Sunday, March 3, 2013

MEETING INCREASING COSTS WITH FRUGALITY

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YOUR PERSONAL GPS
You might reach your life's destination better if you remember
BEING FRUGAL DOES NOT MEAN BEING CHEAP!
IT MEANS BEING ECONOMICAL AND AVOIDING WASTE
Catherine Pulsifer

THRIFT IS NOT AN AN AFFAIR OF THE POCKET BUT AN AFFAIR OF CHARACTER
S. W. Straus

GRASSHOPPER OR ANT--YOU DECIDE

HE WHO CANNOT ECONOMIZE WILL HAVE TO AGONIZE - Socrates

Being frugal can be philosophic or even spiritual discipline.  It can be about more than just cutting costs and saving money.
It is the practice of acquiring goods and services in a restrained manner, and resourcefully using already owned economic goods and services in order to achieve long term goals.

The sharp increase in coupon use as indicated by this chart is a good indication of the economic future.

Continued high unemployment, promising to go higher, increasing costs of food and gasoline accompanied with tax increases coupled with the public's justified lack of confidence in the government leads the public to start looking for ways to save, like increasing their use of coupons.

  
In anticipation of a further down turn in the economy, we started to cut back on our unnecessary expenditures a year ago.  A prime example is to discontinue the month long beach party we have gifted to our family and friends for the last 23 years.


Somehow, the government simply cannot find costs to cut.  Uh, how about not spending $1.5 billion, that's billion with a B folks, on cell phones for employees.  I buy my cell phone, don't you?  Or, a million dollar study on what the astronauts could eat on Mars. Really?  ON MARS? Yep! Hard to believe, huh?

What can we do about higher prices?  Use coupons?  Sure, my granddaughter Jennifer makes coupon use a way of life.

Or, buy cheaper.  When stores advertise a "loss-leader" item at drastically reduced prices to get you in the store to "bait and switch", we will buy a year's supply of the item, like these tomatoes at half price.

I told my wife, Julie, to buy two cases.  She did.  Like the Campbell tomato and mushroom soup  which I bought a few cases of recently at Sams, the case prices were still around $7.00, the same as a year ago, but the case size had gone down from 24 cans to 12 and 10 cans.  Julie bought two cases of tomatoes at the large grocery store at about half price per can, but there were only 12 cans to the case.  She will go back to the store for two more cases. We are not out of tomatoes but the price is right.

In economics, as with the rest of our lives, we can plan and act or simply "drift down stream".  We plan to live our lives under our rules and act accordingly.  You can do the same!

THE ART IS NOT MAKING MONEY, IT IS KEEPING IT.- Proverb

God Bless You and Yours

GOD BLESS THE USA

1 comment:

Phatmom said...

Good advice, Cuz! You're one of the smartest men I know.