Showing posts with label budgeting. Show all posts
Showing posts with label budgeting. Show all posts

October 25, 2015

Living More vs. Working More


Where do you fit on this scale?


There are two ways to financial security - one is to make more money. The other is to spend less. I am an advocate of the later method because spending less allows me to work less and live more.

Like most people, I buy things. But what I buy, mostly, are the basics. Shelter, food, utilities, health care, and transportation. Beyond that in most months I don't buy anything else. What else do I need? The basics are all that are required to set the stage for happiness.

My minimal budget provides me with a comfortable place to live, clean water (some of it heated), a sanitation system (including garbage disposal/recycling), and 24 hour electricity for heating, lighting, cooking, and my computer.

Add to that fresh, wholesome, tasty food, a secure place to store my guitars and bicycle, accessible natural areas, good health, and a public library near by. All of this in a safe, secure community with caring and supportive friends.

What more could a person want? If you can have a good life on a low income, why work more? I would rather live more than work more, and keeping to a modest budget allows me to do just that.

Some think that work/life balance means a 50/50 split. Wrong. In this case, a healthier ratio looks more like 20/80.

September 10, 2014

Cut Own Hair... Again

Before - long hair, in the hospital and happy.

It seems like everything except real estate and gas is more expensive here in Nova Scotia. In order to stick to our budget we are going to have to do everything we were doing in British Columbia, and more. That means doing all our own cooking and baking (a bag of flour costs twice as much here) as well as anything else we can do ourselves. Like haircutting.

Yes, that nice 'before' photo is of me in the Digby hospital a few days ago. Linda is in the bed behind me. I was the patient (my back again), and Linda had to come with me because she could not stay at home alone and there was nowhere else for her to go.

As you can see it had been quite a while since my last home haircut.

After about 5 days I was released, but Linda could not come with me until we got some supports in place to make sure I did not hurt my back again. So, unfortunately, my sweety is still in the hospital while I am at home cleaning up and healing.

After being in the hospital I felt like I needed a major overhaul, so after a much-enjoyed long hot shower I got to work on my hair. This time I wanted to do more than just shave my head like last time.

Linda has always wanted to cut my hair short everywhere but the top, so that is what I tried to do. It took a long time, but eventually I got the results I wanted. I used a comb, electric hair clipper, a pair of sharp scissors, and a bit of tape to get the back trimmed evenly. It was fun, and it was free.

I visited Linda in the hospital after I finished and she approved, so I guess I did alright.

Tomorrow things will be more or less ready for her to come home. A few more items, such as an electric lift for doing transfers, will come later, but I can't wait any longer. I want my best friend here where she belongs.

Maybe she wants me to cut her hair, then we can use the money we save to buy a bag of flour so I can start baking again.



After - short hair, at home and happier. I will be happiest when Linda gets here tomorrow.

September 26, 2012

Get Cooking: Tips For Beating Rising Food Prices

The cost of food is going up and increases are likely to continue

While we do strive to not buy anything, we currently have to buy our food. Since 2008 that has been getting a lot more expensive. This trend is not likely to reverse soon, if ever.

At the same time that a lot of stuff you don't need gets less expensive, everything you need (really need, as in survival) is getting disturbingly more expensive. Big screen TVs? Less expensive. Gas, electricity, rent, and food? More expensive.

That people are concerned about food is evidenced here on our blog. A post on reducing food waste is one of the all time top posts on NBA, showing that many are doing everything they can to stretch the food budget in inflationary times.

With the US drought forecasted to inflate prices another 5% next year, I thought it was time to share more of the tips that Linda and I use to keep our food costs down.

Background

The average family of four spends about $237 dollars per week, or about $12,300 dollars per year, on food consumed at home. The same family spends $5200 dollars more on food consumed outside of home. A 5% increase means an added $875 dollars per year on food for our fictional family.


Money Saving Tips

With some simple solutions and planning, one can mitigate impending food price increases. These are some of the tips we use to stretch our food dollar, and maintain a whole food diet.

  1. Limit, or eliminate eating out. I know how tempting it is to take what seems like the fast or easy route to filling the tummy, but fight that impulse. Meals eaten out cost 6 to 10 times more than a similar meal cooked at home.
  2. Skip pre-packaged frozen meals. Convenience foods sacrifice taste and quality for ease of use. Plus they cost up to 4 times as much as home cooked meals.
  3. Do your own washing and cutting. Pre-cut/pre-washed, or grated foods will cost you twice as much.
  4. Learn to cook your favourite foods. When we quit eating out that didn't mean leaving behind all our favourite restaurant meals - we just learned to cook them at home. It has been fun, and satisfying.
  5. Buy generic for certain items. Some products such as flour, sugar, cereals, salt, and milk are indistinguishable from their pricier brand name counterparts.
  6. Plan your grocery shopping trips to avoid impulse buying. We always shop with a detailed list from which we do not deviate. This alone can save up to $20/month for the average shopper prone to impulsive edible purchases.
  7. Don't waste the food you have bought. This seems obvious, but a large amount of food is wasted in the average home. If you haven't already, see our post on reducing food waste.
  8. Eat less meat. Some products, like meat, will probably rise in price more than 5%. Explore non-meat alternatives like beans/grains, tofu, nuts and seeds. They are less expensive, and better for you.
  9. Bake your own bread products. Buying two loaves of hearty, healthy bread can cost as much as a 10 kg (20 lbs) bag of flour. You can make a lot of bread with that much flour.
  10. Take advantage of sales. Closely watch flyers for weekly specials, and stock up when the price is right. When we find peanut butter on sale, for example, we purchase several jars at a time to add to our well-stocked pantry.
By following these money saving tips it may be possible to make up that forecasted 5% rise in food prices, and then some. It is not that difficult, and besides saving money, these tips will help you to eat more healthfully, and have more fun in the kitchen.

What is your favourite money saving tip when it comes to the purchasing and preparation of yummy, nutritious food?

