Regardless of what income bracket you fall into, you’re probably feeling the pinch of what New York Senator Charles E. Schumer calls “an unprecedented middle class economic squeeze.” A recent JEC analysis shows that Americans are spending twice as much on household basics than they were eight years ago, even with prices adjusted for inflation. Yet incomes in that same time period have remained stagnant. You’ve suddenly begun to scrutinize your household bills, reconsidered that morning venti chai latte, and possibly spent twice as long at the grocery store analyzing every price-point to death in the cereal aisle.
Take a tip that you learned when you began singing: Breathe.
This month’s $50 Week is all about paring down your household costs—from paper towels and premium cable to pipe bursts and pals dropping by. If it seems overwhelming, start with just one or two of these key tips. Soon you won’t even realize that it’s costing you half as much to live with 99 percent of the luxury.
Make Like a Concert Program
You wouldn’t go into a recital unaware of what songs you were going to perform in what order. Treat your finances the same way and plan like they’re your Carnegie Hall debut. You can download a budget planning worksheet from SuzeOrman.com or work with a website like PearBudget.com to chart your expenses.
“One of the best ways to save money is to simply keep track of where your money’s going,” says PearBudget founder Charlie Park. “And if you’re super-stressed, just tracking a single category (like dining out) can be incredibly enlightening.” Like Ko-Ko in The Mikado, having a “little list” for everything from the monthly budget to your weekly groceries will save you big in the long run.
Get Out of the Frying Pan (But Avoid the Fire)
Does the thought of making a weekly grocery list seem more daunting than singing all the roles in the Ring Cycle in one marathon performance? Grocery lists allow you to shop knowing exactly what you need—which, in turn, can help keep you from spending twice as much and using only half of what you buy. As you plan your weekly shopping, also consider your schedule. If you’re eating out or traveling, you’ll want to buy less.
Unless you have enough backyard space to sustain a small farm or ranch, chances are there isn’t much you can do to avoid the rising cost of groceries. You can, however, take five minutes to chart the prices for your weekly supermarket staples across every market in your vicinity. Don’t be afraid to shop across two or three stores, but don’t assume that the bulk warehouses will always be your best bet. If you can’t use that entire flat of Costco strawberries before they go bad, you’re losing on the deal.
Buy in season and you’ll not only get fresh, tasty products, you’ll also get the best deals—especially at smaller markets. “Fresh veggies are much cheaper and immediately fresh for eating today at most international [ethnic] markets, and lower priced than grocery chains,” writes financial planner and music industry vet Keith Newcomb. “Due to the difference in stores’ wholesale buying patterns, grocers need shelf life, and international markets buy what’s ripe (lower shelf life means lower price at wholesale).”
Eat Out. No, Seriously.
As a singer, socializing is part of your job. This often manifests itself in lunch meetings, post-performance dinners, and doing brunch. Surprisingly, you can still eat out each week without blowing your $50-a-week budget or dining-and-dashing à la Bohème. CFP Ken Clark, author of The Complete Idiot’s Guide to Increasing Your Financial IQ, suggests Restaurant.com. “This website makes a social life on $50 a week a reality,” says Clark. “Participating restaurants sell gift certificates at a 40- to 60-percent discount, which you can then turn around and use when it’s time to live it up a little.” (Just be sure to read the “fine print” for every certificate. Some restaurants have restrictions on days or times you can use the certificates, require a minimum total purchase when using a certificate, etc.)
Find yourself unable to finish your entrées when you eat out? As Alex Bogusky and Chuck Porter reveal in their recent book, The 9-Inch “Diet,” restaurants have increased their plate size from nine inches in diameter in the ’60s and ’70s to 12 inches today. What this means for your wallet—and your waistline—is that you can eat well and cheap from the appetizer menu.
If you’re looking to power-lunch with a mentor, potential agent, or fellow singer, consider a recent column written by Michelle Goodman for ABC: meet for a cupcake or a pot of coffee at an upscale hotel, get a manicure together, or enjoy a stroll through your local museum instead.
Appliance Yourself
Outlets are tempting, especially if you need a new refrigerator or washing machine and don’t mind the odd commercial scratch or dent from shipping. But before you go replacing your entire kitchen at the Sears outlet, check your local Craigslist classifieds and garage sale listings. If your refrigerator breaks down, you may find a neighbor who has an extra they want to unload for free. Or you can negotiate with the person uptown who has the exact IKEA table you’re looking for and save yourself both the time and travel to your nearest store. Many movers have furnished entire apartments out of Craigslist freebies and cheapies.
‘Sweeney Todd’ Your Bills
As frugal as it would be, I don’t mean turn your paper statements into dinner. Rather—and this may be painful—review your monthly phone, cable, Internet, and utilities bills and see where they can be slashed. “There’s likely to be a lot of low-lying fruit,” says Carla Morelli, a former voice student who now runs a money management firm. “Any service plan (cell phone, telephone, Internet, cable/satellite, etc.) can likely be updated to something that gets you at least as much or more for the same or less.”
Drop your premium cable—or cable in general—and enjoy most shows for free online. You can also enjoy movies for free from your local library or conveniently with a Netflix subscription (which, for as low as $5 a month, is far cheaper than holding onto all of the movie channels—and they even carry a plethora of opera and recital DVDs).
Evaluate your Internet usage. Switching from wireless to Ethernet will save you a bundle if you normally keep your laptop in one place in your house. If you barely use your cell phone minutes, readjust your current plan or switch to a carrier that will offer you service at a lower cost. With recent legislations against early cancellation fees, it’s easier to break your mobile contracts if need be. Or maybe even better yet, go with a prepaid pay-as-you-go plan—pay only for minutes used, only as you need them, with no long-term contract or commitment.
Shut down—and unplug—your appliances (yes, even your computer) at night and whenever you’ll be away for more than a day. Doing this, along with lowering your thermostat as little as one to two degrees in the winter and raising it one to two degrees in the summer, can save you two to three percent per month in costs, according to Clark.
