How the Prudent Penny-Pincher Pinches Pennies

I am not a penny pincher by nature. But several years ago I didn't have a choice. That's when my husband,
Alan, was forced to take a new job with a decrease in salary of $25,000.

Almost overnight, a strict budget became essential for us and our four children, then ages 5, 11, 13 and 16. At
first it was tough, but the more I learned, the more I enjoyed trying to save money without compromising our
lifestyle too much.

Now it's a thrill to get a great deal (like finding a designer suit for $12 or cutting my grocery bill by one-third).
Here's how I do it and how anyone can cut costs without sacrificing too much.

FOOD

Plan your food shopping. Though I love to save money, I do not visit 10 different supermarkets looking for the
best price on each item. I don't have the time. I shop only once every two weeks. That cuts down on impulse
purchases. This is important because a lot of people bust their budgets with impulse buys. The more you
shop, the greater the risk that you'll make an unplanned purchase.

I also do not clip dozens of coupons each week, though I use a few of them. My main strategy is to pick up the
supermarket's circular the day before I do my marketing. That gives me a chance to plan menus around items
that are on sale.

Savings: A recent bill for 10 bags of groceries was $141.60. It would have been $72.98 higher if I hadn't
bought
sale items. And it would have run an additional $21.39 more if I hadn't used coupons.

Buy in bulk. When a staple product is on sale, I stock up and store goods on shelves in the basement. I also
buy from a food co-op at wholesale prices. The minimum purchase at our co-op is $400, so we only do this
occasionally, pooling our order with another large family.

We used to combine orders with a dozen families, but splitting up the food took hours and became a
time-consuming chore. After all, time is money.

What you choose to eat can dramatically affect your food budget.

Meat: For both health and money reasons, we eat very little meat. But we enjoy the taste of it, so sometimes I
use small amounts to add flavor to pot pies, soups and stir-fry dishes.

Produce: I get the best deal by using store scales to weigh prepackaged fruits and vegetables (like bagged
carrots and lettuce by the head). I buy the heaviest package and wind up with additional food worth about $3
per supermarket visit. I also never buy produce out of season. Asparagus, for example, is three times as
expensive during the winter as it is during the spring.

Try growing your own. We maintain a 45-foot by 45-foot garden. We grow berries, grapes, vegetables and
lettuces. It saves us about $1,000 a year in produce.

UTILITIES

I used to think I was very careful about electricity by turning off lights and appliances when they weren't in use.
Then I made some changes and cut my utility bills by $100 per month.

Lights. We use fluorescent bulbs almost exclusively. They are more expensive ($6 to $20 each) but they last
14 times longer than incandescent bulbs and use 75% less electricity. Fluorescent bulbs cut our electric bills
by $40 per month (at 15 cents per kwh).

Refrigerator. To further reduce electricity costs, I use a ZTI Power Saver plug for the refrigerator.

To use: Plug the ZTI Power Saver into the outlet and then plug the refrigerator into the Power Saver. It reduces
the amount of electricity that your appliance needs without compromising its performance or causing
damage.
Each one costs $59 and, when used with a refrigerator, washer or dryer, it should pay for itself within a year.
Information: Zemos Technologies, Inc., 43260 Christy St., Fremont, California 94538. 510-657-0278.

Dryer. Two years ago, when our dryer broke, I began hanging clothes to dry. I soon saw our electric bill drop by
$50 a month and I never fixed the dryer.

INSURANCE

I've slashed our annual insurance costs by $1,200.

Homeowner's insurance. When my homeowner's policy was mailed to me for renewal three-and-a-half years
ago, I took the time to read it. This wasn't easy but it sure has been lucrative.

All the riders were listed in codes, which were explained at the back of the policy. I found that I was insured for
furs and jewelry, which didn't make sense since I only owned a $100 wedding band. So I eliminated that rider.

I also found that the insurance company assumed the value of my home was increasing by more than it
actually was. The replacement cost of my home was inflated in another way as well. The replacement cost
included the $30,000 value of my one-third-acre lot and the $15,000 value of my foundation. Even if the house
were gutted by fire, those parts would still remain. So I reduced the replacement value of my home by
$45,000,
using the insurance company's own charts.

Auto insurance. I've raised the deductible on my two cars from $200 to $500, which reduced the premium by
15%. I also dropped the collision coverage on one car, since it was more than five years old. This saved us
$512 per year.

Both policies have also been cut by having homeowner's and auto coverage with the same company. They
were reduced even further when my husband took a defensive driving course. I am planning to take one, too.

CLOTHING

Fancy clothes. I like designer labels and good clothes. When I appear on TV, as I often do, I care about how I
look. But I don't love to shop, and I refuse to pay full price for these clothes.

I buy most of my clothing at thrift shops. I just bought five suits for a total of $35. For my dressy clothes, I go to
outlets or a nearby resale shop that won't sell any item that is more than two years old. Prices are 70% to 75%
below retail.

I focus on colors that look best on me such as fuchsia, royal blue and purple. This makes it easier to mix and
match clothes, and I keep my wardrobe fresh without having to own as many clothes.

Everyday clothes. I take my family to end-of-season bag sales at a local thrift shop. At these sales, you get to
fill a 14-gallon plastic bag with as much clothes as will fit inside. Prices around the country range from $6 to
$22 per bag.

COLLEGE

Our oldest daughter recently completed her college education in Maryland. When she was a college student,
we encouraged her to get a work-study job to help pay the bills. As luck would have it, she landed a job in the
financial aid office. This has helped us learn several money-saving strategies. They include:

If you're applying for financial aid, file your tax returns early. Aid is often dispensed on a first-come,
first-served basis, and you'll need to include a copy of your tax return with the financial aid forms.

If you think you're entitled to more financial aid, appeal and explain your case. We did so on the basis of our
$25,000 income shortfall and major medical expenses. As a result, we received an additional $4,000 in
financial aid.

Whenever possible, avoid having your children live in dormitories, which are often cramped and expensive.
Our daughter rented an 8,000-square-foot apartment and sublet part to other students. This covered her rent
and groceries and really helped us out.