Cheap and Cheerful Challenge: Mini Money Makeover

Since February is the shortest month of the year, it is the logical choice for a mini money makeover challenge.

Choose one:

1. Do not charge anything on any credit card for the entire month.

2. Eat out/get take out only twice this month.

3. Limit your Starbucks/Peet's/Coffee Bean habit to once per week.

4. Buy no new clothing items this month.

Or, choose your own adventure and write #5 for this list.

Share your choice with the class, please. And stop back and report your progress.

Money Mantra: Good Enough is Good Enough

My mantra for 2011 -- Good enough is good enough -- also connects to being cheap and cheerful. No more running out for that extra little gift, no more "if one is good, two are better". Know your limits and stick to them. Good enough is good enough. Thoughtful gift giving is better than over-the-top scrambling at the last minute. Get something cheerful and don't worry about the price tag. The love behind the gift is what matters. After all, my daughter's favorite Christmas gift -- her $3.99 Fancy Nancy underpants. Go figure.

Cheap and Cheerful wants to know: What is your money mantra for 2011?

Happy New Year!

December and January are expensive months. After the flurry of spending, what are you planning for your financial well being in 2011?

I've got a few ideas on my mind.

1. Save for more long term fun! For example, set aside more money for summer camps, weekend trips, and surprise getaways.

2. Invest in our infrastructure. Make plans for those needed window coverings, think ahead to replacing furniture, and rearrange existing furniture and household items to make the house feel new and fresh.

3. Keep focused on quality. One great pair of jeans is almost always better than two just average pairs. Gather together some nice items that will last for a few years. Look for super sales on super stuff.

Cheap and Cheerful wants to know: Any advice to add to my three ideas? I'd love to hear your suggestions on how you plan to stay cheap and cheerful.

Money Mantra: Time is Money

Don't let anyone tell you any differently: Saving money takes time. Whether it is printing coupons, scanning ads, or driving to an alternate store, it takes time to save a dime. But the reward is more money in your pocket to enjoy the other time in your day. I'd say that it's a win-win.

Cheap and Cheerful wants to know: What is the most time consuming part of saving money for you?

Money Mantra: Build a "Fun Fund"

How do you build a "Fun Fund"? It's easy. Save money when purchasing your essentials and roll that cash into your "Fun Fund". Using coupons at the grocery store might save you $15 a week. In just two weeks time, you'd have enough money for a pedicure without dipping into another category of your budget. Those sassy new sandals you have your eye on? Plan a use up the food in your pantry week and pocket the $25 dollars you didn't have to give to cashier at Safeway. See, saving money can be fun!

Cheap and Cheerful wants to know: How do you build your "Fun Fund"?

Money Mantra: KISS (Keep It Simple, Stupid)

I had a great Mother's Day walk today -- Thanks Geri! We got to talking a little bit about consumerism and kids and keeping it simple. When I got home, I remembered this great site with some excellent tips about simple living.

Cheap and Cheerful wants to know: How do you keep it simple, either for yourself or your family?

Money Mantra #11: Quit While You're Ahead

Repeat after me: I will not do any last minute shopping. I will not do any last minute shopping. I will not do any ... Got it? Remember that holiday gift list that you carefully created and pledged to stick to? Ah, yes, that one. It is ok to "quit while you're ahead". After all, how many of those last minute, add-on gifts end up being favorites? Be happy with the gifts that you've chosen, give them with a loving heart, and focus the other magical parts of the holidays. And those after Christmas sales? Avoid the impulse buys. Only get things you really need and will use up in one more Christmas season. Otherwise, stay home, brew some coffee and curl up with the See's Bridge Mix. After all, New Year's resolutions are right around the corner.

Money Mantra Number 10: The Best Things In Life Are Free

Just when the holiday gift giving season is draining your wallet faster than you can say "Ho, ho, ho", pause and remember that the best things in life are free. Give the present of presence. Put down the Blackberry and really cuddle with a loved one. Giggle about your day. Play Go Fish ten times in a row. Set aside fifteen minutes to call an old friend. Take an early morning walk around the block with your family and just talk and listen. Write down a list of funny holiday memories and put them on your fridge. Your presence is a gift both to yourself and others. No strings attached. No fancy wrapping required. No hefty price tag. The perfect present is presence.

