We have reviewed 8 everyday items and personal finance products which you may or may not already have in your life, and a guide to help you decide which ones are worth keeping and which are impeding your frugality.

When you are trying to live a frugal lifestyle, it is important to step back and review the items you have in your life, especially since a number of items you thought were helping you be smarter with your money and protect your family could actually be costing you more.

So without further ado, here’s the list:

1 – Protections

Not all forms of insurance and warranty are un-frugal but in some cases you can be paying extra for coverage you don’t need, won’t use, or isn’t worth the value you are paying for it. For example:

• Extended warranties. An extended warranty on a car or electrical item can be as little as $30 to as much as several thousand dollars and is aimed at extending the manufacturer’s warranty in case there is a problem with the item. However, some items are not likely to break down even within the extended warranty period and you can instead save yourself money by choosing the most reliable brands to start with, and using the products the way they were intended to be used. Even if a product does fail outside of the warranty period, you can still try and negotiate with the retailer for repairs or compensation.
• Credit card insurance. You can be paying around $1 for every $100 of your balance for insurance to cover your minimum monthly repayments if you are unemployed, injured, disabled or you die. However, in most cases your life insurance policy will already cover your expenses in case you can’t.
• Identity theft protection. Having your identity stolen can cost you a lot of money not to mention inconvenience however, at up to $240 per year, identity theft protection can cost you even more, especially when there are significant gaps in the protection according to the Federal Trade Commission’s Chairman. Instead, keep an eye on your own finances and read bank statements carefully, keep your letter box locked and don’t give out your PIN to anyone.
• Phone insurance. Yes, you really can buy IPhone 4 Insurance. However, that doesn’t mean it’s a good deal. Losing your phone is annoying and paying up to $96 per year and an extra $25 to $100 deductible when you claim may seem like a small price to pay for the convenience of an automatic replacement. However, this is not generally a frugal way to spend your money as your phone may already be covered under your home contents insurance. Plus, there can be conditions which may exempt you from a new phone in the insurance contract.
• Collision insurance. If you have an older vehicle, you could find a more frugal use for your funds than paying for collision insurance. You can be paying an extra $300 per year for reimbursement of the value of your car in the case of an accident. However, the cost of the coverage is likely to overtake the maximum amount the insurance will pay for so once the cost of the insurance is 10% of the car’s book value, the policy is not worth keeping.

Verdict: Not frugal.

2 – Account and investments which charge fees

Your transaction and savings accounts and investments are supposed to be making it easier for you to manage your money and make every dollar go further. Therefore watch out for these expenses which can eat into your frugality:

• Sales commissions on mutual funds. Load mutual funds can be paying four to six percent in sales commissions to your broker or financial advisor, where no-load funds often perform the same or better for your returns. Therefore, shop around for the best performing no-load mutual funds, and remember that even if funds appear to be on par, load funds will need to offer higher returns to make up for the loss of returns to fees.
• Fees on transaction accounts. If you have had the same transaction account for many years, you may not be aware of the new products on the market. For example, there are many transaction accounts which won’t charge you ongoing monthly fees for holding the account, nor require you to maintain a minimum balance to pay you interest.

Verdict: Possibly not frugal—be sure to figure total return including expenses.

3 – Home Equity Loans

In these difficult economic times, people are often tempted to access the equity in their home to help with expenses and family activities. However, equity release schemes can be very expensive as you only get back a fraction of the house’s value and you are giving up a large portion of your accumulated wealth just for cash flow in the short term.

Instead of using an equity release loan or scheme, consider downsizing to a smaller more affordable home and investing the profits from the sale of your first home.

Verdict: Not frugal.

4 – Coupons

Coupons are often touted as the frugal family’s best friend, however, you can find yourself spending more than normal, or getting a decreased value from your purchases simply to make use of a coupon. Therefore, make sure you avoid these non-frugal coupon uses:

• Retailer coupons. If the coupon is for somewhere you already shop then you can use it frugally, but often retailers give out coupons to attract new customers and you can find that you make impulse purchases, without considering whether the item is good value. Therefore, make sure you compare the products and prices of items before you buy somewhere new. You also often can’t use more than one coupon on the same item so the individual discounts may not add up.
• Buying a new product. Everyone has the brands they know and like, but if you receive a coupon for a new product, you may be tempted to buy it. However, make sure you actually need the items, and consider whether your money could be better spent on a product you know you’ll like, rather than on a new brand of product you may end up throwing away without finishing.
• Buy one get one free. This type of coupon offer is only viable for frugality if you are able to use the extra items before they go bad. If you have a big family or are having a party then stock up, but otherwise these free items could be wasted.
• Other brands are still cheaper at full price. If you have a coupon for a branded product, but the store brand is still cheaper at it full price, you are not spending frugally if you spend more on the same product simply because you have a coupon.

