Pennythoughts – By Elaine McEwen
It’s getting harder and harder to pinch a penny these days. With the economy a mess and job prospects non existent, many people are looking at ways to cut back on their expenditures.
Unfortunately, a penny won’t buy you much anymore. Gone are the days when you could get three blackballs for a penny. Even a nickel won’t get you much now. Perhaps we penny pinchers should re-name our miserly ways “loonie leveraging” or “toonie torturing”.
Even in my household in Ridgetown, where we are self-employed, with no government pensions to rely on, we are taking steps to cut our spending.
Fortunately at this time of year, there is an abundance of fresh fruits and vegetables available so there is much bottling and freezing going on in our kitchen. We lucked into some free bounty from the local college – probably illegal – but what the heck, it was all going to be ploughed under anyway.
I now have peaches all prepared and frozen for use in the winter, as well as a hefty batch of tomato sauce that can be used for a variety of prepared meals. We stocked up on blackcaps from the woodlot beside the high school playing field a few weeks ago and they will come in handy for pies. Using the blackcaps and rhubarb from the garden, it only costs me about $3 to make my own pies versus $6 to buy one at the supermarket.
In addition to tomatoes, beans and onions from our own garden, we’ll also be buying as much low-priced, local produce as we can manage over the coming weeks to prepare casseroles and one-dish meals to fill up our freezer.
Trips away from home are pretty rare these days. We find since we moved to Ridgetown that there’s always a handy excuse to avoid travelling too far – “It’s too hot”! “I can’t be bothered”, it’s too far”. It sure doesn’t take much to keep us homebodies at home. We’ve probably saved a small fortune by not filling our car with gas every week.
I estimate that we are now averaging about 10 kilometres a week at most. But, this week we will have to go into London to have the pup neutered. We are doing this because it will cost less than a third of what we would be paying for the same service in Ridgetown.
While we are there waiting for him, we will make a trip to Costco to stock up on bulk items and there’s always something useful and affordable at Dollarama.
Last year I learned to quilt. Well, wait a minute, that’s a gross exaggeration. I was so impressed with the local quilts we bought for our grown kids, I wanted to give it a try myself.
My sewing skills are barely adequate, but certainly good enough for my own purposes. I mean what’s the big deal about trimming threads and matching up corners anyway?
So I spent some time cruising through Value Village, Goodwill and the Sally Ann and managed to acquire, at very low cost, enough men’s flannel shirts to make a cosy “flannel shirt” duvet cover and matching pillow shams. I used the bands with buttons and button holes for the closure on the duvet, so it really is pretty cute, if you don’t look to close. I’m not expecting Martha Stewart to drop in, so I am content with my “good enough for the likes of us” standard. When you use flannel or fleece on your bed in winter, not only does it feel luscious, you can turn the thermostat down and be completely warm and comfortable even on the coldest nights. Of course it helps if you have someone else around to help warm up the bed too!
Our central air-conditioning bummed out on us right after we bought our house. But, with large overhanging eaves and plenty of large trees shading the house, we have been managing fine, even in the hottest weather, with a basic fan. If you close up the house during the day, as in close all the blinds and curtains and keep it fairly dark until the sun goes down, it is remarkable how comfortable it is when you open up and catch any evening breezes.
Entertainment for us is pretty much our big screen TV, reading, art projects, and playing old-fashioned board games together, as well as several that we have designed ourselves. If we feel the need to go see the Grand Canyon, loll about on a tropical beach, climb a mountain in China or partake in a cops and robber adventure, it’s as easy as slipping in a DVD or cruising through the satellite channels.
While it’s true that we don’t have small children to entertain, I remember my own kids having a whale of a time just playing around in the sprinkler to keep cool on a hot day. There are plenty of neat, interesting things to be found at places like Value Village for only a few dollars that will keep kids occupied and busy for several hours. With programs at the local library, as well as a zoo and a beach only ten minutes away, I don’t think I’d need to be spending a great deal to keep kids busy and happy.
There’s plenty for adults at the library too and, as long as you remember to return them on time, it’s free to take out books and DVD’s. Of course, they don’t always have what you want, so I do sometimes buy specific books. This year I lucked out and received one that I really wanted as a birthday gift. I just finished reading Chris Hedges’ “Empire of Illusion” – The End of Literacy and the Triumph of Spectacle. Admittedly some people might find this book somewhat depressing, but it is an excellent analysis of the current state of morality, literacy and economic crisis in the US.
