Lazy Man and Money

Groceries: Warehouses vs. Aldi’s

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Aldi Chicken
Sometimes I get a lot of highly discounted product at Aldi’s

I was going through my phone’s five hundred browser tabs to clean them up and came across this Warehouse Club Grocery Comparision from Chief Mom Officer. I’ve met her a few times at FinCon. She’s in Connecticut, and I’m in Rhode Island, so we have a New England personal finance thing in common.

That article takes on a Herculean task – comparing prices at BJ’s (our local warehouse/Costco chain), Target, Aldi, and Price Chopper. I have an Aldi’s and a BJ’s very close to me, so it caught my attention. Readers know that I’m a big fan of Aldi, sometimes scoring chicken for under 50 cents a pound. With inflation, it’s much more difficult to find those deals. I used to be able to stock up a couple of times a month. Now, it’s hard to stock up on meat, but there’s often a deal on expiring take-home pizza or something else that catches my eye. I find that flexibility is important when grocery shopping.

Chief Mom Officer did all the hard work getting the data for her family. There are a ton of disclaimers because it’s impossible to control for all the variables. We have different size families, different grocery options available to us, different preferences for foods and specific brands, different sales, etc.

Here’s the data:

She came to it from the perspective of getting most of her shopping done at BJ’s. It’s convenient for her and her family. Life is busy; who wants to go to more than one store all the time? Me. I know I’m weird, but I like grocery shopping. I never get bugged for problems, and I love hunting for deals. I can almost go shopping during off-peak hours. I suspect that most people would rather not deal with the hassle.

We’ve tried BJ’s, but we always let the membership lapse. The last time we tried, our kids were very small. At ages 8 and 10 now, they are bigger. However, for some reason, they don’t like to eat food. (They don’t eat things that are not food, which is also important.) They simply aren’t big eaters. My wife is more into vegetarian-type dishes, and I’m a meat and potatoes type. I think warehouse shopping would work better if we didn’t want very different things.

Looking through this CMO’s data, I can see why Aldi works better for us than BJ’s. Our BJ’s doesn’t have gas. If it did, it might be worth the membership alone. Almost everything seems to be cheaper on Aldi’s list. Some things that CMO couldn’t find at Aldi, like apple juice and Ziploc-style bags, are readily available at my Aldi. My Aldi doesn’t have two liters of diet soda (any brand), so I have to go next door to Dollar Tree. That’s a pain, but it also helps when I get a household good that’s not a grocery item, such as the D-batteries on CMO’s list. They aren’t great D-batteries, but we use them very rarely.

One of the problems that I have with BJ’s is that I can’t see buying five dozen eggs. It’s too much for our family and fridge. If that’s BJ’s only option, I must go to Aldi’s or another grocery store. Similarly, we can’t go through a 3-pound bag of bananas before they spoil. At that point, I’m already shopping at multiple grocery stores, so I’m not saving time by avoiding going to two stores. If I shop at BJ’s, I’m still going to need to go to Aldi about twice a week to pick up little things that I forget, but also perishables.

As complex as it has been up to now, let’s ramp it to another level. Consider an item like 1000 feet of aluminum foil is $33 at BJ’s. We use very little aluminum foil, so 1000 feet last a long time. I did some math, and it could last us for more than ten years. So should I care about saving $7 in aluminum foil every ten years or saving $3 on English muffins a couple of times a month? The English muffins are potentially a $72 annual savings ($6 saved times 12 months) which is $720 more in the ten years of our extra $7 aluminum foil expense. My point is that it can matter quite how much you use a particular item on the list.

Our flexibility also saves us money. I was shocked at the price of 12 Honeycrisp Apples. I just buy a bag of apples (Gala, I think), and it’s closer to the price you have the Granny Smith apples ($5) than CMO’s price of $23. I will take that $18 in savings every day of the week. CMO covers some of this in her analysis by saying that there are some things that off-brand is fine and other things that they simply wouldn’t substitute.

Finally, we also have access to a military commissary which can get us specific brands at great prices. We don’t need a lot of specific brands, but if we did, we could use that fill-in gaps. We also have the smallest Walmart known to the world. The selection isn’t great, but the prices are great, and it is another option to fill some gaps. You may not have access to a military commissary, but a secondary option could work for you.

