tip #10: the theory of fives

So, if you live in a big city, you might be unaccustomed to having modern appliances such as a dishwasher, washer/dryer, and garbage disposal in your home. I know I am. A long time ago, I taught myself to put all the quarters I get as change into a separate pocket than the dimes/nickels/pennies, because I always need them to do laundry. And laundry is a pain in the ass enough to lug down the hill and sit around watching it to think about also going to the bank for quarters. So now, automatically, every time I get change back, change goes in the wallet, quarters go into the side pocket. I clean out the side pocket every night and put them in a jar in my bedroom.

A while back, a girl friend and I were talking about budgeting and she told me about something called The Theory of Five. Full disclosure requires me to tell you that I remember absolutely nothing about The Theory of Five, so I just made up my own, and it's my very favourite of my money tips.

well hello, Mr. Lincoln!

Each night when I pull the quarters out of my bag, I also flip through my wallet. If there are any five-dollar bills in there, I put them in a jar in the pantry. Sometimes there is, sometimes there isn't. But I don't miss $5 really, and now at any given time I have between $20-$35 in the jar in the kitchen. I used to use it solely as my emergency take-out fund when I was working, because let's be honest, sometimes you work all day and just can't be bothered to cook. But now that I'm unemployed I use it for all kinds of things: a night out at the movies, to buy a bottle of wine to take to someone who's invited me over for dinner, last week I even used it for Christmas postage.

I don't do well with complete deprivation so it's nice for me to have a little fun cushion nearby.

Hope everyone had a wonderful Christmas. I was "good" over the weekend: Friday night, $20, Saturday AM, $26 for brunch and $5 on my BART card to get to San Leandro, and spent NOTHING on Sunday or Monday. But today I'm going to the movies.

Start saving your fives so you can buy me a drink next time I see you. :)

She's BAA-AAACK!

WOW, back from vacation. It was marvelous:

We got a resort package from Living Social and I got our (first-class) tickets with my American miles-- which reinforces my tips to be a member and use collective buying vouchers. Those two things saved us about $2K. I had budgeted myself $300 in cash and I ended up spending about $400 (I really don't believe vacation is the time to be frugal!!) so now I'm back to reality and SUPER-BUDGET.

We got home early early Thursday morning and I didn't spend a dime all day, except a little of my food stamp money on groceries. Yesterday I rented a Zipcar, $14.94 for an hour and a half, and spent $43.31 on wine, and more of my food stamp allowance to stock up at Trader Joes. That wine money, by the way, was for 8 bottles, 3 of which will be taken to various homes for holiday get-togethers. I went to dinner with a collective buying voucher (Boyfriend picked up the balance) and spent $20 having some drinks with friends.

I have a catering gig tonight so it will be another zero dollar day, and tomorrow should be as well since I'm stocked on groceries and all I'm planning is some gym time, a home-cooked meal, and some Netflix.

More tips coming soon!

an expensive week

OY VEY, did I have an expensive week! Too many social events in December, both planned and impromptu. I had a marvelous time and wouldn't take it back! But when I get back from vacation I have got to take it down a notch. Or maybe a lot of notches.

I haven't been accountable all week either, and I don't even know if I can remember: Wednesday I had to run errands for my trip, but that included returning some things that I had already paid for-- so that's kinda like putting something back in the black column right? (Wait for it-- it will be, come Saturday.) In addition to spending about $100 on THINGS, and getting about $100 "back" on things returned-- spent $10 on dinner and $13 on drinks. Thursday I went to a friend's office Christmas party thinking "hey, free booze" but it turned out to be lame so we went out instead. Whoops. I think I spent $26. Friday I catered so I got a free meal, but got a couple of drinks after with a friend-- $16. And yesterday I went to the movies AND out to dinner with friends, and spent $56. OH, and took a cab home-- there's another $8. OUCH!

BUT. Here's the (sort of) pro: last night's dinner/wine was $45 and I used my credit card for the first time since I got laid off. It hurt. But since I had returned something on Wednesday that cost $56, and I had paid my Amex bill before I returned it-- it was paid for! Or at least, I don't have to pay for it later. WHEW. In the immortal words of Maebe Fünke, "well that was a freebie."

