Live Lean

My one year experiment with Amazon Prime.

It’s been just over a year since we started our Amazon Prime experiment. For those of you not familiar with Amazon Prime, it’s basically a program that provides free 2-day shipping on most Amazon orders as well as unlimited streaming of videos via Amazon Instant video.

Unlike a free Amazon membership, Amazon Prime speeds up shipping to two day free delivery on any size order. As part of the deal, you also receive access to the Kindle lending library, This allows you to borrow one e-book per month from the Kindle owners lending library. It all sounds great, but there’s a $79 annual fee. I hate annual fees, but in this case, I was replacing one with another, so I decided to replace our Costco membership with Amazon Prime.

Burned out on Costco

The idea to join came to me after visiting our local Costco and realizing that between the time it takes me to park, navigate the store, deal with oversize packages and the always ridiculous lines, any savings we had was definitely negated.

Add this to the fact that my wonderful wife SuperK was also visiting once a month or so and would often come back with all kinds of unintended purchases, including one of my favorites, a 3 gallon jar of olives. To top that off, both of my kids had nicknamed Costco “the rat store” as occasionally they would get a glimpse of a jumbo sized mouse. This really added to the zoo like atmosphere of the store. To be fair to Costco, I believe it’s nearly impossible to have a warehouse this size, full of food, that is completely free of varmints. Comes with the territory.

So that was it. I decided to replace our $55 Costco membership with the $79 Amazon Prime membership. After the first year I can say it’s going swimmingly.

Here are the highlights :

I started to see immediate benefits, ordering business books and office supplies at a lower price, more than justified covering the prime membership as a business expense.
I found that by ordering online, it was much easier to quickly compare prices by pasting the item name into Google shopper and then picking the Amazon item with the best cost per unit. It makes sense to do a quick comparison as Amazon gives you the option of multiple vendors and package sizes. They also include unit pricing.
The unit pricing is usually great. For instance we pay a dollar a roll for decent quality non-generic paper towels. In Google shopper I can quickly find out if this is a better price then I would get via Walmart and other discount stores, and it usually is.
All of my purchases are saved, and easily accessed, in my purchase history so that I can quickly reorder items with one click. This is great for me versus wandering aimlessly around a Costco store or Target. SuperK will verify that shopping gives me hives.
Think about this, I can bang out a 2 ½ hour shopping trip in about 20 minutes completely skip the line and have all of this including 25 pound bags of dog food and cat litter show up on our doorstep.
For items you order once a month, like dog food, you can get an additional 5% discount for creating a monthly order. If you have five or more monthly items you can save 20%. The monthly recurring subscriptions are a bit tricky as it’s actually hard for us to find 5 items we need every month on the same delivery date.
The streaming HD video is awesome. The Frug hates expensive cable add-ons, so by combining unlimited streaming of the Amazon 41,000 video library with my basic Netflix package, I am one step closer to movie Nirvana, sans cable company. Also tons of great TV like Mad Men, Workaholics, and Covert Affairs streaming on-demand, any device. You can use a Roku HD to consolidate access to both. More on this later.
They ship almost anything 2-day including 25 pound bags of cat litter or dog food. Super K used to drive over 30 minutes round-trip to pick up this kind of stuff. Now we save our backs, some gas, and have it delivered to our front door.
You can still purchase Kirkland brand items like vitamins, trash bags etc. via Amazon Prime.
Amazon has a great app. I can just scan that bag of cat litter when I need more and dump it right in my online shopping cart. It’s like your own personal checkout lane in the cloud.

Conclusion

I would have to say the biggest benefit of Amazon Prime is cost savings. Based on my calculations, we’ve saved over $900 this past year using Amazon Prime. The other BIG benefit is the time savings, and the near elimination of any impulse purchases or waste from accidental “oversized jar of olives” type purchases.
Speaking of olives, one drawback of Amazon Prime is it may be less useful for folks who do their grocery shopping at Costco. Amazon has a fantastic selection of household items but obviously food is limited and more expensive.

One additional word of advice on Amazon, you need to check prices on bulk items to be competitive with Costco. Costco does not have as large as a selection as Amazon but generally the bulk items they have are less expensive. You can counter this by doing a quick check on bulk items using Google shopper or the Red Laser app. After you get the swing of it you will end up ahead based on the time saved alone.

