From mid-September the way electricity in Victoria will be priced is changing. There will be peak, off-peak and shoulder periods and the price will vary according to the time of day,  and the day of the week, with the busiest part of most people's day being of course the most expensive. And so I have been thinking.

The off-peak rate runs from 10pm - 7am. This will be the cheapest rate for electricity. I don't know about you but I'm not that keen on staying up at night to do the washing and the floors, and running the dishwasher when the rest of the family is trying to sleep just won't work in our household.

Electricity prices are on the rise. It's a catch 22 situation because our reliance on electricity is also on the rise. Almost every appliance in our homes is electric: stoves and ovens, microwave ovens, kettles, food processors, mixers, toasters, sandwich makers, bread makers, washing machines, irons, clock radios, hair dryers, toothbrushes, shavers, heaters, air conditioners, vacuum cleaners, computers, lighting and the list goes on.

Many of those appliances have a non-electric version that we could just as easily use, but we've been brain-washed into thinking they are too hard to use or too old-fashioned. They're not!

And they slash power use. And that slashes the power bill, saving us all money.

I've been curious as to just how much we use electricity because we have it  at the flick of a switch, because it's too convenient. In August I put out a challenge to Cheapskates Club members: could they live for 48 hours with access to just 3 hours of electricity a day?

The challenge was accepted and the results were interesting. Overall most households managed with a few lifestyle modifications. They all said they wouldn't want to have to live with such limited power forever.

So do you think you can live with access to just three hours of electricity a day? Are you prepared to accept the challenge and see if you really can cut your electricity use and slash that bill without compromising your lifestyle?

Are you up to the challenge? Just two days, 48 hours, and you can choose the days, to try living with access to electricity for just three hours a day.

The rules are simple and more guidelines than rules. You can:
1. Commit to the challenge by leaving a comment below agreeing to participate in the challenge.
2. Spread the word. Talk about it, email it to your family and friends, blog and tweet about it. Encourage as many people as you can to take part.
3. Use whatever appliances you need to during the 3 hours of allowed power time. You could have the TV and every light in the house on if you need too (an extreme example).
4. Break the three hours up any way you want, but once the time is up that's it - no more electricity for the day. We chose 45 minutes in the morning and 2-1/4 hours of an evening.
5. You can use battery powered appliances out of hours.
6. You can use any appliances during the "on" hours.

You can't:
1. Use any appliance that requires a power point or light switch during the 21 hours a day you can't access power, the exceptions being fridges and freezers, wired in smoke detectors and any medical aides that must be used (nebulizers, ventilators etc.).

I'd like you to keep a diary for the 48 hours, recording what you used and what you found you didn't really need to use, the things you missed, how you filled in TV time if you normally watch TV, how the family filled in the evening without power or lights etc. whether or not you were able to stick to the three hours or just found it unrealistic or impossible, and record the actual amount of power you used in total over the six hours.

You can add your diary notes and ask any questions in the comments below.

​From Debt Free, Cashed Up and Laughing

​Julia writes
"I've just joined Cheapskates (in November), so am relatively new and loving every minute. I'm a little overwhelmed at all the information and struggling to really start. My DH and I have set goals to clear our CC debt this year and to increase our mortgage payment by $120 a week (an extra $6,240 paid off this year!) and on paper we should be able to do it, but our money just seems to disappear - hence joining (we need the inspiration and the motivation). Do you have any suggestions to new members where to start? For example, I have the forum always open, joined the Saving Revolution and bookmarked Tip Store pages so I can refer back to them. Does anyone have any other suggestions we can use to reach our goals this year? What do other members do to get the best out of Cheapskates?"

Do you have the answer?

If you have a suggestion or advice for Julia, let us know. We'll enter your answer into our Tip of the Week competition, with a one-year membership to the Cheapskates Club as the prize too.

Lyn writes
"My elderly folks live on a 46 acre rural property in WA. It's lovely but they have had it for sale for 9 years as NO ONE is buying...They took out a reverse mortgage when they first put it on the market, thinking they would sell the property shortly after...BUT the mortgage it is eating away at their equity, as it costs a lot to maintain the property - especially on a pension. Mum recently became very sick and has been in hospital for 5 weeks. And Step-Dad, at 82, is trying to run the house, let alone the property by himself. They live 9km from the nearest town, 50 minutes from their doctor and the hospital. I need advice about where to go to find assistance for them. As they (and the bank) own their only asset - that they can't sell, they are limited with the assistance they can receive. I'm sure they're not alone. We live in the city, our house is small and we have a young family. We've offered for them to move in with us but they would like to maintain some independence if they possibly can. Any suggestions would be gratefully appreciated. Thank you."

