In the heat of the holiday shopping season, I’m taking a moment to consider where I spend my hard earned money. You might be familiar with the status: Walmart’s the largest grocery store in the U.S., the largest retailer in the world, the leader in global corporate revenue and the largest employer in existence. Still, these facts don’t do much to demonstrate the reach of this superpower.

Check out our graphic demonstrating the Weight of Walmart, and if you find the statistics as shocking as we do, please share it with everyone you know:

Update: Thanks to Mike for the heads up about the AOL/Time Warner error. The graphic has been fixed.

Check out the infographic that’s helping everyone at Frugaldad understand the heights to which this furious ambition has led.

And, like last year, Amazon lures millions of shoppers with respite from holiday stampedes and looted shelves.  They will officially match the Black Friday doorbuster prices of every major retailer.  And unlike confusing sale-exclusives, Amazon will always honor their own coupons.  You can grab some of Amazon’s best here: http://frugaldad.com/amazon-coupons/

Long story short, following Noah’s visit to and subsequent prodding by a craniologist person, he seemed a lot more chilled out and happy. I asked my wife how long this lasts, to which she quite innocently replied: ‘Forever, I think.’

Now, whilst I dispute the effects of craniology rendering someone incredibly relaxed indefinitely and just wandering through life without a care in the world, completely oblivious to their surroundings, it made me wonder what it would look like. And, to illustrate this, I used the common ‘Strut Leo’ meme, featuring Mr Baby Face himself, Leonardo DiCaprio.

Could craniology be the solution to the world’s problems?

War in Afghanistan

Rioting and general skulduggery

The world's rubbish economy

Terrorist attacks

Man Utd getting thrashed

Whether it is from the latest news on Wall Street (the DOW is down another 400 points as I write this), or the pile of bills stacked on kitchen table, economic stress is something that must be managed or it can lead to serious issues.

I remember just a few years ago I was deep in debt, and often spent sleepless nights worrying over our bills. I wanted desperately for there to be an instant fix, but deep down I knew it would take many months of hard work and discipline to get out of debt.

At one point in particular, when a family member was dealt a serious health blow, and the financial collapse was well underway in late 2008, I had just about given up hope of ever being debt free, of ever having savings, and ever realizing financial peace.

Fortunately, we persevered and we eventually reached the debt freedom we so desired. I was right; it did take many, many months and a lot of long days, but it is so worth it.

During that time of economic despair, I thought a lot of bad thoughts. I won’t get into specifics, but you can imagine for yourself what someone with a wife and two kids and a pile of debt might be feeling. There were many sleepless nights.

I managed to keep a somewhat positive perspective by tracking my debt level each month. Every month I saw that number go down was a win. Every month I saw a rise in my debt I tried that much harder to make a dent the next month.

I began to look forward to pay days because it was another opportunity to knock out some debt.

I began to look forward to extra work because it increased my income, and provided a chance to knock out some debt.

I started tuning out the naysayers. I ignored people out there who said being in debt was normal, that everyone had a car payment, that everyone had to borrow money to finish school, and that everyone used credit cards.

I started having mini conversations with myself like:

• Maybe I didn’t want to use credit cards.
• Maybe I didn’t want my kids to have to borrow money for school.
• Maybe I didn’t want a car payment again, ever.
• Maybe I wanted to live debt free and not owe anyone a dime.

I wasn’t going to let someone else, or some tired financial conventional “wisdom” dictate my life. I was responsible for creating my situation, and I was responsible for turning it around.

In addition to these lines of thinking, I also practiced the following to help lower my financial stress levels (and still do today when I feel the blood pressure creeping up).

Turn off the television (and the radio, and the computer). It is good to disconnect every now and then. Instead of being glued to the television as talking heads pour over the latest thrashing on Wall Street (as I did on Monday evening), turn off the television.

• Go for a walk around your neighborhood.
• Call a long-distance relative you haven’t talked with in a while.
• Toss the ball with your kids.
• Go to bed with the sun and catch up on sleep.

