What is a frugalista?
A frugalista is a woman who manages her money properly but also finds a way to have fun and enjoy her life. So she would never go into debt in order to have a good time; but she believes in having a good time.

What was the toughest part about paying down your debt?
The toughest part was being consistent and trying to decide on the best decisions for my money. You have so many things that pull at your purse strings and you have to make the best decision.

What helped you stay motivated?
My blog; it’s truly like group therapy on the Internet. You encourage each other, and you get involved in personal finance communities online. I made this vow of frugality and I have people to keep me honest and share ideas with me about how to save money. That really helped. And during that time, the economy was really starting to tank, so I knew that things were changing and may not be OK. And that really helped me see that I had to change. Before I would try here and there to manage my money, but I had the assumption of having a career and having stability. When I wrote this book and started blogging, I really saw some changes.

Why did you start the blog and write this book?
I was in debt and I didn’t see my way out of it. I had a student loan that was still lingering that should have been paid off. I just had a lot of bills. Nothing I was doing was working and I had to kind of take stock in what was going on and see if I could do it better. This book is for anyone who wants to manage their money a little better, but they’re not sure about how to do it and what it takes to get it done.

Some argue that it’s not possible to be frugal and fabulous at the same time. How can you be both?
You can find free happy hours, you can search for free exercise classes. Look in your local alternative news weekly or in magazines. A lot of these places will want your e-mail, and once they get your e-mail, they’ll start sending you updates on free events. There are ways to have a really good time without spending a lot of money. You just have to do the research.

What was the toughest thing about your experiment when you couldn’t buy anything for one month?
In the beginning I was energized; but toward the third week I was feeling deprived. I did no-buy month in 2009. This year, I did dine-in week. I like to do little challenges here and there. Before that, because I didn’t cook, I was used to seeing my salary go down when I checked my bank account. I just assumed that you get paid, and the money is supposed to go down every pay day. That was just my way of life. But when I did no-buy month, I started to see my account stabilize. I realized that I don’t have to fritter my money away by buying things from the vending machine, or buying those simple things that you don’t even know you’re spending your money on. I definitely recommend a no-buy month for the New Year.

Sheiresa Ngo is the consumer affairs editor at Black Enterprise.

Read more about becoming financially fabulous.

• How to achieve your financial freedom
• 5 personal finance books for couples
• The 7 deadly sins of money management

Using cheap and free phone services can reduce expenses for your home-based business.

Whether you run a thriving home based business or you’re just starting out, one rule of thumb will always remain constant; keep costs low. Cutting overhead and fixed expenses is a primary way to drive revenue and better use your resources where they may be most needed. So, what’s one fixed cost that you may be able to cut completely? Phone service. As more companies develop VoIP options, it’s getting easier to find cheap service and sometimes downright free offers. Check out which companies offer no-cost and low cost phone calling options.

Vonage: iPhone and Android users can tap into Vonage’s new service which provides free phone calls between Facebook users. How does Vonage Mobile for Facebook work? Users must download the free Vonage app. Sign in with your Facebook username and a list of friends with the app will appear. The calling works over cellular broadband, so-called 3G, and over Wi-Fi. The drawback is while the phone does not use calling minutes, it does use data and for customers without unlimited data plans, this can be a setback.

Skype: A veteran in the VoIP arena, Skype’s voice and video chatting is still a favorite among Internet users. Skype offers free Skype-to-Skype calls and allows users to call mobile and landlines. Users do have to pay for non-Skype-to-Skype calls. It you’re looking to slash mobile minute usage, Android and Blackberry users can download the Skype App to their smartphone and make and receive limitless Skype-to-Skype calls globally and make low cost international calls.

Google: In Google’s continued effort for Internet domination, the behemoth online company unveiled its new free phone calling option just last week. Gmail users in the U.S. can make free calls from their browser to numbers within the U.S. and Canada. Users pay 2 cents per minute for calls to Ireland, Korea, Argentina and other countries. Rates top 99 cents a minutes, depending on the country. To use the service, a plug-in program must be installed, and users must log into Gmail.