August 6, 2012

Tough Choices Monday



As happens when greed overtakes sanity, average houses in most places in Canada have become unaffordable for the average family. Too often people are having to choose between having a house and having a life.

For most people a house represents the largest single purchase they will ever make. Unfortunately, it can also be one of the most emotional. When our acquisitive desires meet our nesting instinct, rational decision making often ends up being a victim of our illusions.

While many countries around the world have already seen their housing bubbles pop, Canada's has continued to inflate until recently. After over a decade of annual increases, house prices have reached a historically high level relative to income. Unfortunately, average income has not been inflating much since the 1980s.

It used to be that a household needed to spend about 30% of pre-tax income to pay housing-related expenses. Not any more.
"For the second quarter of 2011, Vancouver residents could expect to spend 92.5% of their pre-tax income on homeownership costs, including mortgage payments, utilities and property taxes."
Vancouver is the country's most expensive market, but in Canada as a whole, servicing a mortgage is still requiring almost half of pre-tax income. While we all need somewhere to live, giving half of your monthly paycheck to the bank is extreme. Having to turn over your whole check sounds more like robbery.

There is a time to buy a house or property. A time when there is more balance and you can enjoy both a house and a life. In most places in Canada, including where I live, that time is not now.

Is it possible to own a house and have a life in your area?

July 20, 2012

Not Buying The Rat Race


American garages have become oversized junk drawers -
only 25% have space for a car photo: J. Arnold/CELF
A growing legion of people are turning away from over-the-top consumer lifestyles and the perpetual busyness that one has to enter to support the pursuit of money and materialism. Fed up, stressed out, and in debt, they are raising the white flag and retiring from the rat race.

It is no wonder we feel burnt out on consumerism - it is an unbalanced way to live. It is uncomfortable, and our natural tendency is toward regaining balance. And we are very unbalanced in most industrialized nations.

A recent study by a group of social scientists looking at duel income American middle class families found that most are stressed out from managing overwhelming clutter, and frustrated by a lack of time. This hardly comes as a surprise for most families today, but in their book "Life At Home In The Twenty-first Century: 32 Families Open Their Doors", the scientists confirm our suspicions:
  • 3 out of 4 garages are so crammed with stuff that there is no room for a car.
  • people are too busy for family meals, even though they consider them important to family life.
  • adults AND children spent very little time outdoors, and felt too busy to go into their own backyards.
  • managing mountains of stuff increased stress hormones.
  • most families rely heavily on convenience foods, even though they actually save little time.
  • leisure time is spent in front of the TV or computer.
  • America has 3.1% of the world's kids, and 40% of its toys.
The study's lead author said she admired the way families coped with their busy lives, but described the general situation for most of them as "disheartening".

Occasionally we hear from NBA readers disheartened with keeping up with the Jones'.

Take for example the family of three from Santa Cruz, California that could have been part of the Life At Home study, which was conducted in Los Angeles. They emailed us to let us in on their not buying anything project that they started this summer.

"We started in part for the environment, in part to get out of debt, and in part because of feeling too busy with this thing called life."

They go on to describe a sensation that Linda and I have become familiar with over the years as we continue to simplify:

"I haven't felt this sure of things in a long time."

The rat race is optional after all, and many are not buying it in order to restore balance to their bank books, their lives, and the earth.

January 18, 2012

Dental Care On A Budget

One of my upper third molars has an old cap that fell off recently

In the 70's movie Marathon Man, Dustin Hoffman plays a character that is tortured by having his teeth drilled without the benefit of anesthetic. Although you might suspect it would, seeing the movie long ago did not give me a dental phobia. But it sure did make me squirm as it highlighted the importance of good dental hygiene, and skilled, non-sadistic dentists.

I thought of Hoffman's character again a few days ago when I pulled an old cap off an upper third molar while flossing. In my hand it looked big and ugly - 30 years of doing major chewing duty had taken its toll. I put it in a small container and brushed my teeth.

The newly exposed nub was sensitive, and even lightly brushing it caused an uncomfortable shock to run through my jaw and face. An evil captor with rudimentary dentistry skills would have loved to take advantage of it with a poky, sharp metal instrument.

I got the shivers, pushed all thoughts of dental-based torture out of my head, and considered how quickly I might be able to see my dentist. I looked forward to relief, but not to the potential large bill.

The problem with keeping teeth happy is the cost - it is not consistent with a low-budget lifestyle. But there are definitely things that you can do to lower the costs for you and your family.

NBA's Tips For Low-Budget Dental Care

  1. The most important way to save money on dental care is to have excellent oral hygiene and general health. Make your dental plan caring for your teeth (brushing 1-3 times/day, floss once/day every day, don't forget to tend to your gums, brush after sweet foods, eat well, exercise, and get plenty of rest).
  2. Find a dentist that is committed to keeping your teeth in your head as long as possible. Just because you 'could' have work done, does not mean you 'should' have it done. A good dentist will work with you to prioritize what must be done, and what would be nice to be done when the money is available. Functional fixes come before the purely cosmetic.
  3. Start an account (or designate a jar) earmarked for your family's dental care. Try to build up enough to cover basic care (check up/cleaning 1-2 times per year), plus a bit more for unexpected care that may be required.
  4. Most schools of dentistry offer discounted, or free services for the general public. They may also offer clinics at various locations run by volunteer dentists. If you have a school in your area, try giving them a call - they are often looking for people, including children.
  5. Number 1 is worth repeating - brush, floss, and take care of yourself. Preventing problems is the most cost-effective way to go... and the least painful.
My dentist was able to get me in the next day. The thought of a $500 - $1000 dollar bill did not thrill me, but neither did being tortured by the tender, unprotected nub of a molar. I grabbed my old, battered cap, and hoped for the best.