Whatever you decide to do with your time, stay disconnected. No checking the smartphone or sneaking a peak at your portfolio. Trust me; it will feel refreshing.

Surround yourself with positive influences. I can’t stand for people to tell me everything will be fine when I don’t think it will be. That goes for the economy and many other areas of life. I’m not a pessimist, but I am a realist, and I can see things for what they are.

Having said that, it is easy to slide towards negativity when surrounded by downers – people who are constantly taking a “half is glass empty” approach. Seek out positive relationships with people who are genuinely optimistic about life.

If you happen to disagree on politics or economic theory, or whatever it is that stresses you, just suggest avoiding those topics and enjoy each other’s company for different reasons.

Maybe you can find someone with whom you share a mutual hobby, and can engage in it together.

Find an accountability partner to help get up and get to the gym early on a cold morning.

If you’d like to learn more about a particular subject, seek out a mentor to tag along with and learn from their experience.

I often get accused of being an old fart when I say things like this, but I honestly believe that the further we get from face to face, human interaction, the less connected we are with reality.

Many of us stay stressed because we lack this interaction, and in its place we’ve inserted more ways to stay connected to work, to finances, and to the never-ending, 24-hour negative news cycle.

Those things are good in small doses, but when it becomes a way of life, it simply adds to our levels of stress. Now go unplug for a while.

Post by Frugal Dad

With real-life doomsday scenarios like mega-tsunamis and nuclear meltdown making headlines, companies marketing survival shelters have seen a spike in interest in recent months. A few days ago, CNN Money ran an article on a new type of “economy class” doomsday bunker for thrifty folks who still want to hedge their bets against catastrophe.

These pared-down bunkers are part of a 100,000 sq. ft. underground facility called “Vivos 1000.” The four-bunk compartments cost $9,950 and promise customers six months of “autonomous” survival. Units in the Vivos company’s high-end bunker complexes—which feature comforts like pool tables and stocked wine cellars—sell for $25,000 to $35,000 and promise clients survival for up to one year. Although these luxury units were selling steadily, the recent uptick in interest spurred the company to develop a budget-priced model and thus, the Vivos 1000 was born.

Vivos and a slew of competitors market their survival shelters as protection against a host of apocalyptic scenarios, including tsunamis, nuclear accidents, volcanic eruptions, asteroids, epidemics, solar flares and instability in the Middle East. Even though the recent Rapture predictions proved false, many people still wonder if the Mayans were on to something with their doomsday prediction for 2012.

Editor’s Note: After reading the article, 12 Things that the Mainstream Media is Being Strangely Quiet About (via The Daily Crux), I took stock of our own bug out bags and various stockpiles. As they say, plan for the worst; hope for the best

Some shelter companies market family-sized backyard bunkers, but others, like Vivos, are counting on filling up entire post-apocalyptic communities. Vivos has more than five 200-occupant shelters in the works around the U.S., as well as a mega-shelter for up to 1,000 survivalists in Nebraska.

Shelling out thousands of dollars for a berth in one of these bunkers has a big downside: access. During a “life extinction event,” clients may not be able to reach their costly safe haven. If transportation routes collapse, food and fuel become scarce, and anarchy reigns, getting to Nebraska might not be a fun-filled road trip.

Bugging In

In the event of a catastrophe, sheltering in place might be a more practical solution. Many websites, including the American Red Cross and the Federal Emergency Management Agency-sponsored site Ready.gov, provide basic information on sheltering in place and disaster preparedness.

Selecting a home with a basement that can be utilized as a bunker in times of emergency is a practical choice. There is no need to invest in an off-site facility when a basement bunker can be reinforced and stocked to the specifications of the homeowner. Access in an emergency is simple, and there is the added comfort of being at home during chaotic or uncertain times.

If your home does not have a basement that can be used as a shelter, you may be able to build a bunker elsewhere on your property. Such shelters can serve double-duty as a root cellar or wine cellar while providing a safety zone during an emergency or natural disaster.

