Does Frugal Pinoy Apply to You?

“Your site doesn’t apply to me.  I can’t use your advice.”  I hear this comment a lot, especially from friends and family.

It could be true.  The blog posts here at Frugal Pinoy may not apply to you, especially if you’re…

• feeling so secure in your finances that you know you can provide for yourself and your family even if you lose your job and have no income for 6 months,
• a multi-millionaire who wants to learn more about aggressive stock market investing rather than saving,
• or someone who thinks “I know all of this already!  In fact, I can write a book on it!” every time you see a new blog post here.

If you’re any of the above, congratulations!  You might not need this site.  In fact, feel free to contact me and send a guest article containing advice that other Frugal Pinoy readers could use.  (I’m serious about this.  Guest articles are welcome.  Just click here to send me a message via the contact form.)

But if you hear yourself saying or thinking the following lines, then this blog will definitely be beneficial to you:

• “I want to make more money.”
• “I need to get out of credit card debt.”
• “I hope to save more money so I can afford the things I want.”
• “I want to save more money so I can afford the things I need.”
• “I still accept financial help from friends and relatives.”
• “If I get laid off tomorrow, I won’t be able to pay for my living expenses until I get another job.”
• “I want to have the financial freedom to travel and pursue my passions.”
• “I’m spending too much on clothes/food/entertainment/etc.”
• “I want to retire early.”
• “I want to leave the rat race and start my own business.”

What is Frugal Pinoy really about?  Why is it relevant to the people who can relate with these statements?  In one sentence, Frugal Pinoy is a blog about defining financial freedom and the steps you need to take to get there. I’m willing to bet that almost anyone who is earning an income (or wants to) would benefit from defining the word “financial freedom” in their own terms, as well as take the steps to get to this freedom as soon as possible.

Personally, I want that financial freedom myself.  The good news is that I believe I’m on track to financial freedom, even with the economic downturn (in fact, I’m thriving).  If you want to be on this journey yourself, then you’re welcome to use the advice on this blog.

The best part? It doesn’t cost you any money. It doesn’t make me any money either*, so you know I’m not out to sell you multi-level marketing products and other scams.

That’s all This post just serves to remind both myself and the readers about what Frugal Pinoy is for.

If you want to receive Frugal Pinoy updates in your email, please click here and fill up the form. (It only takes 3 seconds.)

Happy Wednesday, everyone!

Photo by: Melodi T

* UPDATE: As of December 2009, I started using ads here at Frugal Pinoy to help support the maintenance of the site. But they are secondary to the content. I’ll always be putting the reader first.

Free Ebook: Thriving on Less

“In the middle of difficulty lies opportunity.” – Albert Einstein

Almost the entire world is facing a financial crisis.  During times like these, it’s important to cut back on our spending and save for the future.  But is it possible to do that without sacrificing your enjoyment of life?

Leo Babauta’s new free ebook, “Thriving on Less: Simplifying in a Tough Economy” addresses the steps we have to take to lead more enriching lives – and save money in the process. A much needed message in tough economic times.

Here’s what you’ll learn from the ebook:

• How to create a simple lifestyle
• How to focus on “enough” instead of “more”
• How to beat the effects of advertising
• Steps on how to make small financial changes
• How to look at large, long term expenses
• Tips on how to change spending habits
• How to get out of debt

If you want to download a free copy of this ebook, simply click here.

Money Myths: Buying in bulk is cheaper

When I was in grade school, my Home Economics teacher told us that buying in bulk is cheaper.  I used to believe her until my own experience proved otherwise.  When I started being savvy in the grocery, I noticed that items packaged in bulk aren’t always cheaper than buying them in smaller, regular sizes.  Plus, it’s not always the wisest decision to buy products in bulk.

Still, products sold in bulk are usually cheaper.  If you do it right, bulk buying can give you more opportunities to save.  Here are some basic tips:

Always do the math.  If you carry a cellphone with you at all times (you’re Pinoy, so you probably do), you have a calculator.  Use it.  Find out how much the product costs per unit (gram, mL, piece) for the regular packaging, and how much it costs per unit for the bulk packaging.

Here’s an example.  A 100 gram bar of soap costs P17.00.  When the same soap is sold in packs of 3, each pack costs P45.00.  Which is cheaper, the 90 gram bar or the 3-pack for P45.00?

If you multiply how much a single bar costs (P17.00) by the number of bars in a pack (3), you’ll find that buying 3 individual bars costs P51.00.  Since the 3-pack is only P45.00, buying it would be cheaper.

Be careful, though.  Some manufacturers decrease the per-item weight of products in bulk to make buyers think that they are getting things cheaper. In the soap example given above, make sure that each bar in the pack is also labeled 100 grams.  Sneaky manufacturers might use 90 gram bars in the bulk packages.

Don’t worry about the math-induced headaches you might get.  It’s likely that you only have to do it once for each product you want to buy in bulk.

Buy non-perishables. Items such as toilet paper, plastic bags, dishwashing liquid, and other non-perishables are okay to buy in bulk.  They won’t spoil easily and won’t be a hassle to store.

You can only safely buy perishables in bulk if you know how to preserve them, will consume them soon in large quantities (ex. if you’re having a party), or if you have assurance of the product’s quality.  I found this helpful guide on how to freeze different food items.  Worth looking into if you want to consider buying food in bulk.

Consider other factors that are important to you.  We’ve already mentioned quality.  If quality is important to you (and it should be), you need to take that into account before buying a product in bulk.  After all, it isn’t a frugal choice to buy toilet paper in bulk if it breaks away easily and doesn’t absorb too well.

Another factor you may want to consider is how environmentally friendly your bulk purchase is.  Sometimes, products that are packaged in bulk are prone to excessive packaging – there’s one big plastic bag wrapping the bulk of the product, individual plastic bags wrapping each item, etc.  If you think a certain bulk purchase is less environment-friendly than its regular equivalent, then don’t buy it in bulk.

Know where to buy.  Makro is a good place to start buying in bulk.  Their bulk products are usually cheaper, especially the generic ones such as Savepak and Aro.  I’ve already talked about the good quality of the Savepak dishwashing liquid, so it isn’t necessarily true that branded products are better.

You can also go straight to the manufacturer if you want to buy a product in large quantities.  In fact, you might get it cheaper there.

The next time you think you’re getting a great deal from a bulk purchase, stop for a minute, do the math, and consider if you really are getting a great deal.  My Home Economics teacher was mostly right.  Buying in bulk can be a great money saver, but only if you do it well.

Photo Credit: Image from Luis Rock  from stock.xchng

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