The Frugalista interviewed Bud Miller, executive director of the Coupon Information Corporation about the issue:

FRUGALISTA: In the videos, it looks like this shopper, J’aime Kirlew, was using coupons labeled as being for one product, but buying a different product from the same manufacturer. Is that really a big deal?

BUD MILLER: It’s a criminal act. You need to use the coupon only within the terms and conditions printed on the coupon. In English and Spanish or whatever the local language is. A coupon is a contract and an offer. You have to follow those terms. Bar codes are a method of processing coupons.

FRUGALISTA: I’ve heard people say that the bar code is the “real” writing on the coupon, so the acceptable uses of the coupon are really whatever it’s coded for, no matter what the words say.

BUD MILLER: They’re wrong.

FRUGALISTA: I can see how bad this would be if you are taking a high-value coupon for an expensive product, and applying it to a much cheaper product. But what if the product is around the same price, like a company’s regular toothpaste brand and then the new version with a new feature advertised on it? Do manufacturers really care in a case like that?

BUD MILLER: Yes they do care. Coupons generally have their own budgets. That goes into the whole accounting system … controlling expenses, managing the business.

The good news is that the new bar coding system should eliminate most of this. (Stores are) in the process of transitioning (now). (This is why on some coupons now you see two bar codes): you’ve got the older one and you’ve got the newer codes … They’re all in the process of moving towards it.

Let’s just use the coupons for their intended purpose shall we?  The following is not a conversation you want to have with your cell mate:

You- “What are you in for?”
Cell mate “Grand Larceny, you?”
You- “using a save $1 coupon on a 12 oz can of coke instead of a 20 oz bottle

So there you have it. I simply refuse for the reasons stated above. Granted, yes, I do struggle with my grocery bill being $400-$500 just for two people. I feel it should be more in the range of $300 and that will be my goal for this month. If someone knows how to extreme coupon between Trader Joes and Whole Foods show me the way! I plan on experimenting with organic produce delivery this month and see how that shakes out at the end of the month with our budget.

Do you have any tips on extreme couponing with organic fruits/veggies and meats? I am waiting on Whole Foods to get with it and offer real coupons for things that people buy consistently.

You know the feeling. It may not happen often, but when it does… You’re in the dressing room of your favorite boutique, falling in major lust with a pair of jeans that were made for your body. Despite the shop’s terrible fluorescent lighting and 8-way mirrors, you have been instantly transformed into a sexier, fitter, smarter W-O-M-A-N.

The only thing standing between you and this slice of denim heaven is the hefty price tag, so you make a quick pact with the shopping gods that you’ll be a good girl for the rest of the month. As you make your way to the register and brace yourself for the final total, the associate informs you that– bazinga! – the jeans are actually 50% off the regular price. WAHOO!

I hate to think of myself as a cheapskate (I prefer ‘cost conscious’ thank you very much) but with a little patience, it’s fairly easy to save money and snag discounts on a regular basis.

I’m not a finance guru or expert, but if one of your resolutions is to save $$ in 2011, then here’s hoping that just one of these “everyday” pointers will prove useful to you. And since I’m always open to new ideas, I’d love to hear some of your tips as well.

• Sign up for email alerts to free websites like Groupon, Deal On and Half Off Depot. Seriously, I can’t remember the last time I paid full price for a manicure, pizza or oil change.

• The great thing about running and walking? OK – two great things. It’s good for you and doesn’t cost a cent. If outdoor cardio isn’t your thing, now is the time to “gym shop” for the best deal around. It’s the New Year, which means every gym, fitness center, personal trainer, and boot camp on the planet is slicing and dicing prices so be sure to take advantage of those waived fees and discounted memberships.

• I pay approximately six dollars each month to color my hair. (Yes, from a box. Yes, it looks more than acceptable.) I strategically wait for Walgreens or CVS to advertise my favorite shade of L’Oreal on sale and then piggyback it with a two dollar coupon from the Sunday paper. Bam. Six bucks, ten minutes and zero grays later, I’m happy as a clam.

• To save on gas, I avoid any unnecessary ‘single’ trips. Instead of going grocery shopping on Monday, hitting the drugstore on Tuesday, and the dry cleaners on Wednesday, I plan my trips back-to-back in one day if possible.

