Coffee heat rising

Optional frugality

The other day, a woman wrote a letter to the New York Times‘s editor in which she recalled her younger years of drudgery, before everyone in the country owned a dishwasher, a washer, and a dryer—or at least had access to a laundromat. She reflected on the fatuousness of us new-age frugalists who imagine we’re doing great things for the environment and ourselves by, say, hanging out our laundry. No way, she said, would she ever want to go back to those sore, chapped hands and ragged fingers made that way from having to hang up heavy, wet clothes in the cold of winter.

Yeah. There’s something to that.

 My mother grew up on a dirt farm in upstate New York in the first third of the twentieth century, when they did not have vacuum cleaners, washers, or dryers (or indoor plumbing, for that matter), and when the idea of a “dishwasher” was a fantasy akin to Dick Tracy’s wrist phone.

She loved the fresh-air scent of clean sheets hung to dry in the sun. But I can tell you for darned sure: given a choice, the last thing on this earth she would have willingly done was hang out another sheet on a clothesline. She embraced every new energy-sucking convenience as welcome liberation from back-breaking drudgery and ambient, life-threatening filth.

When she was a little girl, she said, rugs (they didn’t have anything like wall-to-wall carpets, nor, of course, did they have vacuum cleaners) were hauled out to the line every spring, where her job was to take a stick and beat the dirt out of them. This was a fair way to contract tuberculosis, an endemic disease at the time.

Between spring cleanings, country wives and city servants tried to clean the rugs by sprinkling tea leaves over them and sweeping up the leaves with a straw broom. Think of the amount of fun labor that would have entailed. Didn’t use any electricity, though: the tea was brewed on a wood stove.

Did you know that if you sweep the dirt out of the house over the threshold, you sweep all the luck out of the house? So don’t think you’re gunna get out of bending down to collect every single grain of debris in a dustpan!

I also was once a little girl who helped her mother with the drudgery of housework, because after all that’s what girls and women did. Home was the girl’s prison and the woman’s workhouse, as George Bernard Shaw aptly observed about the mores of his time. In Arabia, where I grew up, we had a wringer washer that resided in a back-of-the-house room we called the “service porch.” Anyone who feels any nostalgia for this device is sadly mistaken.

Our washer connected to the hot water tap, which filled the agitator-equipped tub, and it backed onto a big concrete utility sink. After the dirty clothes had sloshed around in soapy hot water for a while, we would turn on the wringer and pass each item through it—carefully, because if your hand got caught in it, that would be the end of your hand!—and let them drop into the tubful of cold water. There, my mother and I together would bend over the tub and slop the clothes up and down and around and around to rinse out the soap as best as we could. Then we would wring out each piece by hand, one at a time, and drop it into a big laundry basket.

We would haul the basket out into the backyard—actually, she carried it, because it was too heavy for me to lift—and set it on the ground under the clotheslines. First, my mother would take a damp rag and wipe down each wire line to remove the dirt and bird droppings that would have accumulated since the last time we did this job, the prior week. Then I would bend down, pick up an item, and hand it to her and she would clip it to the line. The two of us together would wrestle the sheets onto the lines.

A few hours later, assuming no dust- or rainstorm blew up, we went outside, unclipped all the clothes, dropped them back in the basket, and hauled them back inside, where my mother had to iron every. single. stitch.

“Ironing” implied something quite different from what Americans do with an electric iron today, which is what we used to call “pressing”—a kind of light touch-up. My father wore khakis to the dock, where he worked as a harbor pilot. A man’s khakis were a far cry from a pair of beige twill Dockers. They were made of heavy, thick cotton. One of his shirts weighed as much as a pair of denim jeans does today. To iron any piece of cotton (and everything we owned was cotton, linen, or wool—there were no wrinkle-resistant synthetic or coated fabrics in the good old days), you first had to dampen it thoroughly, using an old pop bottle into whose neck you had stuffed a sprinkler head attached to a cork. Then you rolled it up tightly and put it, with the rest of the sprinkled laundry, inside a canvas laundry bag. If you had other things to do before ironing, you would store the dampened clothing in the refrigerator until you could get to it.

