U.S.News & World Report Tumblelog

No prom-goer wants to arrive at the dance wearing the same dress as someone else, so alternative options like consignment shops, Etsy.com, and eBay.com offer more unusual styles at an affordable price. Kimberly Foss, a certified financial planner and founder of Empyrion Wealth Management in Roseville, Calif., recommends frequenting consignment shops in the upscale part of town to find the best selection. “They have some fabulous clothes that most of those people wore one time,” she adds. Of course, shopping online requires extra time for shipping and consignment shopping can be hit or miss, so these strategies also require extra lead time.

Glenn Morrissette, 42, wrote in to say that he lives on just $11,000 a year, and he does it by living full-time in an RV. As a result, he pays no rent, needs no car, and can live wherever he wants. Unlike Joseph Fonseca, the writer we profiled in our “Living Well on $20,000 a Year” article, Morrissette has health insurance. A professional musician, he can work by computer from any location. He might not have a family support, as the teacher living on $40,000 a year does, but we thought Morrissette’s story was interesting enough to share. We spoke with Morrissette, who is currently in New Jersey, about his lifestyle, which he also describes on his blog, To Simplify.

Last week, we ran a story on living well on $40,000 a year, featuring a special education teacher who supports his family of four on that relatively modest salary. Fifty people commented on the article, many of whom argued that living on $40,000 a year was hardly an impressive feat.

“I could live like a king on $40,000 a year. Try living on $22,000 a year and see how that goes for you. And I have a family of three,” said Joyce of Maine.

Connie from Texas expressed a similar sentiment: “I would feel really rich if I made that kind of money… Why don’t you have an article on how to live on $17,000 or $20,000 a year?”

To do just that, we tracked down Joseph Fonseca, a writer currently living in Seattle who supports himself on $20,000 a year. Fonseca, 28, authored a first-person piece in the Washington Post over the weekend describing his “10 cities, 10 years” project, in which he moves every year and starts over in a new town. An aspiring novelist, he plans to eventually write a book about his quest. We spoke with him by phone to get more details about just how he makes ends meet.

“I think the biggest thing I have learned is if broke people are making fun of you and laughing at your ways, then you are doing something right. It was difficult to get mocked when Tracy was working and we chose to live off one salary while others were spending like there was no tomorrow. Many people told me to get off my wallet and spend money.

“Pride is sometimes a hard thing to swallow, but I knew that many of these people were not making smart financial decisions and these decisions would eventually come back and hurt them. I don’t know if it is unusual advice but, when making financial decisions, you have to do what is right for you and not be influenced by the many temptations that surround us.”

2. Make saving “cool.” Kids’ clothing is the single most expensive item on back-to-school lists, reports the American Express Spending & Saving Tracker. In fact, 6 in 10 parents say they will purchase designer labels and name-brand clothing, including sneakers and jeans, in preparation for the school year. But Reynolds says that’s not necessary. Instead, she suggests browsing magazines with your child and jointly picking a trend to recreate at home. DIY projects include hair accessories, jewelry, and accessorizing socks or backpack patches. Visiting consignment stories is another affordable option.

“Staycations”: This has become a frugal buzzword recently. The idea is to stay home and enjoy your local tourist attractions that you might otherwise take for granted. My wife and I did this last summer and it worked out great. We took the kids to local museums, historical sites, and local hiking trails. Over a series of three weekends, we visited local sites and had a great time in the process. No hotel costs and no eating-out costs.

2. Becoming victim to rapid lifestyle inflation. You’re a recent college grad, so that means you probably need a new car, new apartment, new sofa, and a new… Wait a minute. Not only do you not need all those things, you probably won’t appreciate them much, either. A little theory called the “hedonic treadmill” explains why. We adapt all too quickly to improvements in our lifestyle. That 60-inch television you drooled over at Best Buy will soon start blending in with the rest of your furniture, along with your top-of-the-line coffee maker and pillow-top mattress.

A lot of people can offset higher energy costs by spending less on other things. Foregoing the new iPad 2, for example, would be enough to cover those higher costs for three or four months. The typical family spends about $240 each month on entertainment and recreation, which is easier to cut than food or rent. And some things have been getting cheaper, which gives consumers a break, even though they tend not to notice price declines nearly as much as highly publicized hikes in gasoline prices. Many appliances, for instance, have come down in price over the last few years, especially computers and anything else driven by microprocessors. But you’re not likely to see many breathless headlines about that. Plus, we tend to apply the savings toward more powerful and better machines—like wall-sized flat-screen TVs—instead of pocketing the difference or saving it for contingencies.

3. Bake “fried” chicken. A variation of “baked” fried chicken occurred over and over again in university cookbooks. The basic recipe: Coat chicken pieces in breading and parmesan cheese along with spices, then bake in the oven. That way, you avoid the grease of fried chicken takeout.

Bake cookies in your car. Turn your car off — while it’s still moving. Move in with your parents.