Do you have the answer?
If you have a suggestion or idea for Lyn let us know by leaving it in the comments below. We'll enter your answer into our Tip of the Week competition, with a one-year membership to the Cheapskates Club as the prize too.

Kate writes
"My husband and I have two small kids – 5-1/2 and 2 years old.  I work 3.5 days a week and my husband works full-time.  We have an investment property (we're paying interest only on the mortgage as our accountant advises) and we live in a rental property.  My question is, do any of your members have any recommendations about how to save and create harmony when I VERY much want to save money to buy a family home for us to live in and my husband, who is a spender, isn't prepared to have a conversation about budgeting or saving?  I know that $$ is one of the main things that people argue about and otherwise our relationship is great, but I want to have security for our kids and build towards our retirement."

Do you have the answer?
If you have a suggestion or idea for Kate let us know, by leaving it in the comments below. We'll enter your answer into our Tip of the Week competition, with a one-year membership to the Cheapskates Club as the prize. And keep an eye open, you may even see your answer in next week's newsletter.

​MN writes
"I am in dire need of help with huge debt. My first issue is denial, unable to collect my mail out of letterbox knowing I will collect bills and I just don't want to see them.  Is there any help in this situation? Thankyou.

Do you have the answer?
If you have a suggestion or idea for MN let us know, by leaving it in the comments below. We'll enter your answer into our Tip of the Week competition, with a one-year membership to the Cheapskates Club as the prize. And keep an eye open, you may even see your answer in next week's newsletter.

Unfortunately, the bills don’t stop even if the pay packet does. There is still a financial responsibility to your creditors. If you're facing financially hard times it’s time to sit down and come up with a game plan.

The reality is that there are certain bills that can’t go without being paid. Your family needs a home to live in and the basic comforts like heat, electricity, transportation and a working telephone. These are the bills that warrant getting paid first.

For the telephone, there is no rule that says you need a mobile phone and a landline. Some people use their mobile phone as their only number. This saves on the cost of two telephone services.

What about food? Everyone needs to eat. You can lower your food costs with store sales and shopping in bulk when necessary. Visit the butcher shop and have them cut up your meat to save money. Read the $300 a Month Food Challenge posts in the weekly newsletters. You find them all in the Newsletter Archive on the Cheapskates Club website.

If money is tight, entertainment is often the first to go. You may have to do without cable television or cut back to the basic channels since everything has gone to digital signal. If you want to watch movies, purchase the ones you like when they are on sale. This way you can watch them over and over without paying any additional fees.

When there is nothing else you can cut and money is still stretched too far to meet all the bills, it is probably time to call the creditors. No one wants to do it but you will have a more favorable outcome if you call them before your bills start falling behind. If you have been a good customer who has had on-time payment in the past, they will help you to make your payment in some form without ruining your credit.

For your monthly utility bills, there is a service many of them offer called the Equal Payment Plan. Here, you can enroll in the program that averages your monthly usage and comes up with a payment amount that stays constant. This will help you avoid larger bills in the summer or winter months. A plan like this also makes budgeting limited funds a whole lot easier.

As for any credit card bills, making a payment arrangement won’t adversely affect your standing with them or the credit companies. When you are back on solid financial footing, you can resume your normal payments.

When the economy is down, it affects everyone, but bills are still going to come due. Use the above tips to help you stay afloat in hard times.

​Living on a budget is the key to financial freedom, but getting started can be frustrating. When we look at our expenses and see all of those bills we're paying every month, it's easy to throw our hands up in disgust. But what about all those little expenses we incur? You might be surprised to find out just how much they amount to.

It's easy to dismiss cutting back on little things. A few dollars a month won't make a significant difference in the big picture. But a few dollars here and a few dollars there adds up to a few more dollars. When you cut back in a lot of small ways, you could end up with a lot more money at the end of the month.

From Debt Free, Cashed Up and Laughing

​Today is the Labour Day holiday here in Victoria and it is a perfect autumn day. It's the kind of day when you just want to be out in the sunshine. Which is not where I've been all day!

AJ had Uni today and of course being a holiday I decided to stay in bed and read. Oops! The poor kid set his alarm, but slept through it. It was 9.28 and I suddenly realised he hadn't stuck his head in to say good-bye. I fairly flew out of bed and down to his room. There he was, sleeping so peacefully - until I screeched "you've slept in" and he was up and out of that bed in 10 seconds! His first lecture started at 10, so Wayne drove him. Thank goodness he doesn't have too far to go and that he was home. I'm not sure the sight of me in a hurriedly thrown on tracksuit is something anyone should see in the morning!
Wayne was chuckling when he came home, turns out quite a few people slept in this morning, the queue to turn into the car park was miles long!