Items that needed to be starched, such as men’s shirts, were simmered on the stove in a big kettle of starch and water, then wrung out and hung on the line to dry again, before being sprinkled and ironed.

silexA steam iron was a rarity, and those we had didn’t generate enough steam to iron out wrinkles well, which was the reason each item needed to be evenly but sparingly dampened. We did have the convenience of electric irons, which you fired up to blow-torch level, and then you stood over the ironing board for hours. It could take two to three hours of steady work to iron an entire week’s worth of clothing—for just three people. You also ironed the sheets and pillowcases, and some women, believe it or not, ironed their husbands’ cotton underwear.

So, you know, the lady who wrote to the Times to remark, in effect, that we would-be frugalists look pretty silly as we proudly hang out our laundry, whirl Fels Naptha soap in the food processor to make our own laundry detergent, and try to grow our groceries in the back yard…she may have it right. We know not whereof we speak (or those of us who are a little older conveniently forget whereof we speak).

My mother’s family canned every bite of produce they didn’t eat fresh out of the garden, but she developed rickets as a child, because during the winter there were no fresh fruits and vegetables—indeed, in winter there was precious little to eat at all. Rickets erodes your teeth as well as your bones. By the time I was 12 years old, she didn’t have a tooth left in her head.

It’s easy to play at going partially off the grid when the dryer is still standing there, ready to be used if you need to toss in a shirt before you run to work, a shirt that will come out of the dryer hardly needing to be pressed. And it’s comforting to grow your food in the backyard when the supermarket is down the road to back you up.

But…would you really want to have to do it?

Link to Dick Tracy image: Wikipedia

Garden as income stream

Over at Get Rich Slowly, J.D.’s wife Kris has posted this month’s report on the great gardening experiment. I love these posts! It’s such a hoot to watch their progress and to view all the photos Kris and J.D. put online. One of the insights their experience (and, thanks to their inspiration, my own) has brought is that a garden, properly managed, amounts to a de facto income stream. Yea, verily: an under-the-radar, nontaxable income stream!

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This winter (the best growing time in Arizona), I’ve managed to grow a surprising amount of food in a very small space. The only places I have to grow vegetables are a small flowerbed next to the pool and a half-dozen big pots set in the few backyard spots that get direct sun most of the day. But I’ve been harvesting chard and beet greens all winter. The carrots are now ready to eat, and the beets, while less than perfectly successful, will suffice for a few meals.

The trees also qualify as garden citizens. I’ve been scarfing candy-sweet oranges—six to ten of them a day—since last January, and some fruit still remains. The Meyer lemon bore amazing juicy lemons the size of grapefruits, a bunch of which remain to be squeezed and frozen. The lime tree bears almost year-round.

Think of it: one dinky little lemon costs 50 or 60 cents. I’ll have enough juice in the freezer to stock the kitchen until the tree comes back into fruit. Though the freezer is full of grocery-store frozen veggies, I hardly eat the stuff, because I have so much fresh produce growing in the backyard.

Preparing garden vegetables for the freezer is surprisingly easy. The other day I put up a passel of beets and beet greens for future use.

 Wash the fresh-picked vegetables well.

1. Bring a big pot of water to the boil.
2. Meanwhile, fill the sink with cold water and add a bunch of ice to make it really cold.
3. Dip the clean vegetables into the boiling water.
4. Watch closely. Let them seethe just long enough for leafy things to turn bright green, or for a couple minutes for things like beets and carrots. Don’t overcook.
5. Using a slotted spoon or strainer, dip the vegetables out of the hot water and quickly plunge them into the icy water.
6. As soon as the heat is chilled out of them, lay them out on paper or fabric towels. Cover with more toweling. Pat dry.
7. When the produce is as dry as you can get it, divide it into storage bags, label the bags with the contents and date, and stash them in the freezer.

Some foods may be better cooked before freezing. For example, a fair amount of butternut squash, baked with honey and sweet spices, resides in the freezer just now. Ditto scalloped potatoes. The beauty of fully cooking the produce is that all you have to do is defrost the stuff and it’s ready to eat. The upside of blanching and freezing it is that you have produce ready to prepare in any number of different recipes.

And the real beauty of it: the freshest of all possible food sitting in the backyard at all times!