Buy Your Next Car Like it’s your Last.

10/13 by The Frug 2 Comments

One of the best ways to live lean, work lean and travel lean is to own a classic car. What?! Okay, about now you’re saying the Frug is nuts, classic cars are exotic, expensive and require lots of work. Well I’m going to debunk that myth and redefine the term “Classic Car.”

A recent Forbes article profiled Mr. Money Mustache, an early retirement guru. When asked about his top recommendations for early retirement, number one on this list was cutting automotive expenses. One eye-popping number in the article was the additional $150,000 he saved towards early retirement by cutting automobile expenses to a minimum. Yes, he still owns a car. (His formula, quoted in the article, says to multiply your weekly auto expenses by 752 to get the cost per decade)

I believe it’s possible to save this kind of money and, at the same time, drive a classic car that you enjoy. It really depends on how you define “classic car.” So, here’s my definition of a truly classic car. And seven steps to get you there.

It’s paid for. Pick up any personal finance book,( a few of my favorites here), and you’ll undoubtedly come across the great benefits of owning your vehicle and making it last. If you buy your next car like it’s your last, plan on paying it off in three years, that’s when the real benefits begin.
It’s at least 10 years old. There’s something about a great looking well-maintained older vehicle. These aren’t exotic cars, just your average, Fiat 500, Ford Bronco, Jeep Cherokee, SAAB 900. Look for cars with classic lines, a cult following, and basic features.
Bottom of the line. When purchasing a new or gently used car that will become a classic, you want to avoid a lot of bells and whistles. For example, GPS systems and satellite radio are largely being replaced by smart phones. Trust me, you don’t need all those extras. Fewer bells and whistles means fewer things that can go wrong later. As an added benefit, the smaller more efficient engines come standard in these vehicles.
You don’t drive it as much. When you add the time-related cost of commuting to the cost of vehicle-related expenses, the savings for a couple can be closer to $300,000 over a decade. Find a way to work from home more often, or bike to work, and you can make this number a reality much quicker.
Taxes and insurance are minimal. If you live near city with high insurance rates like I do, or in a state with personal property tax like I do, then you can cut costs further with an older car. Insurance companies use factors like monthly mileage and age of the vehicle. Personal property tax in states like Virginia is also based on vehicle age and value.
Know your mechanic (he doesn’t work at a dealer.) Auto dealers have very high overhead and a lot of these costs get passed through their service department. Do some research on Angie’s List or ask around and find a good mechanic who works out of an independent bare-bones operation. If you’re turning an old Audi or Saab or other imported vehicle into a classic, look for specialists who work independently on these brands and come highly recommended. You can start on craigslist and nextdoor.com.
It’s the only car you drive so you keep it in like-new condition and track its recommended service intervals on a mobile app or website like www.driverside.com. Most of those dire warnings about older vehicles becoming money pits are from people who drive too much or treat their cars like garbage dumpsters. TLC will get you that extra 10-15 years you’re looking for so you can look forward to driving a classic!

Next time you see a great-looking classic Datsun 280Z or Jeep Wrangler, take a close look. That could be you behind the wheel in your completely paid for classic car. You’ll also be part of a tribe like the “SAAB 900 Tribe” or the “Ford Bronco Tribe.” People will stop you, ask you about your classic car and admire your great taste. Start now, after 10 years, your like-new car will start to look like a classic, in 20 years it will be a classic. All that money you saved on car payments, insurance, and taxes will be in the bank, working for you.

My 10 year old Audi A4 is rapidly on its way to becoming a classic. It doesn’t look a week over five years old and paid off 7 years ago.

Have you turned an everyday car into a classic? I’d love to hear your story.

The Frug

Stop Getting Shaved on Razors

10/13 by The Frug Leave a Comment

What in the hell goes on with the cost of razors? I mean, before I truly embraced my Frug muscles, SuperK and I would get our razors, like many people do, at the grocery store or maybe Target. I was buying various Gillette razors like Fusion Pro Glide and Kelly was buying a variety of individual high-end disposable razors. Just the Gillette Fusion refills run $26 for an 8 Pack!