I can now report that my dental story had a happy ending. My dentist, knowing me to be a practical, thrifty patient, told me that we could replace the cap, but that it would not be necessary at the moment. He grabbed whatever super glue is used that keeps major capped molars in place for decades at a time, and slapped my old cap back in place.

It only involved a few seconds of torture.

A modest sixty bucks later I walked out sporting a full set of happy choppers. I like my dentist, but I will continue to do whatever I can to stay away from his office for as long as possible. When I do need to go back, the whole affair will be made less unpleasant by the fact that I have budgeted for it.

One last tip - If you are ever held captive by a sadist armed with a crude set of tools, Dentistry 101 knowledge, and only a little bottle of clove oil for pain relief, remember that there is no right answer when he repeatedly asks, "Is it safe?".

    October 19, 2011

    Ethical Alternatives: Inflation Fighters

    Are your investments helping build a better world?

    Prior to 2008, global financial events caused me to look closely at what was happening with my retirement savings. I did a complete investigation into what exactly was being done with my money. What I found out was troubling - damage was being done on my behalf so I could make money without doing any actual work or producing anything.

    I learned that I had mutual funds invested in unsavory things like the Alberta Tar Sands. Further research unveiled weapons manufacturing, tobacco, and pharmaceutical companies (the same ones that are now targeting the under 5 crowd with their dodgy, profitable drugs). Most portfolios contain some or all of these unethical investments.


    As a result of my inquiries, I liquidated everything. Since then I no longer watch the stock market in cycles of panic and elation, but rather, as a curiosity to see how the world I am extricating myself from is doing. But what about inflation?


    We are told that unless we invest our money, it will slowly erode in purchasing power, and slip through our fingertips. Therefore, I have been brainstorming alternative strategies for overcoming inflation that are less harmful than traditional investments.

    Ultimately, we need to work toward changing our monetary system and ending the manipulations by the financial industry and the governments that represent them. It is critical that we replace it with a system that benefits us all.

    In the meantime, here are a few ideas that come to mind:
    • Green/ethical investing allows you to invest and make a positive difference at the same time. This form of investing has tripled (in the UK) in the last decade as people seek to reduce the damage done on their behalf. However, there are differing opinions of what, exactly, constitutes 'ethical', so results may vary. Note: This week is National Ethical Investment Week in the UK.
    • Deposit savings in a local credit union. Deposits are usually invested locally, so your investments are contributing toward improving conditions for you and your neighbours, not some CEO in a board room thousands of kilometers away. You still win even if you aren't making 10% annually.
    • Reduce your budget by the amount of inflation.
    • Grow a garden. Some of your best investments for the future may be things like seeds and gardening tools (and a good tent and camping gear).
    • Keep a stocked pantry including foods that continue to go up in price. Some that I keep on hand are : peanut butter, flour, rice, beans, powdered milk, nuts, and the like.
    • Cook your own food, bake your own bread.
    • Reduce your expectations.
    • Enjoy your money today without worrying what might happen in the future. For all we know, the entire financial system may collapse soon anyway.

    July 20, 2011

    Alternatives To Coffee: Indian Chai Tea

    A Delhi Chai Wallah serves up India's favourite hot beverage
    As competition for increasingly scarce resources grows, and we continue to gorge on what is left of our ravaged planet, commodity prices are spiraling off their graphs. This includes the price of the world's favorite caffeine delivery system - coffee.

    The price of coffee, although dropping a bit recently, is up 52% for the year. It is set to increase another 50% over the next 365 days. What is a thrifty hot beverage lover to do? How about an exotic, less expensive alternative?

    Coffee price change over the past year

    Since quitting coffee last year, one alternative in particular has found its way into my diet. Not only is it extremely yummy, but it also elicits wonderful memories of India.

    Indian Chai Tea Recipe

    While in India ten years ago, coffee was not common, so Chai Tea was the hot beverage of choice. I came to love it and all its unique, spicy goodness. Now, every time I have a steamy cup I am transported back to cafes, chai stalls, wandering sacred cows, and sunsets over the Arabian Sea. Tranquility soon follows.

    There is no need to buy expensive pre-made chai mixes or syrups. To make a simple, delicious Chai Tea at home, this recipe will do the trick. I have been perfecting it as preparation for a future career as a Chai Wallah.

    5 cups          water
    5 bags          black tea
    10                whole cardamom
    5                  whole cloves (or 1 tsp powdered)
    5                  black peppercorns 
    1 tsp             cinnamon (or 1/2 stick)
    1 tsp             nutmeg (grated or powdered)
    1 tsp             ginger (powdered, or piece of fresh)
    2 tsp             vanilla (optional)
    to taste         sweetener (I use 1/3 - 1/2 cup of sugar)

    Add water to a suitably sized pot and bring to a boil. As water comes to a boil add all the other ingredients. Simmer covered for about 5 minutes. Warning: your home will smell distinctly exotic during this process. Take off burner and set aside covered to steep for 15-20 minutes.

    After steeping take the tea bags out. Mix (in cups or a separate pan) equal parts of chai tea mixture and milk. Be careful not to pour the spices in, too, although a cardamom pod gives your cup a nice touch. Heat for a minute or two in a microwave oven, or in a small sauce pan on the stove top. Enjoy.

    Left over chai can be strained and poured into a glass jar to be refrigerated for later, and can be served with milk over ice for a spicy cool drink.

    Who knew quitting coffee could be so good? Escape the high price of coffee, and try chai tea.

    June 15, 2011

    Of Disposable Income And Debt Bondage

    Since the 80s we have fewer and fewer dollars to spend or save

    When I think of the word 'disposable', I think of throwing away something that is of no use. When it comes to finances, though, the meaning is different - disposable in this context means "freely available for use". Therefore, disposable income is money you have, after taxes, that is freely available to spend or save.

    I think that the former definition is more accurate, though. Disposable income for most of us, means money that we can throw away on things we don't need. Any money freely available for use, is used.