To expand on the idea of garden as income stream, I’d like to suggest that to make this work, we need to keep the basic cost of the garden under control. It’s easy for the cost of a backyard garden to outstrip the cost of the best organic produce from Whole Foods. This winter’s farming project points to a few guidelines:

1. Avoid gardening in pots, if at all possible. If you have a patch of ground, use it.

In the first place, most plants prefer to grow in the ground. But more to the frugalist’s point, even if you can get the pot on the cheap, you still have to fill it with dirt. In my part of the country, soil is clayey (sometimes concrete-like…) and doesn’t drain well in a pot. Because potted plants need excellent drainage, you either have to fill the pot with store-bought potting soil (!! expensive) or mix potting soil, home-made compost, and dirt from the ground about a third/a third/a third. The ground is happy if you just spade in some compost or manure.

2. Use seeds.

Plant sets are expensive. Seeds are cheap.

If you live in a place where winters are cold, start your own plant sets in the house before the ground warms up. No fancy equipment is needed for this project: visit Simply Forties and check out Mary’s idea of using TP rolls as plant pots for baby veggies.

You can buy seeds for neat varieties of many vegetables. And in many cases you can get seeds from grocery-store vegetables to grow. Out in the back yard just now, a horde of green things that came out of a Safeway butternut squash are hollering “Feed me, Seymour!” With any luck, these and the cantaloupe plants growing next to them will provide a fine harvest later in the summer.

3.Make friends with other gardeners.

Not only will you learn a lot about growing plants, gardeners often share extra plants with their friends. This is a great way to get free plants (free food!) and a great way to find new homes for extra little critters that grow from seeds or tubers in your own garden.

4. Make your own compost.

After the demise of my composter, I started a new batch in an aged plastic plant pot, which provides drainage for extra moisture. Putting an old plastic pot saucer over the top keeps it warm, fosters anaerobes, and allows me to flip compost over once every week or two. It already has is almost ready to use in the ground. You don’t need to buy an expensive lash-up for composting. A hole in the ground and a pitchfork make a fine low-tech composting system.

Faced with penury, my plan now is to use some space in the Investment House’s backyard to enlarge the agricultural enterprise. M’hijito, a talented gardener, has agreed that this will be OK, and so I hope to get some beans and melons going over there this summer. And with any luck, the Funny Farm here at my house will produce carrots, tomatoes, butternut squash, cantaloupe, basil, onions, and the usual parsley, thyme, sage, mint, tarragon, and marjoram.

Every bite that we don’t have to buy at a market represents a savings ranging from a few cents to a few dollars. This savings is accentuated if you incline to buy organic. So, if you can keep the cost of operating the garden within reason, over time the garden itself creates an in-kind income stream.

Layoff: Getting by in unwilling retirement

There just may be a way to survive post-layoff with little risk and not too much fear and loathing. A drawdown of 4 percent from retirement savings plus early Social Security plus a modest hand-to-mouth income would support my current lifestyle. Here’s how:

If I move my plan to create a large cash-flow pool from savings in 2010 forward to, say, today, I could pay for the Investment House mortgage out of cash flow + non-tax-deferred savings (thereby preserving tax-deferred savings, if the market improves over the rest of 2009). Assuming I pick up two junior-college classes in the fall and thereafter engineer three a semester, I could continue to carry the mortgage with no problem whatsoever. In fact, not only can I continue to pay the mortgage and live in my wonted style, at the end of 2010 I could be some $3,200 ahead of the game.

And that’s not counting revenues from freelancing and not counting whatever little bit Funny about Money might generate once it’s monetized. It also is figuring the highest monthly expenses year-round: utility costs represent summer expenses, twice the winter rates.

This is a function of longstanding frugality. Because I put about $400 a month into casual savings, plus all the after-tax revenues from freelancing, a fair amount of cash has gathered in the credit union’s money market account. So…next time someone tells you frugality is bad for your psyche and bad for the economy, tell them to think again.

Now, I allow as to how I have indeed said I’d rather eat worms than teach one more section of freshman comp. However, when you come right down to it, we’re talking about a grand total of eight months’ labor a year. Around here, you get about a month off over winter break and three months over the summer.

To make a long spreadsheet short, if I gather all the savings now in the credit union and add the coming federal tax refund, I could “grubstake” a “pool” account with $11,448. By December 31, after paying my $800/month share of the mortgage bill, that base amount will have grown to $14,788, assuming I take on two community college courses in the fall.