The good news is that you may have enough information with CMO’s data to extrapolate what works best for you and your family. She explains quite well how BJ’s is a better fit for her family. It makes complete sense. If we did some kind of weird family swap, I would probably shop the same way she does. At the same time, I can look at the same data and see that I save so much money with how I shop.

8 Ways To Fight Inflation On Your Car Costs

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Marketwatch’s marketing team reached out me and asked if they could contribute some car tips for readers. I read Marketwatch almost every day and I bet many of you do too. I asked them to put together an article that should be able to help almost reader. We’re doing step one and just keep driving our 9 and 10 year old cars.

With inflation on the rise, it’s more important than ever to be mindful of your spending. One area where many people tend to overspend is with their cars. Whether it’s paying for gas, car insurance, or routine maintenance, the costs of owning and operating a car can really add up.

I’m a big fan of budgeting so that I can give a place to every one of our hard earned dollars. But after the pandemic, those dollars started disappearing faster than I could track them, and one of the biggest areas that was eating our budget was car expenses.

My husband picked up a part time job to help combat some of the rising costs, and suddenly our gas card payment was 5x its previous balance and showed no signs of slowing down. Thankfully, we’ve worked our budget and found ways to keep fighting inflation on car costs. With a little intention and research, you can do the same!

1. Wait to Buy a New Family Car

In order to fight against inflation and the rising cost of cars, we have decided to wait to purchase a new family car. We currently have two cars, but both are over ten years old.

We had been thinking about upgrading to a newer, bigger model to fit our growing family but with prices continuing to rise, we decided it was best to wait. In the meantime, we are keeping an eye out for good deals on used cars, using a car loan calculator to see how much we should budget for a car payment, and saving up a downpayment for when that perfect car comes up.

2. Choose a Less Popular Car Make and Model

The cost of a car is one of the largest expenses a family will face. With the price of a new car averaging around $30,000, it’s no wonder that many families are looking for ways to save money.

We are choosing to look for less popular car make and model for our family car. That Jeep Grand Cherokee or Ford Bronco look beautiful, but by downsizing to a Jeep Compass or Ford Expedition, we will be able to cut our car payment in half.

While the Compass may not have all the bells and whistles of the Grand Cherokee, it can still provide plenty of features for a fraction of the price. Because of this simple choice, we will be able to save thousands of dollars over the lifetime of our car.

3. Shop Around for New Insurance Premiums

Insurance premiums can be a big expense, so it’s important to shop around and compare rates before renewing your policy. I found out that by switching insurance companies and taking advantage of newcomer discounts, you can save significantly on car insurance rates.

I was recently up for renewal on my car insurance and decided to explore my options. I compared rates from several different companies and ended up switching to Progressive.

I was able to save over 50% on my premium and actually increase my coverage limits! If you’re due for a renewal soon (or even if you’re not), I encourage you to compare rates and see if you can find a better deal.

4. Set Up a Car Savings Fund

After one shocking car repair bill that took up my extra spending money for the month, I decided to start a car sinking fund so that next time, I’m prepared instead of panicked.

A car savings fund can help you cover unexpected expenses, such as a flat tire or an unexpected increase in your insurance premium. It can also help you save up for a new car if your current one becomes too expensive to maintain, or in my case, too small to fit the children.

Setting aside even a small amount of money each month can make a big difference in the long run. I put $50 a month into my car savings fund. While that may not seem like a lot, the average person spends around $1,000 a year in car repair expenses, so I figure having $600 in savings will be a great start toward that.

5. Get a Gas Card or Rewards Programs

Gas prices these days are more fickle than my mood in a house full of toddlers. My husband has used a gas credit card since I’ve known him and has saved 5 cents a gallon every time he fills up. I always thought all credit cards were bad, so I avoided them. However, after seeing how much less he was spending on gas, I decided to become an authorized user.

Gas credit cards typically offer discounts on gas purchases, making them a great way to save money at the pump. And another option is to get a club membership to somewhere like Costco or Sam’s Club to use their gas rewards programs. By signing up for a gas rewards program, you can earn points towards free gas or discounts on gas purchases.

