Pinching pennies

Local folks share tips on what you can do to stretch your finances

By Leah Weissman

The Times, Nov 13, 2008, Updated Oct 30, 2009 (2 Reader comments)

Jaime Valdez

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Richard Klesh of Beaverton recently put himself on a $55-a-week spending limit after the recession hit. He and his wife eat at home more, use coupons, compare store values when purchasing items and have stopped any kind of frivolous spending.

That includes denying his sweet tooth.

“I’ve stopped spending money on desserts … it’s been difficult,” Klesh said.

He also plans where he needs to drive each week and fills his tank only halfway to cut down on gas costs and vehicle use.

Sound extreme? Not these days.

According to the U.S. Bureau of Labor Statistics, employment across the country fell by 240,000 in October — resulting in a 6.5 percent unemployment rate. The last three months have actually accounted for more than half the 1.2 million jobs lost since the beginning of 2008.

And that’s just jobs. People are losing their homes, their retirement funds and their faith in the financial and economic system.

That’s the bad news. If there is any good news, it’s that people are learning how to weather the economic slump by being frugal and smart — and a little creative. Putting on a sweater rather than turning up the thermostat is one example. Pinching pennies is another way to put it.

And with the holiday season just around the corner, spending money wisely is just as important as saving it.

The Times has researched various penny-pinching techniques people can use to ride out these hard times, from Web sites that offer sneak peeks on Black Friday deals to saving money on life’s little luxuries.

Be a “deal hound”

Thrift shops are a great place to find bargains and don’t always sacrifice quality. Just because someone donated a shirt or pair of pants doesn’t mean they are worthless — the person could have grown out of them or gotten them as a gift.

Fashion trends last anywhere from a couple of weeks to a year, and consignment shops and stores such as Value Village, Goodwill and the Salvation Army usually have a decade worth of fashion styles at major savings.

Lauri Tutor, manager for Value Village in Tigard said the store offers daily, weekly, monthly and even yearly deals from 20 percent off coupons for those who bring in donations to 99-cent colored price tags on selected items every other day of the week.

As for little luxuries that you’re used to, they don’t have to go away — just be smart about them. Rather than go to a late-night movie, see a matinee. Or instead of buying movies, CDs or a new hardback bestseller, check them out at the library for free.

An American Library Association study in 2002 found that during slow economic times library usage went up. Washington County libraries also offer free Internet, magazines, books-on-tape and various classes.

Grocery shopping

Karen Painter of Beaverton pushes a cart through Tigard’s Cash & Carry store, filling up on everything she might need for the next few weeks. She switched to buying in bulk after realizing it’s cheaper than going to the grocery store every week and spending money on gas — plus those impulse items pile up.

“I’ll also write out a list beforehand and try to stick to it,” she said.

According to BCSalliance.com, an online resource to debt and credit solutions, people who don’t know how much they spend on groceries each month are 20 times more likely to get into debt. The site suggests drawing up a food budget and keeping a record of how much you or your family spends on food, including eating out.

For those who aren’t a fan of monitoring every penny spent, here are some other money-saving food tips:

Buy generic — usually the high price on brand name items is to make up for their advertising costs.

Compare supermarkets — saving gas at the closest store doesn’t mean you saved the same amount on groceries.

Stop eating out or limit how often you eat out.

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