The Art of Frugality

So you've been saving your pennies and dimes and have built up a substantial amount of money. What do you do with it? Do not just let it sit in savings, even if it is a high yield Account. Why? Because when you're only earning 3.00%APY and inflation is 4%...well you do the math. Here is my (very non-professional) basic advice.

First off, you want to have an emergency fund which equals approximately 3-6 months of your monthly income. This chunk of money benefits you when you incur large, unexpected costs (and no, I'm not talking about that to-die-for Chloe handbag). This is also your safety net should anything happen to your job. Life is full of unexpected twists and turns and by having an account ready it minimizes the risk that you will turn to credit when in need. I recommend keeping this fund in your high yield account since these account allow easy use and transfer of money when you're in a pinch.

The key to building investments is to use passive income as your goal. Passive income is defined as income which is sustained through little work. Sounds like a dream doesn't it? Well it takes a large chunk of moolah to generate enough passive income to quit your day job and begin your dream of moonlighting as a professional karoke singer. However, you can use the passive income you generate, no matter what the amount, to either a) reinvest or b) use as a monthly supplement to what you are already making. (I say reinvest...oh did you guess that already?)

Learn the Basics
Ok, ok I hear you panicking now. You know nothing about investing? Well, my soon-to-be money savvy friends, that's what a library is for. Stock up on books such as The Lazy Person's Guide to Investing and Boglehead's Guide to Investing both of which come highly recommended and pack in a lot of great information for the investing novice. Learn key facts such as the difference between Small-, Mid-, and Large-cap funds. How do the funds classification correspond with your goals? And also learn when a stock, versus a mutal fund versus a bond is more preferrable (hint: none of them are a perfect choice, but some align more with your objective than others).

Utilize Your Advantages
An important factor to keep in mind is you're young! You have the golden nugget of time on your side and therefore have a greater ability to choose options that may carry more risk. Most trends show that in the short-term stocks come at a very high risk, but hold on to those babies and you can see significant returns. The longer you have to hold onto your investments the more risk you're able to take on since dips and valleys may very well hardly register 5 or 10 years from now.

Stop Being a Sheep (baaa)
There's a reason why the majority of people do not day-trade for a living. People often fall into the trap of buying a stock when it has hit big and selling the minute they see a decline. You can not get rich by following trend, but rather buying quality stocks at bargain prices (my good pal Warren Buffet said that). Buy low then hang in there for the further lows that may follow. You know your risk is fairly less when you invest in stock that isn't "the next big thing" but rather a steady earner throughout time.

Know your Aptitude

It's difficult managing a laod of individual stocks, which is why I would say stick with mutual funds. What are these? Well, a mutual fund pools money from multiple investors to construct a portfolio of stocks, bonds, real estate, or other securities, according to its charter. Each investor in the fund gets a slice of the total pie. So how do you measure a fund's risk? It takes some analysis on your part:

1. What is the fund's biggest quarterly loss?
2. Measure the fund's volatility against the S&P 500 ("the mainstream fund" if you will)
3. Calculate the standard deviation: this will show you how much the fund bounces in its average returns.

• Fill your pitcher or container with half the amount of water you will be using. Measure in the appropriate amount of dry milk powder. Stir to dissolve. Fill the pitcher with the balance of the water called for above. Stir again and chill.


• Use cool water when possible. The powder tends to dissolve more readily in cool water.


• Stir the milk a lot, to dissolve the milk powder. Then let the milk sit for a little while and stir again. The protein in the milk powder blends most easily if it gets a chance to stand after mixing.


• Chill for at least 4 hours or overnight.


• Add flavor by dropping one or two drips of vanilla to improve the flavor. You can also add a spoonful or two of sugar for the same purpose.

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Broken Doesn't Eliminate Use

You may find something that needs more than just a coat of paint. Don't disregard the item simply because the previous owner lacked the imagination or motivation to envision the piece as it should be rather than as it is. A great way to read up on fix-it how to's is online at Home Depot. With a simple tutorial and the right tools, you're only limited to what you can't concieve (well ok and the number of injuries you may incur before throwing in the towel....) If it doesn't work out, just put it right back in the dumpster.

Use Dumpsters to Make Money

Just becaus eyou may not necessarily need another coffee table doesn't mean you can't take it in, give it a little love and resell if on Craigslist. Even if you sell it for 15 bucks: it cost you nothing to acquire.