6. Get Your Car Regularly Checked and Tuned-up

This one is hard for me, because I like to pinch pennies and cross my fingers that nothing will go wrong. But, repairs are inevitable with cars, especially when you ignore check engine lights and put off oil changes and tire rotations.

Regular tune-ups and oil changes can actually help you to save money in the long run. By keeping your car in good condition, you can avoid expensive repairs down the road.

Additionally, I learned that regular maintenance can help to improve your gas mileage. This means that you’ll save money every time you fill up your tank.

Although car care may require a little bit of up-front investment, it will pay off in the long run. So next time your check engine light comes on, don’t ignore it – take your car to the mechanic for a tune-up.

7. Shop Around for Auto Repairs

I like going to the same repair shop because I know the guys and they know my car. However, I’ve learned that getting comfortable costs. Now, I choose to take my car to multiple repair shops to get the best quote. My husband has also learned to become a DIY car repairman by watching YouTube videos and learning to complete simple car repairs instead of paying someone else.

While the average cost of a basic oil change has remained relatively stable, the cost of more complex repairs has increased significantly. For example, the average cost of a transmission repair has risen from $1,500 in 2013 to $3,000 in 2018. This trend is likely to continue, as the cost of parts and labor continue to increase.

One way to fight against these rising costs is to shop around for the best price. Many independent repair shops offer competitive prices, and some even offer discounts for customers who pay cash.

Another option is to try to repair the car yourself. With a little research, it’s often possible to find a YouTube tutorial that will walk you through the process step-by-step. While this option may not be suitable for everyone, it can be a great way to save money on auto repairs.

8. Consider Alternative Transportation and Take a Walk

With 2 little boys, we go to the park a lot. In fact, probably the main use of my car is taxiing us to and from the local park. Lately, we have chosen to walk to the park, and the boys actually enjoy it a lot more than loading up into car seats. And in turn, we save on gas money and get in a couple hundred more steps for the day.

If you live close to your work or school, try walking or riding your bike instead of driving. You may be surprised at how much money you can save by leaving your car at home. In addition, walking or biking is a great way to reduce your carbon footprint and help the environment.

By following these simple tips, you can save a lot of money on your car costs.Gas prices, auto repairs, and maintenance can all be expensive, but there are ways to fight inflation and save money on all of these things. All it takes is a little creativity, hard work and research.

Five Ways to Save Money with Meal Prep

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With inflation on the minds of everyone, I realized it’s been a while since I wrote anything about saving money. When I started this blog a billion years ago, I would often write about little tricks to save money. Well, now there are so many websites with so many tips. You can literally for “how to save money on toilet paper” and get a bunch of articles.

However, that doesn’t mean that all those old ideas are invalid and don’t work anymore. As I was looking through my old articles, I thought it might be interesting to highlight a few of them in one post.

  • 5 Cheap and Easy Slow Cooker Recipes

    It’s a little odd to start a top-five list with another top-five list, but sometimes weird is good. The slow cooker is the ultimate in Lazy Man food prep. I can put together some spaghetti sauce, sausages, peppers, and onions and turn on the switch and have a great meal later that night.

  • Meal Prep for College Students
    I didn’t write this one, but I wish I had. Meal Prepify has 54 meal prep ideas for college students. At $2 a meal, it’s a good way to save money. Don’t be embarrassed to eat like a college student. I’m 46 years old and I still eat instant Ramen noodles. (I just use less salt/seasoning.)
  • Budget Hack: Shredded Chicken
    When I wrote that article in 2015, I wrote, “For years now I’ve seen [boneless, skinless chicken breast] at $1.99/lb. price. Who knew that chicken was immune to inflation?”

    The price of boneless, skinless chicken breast is still about $1.99/lb. near me. I can still find the occasional sales cheaper than that. In fact, it’s so cheap that I started to put shredded chicken in my dog’s food instead of cheese. (He’s picky and needs something.) It’s great healthy and versatile. While on the topic of healthy meal prep, Meal Prepify has some healthy, cheap recipes

  • Does Foodsaver Save You Money
    I’m including this article because I almost forgot about the Foodsaver. Back in 2007, we used it for everything. Now, I don’t think we’ve used it in the last 4-5 years. It’s also funny to see what constituted a somewhat quality blog post worth getting 20 comments back in 2007. It’s almost like comparing black and white TV to 4K.

