By Shawn Hogendorf and Keighla Schmidt, Staff Writers

Jen Hasseler of Prior Lake is a deal shopper and proud of it.

She is dressed in Gap jeans and a nice sweater but guess what? The total cost for her outfit was a whopping $8.

Hasseler hits thrift stores and garage sales instead of big-box stores and comes out on top financially most of the time. “It takes time to sift through the stores, but great deals are out there,” she said. “The hunt for the bargain is fun. I would rather do that than spend a bunch of money at Macy’s any day.”

Ann Burckhardt of Burnsville grew up during the Great Depression and learned how to be smart with her resources, especially food. Growing up her mother would make a beef roast and reuse the meat in other meals throughout the week. Inspired by that, Burckhardt learned to use leftover food more than once and to plan meals and shop smartly.

Since then, Burckhardt was a ghost writer for Betty Crocker and also worked at the Star Tribune with her work appearing the Taste section. 

“The American homemaker doesn’t want to plan, they want to be spontaneous,” she said. “But that’s when it gets expensive.”

With the economy taking a toll on many these days, more people are trying to figure out ways to stretch their income. These two women, and a few others, have tips to keep expenses down and have a “frugal” New Year.

Clothes

Hasseler suggests thrift shopping for anyone looking to become a bit more frugal.

She begins her quest for deals by making a list and crossing things off as she finds them. Although finding the right clothes at the right price takes time and patience, Hasseler said some of the places she likes to shop are: Unique in Burnsville, the Salvation Army, Goodwill, garage sales around town and Value Village in Bloomington. It’s New to U in Savage is another thrift store to get a bang for a buck.

Shopping with a list and buying things in advance of the season are two quick tips Hasseler offers up to anyone looking to cut corners.

Also, although Hasseler shops thrifty, she doesn’t compromise her style. “What’s the point of buying something that isn’t my style,” she said. “I am always looking for things I will wear or use in my home. I don’t just shop for the sake of finding a deal.”

Food

Burckhardt suggests designating each night of the week to a certain food theme to make planning and grocery shopping easier, and therefore help keep expenses down.

“Sit down, plan the week, then go to the cupboard, see if there is something that you could use up that you already have and then make a list. Use your list and stick to your list at the store,” she said.

The food expert also said not to be a snob when it comes to brands. If the store brand costs less and taste the same than the name brand, buy it. The same can be said about certain “high-end” grocery stores. Burckhardt suggested checking out Aldi grocery store where prices can be much cheaper.Ann Burckhardt: Ann Burckhardt enjoys cooking
and knows how to do it frugally.

Burckhardt said people can save more money if they plan to spend more time in the store.

“Some people can go to the store and just grab. But you need to go when you’re not under a lot of pressure time wise and you can choose carefully,” she said. “Never go to the grocery store hungry,” Burckhardt said. “Never, never. Everything looks like a good appetizer then.”

To keep initial costs down, buy the proper amount of food, she advised. However, if an excess is bought, there are more creative solutions than just reheating the food the same way it was originally prepared. Keep a dish of leftover vegetables or cubed meat, add rice or pasta and make soup for a Saturday afternoon meal, she said.

Mortgage

People need a place to live, but making sure the mortgage rate and loan type are right for the family is crucial, said Chris Osgood of Shakopee, who will lead a Financial Peace University workshop at Shepherd of the Lake Lutheran Church starting Sunday, Jan. 11. One tip: look into a conventional 30-year loan, monitor the loan until reaching 20 percent equity in the home and then drop the mortgage insurance.

Also, monitor tax statements and research property assessments. Print out the property assessments of homes that have sold in the area and challenge the assessor with those statements if the home seems to be overvalued.

Also, try and make extra mortgage payments, when possible, and it could cut a 30-year mortgage down to about 20 years, he said. Or, use savings or inheritance money to pay off the mortgage. After paying off the mortgage, put that money into other investments, such as a college tuition savings plan, so interest isn’t paid on the loan.

Car payments

If you have a car payment, pay it down and then put money away in savings to buy the next car with cash, Osgood said. If you are leasing the vehicle, switch to a loan.

Also, look into purchasing a used car, because the value of a new vehicle drops as it is driven off the lot, Osgood said.

Hasseler said she drives her vehicles until, “it’s me and the rust.”

She suggests frequent oil changes and maintenance to keep repair costs at bay. She also suggests finding a trusted mechanic over dealerships that often times charge more for repair.
Entertainment

When corners need to be cut, entertainment is often one of the first things cut, but it doesn’t have to be.

Turn Saturday date night from dinner and a movie into a Saturday date day and see an afternoon matinee and get a lunch special instead.

