Econogics Frugality Tips - How to Survive (perhaps even thrive) in the Recession

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2009.02.10 - The Pickle Jar (this was sent to me, and I thought it was worth sharing here)

The pickle jar as far back as I can remember sat on the floor beside the dresser in my parents' bedroom. When he got ready for bed, Dad would empty his pockets and toss his coins into the jar.
As a small boy I was always fascinated at the sounds the coins made as they were dropped into the jar. They landed with a merry jingle when the jar was almost empty. Then the tones gradually muted to a dull thud as the jar was filled.
I used to squat on the floor in front of the jar and admire the copper and silver circles that glinted like a pirate's treasure when the sun poured through the bedroom window. When the jar was filled, Dad would sit at the kitchen table and roll the coins before taking them to the bank.
Taking the coins to the bank was always a big production. Stacked neatly in a small cardboard box, the coins were placed between Dad and me on the seat of his old truck.
Each and every time, as we drove to the bank, Dad would look at me hopefully. 'Those coins are going to keep you out of the textile mill, son You're going to do better than me. This old mill town's not going to hold you back.'
Also, each and every time, as he slid the box of rolled coins across the counter at the bank toward the cashier, he would grin proudly 'These are for my son's college fund. He'll never work at the mill all his life like me.'
We would always celebrate each deposit by stopping for an ice cream cone. I always got chocolate. Dad always got vanilla. When the clerk at the ice cream parlor handed Dad his change, he would show me the few coins nestled in his palm. 'When we get home, we'll start filling the jar again.'
He always let me drop the first coins into the empty jar. As they rattled around with a brief, happy jingle, we grinned at each other. 'You'll get to college on pennies, nickels, dimes and quarters,' he said. 'But you'll get there; I'll see to that.'
No matter how rough things got at home, Dad continued to doggedly drop his coins into the jar. Even the summer when Dad got laid off from the mill, and Mama had to serve dried beans several times a week, not a single dime was taken from the jar.
To the contrary, as Dad looked across the table at me, pouring catsup over my beans to make them more palatable, he became more determined than ever to make a way out for me. 'When you finish college, Son,' he told me, his eyes glistening, 'You'll never have to eat beans again - unless you want to.'
The years passed, and I finished college and took a job in another town. Once, while visiting my parents, I used the phone in their bedroom, and noticed that the pickle jar was gone. It had served its purpose and had been removed.
A lump rose in my throat as I stared at the spot beside the dresser where the jar had always stood. My dad was a man of few words, and never lectured me on the values of determination, perseverance, and faith. The pickle jar had taught me all these virtues far more eloquently than the most flowery of words could have done. When I married, I told my wife Susan about the significant part the lowly pickle jar had played in my life as a boy. In my mind, it defined, more than anything else, how much my dad had loved me.
The first Christmas after our daughter Jessica was born, we spent the holiday with my parents. After dinner, Mom and Dad sat next to each other on the sofa, taking turns cuddling their first grandchild. Jessica began to whimper softly, and Susan took her from Dad's arms. 'She probably needs to be changed,' she said, carrying the baby into my parents' bedroom to diaper her. When Susan came back into the living room, there was a strange mist in her eyes.
She handed Jessica back to Dad before taking my hand and leading me into the room. 'Look,' she said softly, her eyes directing me to a spot on the floor beside the dresser. To my amazement, there, as if it had never been removed, stood the old pickle jar, the bottom already covered with coins. I walked over to the pickle jar, dug down into my pocket, and pulled out a fistful of coins. With a gamut of emotions choking me, I dropped the coins into the jar. I looked up and saw that Dad, carrying Jessica, had slipped quietly into the room. Our eyes locked, and I knew he was feeling the same emotions I felt. Neither one of us could speak.
This truly touched my heart. I know it has yours as well. Sometimes we are so busy adding up our troubles that we forget to count our blessings.
Never underestimate the power of your actions. With one small gesture you can change a person's life, for better or for worse.

2009.02.21 (I finally received a request for another item.) Suppose you have filled the pickle jar (or have managed to scrape up some savings), how do you get those to grow, even for short periods of time, without risking it in volatile times in the financial markets? One new option for Canadians is the TFSA (Tax Free Savings Account). The TFSA allows you to put your money (presumably already taxed) into a safe harbour where any gains (e.g., interest) can accrue without being taxable. Unlike an RRSP, when you take money out of a TFSA, there are no taxes to pay. With a $5,000 annual contribution limit, this is not for big investors, it's for folks like us where saving $5,000 in a year will take effort, not just a signature. Right now, Canadian banks are offering deals to get you to open your TFSA with them, as it is a new product category. Things to watch for: make sure the account is covered by the CDIC (Canadian Deposit Insurance Corporation); that there are no withdrawal or deposit or other odd service fees; and, that you get the best rate possible. Here's a page that discusses interest rates from on-line banks in Canada. Here's another on high-rate savings accounts.

2009.02.22 - Cellular Telephone Costs - Love your cell phone, but hate the bill that comes with it? Here are some things you can do about it.
Shop around for a contract that fits your habits. If you are an incessant user, get a package with lots of air-time. Do a lot of long-distance? There are packages for that, some of which are tailored to when you do your calling, whether for business during prime-time or social on evenings and weekends.
Is most of your long-distance to a limited number of people? If so, there are favourite-5 and favourite-10 packages available.
In any case, before doing anything dramatic, call your current carrier, and see if they have any recommendations for getting your costs down.
If texting is your downfall, there may be a package to help out with that, or as with all billable usage, find ways to cut back.
When your contract is coming to an end, do some shopping around and see what makes the most sense for you financially. If your phone is adequate to your needs, working well, and you are happy with it, you may be able to switch to a monthly service-only contract. This should be cheaper, because most multi-year contracts are priced to include the cost of the cell-phone, which is usually bundled into the deal for free or a low cost.
Finally, if you need to go to the extreme of getting out of your current contract, check out this article.

2009.02.23 - Greening Your Mortgage - If it's time to renegotiate your mortgage (and with interest rates lower than they have been in for decades this might be a good idea even if your mortgage isn't due for renewal), consider going with a 'green' mortgage. Surprise! It can be less expensive than the regular run-of-the-mill mortgage, and it's going to help you save on energy bills in the future. In the U.S., look for institutions that lend under the Energy Star mortgage program. In Canada, check out the major banks. For example, TD Canada Trust offers a green mortgage with a rate a full 1% below the standard rate, plus a rebate on eligible appliance purchases.

2009.03.11 - Cities on the Cheap - frugal chic is in! Even the blogosphere is taking note! If you have stashed a few bucks and need to get away from the local gloom, Cities on the Cheap has just launched their Web site with ways to stretch your dollars while traveling to cities in Canada and the U.S.

2009.12.12 (After several thousand page views in the past nine months, somebody finally asked for more. I was beginning to think the recession was over and I had missed it, even though the ranks of unemployed in Canada and the U.S. are continuing to grow.)

Saving on Christmas Expenses.