    But as can be seen on the graph above, disposable income has been steadily dropping since the 1980s. Most of us, outside the top earners who have actually enjoyed increased disposable income, are finding that we have less and less money to spend or save as we see fit.

    In recent years compensating for diminishing disposable income has meant taking on more debt in order to maintain high-consumption lifestyles. Although the tide has begun to turn, and debt levels are slowly decreasing, debt is still dangerously high compared to historical levels.

    Throwing away money on things we don't need has always been costly, but it is much more costly when it is done with borrowed money. Why? Because permanent debt bondage means the end of freedom. It restricts our choices and options, and reduces our independence.

    John Perkins, in Confessions of an Economic Hit Man, writes that the the modern equivalent of enslavement is not by force, but by debt. It is a choice that many feel they have to make, and just about everyone I know has chosen to be enslaved by the banks in exchange for things they don't need.

    RVs, McMansions, new vehicles, international vacations, and a wide variety of toys are keeping people in a revolving door of debt. As Ogden Nash wisely observed, "Some debts are fun when you are acquiring them, but none are fun when you set about retiring them."

    Endless debt is the opposite of simple, sustainable living. It is the opposite of freedom and independence. The average debtor enjoys pleasant distractions as well as social strokes, but along with this comes stress, depression, dependence, and inequality. It is not easy struggling with persistent debt.

    The following quote shows how debt bondage has been working out for the average worker as opposed to the average owner:
    "In the United States, wealth is highly concentrated in a relatively few hands. As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85%, leaving only 15% of the wealth for the bottom 80% (wage and salary workers).
    Debt has its place in modern society, but permanent debt does not.

    The first step toward the freedom of a sustainable, simple life is getting the debt monkey off your back. If disposable income decreases we can choose to reduce our spending rather than maintain it through borrowing. A reduction in personal spending and adoption of a lower consumption lifestyle lead to a whole host of benefits.

    We can choose to break free and regain our independence, and can start by adopting Rule #1: Spend less than you make. Only then will debt be demolished, and emancipation be possible.

    June 10, 2011

    Learning Through Lightening The Load


    In an ongoing effort to reduce the amount of stuff in our home, we recently unearthed several heavy boxes of old bills, receipts, and bank statements. I felt like a cashologist as we opened the time capsules representing a large chunk of our financial past.

    Our goal was to pull a Conrad Black and shred the majority of the evidence, but we knew it would also be an opportunity for learning.

    We review our bank statements monthly, but going through the boxes was a multi-year review. Reflected in the numbers on reams of paper was how our spending has changed over the past few years.

    Sometimes it feels like we have cut as much as we can from our budget, but then we always seem to be able to cut more. In our statements we could see how we have made continued progress toward fulfilling our goal of not buying anything that we don't need.

    We have drastically cut vehicle use, so our spending on transportation was down. It was interesting to see how much we used to spend on America's favourite recreational drug. Booze disappeared from the paper trail in 2009 when we quit drinking. We have saved many hundreds of dollars since then, and I sure don't miss the hangovers.

    Over the years our clothing budget decreased to the point of being virtually non-existent. It is amazing how long clothes last when you care for them, and not for fashion. However, I still occasionally get new socks and underwear. Well, new to me, anyway. I am joking - Practical Santa brings new underwear every Christmas.

    Alcohol and clothes are one thing, food is another. Our statements showed that we were successfully cutting spending on food, until recent food price hikes.

    In response we quit coffee, and replaced it with green tea and chai tea. Both are considerably less expensive than coffee. This has helped, but one does need to eat a certain amount of whole, fresh food every day. Next to implementing a calorie-restricted diet, what is one to do?

    Partially due to our ballooning food budget, this spring we increased the size of our square inch garden. We will be enjoying near-free micro-harvests of beans, lettuce, spinach, snow peas, potatoes, strawberries, chives, and oregano. Even if the financial benefit is fairly small, the garden therapy is priceless.

    Our shredding party resulted in a major reduction in piles of unnecessary, cluttery paper. The cashologists in us were encouraged by the progress we saw written in the statements sent for recycling. The time capsule revealed that we have been buying less and less over the years. That is what we expected, but it was nice to have it confirmed.

    The best thing is that we have not felt any decrease in quality of life associated with the decrease in spending. The amount of money we have been spending, or not spending, has not decreased our level of happiness. If anything, it has increased it.

    What do your financial time capsules say about spending habits and happiness? Be a cashologist and unearth the story with a 'Lighten and Learn'.

    January 29, 2011

    Give Beans A Chance

    If there were ever a time to channel your inner hippie, grab a big bag of beans and try some vegetarian cookery, now is the time.

    Beans are one of the most nutritious and versatile foods known to the human race. They may also be the most misunderstood and maligned.

    Most people in the meat-centric world know beans as the magical fruit that makes one toot, or they may associate beans with poverty. Either way, many steer clear of this healthy, frugal, and sustainable food source. The lowly bean just can't get no respect.

    It must be some sort of meaty conspiracy with meat merchants planting misinformation that goes viral, eventually to become an urban myth that supports their fleshy agenda.

    Take the case of a 'news report' of a man sleeping in a small, poorly ventilated room gassing himself to death with his own flatus. As the story goes, he ate a lot of beans and cabbage. However, researchers looking to dispel flatulent fallacies tossed this story in the methane myth bin.

    It is true that as one increases the consumption of beans they may make you toot. This is due to components of beans interacting with your unique digestive system. However, after your body adjusts to the glories of the magic bean, the effect diminishes for fart-free fun with this most sensible of foods.

    Beans vs. Meat

    Meat production is one of the most environmentally damaging activities humans engage in. It consumes enormous amounts of energy and other resources, including rain forests being destroyed to make way for more livestock. Growing and killing meat animals accounts for more greenhouse gases than the entire transportation sector.
    "It takes up to 16 pounds of grain to produce just 1 pound of animal flesh. It's shockingly inefficient to feed plant foods to farmed animals and consume their flesh rather than eating the plant foods ourselves."