I have loaned the book out to a friend, so in that way too, I can share and it costs the second reader nothing. It also costs nothing to find interesting articles to read on the internet, as well as free games like online scrabble at www.isc.ro where you can play with people all over the world.
And of course there’s the underground market as well. There’s plenty of cash trade going on at markets, on websites like craigslist and kijiji as well as yard sales and other buy & sell operations. There are even some businesses that will do a cash deal, to avoid the sales taxes. Of course this is illegal, but in tough economic times, people do what they need to do to survive. Our government knows this, so they are now going after the big sellers on eBay for the taxes owed.
Perhaps there will be a drop in Canadian users of eBay for awhile. Most people though are just interested in the occasional opportunity to get something they need at the lowest possible price and there’s always someone willing to cut a deal.
I rarely buy retail anymore if I can find what I need wholesale or on Craigslist. One technique that I always find useful to save money or avoid spending unnecessarily is to leave my wallet at home.
If I see something that I really, really want then I have to go back the next day to buy it. One hundred per cent of the time, I haven’t wanted it bad enough the next day to go back.
In Chatham-Kent there are few, if any, job opportunities and, unless you know someone intimately in the big boys club who can get you a job at the government teat, you are pretty much on your own.
As a recruiter, I can tell you that job prospects are slim indeed and there is little prospect of improvement for several years.
Currently I have several opportunities I am working on for clients in other cities, but these jobs are rare and very specialized. My colleagues in the industry in several areas are all saying the same thing – NADA!
So, if you are unemployed, this is the time to be thoughtful about your skills and abilities.
Give consideration to creating your own opportunities.
Throughout history, people have packed up and moved to wherever there was an opportunity, so if necessary, be prepared to relocate to find work.
And, most important of all, be very, very frugal with whatever money you do have.
Rob
Brian Cleeve
Aaron Hall
Michael Cowtan
Jay Smith
CKDP Staff
Greg Hetherington
Marlee Robinson
Chris Prince
I am very disappointed that you feel the need to encourage people to break laws or ‘bend’ them.
As a retailer who collects and remits sales tax even on the $2 cat toys I sell, I would NEVER knowingly purchase from a business who does this. When we (as a community) forgo integrity …that is when we truly are poor.
I also would like to encourage people to be thoughtful with their spending but also remember that money needs to flow into the economy in order to flow out again. I prefer to do my part to stimulate the economy by trying to ‘keep calm and carry on’ instead of overly tightening the purse strings which really, helps no one in the long run.
I wasn’t “encouraging” people to break the law – I was simply stating what is going on. I am sure every vendor at the markets are dutifully collecting and remitting taxes for the government on every sale – just as I do in regard to my own business. Of course you know that businesses are not required to register for GST until they are generating $30,000 annually in receipts. As for the peaches and tomatoes – perhaps you prefer that they are ploughed under? Each person is free to do whatever they like as far as “stimulating” the economy. I for one don’t believe that shopping for the sake of stimulating the economy is going to help even a tiny bit. Personally, I buy what I need – which isn’t much and I try to make sure what I do buy is local or at least made in Canada. It isn’t my responsibility to support foreign workers over Canadians. It is my opinion that it is going to get an awful lot worse before it gets better and people should make sure that they manage their money carefully. Just because the head of the Bank of Canada says the recession is over doesn’t make it so. You might want to see what is happening on the stock market today for example. You cannot spend your way out of this kind of situation. Most people have a responsibility to make sure that their own family is fed, clothed and housed first – before concerning themselves with the global economy.
Sorry about the ID on the previous post – my computer automatically filled it in based on a visitor who used my computer earlier.
Sorry to say but this article is terrible and your response to Brenda is even worse:
My impression based on what you wrote in the article is you do not understand what penny pinching is and are living a sheltered life in Ridgetown.
I would point out that a penny pincher would never have taken on a dog fully understanding that money needed for things like vet costs, and food costs are not justifiable in difficult economic times. Deciding to have a puppy is by no means living up to your closing advice to be frugal.
I would also point out that buying at Dollarama is not making sure what you buy is local. Good luck finding more than 5% of the items at that store not made in China.
As far as your take on basic economics in your response. Shouldn’t you at least have some fundamental education or knowledge about economics before you start talking about it?
Here are some basics about how the North American economy works:
Consumer spending is the most vital component of GDP at about 55% in Canada and upwards of 70% in the U.S. Shopping does indeed stimulate the economy. From retailers, to manufacturers, to their supplies, right down to local producers.
An example of the power of Consumer Spending – the last quarter of 2008 Canadian Consumer spending dropped 3.3% – GDP dropped 3.4%.