    I’m inspired to get out the food marinator though. You put the meat in a plastic thing with the marinade and suck out all the air so the marinade gets into the meat much more quickly. The key to saving money comes from avoiding the plastic bags and using the wide-mouth jar sealing attachment.

  • Things I love – InstantPot
    I think InstantPots were not super popular back in 2016 when I wrote the article, but they are everywhere now. I still haven’t learned to work it. My wife is great with it though. She belongs to an InstantPot Facebook group and has a bunch of attachments. We had fajitas for Cinco de Mayo. It was much better than going out to the one Mexican restaurant in our area that had a 3-hour wait last year.

    The InstantPot saves us money by helping us avoid restaurants when we don’t have anything defrosted or prepared.

In retrospect, some of these ideas may not be great ways to save money. They may fill a role for some people though. As a bonus, here’s an easy homemade hummus recipe. When I was shopping for hummus for my wife in California back in 2009 it was expensive. Nowadays, we have an Aldi and hummus is cheap there, so we don’t make it from scratch anymore. I think there are a lot of places that don’t have an Aldi option – and inflation may make these prepared foods more expensive – so maybe it’s useful? Let me know in the comments.

Why Homes Should Invest in Solar Energy

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Solar Energy

The following is a guest post from a reader named Greg Petersen. I have been so busy homeschooling kids and going crazy in isolation that I haven’t been able to get into the flow of writing. I also find it very hard to write on personal finance topics when there are so many things that are more important. However, I was so impressed at the research and references to my other solar articles that I felt it was worth running. At a time like this, I doubt too many people are consider solar energy, but if you have some time on your hands to do the research now, maybe it will make sense when things look better.

The news about the polar shift and different natural catastrophes being experienced in different parts of the world has made the idea of going green and going off the grid seem a lot more appealing. With climate change and other man-made destruction identified as the possible reasons for the earth’s outcry, many people are seriously thinking about using clean energy.

The constant earthquakes in different parts of the world, the sudden drop in temperature in Afghanistan, and bushfires in Australia are all indications of how serious the earth’s condition really is. These global catastrophes are not something one person can solve. Instead, these concerns need a more urgent, unified effort from the people of the world.

If you are still not convinced of the urgency of going green and shifting to solar energy, here are some points of contention that might sway you in the right direction.

Solar power is environmentally-friendly

One common but underrated fact about solar energy is that it’s a green and clean energy source. This means that when you shift to solar power, you are significantly reducing your carbon footprint. With solar power, nothing hazardous is being released to the air that might pollute mother nature. And since solar energy does not release greenhouse gases, it does not use other resources. Given these factors, one can say that solar energy is 100% environmentally-friendly and safe.

In addition, solar power is also self-sustaining. If you install solar panels on your roof, you are on a path to contributing to the earth’s sustainable future. Plus, your home will offer proof of your personal commitment to mother nature.

Solar energy paves the way for a cleaner renewable power source that not only benefits homeowners but also the environment. Compared to other alternative sources of energy, solar power reduces the local and global carbon footprint, significantly contributing to the efforts of reducing greenhouse gases. This energy source is known for its favorable impact and advantages to the environment.

In the U.S. electricity is mostly generated from natural gas, coal, and other fossil fuels. The process of extracting and converting fossil fuels into viable energy sources is not only expensive but also detrimental to the environment. Solar energy, on the other hand, is abundant and free. If you could capture all of the sun’s energy for an hour, you could produce power for the entire world that would last for a year.

If you invest in solar energy, you take a proactive stance in reducing the world’s reliance on fossil fuels. In the process, you’re pursuing a more consistent and abundant energy source — the sun.

Solar energy helps limit the emission of greenhouse gases

If you generate electricity using solar power instead of natural gas or coal, you can dramatically decrease the volume of greenhouse gas emissions, especially carbon dioxide. Greenhouse gases are produced through fossil fuel burning, leading to the rise in global temperatures and climate change. The latter contributes largely to public health and environmental issues; including ecosystem changes, rising sea levels, and extreme weather events.

