The Next Rich Girl

The $20 Christmas Challenge

 It should come as no surprise that this Christmas is going to be a bit more frugal than ones past. (Well, okay, last year was bad too...) 

The recession is allegedly over, but my own personal recession is still going strong (despite glimmers of light at the end of the tunnel).  But, my husband and I had been avoiding talking about the looming holidays and the expensive gifts that go along with it.  I think, in a way, we'd both been hoping that we'd get some sort of windfall (he'd land a big client, I'd land an awesome freelance gig, Publisher's Clearinghouse would call or whatever) and then we'd get to go back to the old days - shopping spree galore!

But, a few days ago, we realized that we needed to talk about the elephant in the room: the juxtaposition of our shrunken bank accounts and our desire to give each other really fabulous and meaningful gifts.

We'd managed to finish up our shopping for our families (on a budget of course), but it didn't really leave either of us with much more spending money.

So, rather than go into debt or freak out, we made a deal. 

We're calling it the "$20 Christmas Challenge."

Things to be Thankful For...

It's that time of year again. 

Turkeys are about to be popped in the oven.  Pumpkin pies are being made.  Families are coming together across the country.  It's the time of year that we all just slow down and think about what we're thankful for.

But, it's also the time of year where some of us get carried away.  We worry about the food we're preparing.  We start to think that if everything isn't just so, the whole holiday will be ruined.  If the napkins don't perfectly complement the dinner plates... if the centerpiece isn't hand-crafted.... if the turkey hasn't been brined overnight... the list of demands we put on ourselves goes on and on.  For some reason (let's blame the media, shall we?), even though we know our families love us unconditionally, this is the time of year when we all start thinking that holidays need to be perfect.  We start to think that if it isn't absolutely picture perfect, the whole holiday is ruined.

Today, I just want to take a moment to tell you that that isn't true.  You don't need to overwork yourself.  You don't need to spend a lot of money for gourmet stuffing and new plates.  These aren't the things that make the holiday perfect.... it's the ability to take a day or two out of your schedule and be together with the people you love.

Don't believe me?  Then take a second and think back over your favorite holiday moments.  I bet if you really think about it, at least one of those memories is of a thanksgiving gone bad... the time the turkey overcooked and you doused it in double the gravy (isn't that the best part anyway?) or the time Aunt Sally dropped cranberry sauce in the middle of the living room leaving a semi-permanent cranberry aroma to waft through the house long after dinner was over.... At the very least, I guarantee that your favorite memory doesn't involve everyone ohhing and ahhing over the way the trim on the napkins matched the table runner perfectly.  That's the sort of thing that is nice, but it doesn't make you have a better time.

Happy Thanksgiving!

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Recession Lessons: Public Transportation Ain't So Bad

Erratic gas prices made a lot of us think twice about planning road trips or hopping in the car to grab a loaf of bread from the store. But, for me, I never really worried about the cost of driving until very recently.

You see, I have the luxury of having a very cheap car (a '97 Tercel I inherited from my parents).  It gets great gas mileage, it's super cheap to insure and it's incredibly reliable.  Add in the fact that I live in a big city, so I don't actually need to drive it too much (it makes much more sense to walk to the market for random odds and ends than to deal with the hassle of parking it at a meter for 15 minutes).

But, I still considered it a necessity.  I used it every weekend for my big grocery run.  It's the easiest way to get to many of my friends and family who live in the Washington - New York corridor.  And, I'll admit it, even though my work is very public transportation accessible, it was just so quick and easy to drive it the eight minutes to work.

Recession Lessons: The Art of Staying In

Continuing my series on what I've learned during the recession, today we'll explore the art of staying in. 

I wouldn't say that I exactly went out every night back in the bubble economy heyday, but as a couple that really enjoys great food, fine wine and scenic ambiance, when my husband and I would go out, we really went out! Nice restaurants, cocktails at upscale bars, you name it.  A night out was sometimes in the neighborhood of hundreds of dollars... just for the two of us!

After the economy took a turn, those nights out were quickly eradicated from our life.  Staying in has the only thing on our agenda for most of the last year.

But, that doesn't mean you can't have fun.  You just have to remember how to enjoy the simpler things in life.  In fact, we've had a really great time.