The point of this “grubstake” or “cushion” would be to keep from overdrawing my checking account in months when expenses outrun revenues.

So, in January, when I have to start drawing Social Security and 4 percent of what little remains of my retirement savings, I would start with $14,788 plus $1,162 of Social Security and $1,333 of investment proceeds, plus net monthly pay from the community colleges, which is about $500 per course.

If I teach two sections, at the end of 2010 I end up $1,276 in the hole.

But three sections produce $3201 worth of black ink.

The fly in the proverbial ointment, however, is income taxes. While the $500/community college course represents net pay, the amounts for Social Security and investment income are gross figures. Assuming just 18 percent (an optimistic guess if ever there was one), taxes on investments and Social Security combined would come to around $5,400. So the truth is, the reward for teaching three courses could be a $2,190 annual deficit. I’d probably have to make around $4,000 in freelance income to pay for that. Impossible to tell, though: taxation in this country is so frigging complicated there’s no way an ordinary taxpayer can make any such projection without professional help.

Well, the taxes come under the heading of “tomorrow’s another day.” Money happens: I’ll find a way to cover it.

Microbudgeting: Keep costs under control with a baby-steps budget

I’ve come up with a name for the week-to-week budgeting plan that I invented to keep discretionary costs (if you call food “discretionary”) under control: microbudgeting.

As readers who follow Funny know, I set aside $840 a month to cover recurring, nonoptional bills: utilities, once-a-month yard care, insurance. These represent the highest possible figures for the utility bills, which occur in three summer months here.

Then I set aside $1,200 a month to pay all other living expenses,including food, household goods, yard goods, gasoline, clothing, repair and maintenance on the house and car, vet bills, insurance copays, and on and on and on. This amount represents the microbudget: I divide the $1200 into four $300 “chunks” roughly corresponding to weeks, and coordinate those with the American Express budget cycle. All of these costs are charged on AMEX, and the bill is paid in full at the end of each cycle.

Some weeks, I’ll run in the red. But if I manage to stay in the black in one or two weeks, it usually evens out.

Here’s how this looked last month:

Week by week
Week by week
Whole month
Whole month

As you can see, even though even though I ran in the red three weeks out of four, over the course of the month I just broke even. Costs were high last month because of the new stockpiling scheme: I’d just bought a freezer and was stuffing it with one to three months’ worth of food. I’d planned to take money out of savings to do this, but as you can see, that wasn’t necessary.

Because I can spot, week-to-week, when I’m running in the red, I know when to cut back. Didn’t do the greatest job of that in February, but things are looking better in March. So far.

Microbudgeting turns out to be an effective tool for helping yourself to stay on budget. Except for extraordinary expenses that needed to be paid out of emergency savings anyway, the week-to-week strategy for staying on budget has worked to keep spending under control pretty well. It breaks a longer period, during which you might be tempted to overspend on this or that activity or impulse buy, into smaller pieces that give you an opportunity to climb out of the red without feeling like you have to pinch pennies the entire. grinding. month. It’s a lot easier to economize for one week than for two, three, or (if you’ve overspent early in the budget cycle) four weeks. Once you’ve got yourself back in the black, you feel a lot more confident that you’re coping.

Notice that I carry forward the red ink into the following week. This prevents “cheating” by pretending to start over with the full amount budgeted for that week, despite having spent more than desired the previous week. I ended up $11.13 to the good at the end of the month, because even though I overspent in three weeks out of four, I managed to stay enough in the black in week 2 to cover the excess spending.

Normally I try to stay in the black at least three weeks out of four (ideally, four weeks out of four!). February was stressed because of the food stockpiling, and because I chose to pay for it out of cash flow instead out out of savings. Had I taken some money out of savings to cover the hoarding scheme, I would have ended deeper in the black, and probably would have stayed in the black at least one extra week.

This scheme requires some OCD tendencies: it demands that you hang onto every receipt and enter it in a spreadsheet or hard-copy account book. But I don’t find this onerous. I stick the receipts in my wallet and then sit down and enter them about once a week. It takes maybe 10 minutes a week to accomplish.

To build habits that keep you in the black without leaving you feeling blue, it’s well worth the time!

