The following article was sold elsewhere (as a NON-exclusive article) and written by me and I'm offering it here for Gather's readers, in a version with some different details for Gather readers:
As soon as I saw 20/20 on August 31, which featured the Economides family of Arizona (yes, Economides as in "economy"), I knew I had to get their book, America's Cheapest Family Gets You Right on the Money. I was intrigued. How could they possibly raise a family of seven on approximately 37k ($37,000) a year, and why were we struggling in areas where they weren't, even though we had far less people in our family, a decent retirement plan and benefits? What could we do better?
I had to know. Apparently, everyone else felt the same as I did, because it took longer than usual to find it at my book retailers, and the book hit the New York Times best-sellers' list, adding to my eagerness to see it. As soon as it arrived, I sat down and began to glance through it.
Here are some key factors that set this book apart from typical money-saving books out there, many of which just recyle the same old info, over and over:
1. It does not have to be read from start to finish. Pick your spending challenge (ours was grocery bills) and work on that if you wish. The book is very user friendly that way.
2. They don't suggest there are "quick fixes" to financial problems
3. There are three levels of steps for each chapter, divided into sections called The Timid Mouse, The Wise Owl and the Amazing Ant. The Economides family has realized that the journey to more frugal living is not always easy and so they've made the transition easier. I found this a wonderful innovation!
HERE WAS OUR PERSONAL EXPERIENCE:
I was delighted to discover that the Economides family, also nicknamed "America's Cheapest Family", had similar goals to ours. They wanted to raise financially responsible kids, purchase a home and pay it off relatively quickly, buy their cars with cash and go on vacation without resorting to credit cards to cover the cost. I also related to their desire to keep grocery bills to a minimum and maximize savings. So far, so good.
So we decided to jump in and just start using the information in this book. We weren't drowning in debt so we weren't looking for quick fixes there. But there were areas we wanted to improve immediately, specifically saving more and spending less on our groceries, as well as avoiding credit cards like the plague.
One of the absolutely unique parts of their plain is the emphasis on starting where you are and building up to a level of economizing which you can handle, one that meets your comfort level. To that end, the program has three levels, from beginner, also known as Timid Mouse, to advanced, nicknamed Amazing Ant. However you feel about those names, there is no judgment implied but a compassionate, supportive understanding of how difficult it can be to move towards frugality. Sometimes baby steps make it easier. They certainly did for us.
We started with the section recommended by the family, the one focusing on groceries. According to the U.S. Department of Labor, the Economides note that the average American family of four spends $709 per month on groceries or $177 per person. But this special family spends only $350 per month. At this point, I admit that I felt downright skeptical. Could we actually spend that little?
The first tip we decided to try was to shop only once a month. Why? Because each trip to the store raises the risk of impulse purchases, with the average person buying a whopping 54% more than intended, according to a study done by Jeffrey Inman at the University of California, Berkeley. I certainly didn't want to belong to that impulse buying group any more. Following the suggestions in the book, we saved coupons and used the grocery ads to help figure out what was on sale. We also had our menu plan worked out for the entire month. If you find this step daunting, you can find plenty of sites for frugal menu planning on line. One of my favorite sources of recipes is at allrecipes.com, a site where you can specify types of menus, from easy to thrifty. Also, if you prefer to take baby steps, you can start by planning only a week's worth of menus at a time. Gauge your comfort level.
After planning our menu, we set out for the store, took a breath, walked boldly inside and set to work. Several hours later, we watched as the checkout person totaled our purchases and deducted the coupons. Then we looked at the total and blinked our eyes. We'd done it. We were just under $350 dollars and we didn't even feel deprived. We had plenty of things on there that we'd considered discretionary along with the usual basic items. We'd also taken advantage of a sudden "managers' special" to stock up on beef at a very low price. That would go in our freezer. We felt like we'd won the lottery. Best of all, we'd just shaved $350 off our usual grocery bill, which could result in over $4200 in savings a year. Not exactly small change but significant savings. I was truly shocked - and delighted.
Because the program doesn't have to be followed in any particular order, we decided to tackle car expenses next. Again, I was skeptical, thinking that we'd already done what we could in this area. I was wrong. We had one car we'd bought with cash so we were that much ahead. We needed another but didn't want to make car payments. Although we'd assumed we'd trade in our older car, we sold it instead and for more than we were offered as a trade-in. Then we turned around and bought a lovely used car for cash. In one fell swoop, we'd eliminated those $400 car payments per month. Savings? Plenty, compared to facing car payments again.