• As a writer, it’s necessary for me to read. A lot. Although my small mailbox fills up quickly with magazines, I save lots of cash each year by subscribing versus paying per issue at the local newsstand. $12 for twelve issues or $4.99 for one. I am so not a numbers person, but even I can do the math on that one.

• And speaking of reading… As a self-professed book nerd, 90% of the books I devour are on loan from my local library. The other 10% are purchased from the ‘used’ section of amazon.com for a fraction of the cover price. $24.95 for the latest James Patterson? Never again.

• I used to be a full-fledged cosmetics and shampoo junkie. I’d scour the aisles of department stores and beauty supply shops and fill up a cart (or two) with pretty packages promising to fatten my hair, lashes and lips. Years later, I discovered that not all expensive products are created equal and in fact, there are many “under $5” products that work as well as their salon-brand counterparts. Granted, there are a few items that I continue to splurge on (foundation for example), but there are a lot more that I save on. So until Chanel signs me up as their next spokesmodel, I’ll stick with mascara and lipgloss from my local drugstore.

• I used to pay $4.95 per movie rental at Blockbuster. I then switched to a $14.97 per month Netflix plan that allowed me to rent an unlimited number of movies. Life got busy and I was lucky if I had time to enjoy one flick a week. Enter Redbox. At $1.00 per rental, I’m spending less than five dollars a month on movies, popcorn not included. And THAT is what I call a bargain.

Happy 2011 – may your year be filled with lots of smiles, laughter, happiness and money in the bank!

Susan Gernhart is a regular contributor to Girls Just Wanna Have Funds.  Check back regularly for her fresh perspective on personal finance

DC is no stranger to the high cost of living you often see in New York City, Miami and Los Angeles.  But can you live on $30,000 a year there?  This question came up on a listserv I frequent and the responses were equally divided amongst those who felt it would be damn near impossible and others saying it’s hard but doable.

Here’s how it started and I’d like your thoughts on the matter.

Here’s the job posting:

Job Title: Festival Assistant @ The Kennedy Center
Department: International Programming
Job Type: Full-Time, Regular
Salary: $30,000 – $33,000 / Yearly
Duties:
This position provides administrative and logistical support to the Festival Manager and the Office of International Programming to support planning and implementation of international festivals that take place at the John F. Kennedy Center for the Performing Arts.

The first reply which sparked the debate stated that while she would love to work at The Kennedy Center since she is applying to graduate school for the performing arts, but the salary is too low for anyone to live on comfortably.

I agree that the salary is low.  But your ability to survive on this salary really depends on your ability to manage your finances appropriately and live below your means.  When I graduated college and moved here I didnt even make 30k and I worked at a major university, but the position unbeknownst to me at the time was a stepping stone.  It only when I got a raise bumping me up to not even 30k was I able to get a better apartment and a car.  My bills were paid, but still things were tight.  Luxuries are relative given your goals at the time.  So while I wasn’t shopping like I am right now, I remember being cool with my finances at the time.  I then got a job in the field I wanted to be in and the salary was barely over 30k and you couldnt tell me nothin!  I made it work and while I  hated it,  that position alone is the backbone of my resume now even after finishing grad school.

I feel that if the position might help your career but it would require sacrifices then look into it further, yes it’s low for someone who has been in the field but if you can show commitment to your field by taking a job in your area then hey it wouldnt hurt.  Just my two cents.

By the way here are the breakdown of expenses based on my post about this issue last year:  This is based on someone who has no real financial responsibilities like a mortgage, student loans, credit cards-this is a very lean estimate as we have a low salary to start with…

Here’s the breakdown of taxes and take home from Paycheckcity.com for someone who is single with no dependents:

• $700 Rent: this varies greatly depending on where you choose to live and however so within your means.  Given the monthly take home of roughly $2300, your rent shouldnt be more than 25-30% which is at most $690.  Here you can go with a studio or find roommates.  Personally, I would go with a studio in the best area I can find closest to transportation.

• $150- Utilities:  You can find an apartment where utilities are included but if you do pay utilities on a small 1 bedroom or studio then it’s not likely to be more than $60.

• $75 Cable/Internet/Phone bundled through RCN.  I realize that cable might be considered a luxury so it’s really optional.

