I don’t know about where you live, but “consumer prices” here in the Southeast are waaaaay out of control. Gas is up about 50 cents a gallon in the last 6 months and about 20 cents a gallon in the last two weeks. Emails about boycotting certain gas stations to force lower prices (which will not happen) will be circulating again soon and the “lowest gas prices in your area” emails have started now. I’m more seriously than ever considering buying a (used) hybrid vehicle as I don’t see that gas prices are ever going to fall substantially. Perhaps back down to $3.00, but not lower than that.
Because of an argument with Sonya over grocery prices about a decade and a half ago I am the primary grocery purchaser in our family. We do pretty well for a family of five (until August when it becomes four) but have seen our grocery bill skyrocket over the last few months. Due to the water shortage in Georgia local water prices have risen about 8% for 2008. Building materials and supplies are up. I haven’t checked clothes lately, but we’re about to have to spend a king’s ransom to provide proper attire for our two youngest.
I think I inherited frugality from my Mother. As early as I can remember she was clipping coupons and looking for the grocery store that had the best prices. Gas, at 40 cents a gallon, was hardly a concern. Most any of my kids would bear testimony to my unwillingness to eat out, leave lights on, buy branded clothing and probably things I’ve forgotten. Thankfully, Sonya balances me though we’ve had quite a few “discussions” over the years.
Over the next couple of posts, I’m going to deal with practical, easy ways to save money. Much of it will have to do with a grocery buying strategy that can save up to 30% of your monthly grocery bill. Some of it will have to do with utilities and living expenses. Perhaps you’ve put some of them in practice, perhaps some will be new to you but it will be an exercise on how to squeeze blood out of a stone.
Marty,
When I retired in February, we bought a new Prius. I looked at that as simply an investment on which I would make some money (seeing that my money market account was making something under 3.5%). Based on the fact that we’d averaged $244 a month for gas in the prior 4 months, and seeing that we’re now spending about $60, it’s been a really good investment for us. On the order of 7-8% return.
I think I’ll buy a whole fleet of them. Who KNOWS how much we could save?
Comment by Bob Cleveland — April 24, 2008 @ 8:35 am
Bob-
When the hybrids first hit the market there was all kind of worry about battery replacement costs. Recent research I’ve done indicates that very, very few of the original hybrids have even had to replace their batteries though they are around 7 years old. Really good investment indeed.
Comment by Marty Duren — April 24, 2008 @ 8:39 am
I do our grocery shopping too. I look forward to learning from your wisdom. I need to save all the money I can.
Comment by Kevin Bussey — April 24, 2008 @ 8:53 am
Always looking for some good ideas about cutting expenses, so I’ll be tuned in as well. BTW, I thought the expression was squeezing blood from a turnip–not a stone. Maybe stones bleed in GA, what do I know?
Comment by Gary Snowden — April 24, 2008 @ 9:18 am
Gary-
I had heard it both ways. In this economy I think “stone” is more appropriate ;^)
Comment by Marty Duren — April 24, 2008 @ 10:21 am
Marty,
Same here with Marsha and myself. We’ve started getting some of our groceries at Aldi, a discount grocery store. It has saved us money, espeically on milk. My boys drink about 2 gallons a week. It’s more expensive than gas! We buy a lot of discount brand items at Kroger and our gas as well. If you buy more than $100 worth of groceries at Kroger you get a 10 cent discount on your next gas purchase.
We’ve about quit eating out as well. Soft drinks and tea are too high at restaurants, not to mention the main items on the menu! I have noticed two restaurants (Applebee’s and Olive Garden) recently that no longer publish the prices of their drinks (tea, soft drinks) on the menu. Sweet tea is about $2.69 a glass at most eateries. It is ridiculous!
Also, Marsha sometimes scans the weekend newspaper coupons. She plans meals for the week around what’s on sale at the grocery. This is pretty easy and it saves money too.
Comment by Phil Wages — April 24, 2008 @ 11:21 am
Sounds like a very practical, helpful series, especially today. Gas prices are OVER 3.50 a gal. this morning.
Comment by brad brisco — April 25, 2008 @ 9:21 am
I’m hoping you can give us some good ideas Marty. I just paid $3.67 per gallon for gas this morning. Thankfully, Amy does our grocery shopping, as the reality of those prices might drive me into a panic. :)
I look forward to what you have to say on this subject.
Comment by Joel — April 25, 2008 @ 4:18 pm
Oops. Pressure’s on now…
Comment by Marty Duren — April 25, 2008 @ 5:08 pm
Many places you can travel around the world don’t have a/c. Tough call in Georgia, (as I know growing up in the South), but one can definitely lessen their usage. We also don’t even have a car where we are now – talk about savings! Again, harder in America, but it is amazing the places one can walk if one is willing and then the extra piece of cake isn’t so bad for you.
Comment by Bryan Riley — April 26, 2008 @ 2:47 am
I just have to add this. People whine (and I know you aren’t whining) about 3.50 gas prices. In England the price is about 2.25 per litre. That would be well over 8 bucks a gallon. And, the higher prices are seen of course in natural gas and other prices as well. People ride bicycles, walk, etc. Even long distances. They don’t heat their homes to 70 degrees (or higher) even though it is much cooler here. And, Americans whine about their pocket book when the lower income Americans are richer than 90% of the world. We drink coffee, sometimes at 2 bucks a cup from Starbucks, we eat out, we drive everywhere, we have extra cars, we have a TV set and high monthly cable bills (and then usually have about 5 TVs, not just one or zero), we have multiple computers, we have houses 5 or more times the size of houses in other parts of the world, we have… we have… we have…
You want to truly live more frugally? Get off the merry go round and the keep up with the Joneses roller coaster. Eliminate credit card debt. Walk more. Eat less. Work less and live more simply. Don’t shower every day or wash clothes every time they are worn (unless you are an 8 year old boy and in the dirt hourly). Wake up! It isn’t the economy that stinks… it is the way we live!
Comment by Bryan Riley — April 26, 2008 @ 2:52 am
I’m looking forward to reading your series. I would add to what Bryan said–in Oklahoma we rely heavily on the oil business, and at $120 a barrell, there are a lot of mom and pop operations that are doing business again. A buddy of mine owns a tool business in Tulsa–they sell to oil rigs and stuff. He said he would rather pay 3.50 a gallon for gas and be able to sell tools in Tulsa.
Now, how to practically eliminate concern about the price of gas. Ride your bicycle to work. If your commute is less than ten or fifteen miles, you could get to work in under an hour. Because I work all over state, I can’t commute to work anymore, but I really miss it. I hardly ever drove the car, filled up maybe once a month, and didn’t care what the price of gasoline was. Oh, and I lost like, a hundred pounds.
The first week in May is Ride Your Bike to Work week. Give it a try!
Comment by jasonk — April 26, 2008 @ 9:26 pm
Sounds like a great series. I find that I now drive more by Tachometer than by speedometer (but within the limit) and that makes me change my driving habits and has saved me some gas.
Comment by Tom Bryant — April 27, 2008 @ 9:20 am