I have been busy. Hannah and I have been shopping for new clothes for her. She needed a black outfit to wear on Wednesdays when she does her VET course. The uniform is black - trousers, skirt, dress, jumper, blouse/t-shirt - she can wear whatever she likes but it must be black.  So after breakfast and a quick tidy up off we went and we only had to go to one shop!

Kmart had a clearance sale on with racks and racks of clothing for just $5 a piece. She is now the very happy 15 year old owner of two lovely black t-shirts, a gorgeous skirt and a really nice jumper, all mother approved and for the grand total of just $20! That's the kind of clothes shopping I like.

While we were out we decided to do the weekly grocery top-up a day early (I usually do it on a Tuesday morning) and popped into Coles. Apparently we arrived at just the right time because all the meat was marked down so we had a lovely time picking up packages of really, really cheap meat. Rump steak down to just $8/kg, whole fresh chickens (No. 20) for just $7 each, and more. I stocked up on the steak and the chickens, they were too good to pass up. Wayne sliced the steak for me as soon as we came home and it's now neatly packaged and in the freezer with the chickens.

I keep a "slush fund" for occasions just like this, when I find a bargain we can use. The slush fund covers the cost without having to go over my grocery allocation.  I add the leftover grocery money to the slush fund and let it build up until I need to use it. On my grocery tracking sheet I have a column for slush fund so I know how much goes into it each month. And this helps to keep the grocery budget balanced too.

Last month I didn't use all the grocery money and was able to add $32.65 to the slush fund.  The groceries don't always cost what I budget each month, sometimes the bill comes in under and occasionally they cost more. That's when the slush fund is really handy. I can go over my allocated amount for the month by however much is in the slush fund and still not go over the allocated amount for groceries for the year.

I also have a petrol slush fund that works on the same principle. I allow $75 a week for fuel, sometimes  we don't do a lot of driving (long weekends and school holidays spring to mind) so it doesn't cost as much to fill the car. The excess is kept in the slush fund for those times we do a lot of driving (I may have to go into town or travel for stories, or we go to Shepparton to SPC etc) and our fuel costs increase. It also helps cover the fuel costs when we go on holiday or for train, tram or bus tickets when we use public transport.

At the end of each year I look over the grocery tracking sheet and the fuel column in our Spending Plan and decide whether the allocated amounts need to be adjusted. If the grocery bill is consistently lower by more than $10 per week, I lower it for the next year.  Ditto the fuel bill, although the way costs are going up I don't think it will be dropped next year. I may find myself walking more and driving less so it can stay the same.  Petrol was the same price as diesel here last week!

There is no point in allocating too much money to a category when it can be useful elsewhere. All it has to do is cover the cost for the week/fortnight/month/year.  As long as you have the bill covered, you are right. For example it could be used to help build your Emergency Fund or to pay down debt (or both) rather than sit in the grocery (or fuel) categories and roll over from month to month to a slush fund, effectively costing you money  (the interest you pay on the debt you carry). 

Living the Cheapskates way gives you options and flexibility in your Spending Plan, that's why it works.

It's been such a sunny, pleasant day it seems odd to be making soup, but that's what I did this afternoon. I cut one of our pumpkins this afternoon and instead of dusting it with cornflour and putting it in the fridge I decided to make pumpkin soup.  Did you know that if, when you cut a pumpkin, you take the seeds and soft centre out and then dust the raw surfaces with cornflour it will last for weeks in the fridge? It's handy to remember when you have an excess of pumpkin and don't feel like making soup.

Pumpkin soup must be the easiest soup to make. I just cut up the pumpkin and a couple of onions and cook it in either stock (from the freezer) or water with some stock powder added, until the pumpkin is cooked. Then I whizz it through the food processor. And it's done.  My stockpot makes 8 litres of soup, so I put 2 litres in a Tupperware bowl in the fridge. This is my lunches for the week. The rest goes into Tupperware containers in either  single portions for lunches and snacks later on.

While I was in the cooking mood I made some muffins too. Apple and boysenberry and some raspberry and white chocolate for a treat.  The cake dome looks lovely full of nice fresh muffins.  It won't stay that way long though. Tom just called and he's bringing some friends home for tea.  They're actually coming to play games on the Wii, but they'll stay for tea, they always do.  And we'll have muffins for dessert!