Finding ways to cut costs can be a lifesaver for a tight budget.

Times are tough. The economy is still on the rocks, and your financial life has yet to get back to normal. You might be following a budget, but you might also still be having trouble making ends meet due to a pay cut or job loss. How do you trim an already slim budget? Try these tips on for size:

• Give up a bad habit. Whether it’s smoking, drinking way too many cups of coffee, or overindulging in snack foods, add up how much you’re spending on these items each month. Once you have a better idea, either cut back on these vices or go cold turkey and cut it out altogether. Your heart, waistline, and wallet will thank you.
• Look inside your medicine cabinet. If you take prescription drugs, consider switching to generic medications. Target offers generic drugs for as low as $4.
• Rethink your gym membership. Most gyms debit their monthly fee directly from your bank account each month. If you rarely visit the gym, you’re giving money away and you probably don’t notice because you don’t have to write a check or fork over cash. If you don’t go regularly, shut that membership down and take a walk around your neighborhood or work out at home.
• Skip the movies. With movie tickets as high as $13 per person, and an additional charge for 3-D, consider watching movies at home. Why shell out more than $52 on movie tickets for a family of four when you can rent a movie online for as little as $.99 from iTunes, Blockbuster and Netflix?
• Share meals. Cut back on your grocery bill by joining a dinner-swap group. Here’s how it works:  Get a small group together to share meal-preparation responsibilities. Each member takes turns grocery shopping and preparing meals for the group on a day of his or her choice. You’ll find it’s cheaper to buy in bulk, you’ll have plenty of leftovers, and best of all, you’ll get a few nights off from cooking.

Sheiresa Ngo is the consumer affairs editor at Black Enterprise.

Ladies and gentlemen, before you [re]commence your search for the look, check out these tips for shopping on a budget.

Take inventory. Dig through your closet for barely worn shirts, pants, skirts, dresses and shoes, before heading to the store. How many times have you bought an outfit for an event only to wear it once? No need to go through the hassle again.

Accessorize. Ladies, accessories can turn any old ensemble into a lively new piece. If you’re trying to revamp a cute blouse or dress, throw on a pair of ultra-sparkly earrings or necklace. Don’t be afraid to try something new, it’s New Years Eve after all. Forever 21 and Claire’s are just some of the many stores that sell inexpensive costume jewelry. Don’t forget, almost every store has drastically slashed prices, including Saks Fifth Avenue, Barneys New York, and Macy’s.

Mix and Match. Guys, if you already have a button-down shirt, try adding a sporty blazer or sweater for a clean, sophisticated look. Blazers also work well with classic graphic t-shirts. A simple pair of slacks or jeans and a nice smile will bring it all together. Of course, we girls can also do a little mixing and matching too. If you’re trying to bring out your inner diva in 2009 visit Like.com and learn how to make your own celebrity look-alike outfit for cheap.

I’m no fashionista, but I like to visit The-Fashion-Bomb.com for tips for recreating a celebrity look. You can even submit the celebrity outfit you’d like to recreate for a detailed break down on where to find similar pieces at different price levels.

Here’s a little tip I picked up from Lynette Khalfani-Cox, the Money Coach. If you have a favorite store that you’re looking to shop at to complete your look, perhaps Bebe or Express, Google the store name and the phrase, “coupon code.” This will allow you to pull up discounts offers online that aren’t listed on the store’s Website.

Are you doing any extra shopping for a New Year’s Eve look? Share your tips on how you’ll cut costs and manage the perfect look.

Reduce the Complexity

Look at your IT budget. Chances are that roughly 60% of it is allocated to service, as opposed to hardware or software purchases. “It’s not the product that’s expensive,” explains Matt Friedman, vice president of marketing for IBM in Armonk, N.Y. “It’s the cost associated with installing and integrating all of the complicated equipment.”