Here's some of what I've learned:

Recession Lessons: Returning to My Not-So-Rich Roots

I didn't grow up poor exactly, but I certainly wasn't rich either.  My family was firmly lower-middle class... although some years were much better than others.  As a result, I learned from a young age the value of a dollar and how to score a great deal.  Let's just say I was an expert coupon clipper at age 7 and could quickly calculate how much something cost if it was on sale for 20% off by age 8.  

But, how quickly we do forget.  During what we'll probably one day refer to as the "Roaring 'Aughts," we all forgot any budgeting lessons we were once taught, didn't we?  I won't say I went nuts, but I will admit that as the money started rolling in, I didn't think twice about dropping a couple hundred bucks on a night on the town.  I planned semi-regular spa days at Red Door to reward my hard work and I didn't have to keep a rolling total in my head when I went shopping to make sure I stayed under budget.  Something shifted in my head as I pushed the tougher times out of my head and reveled in the here and now (or the there and then, I guess).

World on Sale: Is It Time to Start Buying Again?

One of the wonderous things about a recession like the one we've been going through is that, if you manage to keep your job without getting a paycut or losing your benefits or whatever, lots of things have become pretty cheap.

With everyone holding on tightly to their purse strings, the mall is a veritable buyers paradise.  Prices are slashed.  If you buy one, you almost definitely get another one free or for half price.  It's amazing.  Of course, the irony is that this only happens when we seem to have less to spend.

Nowadays, it's more than just clothes and accessories that are on sale... there are some pretty big ticket items going for bargain prices right now.  Namely, houses and stocks.

Houses have never been cheaper and, if you're a first time homeowner, Uncle Sam will give you an extra $8,000 to get you started -- pretty amazing.  It makes me wonder, is it time to make that move?  Should I scrimp together a down payment somehow just to get the deal?  After watching so many people get burned, it's hard to get up the nerve to dive in after them... especially considering I'm not convinced that I could actually find a house I want to stay in for at least five years for a price I'm comfortable with... despite the favorable market conditions.  For me, I think I'm going to wait until I can make a bigger down payment. 

Stocks are another story.  After being battered for over a year, things are finally looking up on Wall Street and I'm convinced that the time to jump back in is here.  I'm trying to divert what I can to my stock portfolio, promising myself that I won't freak out if there's another pull back.  The market fluctuates and I know I'm investing for the long haul. 

The difference between buying a house and investing?  I can invest in the stock market for just a few hundred dollars a month and I can stop anytime I feel like I need to shore up my regular savings or if I need to make an emergency purchase.  A mortgage, on the other hand, is a commitment.... I can't just call my bank one day and ask them to let me off the hook for a few months.  So, for my money (yes, pun intended), I'm hoping to jump start my own recovery in the stock market... and maybe use my fabulous returns to buy a house later.

What about you?  Do you think we're seeing the beginning of a better economy?  Are you ready to start investing again?

The Recession Vacation

I'm back from my annual retreat away from the world and I'm thinking about how fun it is to see some old friends and get away from it all... without breaking the bank.

Every Memorial Day weekend, my friends and I converge in the Outer Banks.  We stay in a rental house my friend's mom owns and, in exchange for a few light chores around the house, we stay for free.  It's a pretty awesome deal.  To make the trip even more cost effective, each guest (there were 16 this year!) volunteers to cook a meal for everyone, so we aren't spending money going out to eat or ordering takeout. 

So, basically, for the cost of cooking a big meal and a few bare necessities (toilet paper, booze, whatever the house needs) we all have a long weekend at the beach. 

A Frugal Anniversary Revisited

Last week, I talked about how my husband and I are saving money as we celebrate our first wedding anniversary.  Last year, we celebrated our wedding in France.  This year, money is much tighter and we came up with a much more reasonable (but still fun!) plan: we'd each take a night over our anniversary weekend (my husband got Friday night and I got Saturday) to cook a great meal and enjoy it together by candlelight in our apartment.  We figured that we'd get two great meals for less than the price of one meal out in a fancy restaurant -- and our hard work could count as our gifts to each other, so we didn't feel compelled to spend even more money on gifts.  It's a good thing we both love to cook!

Now that the celebrations are over, I thought you'd like to hear what we created and see just how cheap a fabulous three course meal could be.