If you go solar, you can help reduce the rising demand for fossil fuels while shrinking your carbon footprint and limiting your greenhouse gas emissions. A single home that opts for a solar energy system can create a measurable impact on the health of the environment. The U.S. Energy Information Administration stated that an average home using solar panels in Connecticut consumes 8,288 kWh of electricity every year. If that home was switched from fossil fuels to solar power, the homeowners could reduce emissions significantly and create a positive effect on the environment equal to planting 150 trees a year.

The average electricity use in New York homes is at 7,248 kWh per year. If these homes switched to a cleaner energy source like solar power, they could reduce the carbon emissions that result from burning more than 5,000 pounds of coal every year.

Solar energy helps decrease cardio and respiratory health issues

One of the most persuasive reasons why one should invest in solar energy is its effects on our health. With such a clean energy source, you can expect that there will be less air pollutants. According to the National Renewable Energy Laboratory (NREL), with more people shifting to a solar power system, there would be lesser emissions of sulfur dioxide, nitrous oxides, and other particulate matter. Aside from this, NREL also found out that solar power helps decrease cardiovascular conditions, respiratory problems, and chronic bronchitis. Worker productivity will also increase as people experience less illness.

With solar power you can go off-the-grid

Compared to electricity, solar panels are less costly. Traditional electricity significantly relies on fossil fuels like natural gas and coal. These substances are all detrimental to the environment. They are also not sustainable energy resources. As a result, the market for energy resources is volatile, with prices fluctuating violently all through the day.

If you choose solar electricity, your independence from electricity will be boosted further. If you invest in a 4KW-size solar system, a common size for domestic use, you can spare yourself from the ever-fluctuating utility prices. With a cheap and clean electricity source, you won’t feel guilty enjoying your appliances all day long. After all, the sun will never increase its consumption rate. The sun will give you the energy security you need.

The moment your solar panels are installed securely on the roof of your house, technically, you already reached the status of a person that’s energy-independent. Plus, the storage systems of your solar battery will allow you to safely store electricity for use during rainy days and nighttime.

Underutilized land can be used with solar power

If after all that has been said you are still not sold on the idea of installing your own solar power, think of the unused lands that have been left unattended. With solar energy, you can transform these untended lands into areas that can be used to generate more solar power.

Energy shortage is a worldwide phenomenon. Especially now that the threats of natural calamities and disasters are almost everywhere, the topic of energy sufficiency is more than timely. And since everyone is using electricity, it is time to join hands in a collective effort to capture more solar power.

People can harvest solar power in large quantities from solar farms. A 45-acre farm is able to provide electricity in more than 2,500 home volume of energy. The amount of solar energy that can be sourced here is more than enough to power a town, city, state, or even country. People and nations will no longer have to suffer from high-priced electricity costs and unclean energy sources that will end up destroying the environment.

Enjoy a lower energy bill

If you don’t want to go completely off the grid, you can still benefit from a solar panel-powered home. The generation of solar power happens primarily in the afternoon when the sun is up. More solar power can also be generated during summertime. This is the perfect answer to the high energy need during this time of the day and season of the year. It’s in the afternoon when it’s so hot that most homeowners turn on their air conditioners.

Solar energy is valuable in the sense that other energy production methods like natural gas plants that are used to meet the highest energy demands end up being overly expensive. Before the new utility pricing scheme was introduced, homeowners were charged with a flat rate for electricity. This means it doesn’t matter what time of the day they used electricity, they pay a fixed monthly rate. If you install and use a solar power system during this time, you can’t really feel the benefit. It’s like the cost of installation of your solar power system offsets the cost of your electricity bill.

Fortunately, a vast majority of the utility companies in the U.S. now adapt a new pricing scheme that charges homeowners different rates for different hours of the day. The ratio behind such a scheme is to reflect the actual electricity production cost at different times of the day. This means that you will be charged higher rates in the afternoon when the demand for electricity is at its peak, and lower rates during the night. The extent of the benefit you enjoy as a solar power system owner depends on when you use your electricity the most. This investment is most beneficial to those living in areas that implement varying pricing schemes over different seasons of the year due to seasonal demand fluctuations. Those who consume more electricity during summer will feel the most benefit from solar power.