With that in mind, Friedman says firms looking to lower or control their IT spending should focus on reducing those complexities. That means seeking out simpler solutions such as those offered via subscription on the Web in an Application Service Provider (ASP) environment, and that don’t require complex installations and full software purchases.

“Look for solutions that deliver the capabilities that you want in a pre-packaged format that’s ready to use, and that doesn’t require any IT skills to set up, install and run,” Friedman says.

Consider Refurbished Equipment

Every technology manufacturer has a division dedicated to refurbishing and selling equipment. There’s no time like the present to take advantage of this low-cost way to buy technology, says Ronnie Parisella, chief technology officer at Primary Support Solutions, a New York-based computer network design and support firm. The equipment can be purchased at a significant discount (compared with new) and typically comes with a full warranty and support.

“Why buy a workstation at full price when you can get the exact one, refurbished, for 20% or more off of the list price?” Parisella says. “Many times the equipment hasn’t even been used – or has just been briefly tested – making it a great bargain for companies looking to cut back on their tech spending.”

Upgrade Existing Machines

If new computer workstations aren’t in your budget right now, you can speed up those existing computers by simply upgrading the machines’ random access memory (RAM). “Many people don’t realize that they can extend the lives of their older computers by 6-12 months with a simple RAM upgrade,” Parisella says.

Expect to pay just under $100 for a 1G (one gigabyte) upgrade, says Parisella. In return, your computers will run faster and remain a viable part of your business operations, despite the fact that they may not be the newest models available. “This is a great, cost-effective way to maximize your technology investment,” Parisella says.

Keep Maintenance Records

Much like a company would maintain service records for the automobiles that it leases or owns, all firms should be keeping the purchase, service and repair documentation associated with their technology purchases.

Not knowing when a particular machine’s warranty expires, for example, can mean the difference between a free service call (when the problem is caught in time for the warranty to cover it) or a hefty repair bill (if the problem is ignored). “Improper documentation can be a real thorn in the side of a struggling business,” says Parisella, “that spends money unnecessarily because it doesn’t know what equipment it owns and how those investments are being maintained.”

As companies continue to find ways to lower their costs of doing business, Friedman says those looking at their IT budgets must do so in a way that doesn’t find firms “cutting off their noses to spite their faces.” Consider, for example, whether the decreases will truly help reduce cost structure, or whether they will hamper performance and profitability. “Look carefully at your business,” says Friedman, “and figure out ways to reduce IT expenses that don’t hurt your company in the long run.”

Look for coupons. They’re not just for grocery stores. Couponcrze.com offers automotive coupons for auto maintenance shops nationwide. But if you prefer to take your car back to the dealership, find out if the area branch has a Website. Oftentimes local Honda dealerships offer coupons specific to that location.

Check the manual: “Many motorists believe they have to get their oil changed every 3,000 miles,” says Christie Hyde, spokesperson for the American Automobile Association (AAA). But, many newer models can go up to 7,500 miles before needing an oil change. Hyde says car owners should check their owner’s manual to find out what is recommended by manufacturer. She says motorists shouldn’t just go by sticker on the vehicle. Review the manual to find out what work is required at the given mileage before making a service appointment.

Buy it yourself. It’s not enough that mechanics charge by the hour, but additional costs for parts can also hike up an already burdensome bill. If your car needs new parts try going to an auto parts store or visiting Couponclock.com for less expensive auto supplies. It’s likely to be cheaper than the mechanic.

Do it yourself. Sure, it sounds cliché and frankly, who has the time to figure some of this stuff out? But Hyde recommends going to an auto parts store such as NAPA, where car owners can get a little free help with minor fixes such as checking tires or changing air filters.

Don’t skimp. If you’re looking to hold on to your car a little longer, don’t shortchange your vehicle. “Paying a little more now can head off major expenses in the future,” Hyde says.

Like Alston, small business owners are finding themselves faced with the task of cutting costs while maintaining employee loyalty. “You have to have already created a healthy organizational culture and one that inspires loyalty to begin with,” says Nicole Cutts, CEO of Cutts Consulting (www.cuttsconsulting.com), a professional training and development firm in Washington, D.C. “People are not going to feel loyalty and stick with you through tough times if you haven’t been genuinely involved in their lives before this.”