Recommended Tools

• Flashlight
• Gloves
• Baby or Anti-Bacterial Wipes
• Long Stick (to use in probing stuff you don't really want to touch)
• Bags (grocery or otherwise to collect your items)
• Step Stool (so you can peer over the rim of the dumpster)
• Razor Blade (to rip open boxes or bags)
• Pepper Spray

When I moved into my studio apartment, no microwave was to be found. Three months later, I still haven’t gotten around to buying one and I’ve realized something astounding. Not having a microwave has helped me save money. How? I’m less tempted to buy convenience foods (why buy Lean Cuisine when I can’t cook it?) and have become more familiar with cooking and utilizing the tools readily available to me. I am by no means a rockstar in the kitchen but that's all changing (hellooo grilled chicken of last week). What tools are a must (stove, refrigerator and oven are givens) for beginning any culinary adventure?

Crockpot
I bought a 3 QT Crockpot for $16.00. This is an excellent tool for making sauces, stews and chili. Great time saver too, put your ingredients in the pot before you leave for work, come home to a delicious meal.

Knives
Knives come in handy when you need to…er…well cut things. Forget the deluxe 32 piece knife set. Unnecessary for someone just starting out (plus that’s just 32 different ways you can cut yourself), get a pairing knife and a chef’s knife and you’ll have everything you need. You can find perfectly suitable knives at Target or a discount retailer like TJ Maxx.

Toaster Oven
I use this to reheat leftovers, bake potatoes and toast bread. 3 in 1 use? Aces!

Cutting Board
Because cutting on the counters= very bad

Grater
This allows you to grate veggies, cheese, fruit (did someone say lemon zest?) and even breadcrumbs. Preferably not all together…

Two Baking Pans and a Baking Sheet
Perfect for cooking chicken, baking desserts and making casseroles. You don’t need a plethora of baking pans, two sized will suffice. A 9x9 for your smaller side dishes and a larger 9x13 will certainly cover your bases.

Two Pots and a Skillet
I have two pots, a large one and a medium one. I use these to reheat leftovers, cook vegetables and make small amounts of gravy, sauce and the like. The skillet is excellent for eggs, breakfast items and cooking your meat. That’s it, I haven’t yet found a need for one of those cooking pot sets that comes with 10 different sizes of pots. One day I will, and then I will ask for it for Christmas ;)

Spice Rack
Preferably loaded with your basic spices. I enjoy the spice array: basil, oregano, cinnamon, garlic powder, onion powder and nutmeg.

For this edition of Thrifty Find Thursday I though I'd honor the holiday with a partiotic outfit appropriate for hitting the beach or relaxing poolside. Enjoy!

So lately I've been noticing a distinct enlargement of my mid-section through over-indulging and lack of exercise. I've never been one for working out like a mad woman, but I do enjoy physical activity and to be honest the hardest part is getting motivated to begin. So I recently began reading a book I've had for about a year (yes, and I'm just now reading it): YOU On a Diet which outlines a whole plan for thinking about food differently and incorporating daily activity into your life. The best part? Exercise can be done easily in the comfort of your own home.

I know it's hard to think that one can work up a significant sweat without the use of heavy duty equipment and a cute trainer (mmm....pecs) but the workout outlined in YOU On a Diet is not only easy to follow (takes about 20 minutes from start to finish) it's cheap! Should be done 3-4 times a week.

1: (Stretch) Roll with It 5 reps ea. shoulder

Basic move. Roll your shoulders forward for a count of ten then backward.

2: The Chest Cross 25 reps ea. shoulder

This is a 2 part exercise. 1)Stretch arms out straight in front of you w/ palms facing in. Left arm above right arm pulse horizontally. repeat with right arm above left. 2) Move hands rapidly up and down. For the arm going up: palm faces the ceiling. For the arm going down: palm faces the floor.

3. (Stretch) The Clapper 10 reps

Just like it sounds. In a standing position clap in front of you; then bring the arms behind you and clap behind you. Make sure to keep your chest lifted through the duration of the movement.

4. (Stretch) The Hippie 15 seconds ea. side

With feet flat on the ground, bend forward at the waist. Alternate bending one knee and keeping the other leg straight (both feet should remain flat).

5. Push Up exercise to failure (basically: go until you can't anymore)

If you can not do a full body push-up (ummm me), do push ups with knees bent. Make sure you keep your stomach muscles tight and your chin slightly up (look 6in past your fingers)

6. (Stretch) Pecs Flex

Sit up straight on your heels and clasp your hands behind your bum. Lift arms (knuckles facing out) while opening chest wide. Make sure to squeeze your shoulder blades together and breathe into the muscles being stretched.