Sell solar-generated energy to electrical companies

Apart from a significantly lowered bill, you can also get a credit from the utility company if you sell your extra solar-generated power to utility companies. Net metering plans are common in the U.S. This is where residential consumers are allowed to use the solar power that they put into the grid to offset their use of power at other times. A home is selling power to a utility company when the power that the house puts into the grid is greater than the amount of electricity their household consumed. Your monthly bill will be the basis for your net energy consumption.

As you already know, the net metering mechanism enables utility customers to feed their saved-up and unused solar electricity back to the electricity grid. To fully take advantage of this benefit, you need to educate yourself on the varying net metering policies and regulations across the states. You can also refer to the Database of State Incentives for Renewables & Efficiency (DSIRE) or get in touch with the office’s local utility companies to get more specific and thorough information.

A Portland homeowner, for example, saves about $17,000, on average, if they use solar energy for more than 20 years. If you live in Boston, in the span of over 20 years of solar power usage, you can save around $43,000. If you live in Los Angeles, in the same period, your savings can spike up to more than $50,000. To get an estimate of how much you can save, check with DSIRE.

Added home value

Another benefit of using solar energy is the potential increase in the value of the home. Generally, it’s safe to assume that solar panels will raise the market value of most homes. As already discussed above, the homeowner can forever benefit from lower electricity if they buy a house that’s powered by solar energy. Next, there’s a global trend toward green living and this also means there’s an equally increasing demand for houses that are powered by sustainable and clean energy sources that emit smaller volumes of carbon. Lastly, if you buy a home that is already powered by solar energy, the investment will be financed through the mortgage for the homebuyer. Because it’s possible to finance a mortgage for houses with solar panels already installed, this is easier and possibly more affordable than buying a house run by traditional energy sources and choosing to invest in solar panels later.

Take advantage of tax subsidies and grants

Lastly, another worthwhile advantage of going solar is the tax grants or subsidies offered by the state government. You may have already heard of the campaigns run by federal and state governments encouraging homeowners to switch to solar energy. If you do, the government offers a tax grant or subsidy to assist you in having your solar power system installed. The rationale behind these financial incentives is to encourage more homeowners to use solar panels. The final cost of the system after it is installed can be less than its sticker price. Additionally, tax credits are also given for homeowners who use solar power, which can decrease your tax bill.

One thing you want to do is check with your home insurance (such as Allstate Insurance) to make sure that your solar panels are insured. You want them to be safe from hurricanes, tornadoes, and other acts of nature.

Let’s Be Cheap

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Be Cheap
Let’s Be Cheap!
When I started blogging in 2006, the personal finance blogosphere focused most of their attention on saving money. I remember reading one article where the blogger wrote that he makes sure not to open the refrigerator too many times a day, because he calculated it costs 4 cents to cool it back down.

That’s far too extreme for me.

However, like most bloggers from back than, I have a central area where you can save money on almost anything. (Those articles may be outdated now. I bet a Google search for “save money [x]” will get you better results until I can update it.)

The reason why so many people wrote about those things was simply because there wasn’t a lot written about it before. Also, it’s much easier to write something concrete like “avoid the artisan grocery store” and “bring your own lunch to work” than “work harder and hope for a raise.” It was especially easy for me to focus on the frugal aspects because I had control over many of my expenses. When I put together the case that I was being paid less than 95% of all software engineers according to Salary.com, the answer I got was, “Sorry, there’s nothing in the budget to do anything.” They couldn’t even get creative with stock option compensation or vacation time.

I didn’t have any control when it came to the company’s business or how they were managing their finances. In this new coronavirus world, many people are feeling the same way. The days of asking for a raise are probably gone for awhile. If you are able to keep your income, you are doing well (financially, at least). There’s talk of potentially a 30% unemployment rate which is something I can’t remember in my lifetime.

This is the time to take control of the things you can control. It may not be much, but it might be the best you can do. It’s time to be a little cheap. Or, if you prefer, frugal.