Then we called our car insurance companies and started negotiating. We were shocked to discover we could save hundreds per year by simply noting we had a clean accident record, lived close to work and were willing to enroll in a Safe Driving Course to review key auto safety concepts.
By this point, I have to admit we were suffering from some withdrawal pains. This had been a drastic change for our family. So we moved on to what I consider a key chapter in the book, the one on attitude. This was painful but also enlightening, as we explored our deepest feelings about money. To do this, we looked at all the values we'd gained over the years that related to money, from our childhood, our parents, our friends and even television commercials. As we dug deeply into our financial psyches, we realized that we were emotional spenders. Feel good? We'd celebrate by going out to dinner. Feel bad? We'd comfort ourselves with a movie. Feel bored? We'd go shopping.
We had to get a handle on this and we replaced old attitudes with new ones. We began to feel proud about living frugally, not giving in to fads, repairing rather than replacing what was cost-effective to do so, learning how to manage basic home repairs and truly recognize the benefits of "less is more". These were all suggestions we'd gotten from "America's Cheapest Family" and I'd say it was the turning point in our financial life. From attitude came acceptance of this new, less materialistic lifestyle. For the first time, we saw our savings start to grow, not just a little but by quite a lot. We focused on both our short-term and long-term goals. This kept our target purchases clearly in sight as well as our desire to have a comfortable retirement, get our kids through college and more.
If you want to know more you can visit the family's website called TheHomeEconomiser at http://www.homeeconomiser.com. You can also find out how to subscribe to their newsletter here.
As for us, we're aiming to cut our grocery shopping down to the 12 times a year that the Economides manage. I'm still trying to wrap my mind around that possibility (can we do it?) and looking forward to the extra time.
P.S I did want to add that Gather cooks and people who contribute quick and inexpensive recipes have been a BIG help in reducing our food bills and saving time and money. Thanks!
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Comments: 56
I like saving money
I'd still like to spend less. One tremendous economy we finally made this year was that my wife stopped buying clothes for our married daughter who has an excellent job.
I have been stretching my money for many
years and have saved any which way I could. I
buy my clothes at Sals Mall (salvation army) and
the Goodwill stores. There's also a couple used
clothing stores here where I shop! I don't buy
used footwear! I wait for things to go on sale!
Here are some tips I didn't mention that we use:
1. Freecycle. Nearly every state has one and you not only save money but possibly time as well. Everything has to be given or donated FREE OF CHARGE. We have gotten desks and bookcases and we have given old countertops (which were turned into potting shed counters, a nice stained glass entryway light that we were replacing (used by a savvy guy who turned it into a lantern, probably was lovely), even garden plants. I gave away tons of clothes in excellent condition when our son hit a growing spurt and was out of his new pants in less than 3 months!
2. If you get to know the guy at the meat counter, he'll often reduce meat prices at the end of the day, so check that out.
Great article, Jane.
Good point about retirement savings. I always love those company plans where your employer matches a certain percentage of your savings. That is free money, especially if it is pre-tax dollars. Of course, as with any investment, it is important to check out the investments in the company plan and the options available. Some companies are now offering long-term health insurance plans.
Yes, purchasing food only one day of the month IS do-able. When we were first married until about the time that our kids were 6 years old or so, we only shopped one day a month.
Milk CAN be frozen.
Also, Powder milk is great to cook with.
You can purchase powder cheese, powder eggs and so many other things in powder form. We puchase them in large number 10 cans. We even purchase our Beef and Chicken Boulion in #10 cans. You would be amazed how long they will last. It works much better than purchasing the small jars of boulion. The larger cans are more flavorful also.
I was born and raised in the country where it was either live like this or die. :)
Yes, milk can be frozen but I find it works best if you add about 1/4 teaspoon of vanilla extra to a huge plastic or paper carton first. Also, you need to pour a bit out (just drink it) to allow expansion. Finally (and yes, this IS a pain but effective), try to remember to pour the milk out or stir it or just shake the container about once per hour and you'll reduce any graininess or off-taste as it defrosts.
I like powdered milk too, great to have on hand when the power is out or you can't get to the store.
I don't impulse shop anyway-- on the contrary, I hate shopping and I often forget even what I need to buy. I do make sure I go without the kids whenever I can though--they're a serious danger.
Congrats on the feature!
On the milk thing.....I went to the website and they say that they freeze their milk! I am glad that I use Almond milk.....I don't think that I am brave enough to freeze regular milk!