7. Steady on the Plank exercise to failure

Get into full push-up position with elbows and toes on the floor. Kepp your bum tight and your stomach pulled in toward your lower back. Hold position.

8. Whose Side Are You On, Anyway? exercise to failure

Turn to the side by putting an elbow on the floor and rotating the opposite hip toward the ceiling. Keep your body in a straight line and resist pushing your butt back. Keep your abs tight as you hold the position for as long as you can. Alternate sides. Advanced Modification: dropping your hip, tapping it on the floor and bringing it back into the lateral plank.

9. (Stretch) Up, Dog, Up 10 seconds ea. position

From a down push-up position, with your hands below your shoulders, lift your chest and torso up into the air so your upper body is nearly perpendicular to the floor as you come onto the tops of your bare feet. Lean backwards to stretch your abdominals, but keep your butt relaxed. After holding, look over your right shoulder; hold. Left shoulder; hold.

10. The Rickety Table 20 reps ea. side

Put your hands and knees flat on the floor with your fingers spread apart and pointing directly forward. Keep your back flat and parallel to the floor. Look down 6in above your fingertips. Reach your right hand forward and your left foot back and stretch them as far away from each other as possible, keeping your right hand higher than your head. The higher your arms goes up, the more work your back has to do and the more effective the exercise. Now, bring your right elbow to your left knee. Your stomach should be pulled in the entire time, supporting your lower back. Advanced Modification: move your arm and leg out at a right angle from body, keeping them above your spine.

11. Superman exercise to failure; goal: 1 minute

Lie flat on your stomach, reaching your arms out in front of you with palms down. Spread out your extremities straight out in all four directions and lift your arms and legs simultaneously for enough repetitions to cause some mild fatigue. Continue to look down during the movement, and don't over extend your neck up. Focus on how long you can make your body-not how high you can get it.

12. (Stretch) The Seated Pretzel

Sit down with legs stretched in front of you. Set your right foot down on the outside of your left knee. For back support, put your right hand behind your right butt cheek. Bring your left toe straight up. Reach your left hand up like a stop sign and then twist to right and bring your left tricep to outside of the right thigh. To go deeper, twist more to apply pressure against your right thigh. Act like a string is pulling the top of your head up to elongate the spine. Breathe by expanding your rib cage like you are blowing up a balloon.

13. Leg Drop (like it's hot) exercise to failure

Lie on your back and put your knees at a 90-degree angle and your feet in the air. Drop your heels down, tap the mat, and bring back up to 90-degrees. Advance Modification: Do it with straight legs

14. X Crunch exercise to failure

Lie on your back with your feet on the ground and knees at a 45-degree angle. Cross your arms behind your head, putting your opposite hand to opposite shoulder forming an X behind your head. Rest your head in this X and keep your neck loose (in the beginning, you can put a tennis ball under your chin as a reminder). Using your abdominal muscles, crunch up about 30 degrees from the floor. Without holding your breath, you need to suck in your belly button to the floor to tighten the natural girdle you have to keep the entire 6-pack tight (oh it's in there). Also pull up your pelvis muscles (like when you are holding in your pee) to strengthen the bottom of the natural girdle.

15. Seated Drop Kick 2 sets of 25 reps ea. leg

Sit with your legs straight out in front of you. Bend your right leg up with knee pointing towards the ceiling. To keep your back straight, interweave your hands around this knee. Act like there is a string pulling from the top of your head elongating your spine (and don't bob your head). Lift your left straight leg 6in of the ground, keep your left toe pointed towards the ceiling.

16. Invisible Chair exercise to failure; goal: 2 minutes

Sit in a chair position (with no chair!) with your back against a wall, and with your hands palms up resting on your knees. Keep furniture near you or under you, so you can grab it to help yourself back up when you're done. Keep your heels directly below your knees and at a 90-degree angle; your shoulders should be rolled back and the back of your head against wall.

17. (Stretch) Nice Thighs 20 seconds ea. leg

While standing on one leg, bend the knee of the opposite leg and grab the foot behind your back with one hand (use one arm to hold something to keep balanced). Pull the foot toward your butt while lifting your chest forward and squeezing your shoulder blades together. Switch legs.

Combine these exercises with 30 minutes of daily cardiovascular exercise (can be broken into chunks throughout the day) and you'll be on your way to Fergielicious-ness...or at elast you won't be dying after climbing a flight of steps.

Picture and Workout Source: YOU: On a Diet, by Dr. Michael Roizen and Dr. Mehmet Oz