Verdict: Sometimes frugal—but only for products you know you would buy anyway.

5 – Convenience foods

Don’t confuse ease of use with enhanced lifestyle because when you buy the more expensive frozen or pre-packaged foods you are paying more and not only wasting your money, but short-changing yourself on the quality family time you could spend preparing food and meals together. Instead of buying frozen meals for when you’re too tired to cook, spend a day with your children helping you in the kitchen to cook up batches of meals which can be frozen. Rather than buying small containers of yogurt for lunch boxes, buy the larger tub and distribute them into your own smaller containers.

Verdict: Not frugal.

6 – Reusable menstrual products

Guys, feel free to skip this paragraph. OK ladies, I want you to stop and think for a moment about how much you’re spending every month on tampons or pads. Did you even realize there are other options out there? Google “menstrual cups” and you’ll find quite a variety under brand names like Diva, Mooncup, and Keeper. Not only are you saving 10 to 15 dollars each month on disposable products, you’re also stopping all of those products going into landfill. Be sure to read up on these before you buy, however, as they come in different sizes and a proper fit is essential for them to work properly.

Verdict: Frugal.

7 – Beauty products from the kitchen

When we look good we feel good and one of the hardest parts of living a frugal lifestyle can be giving up on beauty products. However, there are a myriad of frugal alternatives right in your own home, such as:

• Enzymes and acids. These features of beauty products are now thought to be more effective at renewing your skin than harsh scrubbing products, and you can find them in natural yogurt. You can make a face mask from just one teaspoon of yogurt once or twice per week and feel refreshed in summer, or warm the yogurt to room temperature in winter.
• Lactic acid. If you don’t want to slather yogurt on your face, use milk or powered milk. You can make a mask out of powdered milk, or simply dip your face into a bowl of fresh milk. The lactic acid is the ingredient in the yogurt which removed dead skin cells and brightens and smooths your complexion. You can even take a milk bath by adding a cup of milk or milk powder to your bath water.
• Probiotics from the inside. Don’t forget to eat some of the yogurt too, or add probiotic capsules to your diet as this helps improve your complexion form the inside by neutralising and removing toxins before they can be pushed out through your skin – prevention is better than cure.
• Fruit masks. Fruits such as kiwi, peaches or papaya can be pureed to create a face mask but remember the acids in the fruits work quickly so don’t leave them on for more than a couple of minutes. For dry skin, try an avocado paste mask.
• Apples. You don’t have to do anything to your apples except eat them – including the skin as that’s where most of the nutrients are found – as apples contain pectin which cleanses your intestines of toxins which would normally be excreted by your skin.
• Basic toner, cleaner and moisturiser. With the natural fruits and acids working on perfecting your skin you will find you don’t need to spend a lot of money on the fancy toners, cleansers and moisturisers. Instead, look for products which don’t have acids or enzymes in them to give your skin a break.
• Aloe Vera. This is a very simple product which can be used to great effect as an eye gel and wrinkle smoother. If you have puffy eyes in the morning it will firm up your skin and it can be used in place of your regular moisturiser several times a week.

Verdict: Frugal.

8 – Lighting

One of your biggest household bills will be for your power and there are a number of ways you can reduce this cost until your whole family gets into the habit of turning off the lights when they leave the room. Using compact fluorescent light bulbs in all of the sockets in your home can save you hundreds of dollars per year. For a longer lasting alternative, LED lights will save you even more money because they are maintenance free and you won’t have to replace them for years.

Verdict: Frugal.

Alban is a personal finance writer at Home Loan Finder, a home loan comparison website.

Due to the recession, hotels and airlines are prepared to negotiate hard for your travel dollar. Priceline  makes it easy to name your own price and get the most bang for your buck. You can use the link below to get started. Happy negotiating! 

Save up to $325 on your Vacation Package at priceline!

• You can Name Your Own Price on hotels and flights
• If the price drops after you book, they’ll refund the difference!
• Great last-minute deals
• Lower prices than other services like Expedia or Travelocity

I recently stayed at a three-star hotel in Dallas for $65. You can get steals like that all the time on Priceline. Give it a whirl and you’ll see what I mean. Have a great holiday weekend!