This article is great Jane. We show once a week, and I would say we pay about 325$ a month. Some weeks, I try to stretch. You have inspired me to attempt shopping twice a month instead of four.
We also have a nice used car, and I love the fact that we have no car payments.
Freecycle has been such a great help for us. We moved here from Europe in February with nothing we could not fit in our suitcases (saving thousands on shipping our stuff). My brothers are coming in November, and they will also be bringing a few suitcases for us, and I have a friend coming in January as well....but yes we had no furniture except my son's high chair from Ikea, which could actually fit in the suitcase.
From freecycle we've gotten bookshelves, dressers, sewing machine, toys, clothes, rugs, brand new Babybjorn potty, children's books, educational material for kids and much much more. As we had nothing, we've not had much to give, but I found some ride-ons that were about to be thrown out, washed them and freecycled them, the same thing with a desk and I've offered lots of coupons. I also get all the free pet food and donate to the local animal shelter....this is one of my ways of contributing.
The only things we've bought new were a crib, a loft bed for our oldest son an a vacuum cleaner. The rest we've found at garage sales, for free when people were getting new stuff etc., it really is possible to cut spending.
http://bestoftoday.gather.com/
I thought people would like to know how well the suggestions in the book work and whether it was workable or not, as we have a very busy life, not time time - typical family today, I think.
As far as "pitching" an article, the editors you contact really have to do with the slant of the magazine and how well your article fits their target readers. I am going to write an article about that, with some tips. Keep an eye out for it or I can try to remember to send you a "heads up' about it if you send me a Gather mail requesting a "heads up".
One key to a good pitch is getting an image of the magazine reader in your head. Don't try and pitch an article like this to a magazine called "Big Spenders", LOL (I have NO idea if that is a real magazine title.
Hildy - Would love to read your book!
http://bestoftoday.gather.com/
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Great article.
I have been saving like this myself. It can be done.
I get my fruits & veggies at local markets or farmers markets, buy meats in bulk, follow sales and use coupons. I can always use more tips!
:)
I live in Arizona and I never heard of this family - but then I don't really watch "news" shows. Another good program for saving money is: Financial Peace University with Dave Ramsey - it is christian based and very good advice.
Do you think they have this book at the library or it's too new?????????????
Thanks for the tip and the review I will try to check this out - every little bit helps!!
Food bills are all dependent on how much you want to spend. Growing a small garden for example or getting involved with crop shares will provide huge savings. Coupons are great, and you can often find coupon swaps. Better yet is calling and emailing for free trials..most companies will send coupons for free items. Rebates also add to savings.
Car savings are great also, but i suggest cutting cable tv, internet via college, and phone services are getting cheaper.
Car insurance, shop around,
Yard sales big savings
:)
Here is one, we are very active and like now, with football and soccer, every night is either practice, game or boosters. Most youth games and high school sell food and vend drinks. We alway bring our own. Have an igloo cooler and bring a dozen hotdogs and buns wrapped in napkins. Then the drink is often water, icetea or lemonade, throw some apples in, and to make it a treat some homemade carmel.
Instead of stopping on road trips to the games, sandwiches and other portable meals work better then stopping at McD's.
Our High School football team NEVER stops at food joints..Booster club provides them food and drinks...so no kid goes without..including also the cheerleaders.
Internet can be free in most areas if you have students..colleges and highschool will allow access often.
Car Insurance- Shop once a year for rates, as often companies will move rates higher over time. Check for affliations like military, unions, groups, because many insurance companies provide discounts if you have a connection to a group. Also check and ask for discounts. Sometimes things like edging the vin number on the windows will give 5% off..
Birthday Parties, arrange them with other families and have a nice party and split the costs. Make your own cake, its easier then people think. Theme parties are great and you can trade materials often with other partents.
Yard Sales-love them..gold dig, find that stuff you can not afford for pennies.
groceries, I suggest the opposite..shop on a weekly basis. 1 weekend of month, then once a week, and always the last day of the month. REASON?
First, America often tosses items not used out because of spoilage. I shop once a week and never stock up on items with shelf dates. I also have found certain stores have trends. I know for example the local DECA on long holdiday weekends will reduce meat on the Sunday prior, since Monday-Tuesday they would close. Recently was able to get ground beef for 99 cents (93%) and some ground turkey for 89 cents a pound.
