I was first introduced to Pixie on a money network I often frequent. As is often a hot topic on money forums, someone asked about the cost of groceries and Pixie said, time and again, that she spent no more than $250 in a given month. This is no small feat for a grocery budget and needs to involve careful planning and use of everything you buy. The real kicker is Pixie lives in a large metropolitan area, where food costs can often mirror mortgage payments in other parts of the country. I figured if she was this careful in grocery budgeting, that she was probably pretty frugal all around. My assumptions were correct, and here is her story:
Mrs. Common Cents: People tend to overcomplicate their views and theories on money, when generally it comes down to just a few simple concepts. If you had to summarize your philosophy on money in 7 words, what would that be?
P: Budgets reflect values. Ours: future, fun, others
MCC: Food prices have risen to astronomic proportions over the last few months. In your blog, you mention that you and your husband average $250 a month for grocery spending. How do you manage to keep costs that low even in a large metropolitan area, where food costs are generally higher?
P: The crazy thing is that for us, we haven’t noticed a big shift yet. I think that reflects that we try to only buy things when they are at the best price. Most of the time, if it isn’t the right price, we just don’t buy it. Our new exception to that is the farmer’s market for produce. I am willing to pay more for local food and also I am willing to pay more for food with less packaging. We try to be very eco-friendly as well.
My husband has a photographic memory, so for him it is easy to remember what the best prices on things are. Me, I need to keep notes. I kept a price book in Excel for awhile and I still refer back to that. I looked at about 6 months of grocery receipts to get a feel for prices and then took special note of the best price for any item and how we got that price (seasonal produce, coupon, sale + coupon, normal price, etc.).
Also, we look at the ads before we go out so we can plan which store to go to and what specific things we should seek out. $1.99 chicken is the big draw for me. That will always sell me on a specific grocery store for the week. When we find something at a great price, we stock up.
For the curious, here is our grocery spending per month for this year (go power of Microsoft Money):
January- $151.80
February- $225.50
March- $152.75
April- $309.27 (Let’s Dish included)
May- $153.41
June- We’ve spent $75 so far, so this will be a high month
As you can see, we tend to alternate between high months and low months. I think that reflects the bottom-price buying thing I already talked about as well as stocking up and then really eating through our pantry.
MCC: Have you always been a saver and lived frugally or did you have a financial turnaround?
P: Saving -as in money in the bank- is new to me simply because I couldn’t afford to save until two years ago when I graduated from college and got married. I worked my way through college taking as few loans as possible, so money was tight for the seven years I did that. I understood and liked the principle of saving, but I chose to reject excessive debt rather than save. Then I was following the idea of living within my means; now I get to live beneath my means. Saving -as in being frugal- was a huge part of my lifestyle from day one that I struck out on my own. Failure at being financially independent was not an option, so I just lived simply and cheaply to make ends meet.
MCC: You live frugally yet have chosen to live in one of the most expensive housing markets in the U.S. What motivates you to continue living in a HCOL area? How do you make it work?
P: My husband and I are both military brats and moved a lot as kids. This was even worse for me, since I travelled in between my divorced parents three times a year as they each respectively moved around the country and world. We both just want to stay put now. Both of our dads retired and settled here, so it is nice to finally have “roots”. I love that D.C. has four distinct seasons, tons of free things to do, a rich blend of cultures, and our area (in Northern Virginia) has some of the top public schools in the country which will come in handy for kiddos someday.
As far as making it work, honestly, we have pretty humble standards for the everyday. Tonight’s “date” was walking to the pool, swimming together, and then walking home. Other nights we will walk to the grocery store and rent a $1 DVD from the RedBox. On Tuesday nights we know that the second run movie theatre shows $2 movies and the sit-down burger joint next door does $3 burgers. if something good is playing, that is a pretty great date for $10 (plus dinner tip).
We also just try to make do with what we have, are given, or find. For example, our neighbors were getting rid of their coffee table and so hubby decided to sand it and paint it. Free entertainment and a free coffee table! We’ll try to sell the old one on Craigslist. My favorite thing to do in the summer is to go to yard and estate sales. I prefer to buy used for both financial and environmental reasons, and hunting for the perfect thing provides lots of entertainment. We could think of these things as chores, but for us they are entertainment.
On the big stuff, we just take things a step at a time and are patient. Right now we can’t yet afford to buy a house or have kids and still have the spending plan that we want, so we’re waiting. We’re really close to being able to buy, but we either need the market to drop, mortgage rates to drop, or to get a raise. We are so close to having enough that it is tempting to overextend ourselves, but that level of tightness just isn’t worth it. With my next raise we should be able to buy and with hubby’s next raise we should be able to start thinking about kids. But for now, we just have to wait.
MCC: Do you feel any pressure to compete financially with your peers?
P: Not really. My husband and I have grown up pretty peer-pressure-proof. (I can psychoanalyze about why for ages, but that would get us way off topic!) So, childhood drama aside—as adults the key for staying out of the Jonses’ game is the “others” part of our budget values. Though we make under $100k (combined) in a HCOL area, we recognize that we have it good, really good. So good that we need to share what we have with others in terms of gifts, charitable giving, etc. The other 80% of the world is the only group that I have any business comparing myself to. For me, the less tightly that I hold onto my money and the more that I am willing to share; the richer I see my own life.
MCC: Why do you think so many people in our generation struggle to compete with each other?
P: In no way do I feel equipped to speak for a whole generation. While I enjoy reading about generational nuances and culture (most recently in Buy, Buy, Baby and UnChristian) and recognize elements of myself in them, I generally subscribe to the idea that humanity pretty much stays the same. People have always been competing. It's human nature and a struggle that each individual has to get beyond by finding self-worth in something greater than title or status.
MCC: Where do you see yourself in 10 years (or longer if you want to go into it)?
P: Owner of a green(er) home, parent to children (biological, adopted, or fostered), still saving 12-15% for retirement, setting money aside for our kids’ college, and becoming increasingly generous to those with less. My dreams are to participate in an archeological dig, optimally a Bronze Age site (homage to my Classical Studies degree), and travel through much of the world. I don’t know that with kids that will be possible in 10 years, but someday! So, I’d love for us to keep up a travel budget, too.
MCC: What financial advice would you give yourself 10 years ago?
P: Don’t sell yourself short on wages. Ten years ago this month, I moved to San Diego and worked as nanny for a year. The ridiculously low wage that I asked for still bothers me to this day. A dollar more an hour would have set me up so much better for moving back to D.C. Two dollars more an hour would’ve paid for a semester of college at a state school. Three dollars more an hour would’ve paid for a used car outright or eliminated a semester where I had to take student loans for living expenses. Know your value and know how to negotiate.
MCC: Any advice for others trying to live in a HCOL area on a shoestring budget?
P: One small tip: for entertainment take advantage of what you are already paying for through taxes or home association fees. Government-sponsored recreation and adult education centers offer cheaper classes than private groups. Check out plays and concerts at your local public university or high school. Attend free cultural events. Go to the park. You pay into local and/or state taxes; use the things that they are paying for. If your neighborhood home owners association offers a pool, a gym, party rooms, or events, take advantage of them. If your neighborhood is like ours, you are already paying for these things--and have no choice-- so it is money wasted to not use them.
Pixie hosts a money blog with tons of great tips and tricks for grocery budgets and living a money conscious lifestyle. Feel free to check it out at http://pixieprincss.blogspot.com/.
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