    "The world's cattle alone consume a quantity of food equal to the caloric needs of 8.7 billion people—more than the entire human population on Earth."
    Western Diet Syndrome causes a wide range of ailments resulting from a diet heavy in meat, fat, and processed foods. This includes diabetes, stroke, heart attack, metabolic syndrome, colon cancer, cardiovascular disease, irritable bowel syndrome... and the list goes on. That alone is enough to drive a person to beans, farts or no farts.
    "People should eat according to the dietary guidelines for Americans, which is a diet rich in plant foods. I don't oppose meat, but they should consume red and processed meat once or twice a week, not once or twice a day." - Dr. Steffen
    With advice like that coming from the medical field, it is time to give meat a miss, and beans a break. Not only are beans healthy, but they store well, can be purchased in bulk, and often at a discount. And there is more - beans can be used to make very tasty dishes.

    When cooking dry beans, planning ahead is of the essence. It is going to take about an hour on the stove top, and several hours in a slow cooker. Pick through your beans - they come straight from the fields, tiny rocks and chunks of dirt and all. After picking through, rinse. You can cover beans in water and soak over night if you want. This will reduce the cooking time and, some say, the farting fun. Drain when ready to cook.

    Place rinsed beans in a pot and cover with water up till 2.5 cm (1 inch) above the top of the beans. Bring to a boil and boil hard for a minute or so, then turn to simmer. Cook until tender (should be soft enough to squish a bean between your tongue and the roof of your mouth). DO NOT throw out the liquid after. The boiling water is nutrient rich, and makes an outstanding gravy.

    I will be posting some recipes for bean dishes in the coming weeks. Two of my favourites are bean gravy, which is so much better than it sounds, and mexican refried beans that I eat by the litre. Our refried beans taste better and are so much less expensive than any canned varieties we have tried.

    The much maligned and ignored bean. If only John Lennon had favoured them rather than peas.

    Give beans a chance.

    November 23, 2010

    Extreme Frugal Living: Cutting Your Own Hair

    Warning: cutting your own hair can have unintended consequences
    Sometimes children, the little mini-rebels that they are, will cut their own hair. Why? Because there is something strangely fun and liberating about it. I know. I have been cutting (or should I say 'hacking') my own hair for about a year now.

    Over the past few years my partner, Linda, has been cutting my hair. I have always been happy with the results. This is not surprising because we did a fair amount of research before we delved into home haircutting. We consulted on-line resources, but found books from the library to be the best source of hair help for beginners.

    But who hasn't looked in the mirror at some point or another and felt the urge to pick up those shiny, sharp scissors and just start cutting? I have been giving in to this urge lately. I try to remember what the books taught, but essentially I am enjoying the freedom to simply hack at will. Damn the latest coiffure craze - let fate decide the outcome.

    I realize that self-styling one's hair is an option few will choose. Most will say that for what it costs you might as well have it done right by a professional. But there are reasons beyond money to increase your self-reliance.

    For one, the kids are right - it IS fun to cut your own locks. It is fun to take charge of your own life and feel the surge of satisfaction at being able to take care of business. How can I control my life if I can't even control my hair?

    Then there is the challenge of learning a new skill. What you learn about your own hair can be applied to the hair of other willing victims. You could cut your partner's hair. Or you could trade haircuts for food.

    And finally, there is the thrill of victory when you fluke out and give yourself a good cut. For free! Conversely, you can experience the pain of defeat like the little guy in the picture above. But it is possible to leave an expensive hair salon with the pain of defeat. It has happened to me, and probably everyone else that has ever paid for hair care.

    Ultimately, though, it is just fun to pick up the scissors and slice off a chunk here and there. I have gotten better over the months, and when I am not so successful, either Linda does damage control, or I wear a hat. Or cut the whole mess down to bristles, which is also fun and liberating.

    Whatever the case, it is true frugal living at its most dangerous and thrilling. Do try this at home... carefully.

    July 13, 2010

    Simple Tips For Staying Cool


    Many homes these days are built with energy intensive central air conditioning, making hot summer days a major drain on the power grid. In the current heat wave that is sticking to a sweaty North America power use is approaching all time records. Due to high demand and an aging infrastructure power outages have been widespread. It is time for some simple alternatives to power hungry air conditioning.


    In 2001 my partner and I spent several months in global hot spots such as India and Malaysia. Although these areas tend to be hotter and more humid than most, air conditioning was not prevalent, except in retail stores - it was the only way to keep shoppers in the stores and spending.



    The most common device for keeping cool was an ordinary circulating or ceiling fan, and even then the power to turn them was intermittent at best. Mostly, it seemed, people just acclimatized to the hot, and conducted themselves accordingly. Between 11:00 am and 3:00 pm things just slowed down to a torpid pace. Think hammock rather than hard work.



    With cheap energy on its way out, we are going to have to do some acclimatizing of our own. Here are a few ideas for staying cool, and saving money on your power bill at the same time:

    • close windows and coverings during the day - keep the heat out
    • open windows at night, use fans to move cool air in, hot air out
    • migrate north (a high of -2 C in Alert, Nunavut, Canada today)
    • take a cool bath or shower
    • sit in a forest or treed area (the coolest place in New York on a blistering day is Central Park)
    • go swimming at a lake, river, stream, pond or pool
    • use ceiling/circulating fans to increase evaporation off your skin - save up to 40% on a/c
    • learn to enjoy the heat (winter is on its way)
    • go slow, or stop
    • get high - it is cooler at elevation (The Brits built mountain 'hill stations' in India to escape the stifling heat of the plains)
    • sit outside in the shade, eat meals in the yard, use your BBQ instead of stove or oven
    • stay hydrated - drink lots of water
    • get away from the concrete jungle - it is hotter there
    • eat cold meals like egg salad, fresh fruit and veggies, sushi, sandwiches, cold soups...
    • hang out in your basement
    • do hard labour early morning or late afternoon
    • go to the seashore - it is always a few degrees cooler near the ocean, plus there is usually always a breeze
    • adopt the Spanish custom of a siesta, or mid-day rest



    Stay cool. Conserve energy. Save money.