(Side Note: If you have the means to be financially generous, please do so. Support local businesses like restaurants. They need that support. This article is geared towards those who aren’t fully financially secure.)

I was laid off in the dot-com bust of 2001. I was only out of college for a couple of years. Software engineering jobs were impossible to find. I remember on one interview the hiring manager essentially wanted me to rewrite TurboTax from scratch. He’d pay $2000 when it was completed.

During those tough times, being frugal saved me. Or to just call it like it was, I was cheap. From a very young age, my mother taught me to save money. I had always been a saver at heart anyway. I’d save all my Halloween candy until it went bad. I got more comfort knowing that the candy was there for me if I wanted it than actually enjoying the candy itself.

A month ago B.C. (Before COVID-19), there was a lot of talk on personal finance Twitter about earning more money. I understand why. Life is too short to not enjoy it. People love the idea of being able to have everything they’ve ever dreamt of. It’s easy to sell a “earn more money” message if it fits what people already want to hear. I have also seen some bloggers follow it up with, “Buy my book or buy my course.” To put it simply, by its very definition, it is hard to sell products or training to cheap people.

Making more money is certainly half of the financial success equation. I don’t want to dismiss that. However, it’s a difficult half to write actionable advice about. No writer knows what kind of job your are in or what your education is. Maybe making more money is extraordinarily difficult for your situation. I can suggest adding a side hustle, but that’s not what “Lazy Man” is about. I hope everyone can work smarter and get to the point where their money works for them.

I’ve always been an equal fan of both sides – make more money and save money wherever possible. I’ve known people who make crazy amounts of money, but don’t save or invest much. I’ve known people who don’t make a lot of money, which means they can’t save or invest much.

One of my favorite things to do is to thinking about how to be cheap. Not really cheap, but spend less money as a general habit. For example, I looked at my electric bill and thought, “I wonder if solar power makes sense in Rhode Island.” It does! We’re almost on our 5th year of solar power now. We paid a lot up front, but we’ve saved more than half of what we spent. After around 8 years, any electricity our panels generate will be “free” (compared to what we would have paid if we didn’t get the panels).

The other thing I like to do is save money on groceries. Soon after we moved to our house, we lost the local Best Buy. That was terrible for a technology geek like me. However, Aldi moved into the space. It is one of the best grocery stores for cheap, quality food. That’s a great financial trade-off for us. For example, they have so many chicken deals that I’ve been able to write some creative articles like, “McFly, Are You Chicken?” and Rich Chicken, Poor Chicken.

While I’ve had the best luck with Aldi, but occasionally, I can find some deals at our local Shaw’s. The local military base is a good source as well. I don’t go to different stores looking for great deals. I’ll only give it a look while I’m doing the rest of our shopping. It’s easier to “shop our chest freezer” from previous deals.

Why Being Cheap Matters

Here’s an example that many people can relate to. Let’s say you have a $60 cable bill. (Mine is over $100 and I don’t have any premium channels.) A cheap person might say, “Netflix has more television than I could ever watch at $10 a month.” I’m going to cut my cable bill and save $50 a month.

You might be thinking, “Big deal. That’s nothing.”

That $50 a month is $600 a year. This is where we need to apply the Rule of 25. The Rule of 25 states that in order to afford a $600 annual expense, you need to have 25 times more saved. It’s mathematically derived from a bunch of economic analysis that shows people can live on 4% of their saving mostly indefinitely by investing a large sum of money.

At the risk of putting an example in an example, if you have $1,000,000 you can roughly take out $40,000 to live on. And with the rule of 25, if you need $40,000 to live on, you should have $1,000,000 in savings.

When we convert that $600 annual cable bill into Rule of 25 terms, we realize we need to have $15,000 in our investments.

That’s just one bill. If you multiply it by many extravagances you’ll have a hundreds of thousands of dollars in your savings. Being cheap always makes a big difference when it comes to reaching financial freedom.

A bunch of small savings can add up. They have a snowball effect. It is very difficult to try to make an extra percent or two investing in the stock market. Even if you do, it’s likely to be mostly luck. However, by saving 75% on something like food it gives us more money to invest. Getting that money in the market early has been critical to our secure financial position now.

A lot of that started with being cheap.