So today and tomorrow I'm nesting and packing. I leave Tuesday morning for 9 days in Costa Rica. I bought the flights on my miles and my boyfriend is paying for the rest of the main expenses. I am taking $300 for fun money-- $200 of mine that I budgeted in, and $100 from my parents for Christmas. I think most of my days will be spent lying by the pool with a book, so I'll mainly use that for food and maybe some Christmas gifts.

I'm not taking my laptop -- the HORROR!-- so you guys won't be hearing from me again until after the 14th. So everyone be sweet while I'm gone and I promise to be frugal while I'm there. :)

tip #9: get a subscription

This goes hand-in-hand with becoming a member. There's more bang for your buck when you subscribe! I love to read, and I love magazines. I read Entertainment Weekly, all manner of food magazines, and most recently, Self. A magazine off the shelf is like $4.99!!! but you can get a whole year for usually $10-$12.

Also keep your eyes open for gift subscriptions. Usually about once a year they'll send you a card to give a friend a free year if you renew. I got Bon Apétit from Alecia, and Martha Stewart Living from Krysten. I gave the Food Network Magazine back to K-- all those were free. And I recently got Candice a Self subscription for $5. Totally worth it!! And if it's a magazine you know you are going to read for years, buy in bulk. I buy my EW subscription 3 years at a time for a huge savings.

So, I ended up spending $22 on Sunday night, and yesterday I spent a ton. Sigh. I mean, all of it was within my "allowance" so I'm not using a card, but still. I spent $15 on a Christmas present for my mom, $5 on a cocktail, then made $3.50 at Crossroads by selling a sweater that I never wear, then $7 on a sandwich, $26 at the movies, and $15 on wine after. Brutal. BUT it was an impromptu triple date with my man and 4 of our very favorite people-- an occurrence that doesn't happen with any sort of frequency, and I had a marvelous time. For me personally, I would much rather spend money DOING things than BUYING things. That time with my friends is priceless. Those people are my family. Worth it.

And tomorrow I have to run errands and buy things for my trip-- it's not going to be free-- so today is a zero dollar day. I'm off to the gym and then home to decorate the tree, then making dinner at home!

back in black!

So my 5 days in Phoenix were lovely, restful, and uber-budget conscious. (WELL, not for my hosts, God bless them!) I spent ZERO DOLLARS on Thursday AND Friday, yesterday I spent $10 on something totally frivolous and totally awesome, and today I spent $8.04 on a bagel with hummus and veggies (that I realized much later was red pepper hummus, ack!-- budget/breakfast fail combo!) and I put $10 on my Muni card to get home from the airport. It's $8.10 but I get a free transfer from the BART to the bus to my apartment. Not a bad deal. I also came home to my first unemployment payment (just in time to pay rent!), a catering check from last weekend, and for some reason, a small dividend check from an old 401(k). Also to my new swimsuit and my fancy sunscreen!!! So all in all the last 5 days have been pretty good for the pocketbook.

As we enter the time of the year where America's rampant consumerism is dialed up to 11, here is an interesting article on spenders vs. savers. We live in the twitter era of instant gratification, but I think it's good to note (if you're not too ADD to finish the article) he says you CAN rewire your brain. I have found this to be true. Two marshmallows later really is better than one marshmallow now. You just have to get used to it!

Now off to the gym, the bank, and the market, and back to make split pea soup and put up the Christmas tree! Costa Rica in 8 days!!!

tip #8: staycation!!!

OK, that's not a real tip. It's my annual Thanksgiving trip to Krysten's. But it's a great idea! We typically don't do much beyond eat and lie around in our pj's and watch movies. It's the perfect pre-vacation vacation for me!

Sunday actually succeeded in being a zero-dollar day. WHEW! Monday however... different story. I spent $20 on a Supershuttle for my Thanksgiving trip. Had to be done. I spent $52.82 in skin care-- OY VEY. I have extremely sensitive skin and clinical rosacea and I have to be so very careful about what I put on it. I needed sunscreen for my trip so I ended up stocking up on my regulars in order to get free shipping. I also spent $2.08 at the post office, $7.60 to get my favourite knife sharpened at the hardware store, $5 to get quarters for my laundry jar, and $11 on drinks during Monday Night Football. In the positive category, I sold 2 pairs of shoes to the thrift store for $17.85.