My family had such a shelter when I was a child, and although it was ostensibly used as a root cellar for potatoes and preserves, I know my military-minded father had its other purpose in mind when he built it.

Safe Rooms

A safe room is an option for a home that lacks both a basement and sufficient outdoor space to build a below-ground shelter. Often designed to withstand high winds, a safe room can also be used during a home invasion or other emergency.

A safe room can be as simple as a closet retrofitted with an exterior-grade door and a heavy lock, or as elaborate as a ventilated structure reinforced with concrete, Kevlar, or steel sheeting.

Several websites, including FEMA.gov, offer valuable tips on safe room construction. An integrated safe room is convenient and economical because it does not require the construction of a separate shelter. A home’s safe room can be a bathroom, storage closet or other room that has been reinforced, anchored and stocked–but that still blends seamlessly into the home’s floor plan.

Any shelter should be equipped with emergency supplies including food, water, flashlights, blankets, first aid supplies, sanitation supplies, a portable or fixed toilet, and any self-defense items deemed necessary by the occupants.

Some homeowners are happy to forgo a new swimming pool or family vacation in order to pay for a safe haven for their family. Recent events prompted one family to take $20,000 they had set aside as a down-payment on a new home and instead purchase a space in a Vivos stronghold.

Will this decision turn out to be a wise move or a personal-finance cataclysm? We’ll just have to wait until 2012 to find out.

This article was written by contributing author Laurel Gray.

Post by Frugal Dad

In the lull between news stories about Charlie Sheen, the devastating tsunami in Japan, and now the war in Libya, the media occasionally likes to remind us that gas prices are on the rise. As if we didn’t already notice when we filled our cars, or paid more for groceries.

Naturally, there is justifiable frustration, even downright anger, over these higher gas prices. We don’t just feel the increase at the pump, but we feel it as the increased costs to transport virtually every consumable product are passed on to consumers.

Some argue higher gas prices are a good thing – that they force us to consume less and seek out “alternative energies” that we might not turn to otherwise. Putting the politically-charged arguments aside for now, one thing I find interesting is the things we are willing to, and not willing to, tolerate in our society.

According to the AAA Daily Fuel Guage Report, at the time of this writing the average cost of regular unleaded is $3.55 a gallon. One year ago it was $2.82 a gallon. That’s a 25% increase in the cost to fill your car’s tank over last year’s prices.

Then I read this from a study on store credit cards published the end of last year:

Among the 35 store cards surveyed, the average store credit card rate is 23.83%.

I recognize not everyone signing up for a store card pays interest, but many do, and for them it is acceptable for a store card to take 25% more of their money in the form of tacked-on interest. I wonder how many people screaming about high gas prices also pay considerable amounts of interest to credit card companies and retail stores?

Some use this opportunity to point out that if you are living so close to the edge that a 25% increase in gas prices sends you over, then you are failing at personal finance.

Well, that may be, but the fact is there are a lot of people just that close to the edge. Some are there because they made bad decisions: bought too much house, or too much car, or too many goodies. But many are there because of bad circumstances: layoffs, illnesses, etc. Yes, bad things happen to good people.

Those good people may already be living frugally, and they may have already cut all frivolous expenses from their budget. They are struggling to keep their heads above water as the water levels continue to rise. So for these folks, higher gas and food prices are not a good thing.

This all leads me back to my idea of a serentity prayer for finances. I cannot single-handedly control the price of gas. I can control the amount of interest I pay. I can complain about both, but complaining about something over which I have little control seems futile. I need the wisdom to know the difference.

Instead, I can focus my energy on managing my household’s finances so that I don’t have to borrow money and pay those interest rates. I can focus my energy on inspiring others to take the same approach.

Post by Frugal Dad

Over the weekend, I read a story about a gamer making  a “cool half million” flipping a “virtual” property. Virtual property? Since when did fake real estate built atop a fake asteroid fetch $635,000? Compare that to the ridiculously low amounts being offered for real property (here on the planet Earth) in previously high-flying real estate markets.

