Tag Archive | saving money

LF on being cheap

It has been discussed time and time again, but recently it has been bugging me: being cheap.  Here in the PF community, I like to think we’re a frugal bunch – not a cheap bunch. This is why it bugs me when people can’t make the distinction and plague society with their flat-out cheapness. Wtf?

Just don’t.

…on going out to eat

At the restaurant where I waitress on weekends, there is a young family of four that comes in every Saturday. I always get stuck with this group and I hate them for a few reasons:

  • Our receipts have a survey link at the bottom that you can fill out for a free appetizer on your next visit. This is fine and a great way to enjoy a free app, but they do it EVERY SINGLE VISIT. The point of the survey is for us to assess the quality of our food, service, etc. Having the same people critique the same food and the same service every week does us no benefit beyond the first, I don’t know, 100 times? This is purely exploitative of the system, I think.
  • They order three waters and one pop. The pop is bottomless. Enough said?
  • They order one kid’s meal for TWO KIDS. The kid’s meal is tiny. Why are they making the poor kids share one?
  • The woman works for the same chain of restaurants so she uses her discount card, which gives her 20% off. Of course this is fine as that’s what it’s meant to be used for. But between exploiting the survey and using a discount card, a meal that would easily be $45 ends up being $25.

I don’t know about you, but when I use any sort of discount at a restaurant (coupon, group deal, etc.) I make sure to tip on the entire amount. I think it’s embarrassing to go into a restaurant, exploit every type of discount, and tip a whopping $4 for a table of 4. I understand that some people don’t have an abundance of disposable income, but if I don’t feel like I can afford to go out and enjoy a meal, then I don’t go out and enjoy a meal.

Of course after working in a restaurant for two years, I can write a whole blog post on cheapness in restaurants but I’ll leave it at that for now!

…on shopping

I love me a good sale!

I know a few people that do this, but to me buying a dress and wearing it to a party and returning it the next day is cheap.

A coworker of mine told me that her mother uses appliances from department stores until they’re completely worn down and then exchanges them for new ones. She gets away with it. This is cheap.

Bargain hunting (even if it takes you hours!) is frugal. It doesn’t involve wasting people’s time, scamming the system, or generally being a burden to the world in order to save a few bucks.

…on being social

Going to a potluck and bringing a bag of chips when everyone else has made extravagant salads, dips, pastas, etc. is cheap. There is nothing wrong with bringing snacks but I try to ensure that the price will roughly match what everyone else is bringing (i.e. a bag of chips with a homemade taco dip…yum!)

Going to a potluck and bringing nothing. Ummm! Cheap and awkward.

Allowing a friend to cover a meal and never reciprocating. Cheap.

I invited a friend of mine over for dinner and she insisted on contributing to groceries. I did not allow this because to me, inviting someone over for dinner means I’m treating him or her to dinner. Allowing her to bring groceries would have been cheap in my opinion!

Overall, I think the distinction between cheap and frugal is tact. I am all for going on a coffee date instead of a dinner date to be frugal. I am all for waiting for a dress to go on sale before buying it. I use group buy coupons. I walk instead of taking a bus or cab. None of these activities are exploitative or tactless. They don’t make a mockery of the system and they aren’t disrespectful to the people you care about. That’s where I draw the line.

Where do you draw the line between cheap and frugal? Do you have any cheapo stories? I’d love to know!

Baby’s first TFSA

By baby I mean me. By first I mean not really. When I was about 25, I had about 16k in debt and 10k in a TFSA. Those were the days. I remember the advisor at the bank being impressed that I was thinking about saving money so young. HA. A few life changes later I was back to broke.

Now that I’m back in black, I am once again considering tucking away some money into something that isn’t a lame chequing account that not only doesn’t pay me anything, but charges me an exorbitant amount of fees.  Originally I wanted to start storing money away in an RRSP but was quickly told not to.

What’s the difference between a TFSA and an RRSP?

Okay, I’m sure someone much smarter than me can probably give you the rundown (like here or here), but I’ll just tell you what the difference is in the context of moi. An RRSP offers a tax deferral, meaning you receive a hefty tax refund when you contribute the maximum. A TFSA, on the other hand, is more liquid and allows your investment to grow tax-free but isn’t eligible for an income tax deferral.

Background via banknerd.ca

Why shouldn’t I opt for the RRSP?

Originally I wanted the RRSP because it is less liquid – I like my money where I can’t see it. I was told, however, that because my income is likely in the lowest bracket (womp womp) and because I still have education tax credits, I likely wouldn’t benefit much from the tax savings of an RRSP. Storing my funds in a TFSA and waiting until I know my total taxable income for the year is my best bet for now. In later years when I have a higher income and no education credits, I can use all of my RRSP room, including carry forward amounts to max out my RRSP.

What now?

From hereon out, I’m going to try to put about $1,000 into savings every month. Key word being ‘try.’ Yeah.  As much as I wish I already had a ton banked away, I’m a saving ninja so hopefully I can make up for lost time with a healthy mix of working hard, frugality, and just plain ass-kicking.

Note: Because I don’t want to get sued for stealing images, because I don’t want traffic sent to my blog because of random titles of pictures I’ve innocently stolen, and because Jeremy scared me into thinking I’ll go to jail, going forward I will no longer be using images I stumble upon on the internet. Instead, I will be subjecting you all to my bad Photoshop skills as I practice. I promise I’ll have mad skill soon and won’t have to subject you to my awkward photo manipulations.

Do you have any tips for me and my savings plans? Do you like my awkward photos? Do you want me to stop?

LF