WHAT’S PAKE?
When I first came to Hawaii some of the local residents called me ‘pake.’ When I googled it, I learned that the word pake ((PAH-keh) refers to someone who is frugal, cheap, or tight with money. I am not ungenerous, but I do pay attention to every dollar I spend so I don’t mind being called pake. I am writing this blog to help people who are living in Hawaii gain control of their finances. I am also hoping people comment with ways they have saved money while living on Oahu so I can learn more myself.
HOW TO LIVE IN HAWAII ON LESS THAN $20,000/YEAR
Hawaii is always a top contender for the highest cost of living in the nation. Sure commodities are expensive, but through lots of research and diligence I have managed to find less expensive alternatives. I’m not perfect, and sometimes I flub up my budget a little or pay too much for an item just like anyone else. I just do the best I can. I own a small condo in Waianae, and I am kid-free for now, so some of my advice may not be applicable to everyone. However, I hope you can take at least one thing away from this blog and spend more time enjoying life in Hawaii and less time stressing over money.
Here is a breakdown of my monthly budget.
Mortgage/Association fees: 817
Electric bill: 70
Basic cable and Internet: 50
Life insurance: 4
Health insurance: 127
Food: 250
Entertainment: 40
Personal care: 20
Gas: 140
Clothes: 20 (I spent about $200 on clothes for an entire year which breaks down to 20/month)
Car care: 30 (I venture to guess I spend $500 on car care each year which breaks down to 30/month)
Car insurance: 65
Dental insurance: 18
1,651/Month
19,812/Year
THE COST OF HOUSING
My biggest expense is my mortgage and association fees. Since I have committed to the budget above, my condo will be paid off in-full next month!! Consequently, my housing expense will only be $500 next year!
I save a lot of money on housing because I bought a short-sale condo in Waianae. Waianae is not for everyone, but it has the best deals and best beaches on Oahu. If you aren’t willing to venture out to Waianae you can still find deals. You just have to do a lot of research, keep a cool head, and wait for a good deal. If it’s too expensive, or you don’t like the terms walk away! You can also find good deals renting, especially if you don’t mind roommates. I would suggest splitting rent to most 20-somethings that can’t live with Mom and Dad. Of course, it’s only a good plan if you save the extra away for a house instead of buying beer. 😉
Saving For a Home
Roth IRA’s are a good savings vehicle for first time homebuyers. Follow this link for more information on Roth IRA rules and regulation. I like Roth IRA’s because they grow tax-free regardless of whether you use them to fund your first home purchase. I personally contribute 10% monthly to my Roth TSP and 5% monthly to my traditional tsp because my employer matches it up to 5%.
THE HIGH COST OF FOOD
My next largest expense is food. I’m still seeking solutions for this. People say there is no way around it in Hawaii, but I’m still going to try! It’s a never-ending battle because prices always go up with inflation. Although I’d like to save more, I have managed to save a lot on food already by trying different systems. The first thing I tried was swapping. I still do this!!
-Tilapia and canned tuna instead of Ahi. (I love poke by the way! I could eat it every day, but now I pretty much only eat it at parties)
-Ground meat instead of steak.
-Beans instead of meat.
-Filtered tap water instead of soda and juice.
-Bananas and watermelon instead of apples and grapes.
-Cabbage and heads of lettuce over bagged lettuce.
-Oatmeal instead of cereal. (BTW you can make cereal out of oatmeal with this recipe. The price of cereal is outrageous in Hawaii!)
Shopping the Sales!
Also, I tend to plan meals around sales. I have also couponed to save money on groceries, but I think eating what’s on sale and what’s in season takes less time and energy. Although I swear by couponing when it comes to buying toiletries, I will expand on that topic later.
Free Food!
Another great thing about Hawaii is the availability of free seafood. For example, there are a million pipipis behind my house. You don’t even need a fishing pole to get them, just a net. All you have to do is boil them with ginger and tomato, and dip it in shoyu mayo. It tastes just like escargot only better because it was free.!
You can read more about pipipi here.
Say No to Plate Lunch!
The biggest saver is eating at home and bringing lunch. This took awhile for me to get used to, but now I refuse to pay $8 for a plate lunch when I can bring something from home that costs less that $2.
THE COST OF TRANSPORTATION
My next largest expense is gas. I have found a solution for this because my employer offers free bus passes. It’s hard for me to justify all the time it takes to catch the bus, but I am trying to make myself do it more often. Gas is just something I have to buy if want to go to work and have any extra time. I save a little money using the Costco gas card, but not enough. If you shop at Safeway you can also use your membership to get deals at Chevron. If you shop at Kmart you get gas coupons for Shell if you spend over $50. Just sign up with the cashier. Every little bit helps! Currently, I am fully committing myself to developing a skill that will land me a decent job in Waianae or allow me to work from home. When that happens, I plan on walking and riding bike everywhere.
HEALTHCARE
My next expense is health insurance. I actually don’t have any right now. I have VA healthcare so I am exempt from purchasing a health insurance policy. I decided to include it in my budget because I believe everyone should have some kind of healthcare, and I plan on purchasing additional health insurance next year. I weighed the pros and cons, and I decided that convenience and a wider range of choices with respect to my healthcare is worth the $127/month. There are a few affordable high-deductible health care plans with health savings account (HSA) eligibility available to Hawaii residents. Both Kaiser Permanente and HMSA have included a variety of affordable plans due to Obamamcare legislature. HSAs are great vehicle for retirement savings. They are the only savings vehicles on the market that offer triple tax benefits! You can read more about them here.