    Have a nap, and enjoy your summer.

    July 10, 2010

    Change In Money Consciousness Required


    We have grown use to abundance in the developed world. An abundance that has failed to make us any happier. All our big pile of cash has got us is record levels of depression and an environment falling apart at the seams. So why are so many people continuing to spend?

    We need a radical change in how we make and spend our money. If more is not working, we should try less and see what happens. It seems counter intuitive, but it may be that the best thing that could happen to us is having less money to spend.

    My favourite financial guy, Garth Turner, recently posted on his blog The Greater Fool: "The recession we thought was behind us is actually reappearing, and it will take a serious attitude adjustment on the part of many to survive." Ouch.

    In 2008/09 household wealth was evaporating faster than a puddle of alcohol in a heat wave, and people were thinking about changing their financial attitudes and habits. Some actually did. For example, there are groups dedicated to not buying anything new for a period of time. Most members find they get hooked on their new simple life and never go back to shopping. But they are a rarity.

    John Michael Greer, author and cultural critic, noted that changing our relationship with money is not that popular, despite the proven dividends it would pay:
    "The problem is that the changes in consciousness that would actually do some good are changes that next to nobody in the industrial world is willing to make: for example, a shift in priorities that deliberately embraces poverty, accepting a rich personal, intellectual, and social life as a substitute for, or even an improvement on, the material extravagance that the industrial nations currently offer their more favored inmates."
    We are our own worst enemies when it comes to cash. In our pursuit of more we open ourselves to the 'Wealth Effect'. It states that people will increase spending as household net worth increases. And this in spite of 88% of us thinking that life is overly materialistic. Net gain? Zero.

    Other people are shifting the way they think about work and money. The ship is slowly turning back toward our frugal roots. The wealth effect works in reverse, too - the less wealthy we feel, the less we will spend. Perhaps being less wealthy is the answer then. Make less, spend less, live more. This is the new money consciousness, and it just may save our sanity and our environment.

    Greer gives hope by reminding people that the "change in consciousness is certainly accessible to each and every one of us". However, "it requires a rare willingness to step outside of the approved habits and ideas of modern industrial cultures."

    We can be brave, and step away from habits we know to be harmful. We can quit spending. We can stop the futile attempt to prove that money can buy happiness. A better, more simple, sustainable life lies ahead, and we will be happier for it. But it will require a change in money consciousness, and for some of us, a radical change.

    May 6, 2010

    Save Money On Groceries

    "The price of food relative to average income is heading for levels that have not been seen since the early 19th century, and it will not come down again in our lifetimes."
    -
    Gwynne Dyer

    Food prices are rising faster than they have in decades, marking the end of fifty years of Cheap Food. The Associated Press reported in April that, "Wholesale prices rose more than expected last month as food prices surged by the most in 26 years." Produce prices went up a whopping 49% in March. With prices increasing at such an alarming rate more and more people are wondering how to save money on groceries.

    Here are a few of the ways we use to save money on our grocery budget.

    1. Take advantage of discounted food. Food is constantly marked down in all areas of grocery stores. Some items, like cereal boxes cut open during stocking, or goods approaching their best before date, are barely different than the items surrounding them. Discounts can be as high as 50% off regular price or more. I have bargained with staff to get a discount on the discount. Often they are happy to get these products out the door. Choose carefully, though, and have a rough plan for what you might do with certain products. For example, discounted peanut butter could be used to make cookies to throw in the freezer and share with friends. A big bag of tomatoes can be used to make a tomato soup much more savory than any salt-heavy canned variety. Be prepared to eat, or process, discounted items as soon as possible.
    2. Make a list and go shopping on a full stomach. Do not go foraging for food with a growling stomach, or wander the aisles - you will be prone to expensive impulse purchases. Know what you are there for and don't be distracted. We start our Master List with the ongoing one that we keep on the fridge. Using our local store flyer online we identifying sales and coupons. Shopping is a large purchase and we plan ahead: what do we want, what do we need, are expensive things on sale? We will wait until the price is right, then stock up. Planning ahead reduces your grocery bill, and minimizes having to run out for things at unexpected times.
    3. Know the price/100gms of your purchases. When you know the cost per hundred grams of your food you can start to compare items. Comparing brand names vs. generics, varieties of protein sources, and costs of processed foods vs. whole foods makes you think about things like the nutritional value of products, where your food comes from, and why items cost what they do.
    4. Use the bulk foods section selectively. Armed with your understanding of cost per hundred grams you can use the bulk foods section when it makes sense to do so. Often we believe bulk foods are always cheaper. This is not the case. Using cost/100g, the last time I went shopping I discovered that walnuts and sultana raisins in the baking section were cheaper than the bulk food section.
    5. Use your food efficiently to maximize freshness and minimize waste. Minimize the waste that occurs once you have the food at home. Decide what to make depending on what needs to be eaten so that all foods move through your kitchen at peak freshness. Use your freezer to preserve foods for quick meals later. Many fresh foods can be frozen whole such as tomatoes, mushrooms, bananas and berries. Even the freezer in your fridge, when organized well, can hold a great amount of food.
    6. Avoid the middle aisles of the grocery store. The perimeter of the store is where you will find fresh whole foods. Middle aisles feature processed, expensive, and nutritionally questionable foods.
    7. Process your own food. With wholesome ingredients you can make many of the flaccid foods manufacturers try to sell you at jacked up prices. Things like ketchup, jams, salsa, baked and refried beans, bakery products, and yogurt are all examples of foods that you can process yourself. The foods you process will have fewer artificial ingredients, and will be fresher and tastier. You may enjoy creating your own special brands just the way you like them. Never mind the savings - it is fun.
    8. Check your receipt. I give my receipt the once-over before I leave the store, or after I put my groceries away at home. If I find any mistakes I take the receipt to Customer Service for a refund. Mistakes happen (sometimes often) and are always fixed by courteous staff. The grocery trade is highly competitive - you are a valued customer that they want to keep.
    9. Grow your own food. The ultimate way to save on your food bill - plant a garden.
    10. Consider going on a CR diet, or at least cutting your calories to suit your requirements. How would you like to save 10-25% on your food bill? It seems almost too simple, but just eat less. CR diets (not just for weight loss) restrict calorie intake rather than eating without consumption limits. Do not eat for entertainment, and only eat what you need to maintain health.

