Save a Little Money, Save a Little Planet: a Primer

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Fair warning: I’ve mentioned some of the ideas in this post before. However, I think they’re worth repeating. I think it’s also important to provide some background on how we got into such a mess and some suggestions for how we can start crawling out.

There’s a lot of buzz these days about “going green” and product manufacturers have taken notice. In fact, it’s become so popular (and profitable) to slap words like “natural” on products that it’s difficult to tell which products are truly green and which companies are simply greenwashing to raise revenue.

Consumer Reports Home & Garden Blog defines greenwashing as “companies and corporations that make green claims when their products or actions are anything but.” TerraChoice, an environmental marketing firm, has created a list of “The Seven Sins of Greenwashing” defining the term as, “the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service”.

The problem: In 1976 Congress passed the Toxic Substances Control Act and automatically deemed safe some 60,000 chemicals for use in consumer products without data to confirm their safety. According to the Environmental Working Group (EWG), since 1976, 20,000 new chemicals have been put into products we use every day, again, with little or no data to support their safety. As a matter of Federal law, manufacturers are not required to tell us what’s in their products. The EPA has no authority to make them tell us, nor do they have the staffing or the information to properly test products for safety.

Fortunately, with a little knowledge, we can choose household products that are both safer for us and for the Earth. The best part: the greenest options are often the least expensive, leaving more money in your wallet while helping the planet.

Household Cleaners

There are a few options here. The truly frugal may wish to make their own. Almost anything in your house can be cleaned with baking soda and vinegar. Vinegar is especially good mixed with water to clean nearly any surface. It works anywhere you might use glass cleaner. Mixed with hot water, vinegar will easily clean your floors. When more scrubbing power is needed, try baking soda. My kitchen sink is white porcelain and baking soda does a great job getting the grime off of it. I buy baking soda and vinegar in large quantities at Sam’s or Costco. For pennies I can clean nearly everything in my house.

For those not interested in making their own cleaners, there are more and more options available in stores. To avoid greenwashing, it’s best to go with companies that have been upfront about their product ingredients for a long time. Seventh Generation is one good choice, as is EcoStoreUSA (stay tuned for some upcoming product reviews). When in doubt, read the ingredients. If the ingredients aren’t listed, I’d pass. Also look for Warning labels, like “Caution,” “Danger,” and “Poison.” It seems obvious, but if a product has these warnings, you can be sure there’s bad stuff inside.

Laundry Detergents

Most laundry detergents contain phosphates and other chemicals that aren’t good for us or the environment. A healthier (and cheaper) option is to consider making your own. I make mine and it takes about 7 minutes every three months to create a batch. I make a powdered version that has only 3 (inexpensive) ingredients: 1 bar grated Fels Naptha soap, 1 cup borax, 1 cup washing soda. I usually multiply the recipe by three and store it in an airtight container. At 2 Tablespoons per load, one batch lasts for months.

Some people are decidedly against making their own laundry detergent, though. If that’s the case with you, again, there are a lot of options now in stores. Primarily, look for phosphate-free products and make sure to read the labels.

Personal Products

The Environmental Working Group has studied thousands of products over the years and has found that the vast majority contain many chemicals whose effects on humans are unknown. Many of these chemicals have been banned by the European Union (EU) because of safety concerns, but they are commonly used in many of the products we put on our skin each day in the U.S.

To go a little more chemical free, first try to use fewer products. The fewer products you use, the less you’re exposure and the less money you’re spending. Think about which products you absolutely need and which ones you can do without.

Once you’ve narrowed down to the necessities, check out EWG’s Cosmetics Database. It’s an exhaustive list of products rated from 0-10 according to the level of health hazard (lower numbers are better). Not surprisingly, many of the low hazard products listed are made by organic companies, and some of these products can be expensive.  I put together several lists of low-hazard products from the database that are less expensive and can be found in grocery stores and places like Target. Some of the safest products were surprisingly inexpensive. You can find lists for Personal Care Products, Baby & Kid Products, Oral Care, and Sunscreens by clicking the links.

Generally speaking, being green is NOT about consuming a lot of new, expensive “green” products; it’s about consuming less and reusing what you have. Not surprisingly, being green has a lot in common with being frugal. When you don’t buy more than you need, when you use up what you have before buying something else and when you purchase items that can be used over and over and over again, rather than always reaching for disposables, you save money. Often, a lot of money. But you’re also being a good steward of the planet. If you take just a few minutes to think about how you can ditch some of the disposables in your life you’ll find money savings there as well. For example,

Stop drinking bottled water. Get a reusable, BPA-Free bottle instead and refill it with tap water. Most bottled water is only tap water anyway. Depending on how much bottled water you usually buy, there could be considerable savings here.

Buy fewer paper towels and paper napkins. We’ve started using cloth napkins almost exclusively. Several months ago I bought a large pack of terry cloth shop towels at Costco. The size and absorbency make them a perfect replacement for paper towels. They soak up more and can easily be washed and reused. That mega-pack cost exactly the same as the mega-pack of Bounty paper towels, but this one time purchase will last indefinitely.

Buy in bulk. Where reasonable buy items you use often in bulk. There is less packaging (and therefore, less trash), which is better for the environment, and often bulk purchases are less expensive.

If you think about it, Reduce, Reuse, Recycle, is merely a new spin on age-old advice. My grandmother (who is 87 at this writing) grew up very poor in eastern Kentucky in the 1920s and ’30s. Reduction was a way of life; they existed on the bare minimum. They had to use and reuse everything they had until it wore out, and when something did wear out, the parts of it that were left were recycled into something else. They didn’t think of it as “being green.” For them, it was merely common sense.