• Loaf of whole wheat bread, $1.29
• Gallon of milk, $2.79
• Bananas, $.33/lb
• Dozen eggs, $.99
• Cinnamon Graham crackers, $1.39
• 14 oz. mustard, $.59
• Raisin Bran, $1.89
• 1 lb butter, $2.19

Now, before you jump in the car and drive to your nearest Aldi, let me give you some background about the store so you can be prepared for the experience.

You will want to take your own shopping bags along, because Aldi will charge you extra if you want to get some there. I like bringing my own canvas bags because they’re nice and strong. Make sure to bring plenty of cash, because Aldi does not accept checks or most credit cards. You will need a quarter to unlock a cart, but you’ll get it back when you return the cart.

When you arrive, you will notice that the stores are small. I LOVE the small stores because you can get in and out quickly, a big advantage when shopping with kids. You will also notice that the stores look more like a warehouse than a grocery store. My store is very neat and clean, with wide aisles and a simple layout. But you won’t see fancy displays or hear atmospheric music. All of this helps keep your cost down.

Aldi stores are small because they only carry about 1,400 of the most commonly purchased products, and usually only one brand of each: the Aldi store brand. If you have a problem with store brands, you won’t want to shop there. I have found that most Aldi products are very good quality and comparable to name brands. The only thing I’ve tried there and didn’t like was their salad dressing.

After you load up your cart, you’ll head to checkout. Aldi doesn’t bag your groceries, but they provide a nice big counter area where you can bag them up before you leave.

For more about Aldi, check out their website at http://www.aldifoods.com/. Happy bargain hunting!

Share
One of the most common ways where in you can save while you are eating out is by sharing your dish with another person. Do not be embarrassed to do this because in most restaurants, the portions of the food that you will order will be too large for a single person to eat.

Take advantage of specials
All restaurants have “specials.” These specials give you the greatest value for your money because they are offering good food at a special price. Ask restaurants on what days they are offering specials so that you can take advantage of them.

Also check on special discounts for seniors, and check the menu for a kids’ section– they are generally much more inexpensive than the regular food.

Get Combo Meals
Food that you order individually is generally much more expensive than the foods that are in a combination package that will serve several people. If you want to save money while eating out, try and find the combination meal that will satisfy you and your companions instead of ordering single dishes for yourselves.

Join a club
If you eat out a lot, you might want to join clubs that will give you up to 25% discount on the foods that you eat. And while there will be an annual membership fee, the savings that you can get is higher than what you will pay for in membership fees.

Use coupons
Coupons equate to discounts so you must use coupons as much as possible. Coupons are not hard to find. You can find coupons on magazines, newspapers and other publications.

Eat Lunch, not Dinner
Try to eat out before dinner time because dinner is the most expensive meal of the day.

Drink Water, and Only Water
Most restaurants do not charge for water, and you can get soda or tea any time at home. Alcoholic beverages at restaurants can really break the bank. Unless this is a very special occasion that calls for a toast or a glass of wine, stick with good old H2O.

Look for new restaurants
Remember that restaurants are very competitive with each other. When there is a new restaurant in town, the most effective publicity ploy is to offer great food at the lowest prices around. Consider new restaurants a wonderful opportunity to dine cheap.

Happy Dining!

Insure.com for life insurance
eHealthinsurance for health insurance

There are also techniques you can use while driving that will lower your gas mileage. This is called hypermiling. Here are some forums where you can learn more.
http://www.wisebread.com/maximize-your-cars-efficiency-with-hypermiling
http://www.cleanmpg.com/forums/showthread.php?t=1510

Consignment shops and eBay are good sources of high-quality used clothing (or “experienced” clothing, as we say around my house). Remember, you can also sell your clothes that way! Kids’ clothing in good condition tends to be the best for selling; adult clothing tends to be cheaper when buying.

http://www.grocerygame.com/ This is a subscription service that matches up coupons with sales in your area. I use this and highly recommend it.
http://www.hotcouponworld.com/ Great site for coupon trading and discussion of sales and other great deals. I am a heavy user of this site also.

Another way to save money on groceries is to shop at discount stores. My family loves Aldi; it has smaller stores full of high-quality store brands. Other good options are warehouse stores like Sam’s Club, Cotsco, and BJ’s.