• $200 Transportation $200 for the metro  Here in DC it probably on average costs between $7-$10 per day depending on the distance traveled from point A->B

• $300 Food/Groceries (including bringing your lunch to work) $250 (coupons obviously cut this down significantly)  My grocery bill for two people is around $400 with no coupons so this is doable for a single person.
• $250 Health Insurance

_______________

$1675

This leaves $625 to put towards savings, credit card bills, student loans (work out a lower payment if needed), shopping (makeup, clothes etc) and eating out.

• $200-Savings
• $100-Credit Card-this really depends on your balance, if you have one
• $150-Student loans-again this depends on your balance and what you work out with the lender
• $175-Discretionary: shopping, eating out, gym membership-essentially play money for you

_____________

$625

Maybe I am being idealistic, but it can be done.  Obviously things like prescriptions, emergencies and unplanned expenses come into play here.  Check out this post for even more tips on how to cut your costs on a low salary.

What are your thoughts?  Do you live in a high cost of living area?  If so could you live on $30k per year?

It’s no secret that with everything going up that I’ve needed to find ways to save money.  I abhor paying more than I need to for the very basics in life.  Over the last few weeks I’ve tried to figure out where we can cut back to save more money.   The key?  Asking.  Asking for what I want has saved us a great deal of money during the month of October.

Cell Phone

We’re with AT&T and have an iPhone and Palm PDA on a family plan.  Well that family plan while on a base price of $170/month came out to $437 at the end of October.  Can you see the steam coming from my ears?  After  a long merry go round with different reps, lodging a complaint against one and evangelizing the merits of having a corporate presence on Twitter to another, I reduced our monthly plan and even got $70 in credits to our account.  We had a family plan for 2100 minutes, but used on average 1000 minutes and had 9000 roll-over minutes in the bank.

The rep recommended that we go with the 1400 minute plan (alternative is 900 min plan), added the international plan to our account and had his manager adjust our account so that our roll over minutes wouldn’t expire.  Sweet!!!  Why was the bill $437?  I am selling a home overseas so I check in with the lawyers and buyer weekly to keep on top of things being that I am stateside.  If not, then things go to hell real fast.  I also did A LOT of texting over the summer which resulted in a $200 overage charge.  I’m just glad Im not friends with that person anymore, it was getting expensive as you can see LOL!

I also found out that we were somehow subscribed to a ring tone subscription and I almost lost it.  My husband while I love him dearly is a tree hugging nature guy, he’s simply not into ring tones or any of that teeny bopper crap.  Then they also tried to say that we were on a pay per use Internet plan which was an out right lie.  As much as we use the Internet on our phones, she had to be out of her cotton picking mind.  So they adjusted everything and all is well.  We now have a monthly bill of $120 and will use our remaining roll-over minutes for overages

Savings:  $200-$300

Paid Off Retail Account, Sold Beater Car And Bought A New Car

I wasn’t really sure how this would work out but it did.  To make a long drawn out story short, we were still paying off one retail account but needed a new car.  I was concerned about adding one more car note when we were paying down debt.  But it so happens that we were on schedule to pay off one account so we went ahead and bought the new 09 Camry with no real plans for the 99 Solara.  She started giving me problems and hubby just didn’t want to deal with it anymore.  When I got back from Blogworld in September, he’d picked up the new car.

The repairs associated with the MD inspection for the Solara were over $1200 and we owed $1700.  We sold it for $1700, paid it off and so everything evened out.  Both payments from the retail account and the Solara payment equals the new car payment amount.  So instead of dealing with two car payments and insurance we are down to one.

Savings: $250

Shut Off Electricity On Main Level Turn Off All Lights

Last year we were on the budget plan because gas and electric were out of control at $200 and $300+ respectively.  But we’ve since paid off the balance from the budget plan and just pay it off every month.  Our bills have been around $100 for each since we don’t cook everyday and I cut the electricity off on the main level when we are out of the house.  We have a switch in the family room that cuts everything off except the alarm and this works out great!

This winter I may get a space heater and warm pajamas.  Im from the islands and I like to run around in shorts and a tank top in the house, hubby thinks this is the funniest thing to do in the winter.  So you know that means I have the heat on 85 right?  Yea Imma have to cut that out.