    Once food is in our home I minimize wastage as much as possible. It is estimated that 50% of food is never eaten. Edible food is wasted every day in the food industry, including grocery stores. There are ways to save money and do your part to keep good food from going to the dumpster. I am not going to the back of the store for grub yet, but many do. You will find edible food there, and at a discount that is hard to beat.




    Photo: Edible food 'rescued' from a grocery store dumpster by People Helping People, a group that takes the food to local food banks.

    March 8, 2010

    Mischief Comes From Much Opening Of The Mouth Monday II


    The beginnings of a vegetarian noodle stir fry. We are not buying anything from restaurants any more, and have learned to cook a variety of dishes that we used to buy when we short on time and long on cash. Now that we are short on cash and long on time, we can focus on our whole food, vegetarian diet where we cook everything from scratch. Photo: by author


    February 26, 2010

    Thoreau's Beans: Let Them Work Their Magic On Your Stomach and Soul


    When my hoe tinkled against the stones, that music echoed to the woods and the sky, and was an accompaniment to my labor which yielded an instant and immeasurable crop. It was no longer beans that I hoed, nor I that hoed beans; and I remembered with as much pity as pride, if I remembered at all, my acquaintances who had gone to the city to attend the oratorios.

    Henry David Thoreau, Walden; or, Life in the Woods, The Bean-Field (1854)


    Thoreau, patron saint of bean growers, wrote lovingly of his seven miles of beans even though they demanded his constant labour and careful attention. Thoreau eventually admits that his beans and the soil gave him strength, like Antaeus who only had superhuman powers while in contact with Gaia, his mother (and ours).

    Beans are magic. Jack knew that. What he may not of known is that they are also one of the most diverse and nutritious food sources in this universe. The lowly legume, legendary in status, has earned mentions in sources as diverse as The Bible and Blazing Saddles.

    Many varieties of legumes, the earliest food crop cultivated, were domesticated 7 000 years ago in Central and South America by native peoples. Spain thought gold was the important commodity of this area, but in actuality it is the 40,000 varieties of beans that represent their true, enduring wealth.

    This humble and healthy food, often shunned because of associations with poverty and the hardships of the Great Depression (the last one, not the one we are currently experiencing), is indeed a gift from the gods of frugality. They are cheap, simple nutrition. So much so that when the going gets tough, the tough grab bags of beans and rice and head for the hills. You don't need much more, whether you live in a cave, or a house.


    Take a look at all beans have to offer nutritionally:

    No other food comes close to beans in providing protein, iron, magnesium, zinc, potassium and soluble fiber together in high amounts. Beans are a key ingredient in a healthy diet of all ages:

    • High in complex carbohydrates
    • High in protein
    • High in dietary fiber
    • High in folate
    • Low in fat
    • Low in sodium
    • Cholesterol-free
    • Rich in vitamins and minerals

    The calorie content of one cup of cooked beans is equal to one cup of cooked rice, pasta, or a 7-ounce baked potato. Yet beans are substantially higher in dietary fiber. Beans are very low in sodium and offer many of the same nutrients as meat, but without the fat and cholesterol. They also provide more nutrients than a serving of oatmeal or oat bran.

    Per capita consumption of beans is 3.4 kg/7.5lbs.

    http://www.northarvestbean.org/html/schoolbasics.cfm


    Beans are underused in the average diet, most people preferring the more expensive, and less healthy, protein alternative known as meat. There are 1.5 billion bovine units alone on this planet. They are walking/belching/farting leather bags of expensive, fat-marbled protein that are trashing our land, air and water, and eating a huge portion of the grain the world produces.

    North American meat consumption is 123 kg/270 lbs per capita. If each American reduced his or her meat consumption by only 5 percent, roughly equivalent to eating one less dish of meat each weak, 7.5 million tons of grain would be saved, enough to feed 25 million people-roughly the number estimated to go hungry in the U.S. each day. http://www.worldwatch.org/node/1626

    Colin Campbell, author of "The China Study", states, "We're basically a vegetarian species and should be eating a wide variety of plant foods and minimizing our intake of animal foods." A healthier state of affairs based on such a diet would see per capita consumption of beans at 123kg/270 lbs, and per capita consumption of meat around 3.4kg/7.5lbs. If Campbell is right, we currently have it backwards.

    Colin Beavan, taking a different perspective in "No Impact Man", says, "Cattle raising turns out to be one of the top two or three contributors to the worst environmental problems around the planet at every level - from global to local."

    Eating less meat, or no meat at all, is one of the most environmentally and socially responsible things one can do, rivaled in impact only by driving less or not at all. If you eat meat look for locally raised, grass-fed organic meat, often available at farmers markets.

    Not eating meat can lower your personal carbon footprint by up to 1/4. That doesn't mean that you can drive 25% more if you become a vegetarian! Beans may not solve your transportation problems, but they can definitely help with reducing meat consumption.

    There are lots of reasons to eat less meat, but fear not. Beans are waiting to fill in, and they promote good health, which is not something you are likely to hear about bacon, sausage or burgers.