The women’s Venus disposable razors my lovely wife SuperK was buying were equally as bad $22 for a six pack – with with the added insult of filling landfills with a perfectly usable plastic handle each time you were done with said disposable razor.

It’s one of those small purchases that a lot of people don’t think about. It just gets chucked in the cart with the rest of the groceries or shampoo. Then I saw this video about the Dollar Shave Club along with the 12 million other people who watched it. The video was great and it really helped expose how ridiculously overpriced razors are. Once you get to the site, you’ll find that the decent razors are actually six or nine dollars per month, per member. That’s a big savings over drugstore or even Amazon prices. However, it’s a “club.” Basically, a club that requires monthly payments.

This was a problem. The Frug Hates Clubs, especially any club that requires a monthly fee. In my opinion, the only type of recurring revenue people should have in their life is incoming recurring revenue, not outgoing. All of these clubs really start to add up. Think about it, Microsoft Xbox $9.99 a month, shave club, satellite radio club, all billing you every month forever, regardless of whether you use up the services or not.

So, I was not joining another club. I did a little research and found the the company that supplies most of the Dollar Shave Club’s razors. The company is DorcoUSA. I know, pretty weak name but fantastic razors for men and women, and even better prices.

I just loaded up with a six months supply of razors for myself, my wife and my teenage son for $33.35. This year, I’ll spend about $90 to keep the family in razors. For the three of us to join a club for a year, it would be over $215 for the medium priced blades at Dollar Shave Club and over $390 at a box store like Target.

The great news is that these are better quality shavers and a lot of the specials even include the occasional new razor with cartridge refills. Check out our latest order and compare this to what you’re paying.

SuperK even found that the men’s quad razors work better for her than the women’s version. Here is a link for 15% off your order. If this offer stops working, let me know in the comments below.

Feed The Pig

09/13 by The Frug Leave a Comment

This photo does not do justice to SuperK’s seafood gumbo. It tastes even better the next day. I’ve always been a huge fan of leftovers. In our family, groceries are our second-largest expense, so as The Frug, I am always going out of my way to make sure nothing goes to waste unless it’s absolutely necessary (mold growing on it, stinks, slimy to touch etc.).

The average family of four in the US spends about $1025 a month on groceries. In urban areas, like the DC Metro area, this number is closer to $1250. My wife SuperK tells me our grocery bill is even higher due to the fact that we eat lots of Meat, Seafood and other high protein delicacies.

So, it’s a bit of a conundrum to be a Frug and still really enjoy giant lumps of crabmeat floating in your gumbo! One way we like to deal with this is maximizing the leftovers. Years ago, I came across the website http://www.feedthepig.org/. It has links to some simple calculators and ideas to put your savings in high gear by skipping all kinds of things, including expensive lattes, $13 lunches and premium cable plans. Feed the Pig also lists all types of expense slashing ideas (by habit) to help you reach your savings goals.

Replacing some lunches out with leftovers is a great way to do this. One big advantage of working from home, or an office with a nice fridge, is the ability to really tap into the leftovers and skip a few lunches out a week. You’ll also find that, if you do it right, most of the leftovers will be a lot healthier than what you might find at that gourmet burger joint or KFC.

Here’s a quick look at some results from the lunch calculator. Notice I still eat out once or twice a week. The key message here, is that you start to apply these frugal tools to other expenses in life, like a latte-a-day habit or shoe addictions, you can really start to see results. As you get closer to financial independence, you’ll find that you’ve applied this type of thinking to many parts of your daily life and have started putting those dollars to work for you. Keep in mind every dollar that you save and invest will continue to work for you and produce returns year after year long after you’ve stopped working for a paycheck.

The Frug Workout, Less = More

09/13 by The Frug 2 Comments

Why is it so easy to miss a workout?

I used to try to do three one-hour workouts per week. To be honest, I generally ended up with 2.5 as an average then 2.2 and finally 1.9 workouts per week. The problem is timing. Getting ready for a one-hour workout is a bit of a hassle. Even with the equipment in the basement, I still had to schedule it early in the morning, motivate, and get down there. Then, stretch out and slowly start going through my eight exercises, two or three sets each. I was pretty good at getting at least a couple of workouts with weights in per week. I’d also find time for walks and bike rides. In my case, and I believe in many people’s lives, it’s more of a time issue than a motivation issue.