I’m not advocating that we all turn to abject poverty as a way of life, but I’ve never heard anyone say they were sorry they’d simplified their lives by pairing down some of their “stuff” and consuming less. Today, try to think about how you can reduce, both your spending and your footprint. Then find a good place to put all that money you save.

Photo Credit: Pop

Saving Money? What For?

moneyThere’s so much information out there about how to save money (it’s certainly one of the things I focus on here). It’s understandable; these are hard times and we need to keep as much of our money as we can. Most of us have found ways to cut back on our spending, to shave a few dollars off of our monthly expenses, and to realize even bigger savings by shopping around for auto/life/ homeowner’s insurance or some other large expense. So we’re saving money; but what for?

In my own race to save as much money as possible and to get the best deal on every purchase, I’ve lost sight of what I’m saving for. Yes, we automatically save for retirement through our plans at work, but the savings I’m talking about go beyond that. If I save $20 on an item I purchase, what am I doing with that money? Is it going towards a dedicated savings goal, is it simply building up in my checking account, or is it being sucked away on another purchase I wasn’t nearly as careful about?

What I’m realizing is that if we don’t have savings goals, we’re not maximizing the savings we’re realizing through frugality and comparison shopping. For years we’ve had a very vague “emergency fund.” I came up with a completely arbitrary number for the amount I want to have in there. The problem is, my husband and I have never sat down to discuss what emergencies we’re trying to cover with this account. Our jobs are as secure as any jobs can be in this economic climate. We both work in industries that are highly unlikely to go under, even during rough times. But I also realize no one is immune to job loss. So what’s become important is to identify just what sort of emergencies we’re hedging against so that we can save the proper amount of money in this emergency fund to meet those goals.

Other than our emergency fund, we’re looking more specifically at other savings goals. We know we want to set aside money for another car. Our newer car is a 2006 Toyota Sienna. Our other car is a 1994 Toyota Camry. Since both my husband and I work, and we don’t live in an area with public transportation, it’s likely we’ll need to replace the Camry sometime in the next few years.

We also want to set aside money for our daughters’ college educations. And some money in a vacation fund. Eventually, we’d like to re-work our kitchen, and that, too will require a chunk of savings.

The problem with saving money blindly, as we’ve been, is that none of the goals stand a chance of ever being met. And without solid goals, it’s impossible to maximize the savings we do have.

I’m certainly (and obviously) no financial expert, but it seems to me the next logical steps are these:

Emergency Fund: Determine exactly which emergencies we wish to cover with this fund (things like possible job loss, home and auto repair) and decide on a specific amount to keep in this fund.

Car Fund: This is an inevitable expense. We simply need to determine the amount per month we are able to put towards this goal.

College Savings: We want to help our children with college expenses as much as we can, but we also don’t think it’s necessary to save the entire amount before they graduate from high school. Again, we’ll need to decide on a specific monthly amount to put towards this goal which will likely reside in a 529 account.

Kitchen Fund: This will come last as it is the least necessary at this point. However, once the other savings goals are met, we should be able to ramp up the amount we’re putting into this fund.

This sounds like a lot, but I’m talking small amounts right now. It’s not like we have hundreds and hundreds of dollars left over each month after paying our expenses. But, our expenses are less than they used to be. We comparison-shopped our way into an annual savings of around $600 on auto and homeowners’ insurance, we’re consuming less than we used to, we’re growing some of our own food, we’re making more of the things we use (laundry detergent, some cleaning products, liquid hand soaps) we’re getting rid of a lot of our stuff via ebay and a yard sale. All of these things combined will contribute towards our savings goals.

Also, with the new federal economic stimulus plan, most workers will see a net increase of approximately $50 per month in their paychecks. I’m going to try to make sure this money goes towards a savings goal rather than simply disappearing because of a lack of planning.

This is what may work for us. If you need help prioritizing savings goals, J.D. Roth has a great post about that very topic at Get Rich Slowly, one of my favorite personal finance blogs.

What do you think? Do you set savings goals? Do you also find that it’s easier to make progress when you do?

Photo Credit: borman818

Save Early, Save Often: Christmas

We just finished with Christmas, it seems, and now I’m writing about it already. Maybe you’re one of millions of people who are still paying off the damage done by Christmas past and would just as soon not think about Christmas future. The good news is that thinking about Christmas NOW just may get you out of the credit card jungle this time next year. Saving for Christmas throughout the year isn’t a novel idea, but it’s one I just decided to follow through on last year. I started later than I should have, but still managed to save $350 towards my Christmas budget.

What I suggest is this: start small. Maybe $5 or $10 per week (I’m doing $10). I set it up through my bank and every week $10 is automatically deducted from my checking account and put into a savings sub-account that I set up just for Christmas money. Once I started doing it, I hardly noticed the $10 being gone. The beauty of it is, if you can keep it going year-round, you can easily end up with a little more than $500 cash at Christmas that you don’t have to put on your credit card. If you’re more ambitious than I am and want to do $15/week, you’ll have $780 after one year.

Another option is to add to the fund with windfall money during the year — if you get a rebate for something, put it into the account. If your mother surprises you with a random $20, put it in the account. If you find a quarter in the parking lot, add it to a change jar and deposit the coins into the account.

The money we saved for Christmas this year didn’t cover all of our expenses, but it was a great feeling to have more than $300 in cash that seemed to magically appear. (Yes, I know it wasn’t magic, but I did find that I forgot about the account for much of the year so it did feel a little magical to remember it in December).

I’d encourage you to give it try now that time is on your side. There are many months left between now and Christmas. Do any of you have other ways you pay for gifts at the holidays? If so, please share them in the comments.