Released April 24, 2009
LITTLE ROCK - Frugal living is back in fashion as gas and food costs take an increasingly bigger chunk out of consumers' budgets.
"And let's face it, a dollar doesn't buy what it used to," says Laura Connerly, extension family resource instructor with the University of Arkansas Division of Agriculture.
"In this time of economic distress, families are looking for ways to cut expenses and get the most for their r money," she says.
Good planning is the key to financial success, according to Connerly. As the economy shifts every few years, your best protection for financial security, in good times and bad, is to practice recommended financial management skills to include: Setting financial goals, living within your income and protecting your assets.
The U of A Division of Agriculture offers the following tips to help you get the most from your dollars. They include:
- Find the best buy. Shopping several places and comparing prices to help you get the better buy.
- Use wisely. Make the things you buy last longer by taking proper care of them. This can include taking better care of your clothing so they'll wear longer and practicing safe food handling practices to prevent food spoilage.
- Substitute. Before buying an item, ask yourself if a lower-priced item will do the job just as well. Use store brands and generics instead of name brands. Rent a video or DVD instead of taking the family to the movies.
- Share it. Stretch resources by sharing with others, rather than letting it waste or join a car pool.
- Find it free. There are some items that are available for free. Use public parks and playgrounds for exercise and/or borrow books and audio from the library rather than buying them.
- Rent or borrow it. When you need something for a short time, it could be cheaper to rent it than to buy it. Rented or borrowed items must be returned in good condition.
- Trade or swap. If you have items in your home that you no longer use, trade them for things you need or trade your talent or skills for help with items such as home repairs or other small jobs.
- Make it. Sometimes it's cheaper to make something than to buy it, but it means you must use your time and skills. Make sure the cost of materials is cheaper than buying the finished product.
- Watch so-called phantom money. Keep track of the money in your wallet. Cut back or cut out spending on snacks, phone calls, movies, magazines, eating out, CDs, DVDs. Stick to your shopping list and avoid impulse buys. You can use the extension fact sheet Expense Recordbook MP306, to track phantom spending.
- Don't buy it. Ask yourself if you really need this item or if there's something you need or want even more.
"Learn to say no to yourself, to your children, to salespeople and to things you feel pressured into buying," Connerly says. "Doing without one item can help you get something else you want or need more. Beware of shopping just for fun; it can increase impulse buying."
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http://www.uaex.edu/news/april2009/0424money_living_frugally.htm
Contact: Elizabeth Fortune, (501) 671-2120, efortune@uaex.edu