In addition to the time issue, early morning hours are prime time for me. It’s when I do some of my most creative work. A lot of people are able to work out, clear their heads and come up with ideas all at the same time. (A picture pops in the my head of an overweight executive shouting into his Bluetooth headset while on the treadmill)

I’m not a great multitasker, I prefer focus, no interruptions. Usually I’ll be working out and remember something I need to do, or have a great idea, and have to stop, put a reminder in my iPhone, write it down etc. This disrupts the flow of the workout and adds additional time. Sometime these interruptions go up to 15 minutes, running out of the room to go scribble something down and end up looking at some article online. What I need is a workout that’s over in 20 minutes, less chance for interruptions.

I researched a few of the current hard-core fitness workouts like P90X and CrossFit. I look at these programs and I see complexity, I see additional time, I see pain. It would take me 20 minutes just to warm up, set up the DVDs and fill out the charts. Try a Google search on either of those terms and check out the workout charts.

Let’s be honest here. Most people can’t even stick to the type of low intensity 2X workout I described above, a couple of 1- hour long workouts a week and some daily walking. The more time and complexity added to the workout the less chance you’ll stick to it long-term.

What I was looking for was a highly efficient exercise that could be done in 20 minutes including warm-up and cool down. Gym equipment would be optional and the exercise could be done anywhere, with many variations to keep things interesting. Most importantly, it would not require a CrossFit membership at over $150 per month, or any DVDs or tracking charts.

About a year ago, I read about High-Intensity Training using the Tabata regimen. The basic idea is you can fit a workout that has the equivalent of 60 minutes of exercise compacted into approximately 12 minutes. This includes four minutes of warm-up, eight minutes of High-intensity training in 20 second intervals followed by 10 second breaks, and four minutes of cool down. 12 minutes total.

There is a catch. The high-intensity portions of the workout are tough. The Tabata workout calls for 20 seconds of maximum intensity exercise followed by 10 seconds of rest, done eight consecutive times without pausing for a total of 240 seconds or just four minutes.

So if you’re running those 8, 20 second bursts are (all out sprints), followed by 10 seconds of rest (walking slow, catching your breath). This can be applied to all types of exercise including cycling, mat exercises, elliptical trainers, kettle bell swings and a variety of weightlifting exercises.

If this all sounds a bit far fetched, take a quick look at this article on High Intensity Interval Training. There is some solid science behind it. In fact, the Tabata method, Described in the article has been used to train Olympic speed skaters, MMA champions, and many athletes that require explosive bursts of energy, and a high level of fitness. As the article states you should have a physical before beginning any high-intensity interval training program.

My research on Tabata conveniently coincided with my son requesting a boxing heavy bag for his 13th birthday. (Insert who is he really punching joke here)

I found that heavy bags can be a fantastic part of a Tabata training session. They are inexpensive and always there, reminding you to hit it. They are often are bundled with a nice set of boxing or MMA style gloves which are sort of bad-ass. Everlast Heavy Bag Kit
Don’t want heavy bag taking up space? There are plenty of other Low Cost
options, including your closet door which I’ll describe below.

So the Frug version of Tabata looks like this — I’ve increased the warm-up and cool down periods by four minutes each to allow for one additional set of light weight-training exercises. So, the total time commitment for the Frug Workout is 20 minutes per day, five days per week. You can take any two days off.

Warm up. 8 minutes of light weight training (your choice)
- 2 sets of bench press
- 2 sets of curls
Interval Training, 4 minutes total (your choice)
- 20 seconds on the heavy-bag at 100% effort
- 10 seconds of rest, basically catching your breath
- Repeat 8 times
Cool Down. 8 minutes of light weight training (your choice)
- Two sets of calf raises
- Two sets of squats

I have found that each of these quick 20 minute Tabata sessions actually have more fitness benefits than my 60 minute low intensity weight training sessions. Because they are so quick, there’s less chance that I’ll miss them or be interrupted. For the interval training sessions, I recommend using a free app for your smart phone or you can get an inexpensive Interval training timer
or just search “Tabata timer” in the app store.