Cheap and Cheerful (Holiday) Money Mantra: Sticking To It

I will carefully create and faithfully stick to my holiday spending budget. I will carefully create and faithfully stick to my holiday spending budget. I will carefully ... You get the picture.
While holidays are clearly a time of indulging in rich entrees, sumptuous desserts, and treating those you love to special gifts, it can also be a time for overspending. Creating a budget is task number one before any holiday shopping can begin. Take some time to look at your finances and determine a reasonable amount for your gift giving. Keep in mind -- a simple, thoughtful token of affection is more important than fancy packaging and big price tags. Spending time over a cup of coffee with a friend, rather than exchanging gifts, can be even more valuable. Or maybe this is the year to institute a "name swap" rather than buying for everyone in your family?

Cheap and Cheerful wants to know: How do you create your holiday budget? How do you plan your shopping to be sure that you stick to your budget? Please share!

Money Mantra #8: Admit Your Money Mistakes

John Powell wrote, "The only real mistake is the one from which we learn nothing." When you are trying to live cheaply and cheerfully, there is no question that stumbling blocks will be a part of the budgeting and spending cycle. Everyone has their weaknesses in saving money, whether it is "needing" the newest shoes, a penchant for too many lipsticks, overspending on eating out, or indulging in an electronic gadget that isn't as useful as it should be. In order to overcome your money missteps, I propose making a "no buy" list and keeping it in your wallet.

Mine would read: "No black t-shirts, no stationery, no seasonal items, ...".
By keeping a no buy list, I am identifying where I spend money that isn't needed and reminding myself of my past errant purchases. When I can avoid my money mistakes, I can move those dollars toward something else on my "to buy" list.

Cheap and Cheerful wants to know: What are your "soft spots" in your spending? How do you avoid these money mistakes?

Money Mantra #7: Avoid bewitching "bargains"

Are you buying that orange striped polo shirt just because it is 75% off ... or do you really need an orange striped polo shirt? Do you even like orange striped polo shirts? And those notebooks you fished out of the bargain bin? Do you need another notebook just because it is $.99? Perhaps you've been bewitched into thinking that you're saving money because the prices are so appealing? But are you really saving money if you didn't need the item that was on sale in the first place? Three simple rules to go along with this Money Mantra: Make a list of things you actually need. Look for great deals on those items. Don't buy anything else.

Cheap and Cheerful's Bottom Line: If you would not want the item if it was only offered at a slight discount, don't buy because it is offered at a steep discount.

Money Mantra #6: You Are Enough Without More Stuff

I would be the first person to admit that I want a lot of things that I don't have. Like an iPhone would be sweet, or a new 50 mm lens for my camera, or a few more pairs of premium denim. Maybe a Kate Spade purse, tubs of super duper line erasing eye cream, a drawer full of J. Crew tees, a few Tiffany necklaces, some Bernardo sandals, or the cash for a weekly mani - pedi. Wanting stuff is the easy part. Believing that you have enough and are enough without more stuff is difficult. Even in this down economy, it is easy to buy into the notion that who you are is equal to what you have. But stuff is just that ... stuff. Letting your material possessions frame your satisfaction with life is a slippery slope. But how does one go about convincing oneself that you have enough? Do you set a shopping moratorium and buy nothing but food, groceries, gas for three months? Do you donate unused clothes or household goods to charity? Do you simply make a list of what you are grateful for on a regular basis? Cheap and Cheerful would love to hear your "answers" to this dilemna.

Money Mantra #5: Balk at Bad Bulk

Some people say, "If one is good, two is better." But is this always true? After all, do you really need 40 rolls of paper towels in your house at one time? If you know you can consistently find paper towels for about $.66 per roll, do you need to spend $40 on paper towels in a single shopping trip? After all, you can return to the same store and get the item for the same low price as needed. For the purposes of minimizing house clutter and freeing up cash for capitalizing on better bargains, I recommend balking at bad bulk. Remember: buy one, get one half off does not save you any dough unless you need both of the items you are purchasing. And spending more just to earn free shipping does not do your wallet any favors.

