Cheap Shots : O.C. Woman’s Monthly Newsletter Helps Turn Spenders Into Savers

Everybody knows cheapskates. They are the people who divvy up the tab at a restaurant to the penny. They drive for hours to buy a big-ticket item if it will save them $10 even though they spend at least that much in gas to get there. And heaven help them if they ever leave the house without their discount coupons.

If you recognize yourself as being a cheapskate, then read no further. If not, Mary Hunt has a newsletter that could convert you.

Cheapskate Monthly is a 5-month-old newsletter created by Hunt, of Garden Grove. It’s for people who live from paycheck to paycheck, spend more than they earn, have a flair for keeping their credit cards at the limit, and are interested in bringing their finances under control.

In an effort to turn a negative word into a positive one, Hunt, 44, has redefined cheapskate from a person unwilling to spend money to someone who is financially responsible. “My thing is to take a negative term like cheapskate and turn it into something fun,” she said.

She gave careful consideration to the name of her newsletter and decided it needed something that would catch people’s attention. “I wanted something that had a little bit of zing and zip to it that would create curiosity,” Hunt said.

Hunt’s impetus to put together the monthly newsletter comes from her past financial disorder. But it wasn’t until all the credit cards had reached their limit and there was no more equity on the house to borrow against that the four-member Hunt family buckled down and learned about being cheapskates . . . er, financially responsible consumers.

Hunt saw a newsletter as an opportunity to help her friends and family who were headed in the same direction.

“I didn’t want to come across as judgmental or say, ‘Do what I did,’ ” she said. “It all happened at once. I was looking for a new business, something to challenge me and at the same time, recover from being a horrible spender.”

In the newsletter, Hunt’s upbeat attitude doesn’t come across as a lecture, and she makes it clear she’s not denying herself simple pleasures. In the first issue, Hunt reassured readers that she isn’t living a destitute life. “I would prefer one very nice outfit, rather than 10 from the thrift store,” she wrote. “I would rather live frugally for 50 weeks of the year so as to allow for a nice family vacation.”

The eight-page newsletter is packed with good, sound advice. Hunt enlightens readers on household tips and money-stretchers (such using vinegar, baking soda and rubbing alcohol for household cleanups), and encourages readers to start saving $5 and watch it grow into $100.

“I know that when I have money in the bank I have a better attitude,” she said. “When I’m flat broke, my attitude goes down the drain.”

Her straightforward advice ranges on subjects from coupons and discount shopping to insurance policies. Insurance policies “all carry deductibles, and unless your agent spent a lot of time with you and told you all the different options you have, you probably have very low deductibles,” Hunt said. By increasing the deductible, “you can cut your insurance by $300, $400, $500 a year.”

Hunt doesn’t put much merit in coupons, which she calls “gimmicks” that get consumers “to buy things that you wouldn’t (normally) buy.” Hunt said, “If I have a coupon for a product I am going to buy then I would use it, except I shop only once a month at one of the big warehouses that don’t take coupons.

“It’s a lot harder to shop at the big warehouses,” she added. “It takes a lot of time to come home and break down 20 pounds of pasta, but since I only shop once a month, I’m free for the rest of the month.” She estimates she saves 25% to 40% on her food bill by buying in bulk. She also always pays with cash to stay within her budget.

Hunt wrote about her preference for “no-frills, membership grocery warehouse” shopping in the February issue under the headline: “How I Cut My Food Bill by Over 25% (And the Kids Never Knew).”

The newsletters have also offered a simple formula to determine spendable income, information on how to avoid “perma-debt” (increasing credit card balances) by paying more than the minimum payment, and the theory that dining out should be reserved for only special occasions.

A one-year subscription to Cheapskate Monthly, which costs $12.95 (the premiere issue is free) and comes with a money-back guarantee, is available by writing to P.O. Box 2135, Paramount, Calif., 90723 or calling (310) 630-8845.

Saving Yourself From Yourself

Mary Hunt of Garden Grove, a recovering shopaholic and creator of the Cheapskate Monthly newsletter, has these tips to help improve an individual’s financial situation:

* No matter how difficult it is, save 10% of your income.

* Have your checking and savings accounts at different banks to make it impossible for you to make quick phone transfers of funds from savings into checking.

* Establish an account that requires two signatures to withdraw money.

* When you are tempted to use your credit card, don’t. Put all of your credit cards into a safe deposit box to remove the temptation of using them. If you can’t pay cash, you can’t afford it.

* If you are carrying a balance on credit card accounts, begin immediately to pay more than the minimum due on credit cards. If you don’t, perma-debt will hang over you forever.

* No matter how tempting, do not accept or apply for any more credit cards.