Even though this exercise regimen is fast you still need to add some variety to keep it interesting. I alternate different types of mat or weight exercises for the warm-up. These can be any number of low intensity exercises that can be slowly increased over time.

Not interested in buying a weight set? One fantastic option is the TRX Suspension Trainer
developed based on a field training regimen used by Navy Seals. It is basically a two handle strap you can anchor to any closet door and is fantastic for core fitness when combined with aerobic activity like Tabata Training. Or you can go completely low-tech just a workout mat. Here’s a video of some gals at FitSugar doing Tabata training on a mat. skip the ad.

I know that’s a lot of information for such a simple workout but I like to share a lot of low-cost options so anyone can make this work. Give this a try. I’d love to hear how it’s going and if having a workout regimen that includes a frugal use of time helps you miss fewer workouts.

Wine Hacking with the Frug (plus an App for Finding 4 Star Wines at 5 dollars a Bottle!)

08/13 by The Frug Leave a Comment

Many of us enjoy a great bottle of wine. If you enjoy a couple of glasses of red wine every few days like I do, the habit can get expensive. I used to visit some of the big box stores like Total Wine. I always came out of there spending too much money and a bit overwhelmed by all the choices. I could never remember if that $24 bottle of wine was better than $7.99 bottle of wine or which vintage was the best for that particular brand.

I needed a more curated selection of wine and more brands that were reasonably priced. I found my wine mecca at Trader Joe’s. Trader Joe’s has always specialized in inexpensive wines that taste great and are a good value. Their first store in California was famous for its selection of local wines. I’ve picked up some great bottles of wine there, including their house brand Napa River Merlot for under $6.00.

Still, not every wine in TJs will meet my taste and frugal budget. I experimented and put a limit of $7 for any bottle of wine I purchase at Trader Joe’s. Not a problem since they have plenty of French and Italian wines, as well as great California reds and whites, many of them in the $5 to $6 price range.

So, I narrowed my choices from thousands of bottles of wine at Total Wine to maybe 50 or so at Trader Joe’s. Still too many. I needed something to narrow that selection down and help me find the very best of these cellar dwellers.

To assist in my experiment, I found a great app, Vivino. At first, I just thought I needed something that would allow me to look up different wines and save them in the app. Then I came across Vivino. I could literally scan any wine label and instantly pull up the products reviews, global ranking, country ranking, even ranking among that particular winery. For example, I scanned a fancy looking bottle of French wine called “Badet Clement Pontificis 2008.” Instantly I saw that this bottle had a 3.6 of 4 rating in the app, but more importantly, had a high rank in France, had a high rank in it’s region of France, and was the seventh highest ranked bottle from this winery. Lots of glowing reviews from wine snobs who would take the time to write this kind of stuff up. Best of all, it was at a “drop it in your cart and go” price of $5.99.

I don’t get too hung up on the reviews, I just like to see a decent sized sample of four-star reviews. I look at a few of them to see what other wine lovers are saying about the oak or raspberry finish or other clues they may leave behind about the type of wine, such as “great with lasagna.”

The other interesting thing about this app is that it’s calling on a total database of 693,000 wines so there’s plenty of information to back up a high rating.

Once I get home and taste the wine, I make sure that I drop in my own quick star rating so if it’s a dog, I don’t buy it again. Trader Joe’s is pretty loyal to some of these brands so once you find a couple of great ones it’s easy to quickly go in and stock up.

Another trick I found to make a $5.99 bottle of red wine taste like a more sought-after vintage is to properly aerate before drinking. There are lots of quick easy ways to do this.
Here are a few of my favorites:

Rabbit Swish Wine Aerator

Vinturi Essential Wine Aerator

You can also check out the mad scientist Tim Ferriss’ method for hyper decanting wine here.

So, open up that great bottle of cheap wine, aerate it, and sit back and enjoy the fruits of your search for the perfect bottle of cheap wine. No Trader Joe’s in your area? Use the app to sniff out some decent buys at your local supermarket.

My current wine selections at Trader Joe’s.

Excellent value

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