Savings: $350

Groceries

I found out about the discount grocery Aldi last weekend and OH THE JOY!!  My hope?  Spend no more than $300 a month on groceries.  I’ve yet to look at Yodlee to see how we did in October but I think it’s no better than September as far as groveries are concerned.  At least now we have a real option to save more on groceries.  I’d like to spend $200 at Aldi and then $100 at the other stores.  We’ll see how that works out.

Savings: $400

Total Savings: $1300

Areas in Progress?

Shopaholic

I still like to bargain hunt on Ebay and I can’t even say that Im working on it because I’ll scope something out on Bluefly and then find it for half the price on Ebay.  but as Lynn Richardson likes to say, if it aint free them it aint on sale!  Tis true.

Eating out

This has proven hard because we like to try new restaurants and have quite the social calendar.  It’s hard to say no because well, we like to be social and hang out with friends when we get the chance.  So this needs some work but perhaps we’ll cut back to twice a month.

Question:  What areas can you hack your monthly budget?  Where can you cut back?

Food is expensive! I’ve talked about it ad nauseum on this site because this is an important topic to me and of course to all of you. We can’t control the values of our homes or gas prices, but to a certain extent we can control how much we pay for groceries. To that end I’ve been trying to find a cheaper solution because I just refuse to continue paying $700+/month for two people.

Then came Aldi.

Aldi is an offbrand grocery store lacking any o f the frills that you’ll find at your local supermarket chain. They pretty much have all the basics such as food, beverages, canned goods, household items, but you won’t find it in different sizes or any of the low fat variety. Just whatever they have on the shelf.

One woman stated that she fed a family of four on *gasp* $40 a week at Aldi so you know I had to go take a looksee for myself.

Ginger investigates:

Our total came out to $147 but that’s because we stocked up on some items we need for our election night party. I imagine that we would spend no more than $75 for two weeks worth of food there. Buying the same products at Shoppers, Safeway, Whole Foods or even TRader Joes would have set us back at least $350+. Easy. I’ve read on other blogs where the price differences were sllight but in our case the prices were a huge difference. Enough such that I don’t mind going there for the basics, except for milk because I don’t drink cow’s milk, but it’s cheap for less than $3 a gallon!

Curious about Aldi’s business model? According to Privatelabelmag.com:

Aldi’s business model was developed to strictly support their mission to bring consumers the lowest prices on quality food. Consider the following as you think about an Aldi store:

Aldi stores average 15,000 to 18,000 square feet in size and pretty much resemble a box. If they buy into a second-use facility that is larger, a wall is put up, the rest either leased or even left vacant.

They all look the same…a “Spartan” box with as few fixtures as necessary to perform the function. Most product is displayed on floor pallets in cut-open boxes with a retail price sign overhead. There are only three to four aisles.

Three to five registers take care of the traffic and only relatively recently are equipped with scanners. In the past, because none of the items were price-marked, cashiers were required to memorize all the retails.

They all operate the same, too: no coupons, no preferred cards, no free grocery sacks (shopping bags cost 10 cents each), and there is a refundable 25-cent shopping cart charge. And for vendors: no slotting allowances, no promotions, no advertising contracts.

Most striking is their variety, or their lack of it, in terms of how food retailers typically think of variety…only 700 to 800 items. While most sub-categories are represented, there is only one item in one size…one item in one size of peas or spaghetti or apple juice. The average Aldi does less than $100,000 per week, but think of the buying power behind each of those 700 items, compared to the typical supermarket that may carry 40,000 items in 40,000 square feet and do $280,000 per week.

Most interesting is that 90% of the items offered are offered under a brand owned by Aldi, a private label. There are different brand names for each category, but all are owned by Aldi. Seeing a “national brand” almost seems like an anachronism.

Neat!

I’ve read in different places that some are perhaps a little ashamed to shop here but I can’t imagine why. Why would anyone be ashamed of finding bargain momma deals when it comes to groceries? Especially when we just came off high gas prices and still paying $4 for a dozen eggs? For me it was like uncovering a secret treasure, yes I am that corny! I don’t care what anyone says, I’ll ride this thing until the wheels all off, in other words, I’ll make it work. I’ve been successful at trimming the fat from our budget and while I still have to kill my shopping habit a little ways to go, this works.

What are your thoughts on Aldis? Have you shopped there? What are your impressions of the place? Would you let the “off brand” products turn you off?