Tuesday was Mike's Christmas. I bought him tickets to Cirque du Soleil's Totem months ago, and since it was my present to him, I also bought him dinner and drinks: $40. And today I bought a $50 collective buying voucher for Uva Enoteca for $25. That will come in handy some day soon I imagine.

So I'm off to the airport, and looking forward to the next 4 days being blissfully stay-cationy. I doubt I'll spend a dime unless I can convince Krysten to let me buy her a cup of coffee or something. I'll keep you posted. In the meantime, have a GREAT Thanksgiving-- count your blessings, not your strifes, and I'll catch you all on the flip side of my staycation.

tip #7: collective buying vouchers

Oopsies, right after I bragged about a zero-dollar day on Friday, I totally bought a bathing suit. I KNOW that is not the best use of my meager funds, but I'm going on vacation next month (more on that in a future post) and finding a bathing suit is incredibly, frustratingly, debilitatingly hard. If you don't have boobs you just have no idea; trust me on this. So I found one a few weeks ago that I liked and that actually fit me, and now it is on sale, so I bought another. So yes, not totally necessary, but I will have it for probably 5-6 years (as that's about how often I wear a bathing suit), and it was on sale. So, partially justified?

Also, after my catering shift Friday night I spent $10 on bourbon. After 8 hours of serving fancy appetizers to rich people, I deserved that drink. No guilt there.

Saturday tends to be my free day. My boyfriend works so I usually hang out with my girlfriends, and it's also typically the day I skip the gym and let myself eat & drink what I want (within a modicum of reason). So yesterday I had drinks and dinner (and then some more drinks) with a couple of friends-- and had a marvelous time. I even stayed out until 1:30am, which I haven't done in forever!

Which brings me to today's tip: collective buying vouchers. (There has got to be a better name for them. But calling them all Groupons is like calling all tissues Kleenexes, and that makes me feel bad for the little guy.) I subscribe to Groupon, Living Social, Bloomspot, Yelp, and Amazon. I looooove them!! You can spend a little money when you have a little money, and then have a nice meal/manicure/new bag/massage when you're broke! GENIUS!!! It also gives you an opportunity to try some places that are too expensive for you, or go somewhere new. Or buy a watch you already wanted for 55% off. Awesome.

I had spent $25 on this Groupon (actual Groupon) about 2 months ago, and we had $55 to spend at Samovar last night. It was delicious, and the three of us ate and tipped (on the original total, natch) for $10 each. Delicious!

So yesterday, in toto, I spent $35 on drinks, and $10 on dinner. Not bad for my big night out. And today is TRULY a zero-dollar day. All I'm doing is going to the gym, cleaning the apartment, making dinner for my fella (I already have all the groceries), and watching a Netflix DVD. Sounds like a pretty awesome Sunday, right?

tip #6: use your resources

ok, disclaimer: I'm not going to get into politics here. That being said, yesterday I applied for and received food stamps! Except, instead of stamps, it's a fancy debit card now. I can't tell you how awesome it was to go to the market today and be able to get the good oatmeal. Since food is pretty much my main expense, this was a lovely turn of events.

I'm not going to lie, I was sort of embarrassed to be in that office. It was super uncomfortable for me, and part of me felt ashamed to be taking benefits from someone that (arguably) needs them more than I do. But I haven't had any income in 6 weeks, and EDD is really dragging their feet. I have to eat too, and I've been paying my fair of taxes for 20 years. So now I am reaping the benefits. I was approved for 3 months, even if I get a job. I told my mom I would feel guilty about keeping the benefits if I started working, and she gave me the good idea of using it to buy food for a shelter or pantry. I like that.