Burckhardt suggested skipping the local pizza joint and enticing children to create their own personal pizzas. “They’ll eat it because they made it and not want to go out,” she said.

Another way to find valuable entertainment is through community education classes or local public libraries. Classes range from all age levels and can be as cheap as free and interests range wide.

When looking for a place to take children in the winter, Hasseler said local sledding hills are fun and free. When Hasseler’s children get “antsy” in the winter, she takes them to McDonald’s for lunch and lets them play on the indoor playground for a couple hours.
Tax returns

Osgood said the idea of getting a tax return at the end of the year is “silly,” because that is money that should be used throughout the year in a budget, not kept in the hands of Uncle Sam until it is returned.

If people do choose to receive a tax refund, he suggests paying off credit cards.

“We’re going into tough times,” he said. “It’s better to have money in the bank than not. If debt is wiped out that is the same thing as money in the bank.”

Another tip is to put half the tax refund into a savings account and use the other half to spend.
Tips for children

To keep children from selecting their own grocery-store items, Burckhardt suggested letting parent keep the list and pushing the cart and delegate retrieving the items to the children, like a game.

“That way, they’re still getting things off the shelves, but things they should be getting,” she said.

When it comes to buying toys for children, Hasseler once again suggests thrift stores and garage sales.

“We try to raise our children to get the idea that used toys aren’t any less fun,” Hasseler said. “I don’t buy used and beat up toys. You can’t tell the toys we buy are used.”
Home remodels

Although deals may be harder to come by when remodeling certain rooms in the home, Hasseler said she shops for the finishing touches at thrift stores and finds a lot of do-it-yourself tips from magazines.

In her bedroom, Hasseler filled the area above her bed with a collection of new and antique mirrors that cost a total of $50. While searching thrift stores for other deals, she had unique mirrors on her list and collected them until she had enough for the project.

The Hasselers also refinished a guest bedroom in frugal style.

She bought a futon that doubles as a couch or bed and furnished the room with a variety of pictures that cost 50 cents at Unique and then reframed them with $3 frames she found on sale at Wal-Mart.

The bedding, including a quilt, sheets and pillows cost $30 at Unique and a pair of window sheers cost $10. She spent $3 on two nightlights that sit on a table that cost $10 at a garage sale and are accompanied by a tea and saucer set that cost $2. Hasseler then moved a book shelf, television, lamp and another table from other rooms in the house.

The grand total for refinishing a guest room was $60.
Energy Saving

Making small adjustments in daily habits around the house can make big adjustments in your energy bill. Xcel Energy has tips for areas all around the house that will help keep costs down.

A faucet that leaks one drop per second wastes up to 400 gallons of water each year, the water, the energy to heat the water and water bill are all going down the drain.

Cleaning refrigerator coils once a year will keep the efficient and extend the life of the fridge.

Other tips from Xcel: rather than rinse dirty dishes, scrape them and save money on water and use the clothes dryer back to back to conserve the built up heat for consecutive loads.

“Since your dryer retains heat, dry several loads in a row. You can reduce the heat level on the last load or two,” according to Xcel.
Workshops

There are literally hundreds of ways to cut corners out of a budget, the key is figuring out what works for each individual, Hasseler said.

Osgood suggests taking the time to attend a course that can act as a guide to saving money. Everything starts with making a budget and sticking to it.

“You can learn to tell your money what to do instead of money telling you what to do,” Osgood said. “You can choose to live differently, but to win you have to make sacrifices.”

Here are a couple places that offer money-saving courses:

+ Osgood will lead a 13-week course called Financial Peace University at Shepherd of the Lake Lutheran Church, 3611 North Berens Road in Prior Lake from 5 to 8 p.m. starting Jan. 11 through April 5. To register, call Chris Osgood at (612) 619-3531 or by e-mail at osgoodc@earthlink.net [2]. The cost of the course is $100.

+ Burckhardt will teach a Community Education Class in School District 191 called Frugal Family Meals from 6:30 to 8:30 p.m. Thursday, Feb. 5 at Burnsville High School. The class is $29. Sign up by calling (952) 707-4141.

+ Trinity Evangelical Free Church, 10658 210th St. in Lakeville is the site of a financial survival forum from 9:30 to 11:30 a.m. on Saturday, Jan. 17. The event is free. Contact the church at (952) 435-5548.

+ Prior Lake-Savage Area Community Education will have a “How to Raise a Money Smart Child” class at Prior Lake High School in room 127 from 10 a.m. to noon on Jan. 17. The cost of the course is $7.

 

Shawn Hogendorf can be reached at shogendorf@swpub.com [3]. Keighla Schmidt can be reached at kschmidt@swpub.com