Frugality, savings, and the causes of doom

Okay, I know that writing about the same thing other bloggers are posting is a form of mob journalism, much to be avoided. But what the heck… Pimp Your Finances is riding one of my favorite hobbyhorses, the argument that saving and frugality are harming the economy. We cheapskates are to be blamed for the fall of civilization as we know it.

No. ‘Fraid not.

As I was harmonizing with PYF’s rant, it occurred to me that there’s a subtle difference between saving and frugality.

Saving means setting some money aside for future use. Generally savings go into bank accounts or into other financial instruments with higher risk and higher potential return.

Frugality means living within your means: spending less (or at least no more) than you earn.

Most people who are frugal are in a position to save money; obviously, if you manage to spend less than you earn, you can take that unspent money and invest it somewhere. But some people who are profligate—who have run up revolving debt or have bought more house than anyone in their right mind could possibly claim to need—also are able to save money, if only through mandatory 401(k) or retirement fund contributions.

My Journey to Millions added a comment to PYF’s post noting that savings do not get locked in a vault somewhere. Banks loan out depositors’ savings (or so they’re supposed to do) to individuals and businesses, and that’s a large cog in the wheel that is our economy. When banks refuse to lend, as they’ve been doing in the present crunch, the economy grinds to a halt. Thus saving not only is not bad for the economy, it’s crucial to any nation’s economic health.

What short-sighted critics are saying is that frugality—which they equate with miserliness—is wrecking the economy. These are the ninnies who suggest that if we would just all hurry to the mall and max out our credit cards on junk we don’t need, everything would be just fine.

Here’s the hitch in this thinking:

When the bank owns your car, your house, your furniture, your clothes, and the dinner you sit down to at a restaurant, you’re renting your whole life and you have nothing. Although you may look affluent, the truth is you’re living in poverty. Living on the cuff creates the illusion of wealth, but it’s only an illusion.

It’s like living in the Land of Oz. Behind the lights and mirrors, our late, great “prosperity” was phony. With everyone spending until their income went mostly to service debt, no one had a REAL nickel or dime to rub together.

When everyone spends and saves responsibly, from the average person on Main Street to the A.I.G.’s of this world, then the economy will be healthy. The economy is healthy when most consumers, businesses, and lenders are financially healthy.

There’s no “paradox of frugality” here. None at all. Just a fake wizard in an Emerald City.

Got a freezer? Now’s the time to stock up

beansIt looks like this is the time to hoard up some food, if you havesomeplace to store it anda few extra bucks. CBS MarketWatch reports that deflationary pressures have pushed prices about as low as they’re likely to go. Everything from soup & nuts to automobiles is marked down.

Earlier this week I found some very nice seven-bone chuck roasts at the Safeway: $1.47 a pound, a buck less than hamburger. I bought two and had them ground into burger (I’m not nuts about stewed beef; and I can feed hamburger to the dog as well as to myself).

If you have some money or some credit, now is the time to buy a car or a house. I sure can’t afford that and don’t know anyone who can…but somewhere there must be a retired banker or two who could manage it.

Seriously: As the piper comes around asking to be paid for all the rescues the taxpayer is subsidizing and for all the money the government is minting to engineer those subsidies, we’re likely to see some serious inflation. If prices go up and none of us can get work, we’re all going to be in deep trouble. Helle’s Belles: if prices go way up—or, to put it another way, if the value of the dollar goes bust—it won’t make much difference if we are working, because our wages won’t buy us a heck of a lot more than unemployment benefits will.

This weekend I think I’ll see if I can find a small freezer that will go through the door to the spare bedroom I’ve devoted to storage. It wouldn’t take a lot of extra freezer space to hold at least a couple months of food for me and the Corgi. Then as food comes on sale, I’m going to start buying, wrapping, and storing.

It looks like I’m going to need a new washer one of these days—have you seen the prices on the frontloaders at Costco? They even have one of those top-loading high-efficiency washers with no agitator at an almost affordable price (good-bye wadded up sheets and ripped shirts!).

The problem with buying a big-ticket item before one really needs it is that in these uncertain times it feels like a real bad idea to part with whatever cash you’ve managed to sock away in savings. And you can be darned sure racking up debt to take advantage of rock-bottom prices is a bad idea. But…if things get as bad as they could get, a freezer would pay for itself. So would some “futures” in rice, beans, and canned goods.