So today I paid my cable/internet bill ($123.85, which I split with my roommate) and my credit card bill (the only balance I "keep" is $95.33 a month- $62 for my Muni pass and$33.33 for the gym). Other than that, it's a no-spending day for me. I'm actually working tonight-- catering, so not only will I actually earn some money, I also get a staff meal.

Yay for zero-dollar days!

tip #5: let yourself make mistakes

Well, last night was not a good night for the old pocketbook. Turns out, the museum is closed on Wednesdays. Whoops. We sat in the park for a bit but it was super cold, so we went around the corner to a bar my friend knew about, and suddenly I'm spending money and it's seeming like a great idea!

I spent all $43 in my wallet, on drinks and dinner and more drinks, and THEN I spent $15.73 at Walgreens on razor blades and ahem, potato chips. Also seemed like a great idea, at the time.

I'm not going to beat myself up though. I keep a reserve fund for when I break my budget. It's not the end of the world. It's just money. I just can't let myself do it TOO terribly often. Plus, I won a $50 restaurant gift card at trivia, so I kinda think that makes up for it, right?

Today I spent $4 on 2 loads of laundry, and then $15.22 at the market, on bananas, apples, hummus, and a seriously expensive bottle of 100% cranberry juice ($7.99) because I think I have a UTI. Which is way more information that you needed to know.

tip # 4: become a member

I am enjoying this blogging thing. I feel like it sort of holds me accountable, in a way. I wouldn't do anything so outrageous I couldn't write about it. (hmmm, maybe.)

So yesterday I spent $4.51. A basket of strawberries, an avocado, a zucchini, a bag of mushrooms, and a bag of spinach. Not too shabby. I ate all of my meals at home. I also had a job interview which stressed me all the way out so today I'm shaking it off and leaving the house!

Tip #4: become a member of your favorite museum. I try to join a different museum every year. Maybe if you live in New York or DC, or somewhere where it's mostly suggested-donation, this isn't as big of a deal, but in San Francisco, most museums are $15-$25 for a single trip. You can become a member for usually around $100, and go as many times as you want, WITH A FRIEND, for an entire year. When I lived in NYC, my membership included $1 tickets to the movie theater, so you can imagine how many times I went there!!

As I mentioned before, I like being social, so I look for activities to go with my drinking. Wednesday night is trivia night at my favorite bar-- coincidentally, the bar where my boyfriend works, so that's two birds with one stone. I get to hang out with him for a couple of hours, while playing trivia with my friends-- and if I win, then FREE STUFF!!! (side note: he doesn't own the bar so I don't get free drinks. Just throwing that out there because I know he would want everyone to know he does things on the up-and-up.)

Also on Wednesdays, a friend of mine with a pop-up restaurant called Easy Creole serves Cajun food at a bar called The Residence. I like to support small businesses, especially my friends', so I eat there when I can. It's usually about $10.

So yeah, today: MoMa- free, dinner- $10, trivia- free, drinks- let's say $20, to be safe. Not bad for an entire day of social fun.

tip #3: know your happy hours

I know a lot of people feel like when you're on an extreme budget, like say, haven't had any income in a month, you shouldn't go out. Like, at all. And I get it. Going out is expensive. But I would honestly rather go back into debt that to be a hermit. I just like being out. I know we can have the exact same drinks and the exact same conversation at home, but I am social, dammit, and a life of dinners in front of the tv 7 nights a week is not a life worth living-- for me.

I also know I can't afford $12 cocktails when I'm unemployed. So, figure out how to work your city. I, for example, have been known to hit a 10:45am movie because it's $6. I can also tell you which restaurant has $1 oysters on any particular day. You gotta do some research, and file that information away under useful!

So yesterday my boyfriend and I went to Delores Park. It was probably one of the last warm & sunny afternoons we'll have this year, so we took a bottle of wine that was leftover from a dinner party a couple of weeks ago (which equals FREE in my mind, if it was paid for with another week's budget), a couple of plastic cups, the Neat Sheet, and watched the dogs for a couple of hours while the sun set. Total? FREE.

Once it got too cold, we went to Chile Pies & Ice Cream, where we split a green chile stew and a green chili pot pie. He paid (thanks babe) but I bought some ice cream after. Which I didn't finish, so I had a little buyer's remorse about that particular $3.