Your comment that ‘you cannot spend your way out of this kind of situation’ is to a large degree inaccurate.
And your reference to the stock market when you comment ‘look what is happening on the stock market today for example’ is bizarre when you consider it directly contradicts your previous comment about spending.
I’ll quote from CBC news today.
“Markets were reacting to continuing worries about anemic U.S. consumer spending.”
Brenda’s advice to keep calm and carry on couldn’t be better for anyone who is securely employed.
Other Notes:
A Recession is typically defined as two consecutive quarters of negative GDP growth.
The Bank of Canada may have jumped the gun when they said the recession is over however if June’s GDP comes in at 0.6 percent or higher they will in fact be correct.
First of all Dave, the specific products that I buy at Dollarama are made in Quebec – still part of Canada I believe. Secondly, I am fairly cognizant of economics and the wide range of opinion on where our economy and that of the US is headed. It is true that the 70% of the GDP of the US is based on consumer spending. I am well aware also that so far 77 banks have failed in the US this year. They have a national debt that is over $11.6 trillion, equalling a personal share of over $38,000 per person. The US has already passed the zenith of the consumer society and the seemingly insatiable lust for stuff has given way to a desire for security, stability, and simplicity. Before there is a “real” recovery, it is essential that people find work. Unemployment numbers went up in July…and last week, 558,000 people filed for unemployment benefits – up from the week before, for a total of 6.7 million jobs lost since the downturn began in December of 2007. And foreclosures hit another record in July. Business profits that have been declared were almost entirely generated by laying off workers. I am sure laid off auto workers living in Chatham Kent can’t be too thrilled to know that Chrysler will be manufacturing a new vehicle “in Mexico” – so no new jobs for them.
Encouraging people to buy “too much” was what caused the problem in the first place. Encouraging them to buy more now is not a solution; it’s just a continuation of the same flawed policy of stimulating consumer demand. American consumers have learned their lesson. Savings rates have gone from zero to 7% in the past 12 months. Frugality is back in fashion.
As for our puppy – nowhere in my article did I indicate that I could not afford our pet. I manage my own investments and plan how and where I will spend for what I need or want. A big part of my financial plan is being careful, thoughtful and frugal. We needed new fencing this year and were pleased to be referred to a local contractor who did a fine job and gave us a good, competitive price.
I do not believe Brenda or I at any point said anything about encouraging people to buy ‘too much’.
The point made is simple – consumer spending is such a vital component to our economy and job creation that people cutting back too much will only serve to deepen and lengthen the economic downturn.
As for your new puppy – congrats on your new family member. Please note a pet is a luxury item and by no means meets the definition of Frugal.
Here is an example of penny pinching in tough times.
I have been buying cheaper cuts of meat and using my crock pot to cook them in so they don’t taste like cheaper cuts of meat all so I have a few extra dollars to buy a popsicle or icecream on a hot summer day for my kid.
The positive for me as opposed to many others here in Chatham Kent is I can pinch some pennies on a meat purchase and still have money for some simple pleasures like a freezie with my child.
Which brings me back to my initial point that this is a terrible article. A person who is spending their money on new pets and fences may be spending more carefully and thoughtfully but is definitely not pinching pennies in tough times.
And then I get even more confused reading what you have written because as it turns out the spending you have been doing recently is contradicting your own advice to cut back on spending.
With people as frugal as you spending their money on luxury items the economy will be humming again in no time!!!
Actually, spending money carefully and thoughtfully will definitely help local economics…and if it doesn’t help…how could it hurt?
For example, in a couple weeks we are having a pond installed. The money this will cost will go first to a local landscaper, Im happy to support another female entrepeneur who I would definitely say works harder than me (at least my studio is air-conditioned). The money will trickle down from her to a backhoe rental company, the stone and mulch suppliers, plant grower and pond equipment supplier…all as far as I know, self-employeed small businesses.
Will our little pond change the economy even just here in Chatham-Kent? no…its a drop in the bucket..but every penny helps…doesn’t it?
One thing that fear-mongering does do, it makes the ones who do have discretionary income really think about who is going to get it…
If you really did find a working formula that made you, say $1,000 a week online on average and it kept producing income no matter what, would you want to sell that idea to a bunch of noobs for $47 a pop and expect to retire on the proceeds? No way, man! It does not compute. It does not add up. And it does not make any sense to do that. I certainly don’t go shouting from the rooftops how I make my money online. Hell, I don’t want the competition taking a slice of my pie and neither would anyone who really does make good cash online.
http://www.onlineuniversalwork.com