Stores will rotate stock and often clearence close dates. I often will take advantage of it. OH and never think a price is set..If you want to buy 20 pounds of meat, ask for the manager and you can often get a discount.
Clothesline people- Huge way to save money is hang them clothes up. Also never use a heated blow dryer. The heating elements suck electric currents.
Hot water heater..one of the largest energy users.. check at updating if its an older system.
So many more ways..once you become a cheap miser, you learn how to pinch pennies.
You do not strike me as a cheap miser but a frugal person who knows not to throw away money :) My mother, one of 8 siblings who grew up in the Depression, can stretch her money further than anyone I know, except perhaps you. Those "small savings" do add up, as you know when comparing what you bring to the vending machines and other items you'll find on the road. When we vacationed and drove to our destination one time, my husband thought I was silly to bring along food until he compared what it cost to eating out along the way, leaving us extra money for the things we really wanted to enjoy. We don't vacation yearly but when we do vacation, it is on money that is left over after we've put aside money for retirement, health insurance and necessities. It is planned spending that doesn't threaten our lifestyle - or future.
I think the two of you , my mother and you, would give each other a run for the money. She is pretty old but she still grows, dries and freezes her own herbs, uses fresh ones in the summer, cans veggies, dries clothes on the clothesline and makes sure she doesn't waste a thing. She has taught me the art of sewing, making quick, inexpensive meals, planning ahead, etc. She still sews a good many of her clothes unless she can get them cheaper at a good thrift shop but she can usually whip up a lovely skirt or dress in no time with fabric on sale.
One possibly questionnable expense is that we have a yearly home inspection by a trusted inspector. Why? Because even though I know how to do basic home inspections, this person has caught potentially expensive behind the wall leaks and holes in our roof that we could not have found (the roof because it is at too steep an angle and my husband isn't that agile, nor am I) . The bathroom alone could have deteriorated to a point where the floor rotted! So I do feel better with that expense, although I don't know if it saves money or not.
This is a good read. It's another article that should be featured, especially in these economically trying times. Thank you.
This spring, I'm starting a garden, and planting a pear tree. My whole family loves pears, and I'm sick of spending top dollar for produce. Ridiculous!
If I'm extra-motivated, I'll plant an apple tree too.
Reminds me of the cost of snow removal... a half dozen shovels is cheaper
I will have to link to it so that I can keep coming back to it to gather the concepts it contains.
GREAT JOB!!!
THANKS!!!
I think your point is valid but i also think ATTITUDE about money and being able to resist fads and trends is crucial.
My mother, a Depression era child and teen, has never cared about "keeping up with the Joneses". The fact that many people stood in line for the new I-Phone tells me something about financial values. I bet a lot of those people could not tell you what a decent savings rate was or anything about what is truly necessary or discretionary when it comes to money.
Even some necessities CAN be gotten for far less, as Donald C has pointed out. His tips are solid and I've found ways to get brand new items for free, with effort and simply paying attention to good deals. People turn up their noses at garage sales and other places where you can get items for about 10% of the retail price, or less.
Sometimes it does take getting out of that "herd mentality" and really thinking creatively but my mother literally had to come up with ways to make do during a rough economic period in our nation's history and I see how she is not a slave to home trends, still has a perfectly good (if outdated in color) countertop,etc. She doesn't give in to pressure to have the latest things as long as what she has is functional and works well.
My kids have name brands, LL Bean, Nike, New Balance, Gap, Old Navy, and so on. I take advantage of sales and clearences. Footlocker.com for example provides great sales and I buy on the average 5 pair for 100.00 and then use the coupons and codes I find online. Last purchase the normal price on 5 pair was over 600.00 and I paid 78.00 and that covered shipping.
Vacations-family costed less then 2,000 including gas to drive from Maine to florida and back... Include theme tickets.
We live in one of the cheepest fixer uppers in our area of northern Illinois and still pay 1500 a month for mortgage and taxes... the taxes is what is so bad here....500 a month.
That is mostly what I meant when I said it would be hard today to raise that many kids...HERE..I should have said ;-)
I guess renting would make it easier, but them you don't own your own home and would have to move your kids around a lot like my mom did when I was a kid...
I am a garage sale and second hand store queen...so I know what you mean there! LOL!
Ouch! We live in a state with a relatively low cost of living but one of the first things we did was pay off the house. I just don't like debt. Before that, our housing payment was about $900 a month and I just hated to pay it. Yes, I know there are tax deductions but we have to pay real estate taxes so I figure that is as much "rent" as we want to pay, lol!