Cheap and Cheerful wants to know: How do you draw the line between good bulk shopping and useless bulk "deals"?

Money Mantra #4: Time is Money

There are two simple components to Money Mantra #4:

1. Planning ahead will save you money.
Have you ever been stuck paying $14.95 for overnight shipping because you waited until the last minute to purchase that must have gift? Or did you cave to spending more than you planned at the grocery store because you were in a hurry? Maybe you didn't take the time to make a budget for holiday gifts and overspent due to poor record keeping? Planning ahead can save you cash and frustration.

2. Chasing the best deals can sometimes cost you money.
If you are driving around town to three or four stores to save less than $20 per month, you are actually wasting money. After all, figure in gas prices, your personal sanity, and your valuable time. I'll bet you $20 that those three details are worth more than $20! Let your "fingers do the walking" by perusing sale ads, checking online deals, or even calling stores to check prices before you head out. If you get the right person on the phone, you can get a price check and confirm that the item you seek is in stock. (And if you really get the right person, they will offer to put the goods on hold for you!) No more driving across town for a good deal just to find that the item is sold out! No more scouring every grocery store for the cheapest peanut butter. Just get to know the lowest price at the store closest to you and buy the peanut butter only when it is on sale!

Take heed of the immortal words of Ferris Bueller: "Life moves pretty fast. If you don't stop and look around once in awhile, you could miss it". Time is money; shop smart, plan ahead, and save your sanity.

Cheap and Cheerful wants to know: How do you organize your shopping trips to save both time and money?

Money Mantra #3: Sale -- our favorite four letter word

"Life is too short to pay full price."

At Cheap and Cheerful, sale is our favorite four letter word. It does the soul good to see those glossy SALE signs. 25% off is the "new black". Paying full price is so00000 1999. Deals abound in this economy, so how do you best capitalize on them? Share your tips with us! And as you shop, keep in mind Money Mantra #3. We promise that today's piece of advice will never steer you wrong.

Cheap and Cheerful wants to know: Do you have a favorite sale that you shop every year?

Money Mantra #2: Less is More

"Less is more." -- Mies van der Rohe, architect

Although it is perfectly human to want something we don't have, our desire to amass material goods can sometimes become unhealthy. If we are caught up in a cycle of purchasing things that we don't need, it is more difficult to appreciate what we already have. I know I can stand in front of my well-stocked closet and exclaim "I've got nothing to wear" without thinking twice about my false statement. But if I took a minute to examine my collection of sundresses, skirts, and sandals, I could easily come up with a decent outfit. If I am surrounding myself with material goods that aren't essential and useful, I am cluttering up my physical space as well as wasting mental energy on strategizing uneccessary purchases.

My version of the Less is More mantra looks like this:

If you don't need anything, don't buy anything.

If it is time replace an item you own , invest in a quality item at a price point you can afford.

Once you've purchased the new item, do something with the item you've replaced. Pass it along to a friend, donate it to charity, or sell it at your next yard sale.

Cheap and Cheerful wants to know: How do you prioritize your need to buy versus want to buy list? Is your calendar bursting at the seams with activities and projects? Do you have a tendency to go overboard when planning birthday parties? Perhaps we can share some ways to avoid these common scenarios and learn from each other?

Money Mantra #1: Buying Cheap

"If you buy cheap, it is always cheap." -- Ike

Saving money isn't just about getting a great price on an already inexpensive item. After all, would you want a pair of Mossimo heels if you could get an equally fabulous price on a pair of gorgeous Kate Spade pumps?

Being a savvy shopper takes some time but it comes with some awesome perks.
Part of this blog will be dedicated to sharing our savvy shopper techniques with you.

But for today, our new money mantra is "If you buy cheap, it is always cheap."
Keep this in mind: Those Kate Spade pumps will last several years while a cheap imitation may only last a season. We'll help you avoid "buying cheap" so you can invest your hard earned dollars in a quality item at a competitive price.

More later ...