Frugal Health Hacks
My favorite trick to save money on health care is utilizing my local pharmacy. All you have to do is describe your symptoms to the pharmacist, and they will tell you exactly what over the counter med you need, or they’ll tell you that you probably need a prescription. I really don’t know why people don’t seek advice from their pharmacists more often. They are doctors you know… At least try to ask them before you waste sick leave and $80 on a doctor visit. I also take advantage of free health fares. Here is a current listing.
For those of you that have bad eye site, you can save a lot of money ordering your glasses online. I recently got a pair of glasses delivered for $9.90 from googles4u.com, and I love them!! My vision insurance only pays for contacts or glasses so this site probably saved me at least $50.
If you choose not to purchase dental insurance or a dental discount plan you can get teeth cleanings, exams, and basic services for just $25 at UH Manoa’s School of Dental Hygiene. I personally haven’t tried this, but a friend told me they do a great job. I am hoping to try it out one day so I can write a proper review.
HOW TO SAVE ON PERSONAL CARE ITEMS
Another expense we all have is personal care items. This is where coupons can save you some serious dough. I could never quite get the hang of using coupons until I took a coupon class hosted by Hawaii Shopaholics. It was the best $5 I ever spent in my life! And the subject matter is specific to Hawaii. You can sign up here, or at least peruse the website. You won’t regret it! That is how I manage to spend less than $20 month on dental hygiene products, soap, shampoo, razors, deodorant, makeup, and feminine hygiene products.
I also try to NEVER waste toiletries. When my shampoo is almost out I put water in the bottle to get the last drop, and I use the last slivers of the bar soap. Another thing I just started is squeezing the conditioner out of my hair and using it as shaving cream so it’s not wasted down the drain.
I also get free beauty products by taking advantage of the Sephora Beauty Insider rewards program. I get free lipstick and mascara every year on my birthday. I also buy the Sephora Fragrance Sampler once a year and ask for complimentary samples. The samples last me all year, and I redeem a roller perfume to give to my mom or sister as a gift. Other than that, I don’t really buy hardly any makeup or hair products. I used to, but then I stopped. The end result: I look almost exactly the same…. I wasted hundreds of dollars every year for nothing. Oh well….
CHEAP THRILLS
Now for the fun part! ENTERTAINMENT!! For those of you that like to go out, Happy Hour is your best friend! Use Happy Hour Pal to find the best happy hours. My personal favorites are Monkey Pod at Ko Olina, Top of Waikiki, and Taco Tuesdays at D&B’s. During happy hour you can get super strong martinis at Top of Waikiki or $1 tacos and $3 dollar coronas at D&B’s! Check out there websites for details. Also, skip the soda and order water! It really ads up. #Not worth it!!
You can save a little money on movie tickets if you are a member of Aloha Pacific Federal Credit Union. Whenever we go to movies we use the discounted tickets, skip the soft drinks, and order the large popcorn with free refills. We take a whole refill home, and freeze it. It stays fresh for a week, and it’s great mixed with m&ms and peanuts. J Another way to save money on entertainment and/or dates is to swap date nights for lunch dates. Matinees and lunch menus are way cheaper!! However, my favorite dates with my boyfriend have involved homemade pizza, Netflix, and $4 bottles of wine. If you’re with the right person, you don’t need to spend money or be around a bunch of strangers to have a good time.
If Starbucks is your daily entertainment or guilty pleasure you may NEVER be able to live in Hawaii for $20,000 a year, but I found some tips that can help save money at Starbucks. Here are some frugal Starbucks hacks from a Starbucks barista. I used to hang out in Starbucks and do my homework when I was finishing up my MBA. I have a Starbucks app so I got free refills, free air conditioning, and free Internet all day long for less than $3. Of course I used to bring a sandwich from home because I was not going to $8 for theirs….
TRAVEL
Frugal people enjoy travelling as much as millionaires. Many of them enjoy it more than the typical population because they can actually afford it! I love travelling as well. I place a high value on it because it creates fantastic memories. I haven’t managed to save a whole lot on airfare. I normally use kayak and do the best I can to find deals. The only part I don’t like about travelling is the long, dreaded plane ride from Hawaii…. The only way for me to get through it is to drink and knock out!! Being the frugal woman that I am, I bring 1 oz. bottles of liquor in my carry-on instead of paying $7. So far none of the TSA agents have had a problem with it, but I don’t announce it! I always bring snacks and an empty bottle as well. Airport food is a MAJOR rip-off!!
When I have to stay in hotels I try to find the best deals, and I make the most out of the amenities. I always ask for extra soap, shampoo, lotion, etc. It supplements my stockpile. Last time I used the soap for a month! I also maximize the continental breakfast. I take some of the snacks with me for lunch. Travelling is expensive enough without eating out every night too. Unless you are trying cultural food just skip it!
MY PHILOSOPHY ON MONEY
I try my best to save, but I’m not super, crazy extreme. However, people always tell me that I should spend more money on myself because “I can’t take it with me.” I try to approach money from this standpoint: if I get the chance to reflect on my life before I die what will I regret? The truth is, I’m not going to think ‘Oh, I wish I would have bought that when I had the chance!’ I will most likely wish that I could have spent more time with the people I love and enjoyed my life more. That’s what I’m trying to accomplish. I try to save my money to reduce stress and hopefully afford myself the opportunity to retire early or spend less time working and more time living because honestly, it’s not about the money…. It’s about people. I also know that I will feel more comfortable if I am able to leave a legacy to my future children. I think if I could do that, I could die with dignity. I would hate dying knowing that I owed someone something! So yeah… you can’t take it with you, but that doesn’t mean you should leave a mess for other people to clean up when you go!
Please comment on how you save money in Hawaii. : )
hawaiilivingpakestyle 