Granted, those markets were suffering from a little irrational exuberance prior to the housing bubble, but their lots still offered tangible items like sticks, bricks, dirt, etc. And last I checked, I can’t grow vegetables on virtual properties built online. Farmville anyone?

You know Farmville, the Facebook application where participants pour hours of real world time plowing, planting and harvesting virtual crops for virtual gains. You can grow the size of your farm by increasing the number of neighbors, or if you can’t convince your virtual friends to be virtual neighbors, you can just give Facebook your credit card and they’ll gladly convert $20 to virtual acreage. Then you can plant even more crops to harvest even bigger gains towards that ultimate goal of…what is the ultimate goal again?

It’s Time to Get Our Hands Dirty Again

My kids are like a lot of kids these days, and many adults, too. They don’t necessarily mind work, but they don’t want to get dirty, or cold, or sweaty. They don’t mind sitting in front of a computer building virtual empires, or leading their favorite football team to the Superbowl in Madden 2010. But don’t ask them to toss a real ball, or swing a real hammer.

It’s too hot. It’s too hard. I might get hurt. There are bugs. It doesn’t pay enough.

I’m not exactly sure where it all started, but I distinctly remember a number of virtual “advancements” that seemed to encroach on our real world activities. They made us a little lazy, a little soft.

For example, when I was growing up, I remember parents scrimmaging against their kids at soccer practice. In fact, my grandfather was goalie for the parents’ team during scrimmages. We even ordered him a jersey with “Papa” on the back, number 60 (his age at the time). Now, most parents sit in their cars during practice, checking their fantasy football stats on an iPhone.

I’m guilty, too. This past season, I actually enjoyed the hour my daughter was practicing soccer because it was the one hour of the day I could tilt the seat back, turn off the radio, the telephone, the computer, and just rest. Maybe that’s the key. Maybe if we all unplugged and rested a bit more, we’d have time for true recreation. Not virtual fishing, but real fishing, complete with fresh air, smelly bait and muddy grass under our feet at the shore.

By the way, by the end of the season I had remembered my grandfather participating in all my practices, and made it a point to play soccer with my kids’ teams when the coach asked for volunteers. I learned a very important lesson – soccer was much easier when I was a kid!

We’ve Come a Long Way, or Have We?

Like I said, it’s tough to put a finger on the point where virtual connections became more important than real connections. Where virtual products and services were preferred over tangible ones. Where virtual reality was more engaging than our own reality. It has been more of a gradual decline.

Consider the following tug of war matches currently being fought in our society between the old-fashioned farts like me and those advancing new technologies and services:

• Virtual books (Kindle) vs. real books. Disclaimer: I own a Kindle, and while I do like it, I miss real books. I miss the way an old book smells. I miss looking at the cover, seeing the occasional photos included in a biography, making notes in the margins, and bookmarking my favorite sections. I think I’ll eBay this Kindle and go back to hardcovers.

• Email vs. real mail. Letter writing is officially a lost art. When was the last time you received a handwritten letter from a friend or loved one? Receiving a new email isn’t exactly an exciting event, but I can still remember how special it felt to receive a handwritten note from my mom while away at school, along with a few goodies for the dorm room.

• Debit cards vs. cash. Spending cash hurts. The physical transaction of a twenty dollar bill leaving your wallet and being placed into the hands of a cashier registers far more in your brain than swiping a piece of plastic. Debit cards are more convenient, but if you need to get a grip on spending, go back to cash (while you still can).

• Second Life vs. real life. I’ve never understood these virtual reality games. Why invest so much time and energy building something that only exists in a virtual world? I’d rather spend that time building something I can see, and touch, and enjoy in the real world. Doesn’t matter if it is a birdhouse or a real house.

• Online learning vs. classrooms. I attended a traditional campus for the first two years of college, but finished my undergraduate degree several years later using an online degree program. It was nice not to have to go to class at end of a long work day, but some things were lost in the online learning world. I experienced very little interaction with other students, and missed professors asking me why I had a puzzled look on my face because I didn’t understand something, but was unwilling to raise my hand and ask the question.