Then we popped over to one of our favourite bars to watch Monday Night Football. Here's the best part: on Mondays happy hour is until 8pm, and they have a free nacho bar!!!! So, $6 for a 2 drinks, $2 tip, and another $2 into the nacho jar. Total: $10. That will definitely be a Monday night standard for us now.

tip #2: the farmers' market

Even if you're not a hippie or a hipster, farmers markets are awesome. I know some of you don't live where you have year-round access to them, and that's a crying shame. I'm lucky in San Francisco. When I lived in Texas I think we only had them in the summertime. In New Jersey we had the apple farmers' market in the fall. Do a little research and see what's available where you live.

I am extremely lucky in that there's a daily one just a few blocks from me. Almost everything is local, quite a bit of it is organic, and all of it is super cheap. My booty yesterday:

A huge bag of brussels sprouts, a shallot, an avocado, 2 organic apples (pricey at $1.49/lb, but worth it), a bag of radishes, a head of broccoli, and a bag of grapes. That was a total of $8.48. I also bought local coffee creamer ($1.59), local sparkling mineral water ($1.49), and low-sodium soy sauce (a whopping $3.50). Grand total: $15.06.

Then, because I walked home past a florist, I bought myself a gerbera daisy for $2. Maybe not the best use of my funds when I'm extreme-budgeting, but I spend a LOT of time at my kitchen table, and it honestly brightens up my workspace just as much as a huge bouquet would. I can treat myself every once in a while.

Another option that I haven't done myself because I am usually feeding for one or two vs. a family is to join a CSA. You get a huge box of fresh, local, organic produce delivered TO YOUR DOOR. What an awesome concept! It's usually $20-$30/week, which stays right in your community. Here's a link to find one in your area.

Happy eating!

Welcome to The Recession Diva

Hi. I'm Jamie. I'm the 99%-- just like the rest of you. I have a college degree and I'm unemployed. The difference is I am debt-free. That's right. I don't owe ANYONE even a penny, and I live in one of the most expensive cities in the country on a salary that is less than the median income of the US and FAR less than the median income in my area.

I have some very supportive friends that suggested I write a book on how I became debt free. I'm not sure I'm quite that ambitious, so I thought I would start a blog: The Recession Diva. Because even though I live within my means, I feel like I live very, very well, and I'd love to share my tips

with you.

Hopefully I won't be unemployed for long. I'm not trying to teach you how to work the system. I'm here to teach you how to work YOUR system. My budget is not your budget, but you can take my framework and tweak it to your lifestyle. And if someone comes along and offers me a book deal, well, I'll take it.

Tip #1, and the most important: MAKE A BUDGET. Make a budget and stick to it. Give yourself a little leeway so you don't beat yourself up if something comes along, but by and large, live on a budget. All the time.

I use an Excel spreadsheet. It looks a little something like this:

That's an old-- and for some reason, very small-- screenshot when I was pulling in a regular paycheck. (I know it's a bit transparent to leave the real numbers in there but without them I'm not sure it would make sense. And yes, I actually pay $937 for rent.) As you can see I put the weeks into the columns and my expenses into the rows, listed by due date. The bottom of each column feeds into the top of the next week. I do an entire year at once so when I have some sort of big expense I can see how it affects me all the way down the line.

The BIGGEST thing for me is my cash allowance. I never, ever use my check card. Doubly important if your big, evil bank is going to start charging a monthly fee for debiting, as the rumors go. I give myself a cash allowance every single week, and that is what I use for groceries, eating out, movies, etc. Once my wallet is empty, I'm done spending. It's far easier than using a check card to run all your errands, forgetting to reconcile your purchases, and suddenly discover you're out of money before the next payday. Alternatively you could get a 2nd checking account with a separate check card and auto-deposit your "allowance" into that. I prefer cash; it's up to you.

So go ahead. Make your own budget. E-mail me at phaino@gmail.com or let me know in the comments if you have any questions. And I'll be posting new tips once or twice a week.

Living within your means IS within your reach. If I can do it, you can do it!