    Beans can form a central part of any diet. Include soybeans, lentils, and garbanzo beans (chickpeas), and peas. For maximum frugality, purchase beans dry and when on sale (when possible). Once you get used to preparing dry beans it becomes less of a hassle as you take their re-hydration into account in your cookery schedule. Cooked beans can be successfully frozen for quicker use later.

    All beans come to us unprocessed and directly from the fields, and should therefore be picked through and rinsed before cooking. I have found the occasional bean-shaped clump of dirt while cleaning beans. Soaking overnight reduces cooking time, and some say it makes them more digestible and less prone to cause flatulence. I cook beans three cups dried at a time in my slow cooker (on low it takes about 8 hours).

    Bean Measurements:

    1 part dry beans equals:
    • 3 parts cooked beans

    1 pound dry beans equals:
    • 2 cups dry beans, before cooking
    • 6 cups beans, after cooking
    • 4 15-ounce cans of beans


    Favourite dishes around here are refried beans, baked beans, Jamacian rice, complimentary pie, black beans and rice, and bean-based veggie burgers.

    Beans are a tasty wonder food. Try replacing one meat-based meal a week, to start, with a bean-based one.

    Go ahead. Throw a few handfuls in a pot. See what happens. Let them work their magic on your pocketbook and your health. Thoreau loved 'em - you will, too.

    February 13, 2010

    Investing Without Wealth Or Calamity: The Finances Of Enough


    "Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." - Paul Samuelson

    Individuals lucky enough to have a bit of savings are asking hard questions about their money after the 2008 financial collapse wiped out trillions of dollars of personal net worth. There is a move toward post-traumatic stress investing; a cautious, less greedy way of investing in order to avoid the kind of trouble we have seen lately. Such an approach will avoid extreme wealth as well as extreme calamity, both of which are unbalanced ways to live and best avoided.

    It is a good time to be returning to a concept of 'enough'. Good-bye get rich quick risky business, hello slow and certain. My financial goal is not to get the highest return and damn the consequences. At one time people were satisfied with a modest return on investment. Any more would have been considered immoral at best, and illegal at worst.

    Therefore, my No Extreme Wealth/No Calamity strategy focuses on:
    1. Reducing the potential for financial calamity. Higher risk investments pay higher returns, usually, but can also experience higher losses.
    2. Investments that improve global social and environmental health. I want to know that my money is supporting solutions rather then enabling problems, even if the 'dirty' investments pay a better return. Are my hands clean?

    The following information, from David Trahair, agrees with a low risk strategy. In "Buy GICs. Only GICs." in The Globe and Mail, September, 2009, he points out the following average annual rates of return:

    S&P/TSX Composite Total Return Index

    • 10 years to August 31, 2009 - 9.41%
    • 20 years to August 31, 2009 - 8.86%
    • 30 years to August 31, 2009 - 10.76%
    • 40 years to August 31, 2009 - 9.77%
    • 50 years to August 31, 2009 - 9.80%

    GICs

    • 10 years to August 31, 2009 - 3.35%
    • 20 years to August 31, 2009 - 5.11%
    • 30 years to August 31, 2009 - 7.28%
    • 40 years to August 31, 2009 - 7.71%
    • 50 years to August 31, 2009 - 7.35%

    The Wall Street Journal seems to agree about the reality of stock market investing these days. They reported that the first decade of the 2000s was the worst ever for American stock market investing.
    "Investors would have been better off investing in pretty much anything else, from bonds to gold or even just stuffing money under a mattress. Since the end of 1999, stocks traded on the New York Stock Exchange have lost an average of 0.5% a year thanks to the twin bear markets this decade."
    Stuffing money under a mattress? Now there is an investment strategy that I can both understand and support. One will not experience riches, but one will avoid calamity. Without riches and calamity there is less potential for trouble. And trouble is something many people have been experiencing lately.

    The returns of a low risk strategy may be lower, but you have to also factor in the ease of GICs, and the peace of mind you have when you step off the stock market roller coaster. You will not get rich, but you will also not lose 50% of your personal wealth over the course of several days in the event of another near-death experience for capitalism. Free market troubles are not close to being over yet.

    For me a guaranteed, small interest rate is preferable to a large unearned gain that is harmful to all, and has the potential for massive losses.

    No wealth, no calamity, no trouble. This works for me.

    October 17, 2009

    Extreme Frugal Living: The Ultimate Household Budget

    Most people hate budgeting. It forces us to limit ourselves and we have been programmed to believe and act as if everything exists in infinite abundance, and we ought to have it now, if not sooner.  But look at where that has gotten us.

    I propose a very simple, easy to implement budget.

    The Ultimate Household Budget has two categories:

    1. What you need to survive, and
    2. Everything else.

    Category 1 consists of the basics, things every human ought to have. Healthy food, safe, secure, affordable shelter, clothing adequate for the climate, clean drinking water, systems to deal with waste, and access to learning experiences.

    Without these basics, many die every day. Every human ought to have them, and in a sane world every one would. If you have them, you are doing better than about one billion people on the planet.

    Category 2 consists of extras. Wants. Desires. Luxury. Extra. Expendable. Can live without. Contrary to popular belief, we will not die without the things in this category.

    This budget has one step: give up everything in category 2.

    Don't worry. You can start slowly. You can take months or years, if you have that luxury. But category 2 spending has to go if you have a shortage of cash, or wish to help the ailing planet. Everything you take out of category 2 helps you get out of debt, and stay out of debt, if that is your goal.

    And it lowers your ecological footprint dramatically.

    But won't it be boring? How can I live without (fill in the blank)? Humans are amazingly adaptable creatures. "Have much, be confused," Lao Tzu said, and if he is correct, then having less is the way to go. Couldn't we all benefit from less confusion in our lives?

    Is eliminating all category 2 spending unrealistic for you? Start by taking one thing off your list. Then remove a couple more items. When you realize you don't miss them, you will be motivated to cut more. Give the ultimate household budget and extreme frugal living a try. You will be amazed at what you can live happily without. Good luck.
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