• Ipods vs CDs vs tapes vs records. That’s right; record albums. Remember those? Records, and even tapes and CDs, used to be made more special by the cover art, the lyric inserts, etc. I remember my mom enjoying looking through old record album collections…remembering how she had to hunt all over for the album, the first time she put it on her record player, etc. Can’t exactly get that from a download from iTunes.

• Physical gold vs gold stocks and ETFs. Gold and silver are hot commodities these days, and many are scrambling for new ways to own both. My grandparents and great-grandparents also thought a lot of gold and silver, but preferred to hold actual coins. My great uncle even collected a few nice silver pieces. They thought certificates guaranteeing your gold was being held somewhere else was about as worthless as used toilet paper. Wonder what they would have thought of the many “investment” products created today that merely track gold and silver prices, but have no tangible assets to back it up.

• Virtual friendships vs real friendships. Social media has helped connect many people who may not have otherwise been connected. In fact, the phenomenon known as blogging has connected you and I. But I still highly value offline friendships. Close friends and neighbors are the ones you can turn to in times of need, and likewise, you can be there for them.

• Digital pictures frames vs. real pictures. Digital picture frames are neat, aren’t they? You take a bunch of photos, put them on a memory card, and stick it into a digital frame. The frame loops through dozens of photos, instead of just the one you’d see in a glass and paper frame. I still like real, hardcopy pictures. I’ve been going through many old photographs since my grandfather passed away, several that are 30-40 years old (and older). I’ve enjoyed reading the notes my grandfather wrote on the back of the photos – the date, who’s in the photo, a little story to accompany the picture. Can’t get that on a digital frame. Which makes me wonder; what will our kids and grandkids have to remember us? Will the portraits of our lives be reduced to a single CD of digital images?

I don’t mean to be a complete wet blanket. I am all for technological advances, but I also happen to believe that in many cases, change does not equal progress. I guess when it comes right down to it, I am old-fashioned. And that’s not necessarily a bad thing.

My mom and grandparents used to talk a lot about the “good old days.” My grandfather used to joke there wasn’t much good about them – especially the times we were at war, suffering through a depression, his family’s lack of now-modern conveniences like indoor plumbing, electricity, etc. But there were good things about those times, things I wish we could enjoy today.

More families stayed together. More families played together. Kids played outside, and for the most part, they could do so safely. People were more reluctant to get too deep in debt. People knew their neighbors. People trusted their government (well, for the most part). Kids respected their teachers. Music was still music. We gathered at the table every night for dinner. We moved slower. Life was just – simpler.

Post by Frugal Dad

There was a time – and it wasn’t all that long ago – when a Middle Class lifestyle wasn’t just obtainable; it was downright easy to be a member. Really, all you needed was an “average” job, and you were in – a home, a nice car, occasional dinner out, color TV, an annual vacation, and a pension for when you got older.

Obviously, those days are gone, so I don’t want to wax poetically about nostalgia and why can’t we bring them back, etc. But I do want to point out the two reasons those days have left us, and I’d like to expand on one of those reasons:

• The most obvious reason for the end of the “one average job’s paycheck can raise a family” is that the economy changed. Expenses outpaced wages, and many of those jobs (manufacturing, etc) are gone. And they won’t come back. Forget relying on the government and waiting for “good times” to come back – they aren’t.

• The second reason, however, is one that doesn’t get as much play, because it’s personal, and it “hurts” a little. And that reason is simply this: WE’VE changed, and we want more, because there is more. Many families cannot “make it” on their salary not because food and shelter cost too much – it’s because of all the other stuff.

I’d like to expand on this last point somewhat, and discuss how a return to frugality can help.

To start, what really changed in terms of what we buy and what’s available? Well, the answer is, everything changed. There’s so much more available to us now, and more importantly, many “more” things that are an almost expected part of everyday life (cellphones for the entire family, anyone? There’s something a 1970’s era family never had to pay for.)

We want the food and shelter and automobiles that people used to have, but we also want a flatscreen TV in every room, cellphones for all, birthday parties for kids that run into the hundreds and even thousands, satellite radio, DVD’s (every child I know has a personal DVD collection of Disney and Pixar films), and more. Plus, we want more space – the average house is far bigger than one just thirty years ago. The “great room” is now part of our vocabulary.

We’ve added and added to our lives, at a pace that far exceeds salaries. This is why “the credit card bill” is a monthly staple. We want more life than we can afford. And it’s why many people find themselves in trouble.

I mentioned earlier that this “hurts”, and it’s why this reason doesn’t get much press. Nobody wants their kid to be the only one without a cellphone. Or without Toy Story 1, 2, and soon even 3 on DVD. Or without cable TV (on a flatscreen). I’ve personally known parents who stressed about paying the heating bill turn around and buy their son a new Xbox that same week! This sort of thing happens more than you think. And it’s insane.

Here are a few stats:

• One in nine families can’t make the minimum payment on their credit cards.
• One in eight mortgages is in default or foreclosure.
• One in eight Americans is on food stamps.
• More than 120,000 families are filing for bankruptcy every month.

*(source: Elizabeth Warren’s, “America Without a Middle Class.”)

OK, how do we fix this?

I co-founded and run a website called The Daily Middle (www.thedailymiddle.com), where we explore the global economy and how it specifically relates to the middle class (typically individuals or couples making between $40,000 and $120,000 per year) here in the U.S.

The Daily Middle relies on those experts who saw this “Greater Depression” scenario starting to play itself out years ago – experts like Peter Schiff, Jim Rogers, Dr. Marc Faber, Gerald Celente, Ron Paul, David Walker and Nouriel Roubini.

In my research, I run across articles, videos, stats and quotes all day long. And my advice in this case can be summed up with following two quotes I find particularly meaningful:

“One does not accumulate, but eliminate.  It is not daily increase but daily decrease.  The height of cultivation always runs towards simplicity.” – Bruce Lee

“It was hardly an exaggeration to say that the American standard of living was bought on the installment plan.” - Historian Daniel Boorstin

You see where I am going here, right? For many families, fixing their economic situation can be as simple as saying “no”. Right now, the average American family’s net worth (adjusted for real inflation) is at 1970 levels. Take a look at a family in 1970 and see what their expenses were – it may sound drastic, but that’s kind of where you need to be if you want the same economic lifestyle. Ok, pay the internet bill, but does everyone in the family really need a cellphone? Or cable TV? Do gifts have to be charged? These are all places to start – and yes, living frugally means sacrifice and a change of mindset.

Now, for those of you who are waiting for some Government magic, let me dispel that right now:

• The official National Debt has just surpassed $13 Trillion (not including the massive debts of Freddie Mac and Fannie Mae which are backed up by the Federal Government, estimated at $6.3 Trillion.)

• Our Unfunded Liabilities (Social Security/Medicaid/Medicare) are approximately $60 Trillion

• Our National Debt is now growing 3 ½ times faster than decades ago

• We are the world’s largest debtor nation with a National Debt that is 14 times larger and 89% of GDP (not including Fannie/Freddie debts and unfunded liabilities.)

We are in deep, deep trouble, and if you think “things are going to turn around,” you are mistaken.

To me, there’s really only one solution, and that’s to live below your means and return to frugality. If it requires giving up a few things that others are paying on credit for, so be it. If it requires cutting coupons, buying off-brand merchandise, well, that’s what it takes. If it requires a combination of both, fine. But being frugal and living below your means does not just help you today – it will allow you to weather almost any economic storm.

But being frugal isn’t always easy. It takes a good, objective look at “everything” you are spending money on, and it requires hard choices to be made. It’s not just cutting out a latte every day. It might mean your child doesn’t text his or her friends, because the “pay as you go” cell phone is for emergencies only. And that’s OK.

We hope you will join us at The Daily Middle for our “daily dose of reality” to keep your feet firmly planted on the road back to frugality.

Post by Frugal Dad