While every employee won’t ride out the storm, there are strategies business owners can use to keep valued employees on board as the business weathers economic turmoil.

Be honest. “People feel stressed and fearful when they believe that they don’t know what’s going on in the organization,” Cutts says. Not only should business owners let employees know that the business faces challenges, but they should ask employees for input in how to cut costs, says Loretta Love Huff, president of Phoenix, Arizona-based Emerald Harvest Consulting (www.emeraldharvest.com). Bringing valued employees into the planning process gives them a sense of buy-in, Love Huff says, and “they’ll probably come up with some ideas that you’ve never even thought of.”

Create new currencies. If you’re asking employees to accept a temporary pay cut or a reduction in perks or benefits, look for alternative ways to compensate them, Cutts says. Some employees may respond well to praise and recognition. Others may be won over by the opportunity to work on a challenging project that can advance their careers. And some may be motivated by the opportunity to work from home, a move that can also cut costs for the business even more. “It’s important to know the people you’re dealing with so you’ll know the kinds of things that will motivate them,” Cutts says.

Explain business basics. If you want employees to avoid excess spending, explain how their actions affect the bottom line. “Show them what they do to spend money and what they can do to slow down those expenditures,” Love Huff says. “You want to get the employees to realize it’s everybody’s problem.” Also, let them know what cuts you’re making. “You have to lead by example,” she adds.

Think future rewards. Though the present economic environment may be tough, let employees know how you’ll reward their loyalty once the turmoil has ceased. Not only will employees know that you’re confident that the business will weather the storm, but they know that you appreciate their efforts and their willingness to work with you. Of course, when the time comes, stay true to your word or else employees won’t trust you and will be out the door. “You never want to make promises that you can’t keep,” Cutts says.

Mark your progress. Find a way to measure whether the company is achieving its new financial goals and let employees in on the progress. When employees do their part, acknowledge it and, when the tough times are over, celebrate the company’s success, Love Huff says. “When you do take the time to acknowledge success, employees will be that much more willing to do something for you in the future.”

Try thrift stores, dollar stores, and flea markets. These bargain depots are virtual treasure troves of inexpensive vintage clothes and cheap decorations. Instead of purchasing a costume from a traditional novelty store, try piecing one together. You can also buy old items for decorations. Add Halloween flair with cobwebs from a dollar store or even dirt and leaves from your own yard.

Swap costumes. If Junior has his heart set on being Batman this year, try scoping out his suit at Halloween costume exchange online. Preschoolrock.com allows visitors to exchange their old costumes.

Wait until the last minute. This is the only time you should wait to shop. “The evening of Oct. 31st is a great way to get candy really cheap,” says Ellen Davis, spokesperson for the National Retail Association. “It’s possible a lot of retailers will activate next-day prices in the evening,” she adds.

Cut the chocolate. Sure, kids love big-name chocolate bars, but if you’re shopping at BJ’s, Costco, or other warehouses, those boxes of Snickers can set you back a pretty penny, even wholesale. Opt for bubble gum-stuffed lollipops instead; they’re usually cheaper than chocolate and come in more bulk. The kids will be just as happy.

Come back next Wednesday for more cost cutting tips, and check out the Cutting Edge blog for more on maximizing your dollar this Halloween. Plus, share your own tips.

Lease, don’t buy. Rapid technological innovations can make that new piece of equipment outdated after a year or two. Instead of dishing out for new hardware, lease it so you won’t be stuck with antiquated technology that will force you to spend more on updates. Visit Hoovers.com for a list of companies that offer leasing.

Band together. Software can come at a hefty price tag. Volume software licensing makes purchasing large numbers of programs cheap. Try grouping together with other local business owners to purchase software; the more you buy, the less you pay. Check out your local chamber of commerce or small business organization to find other entrepreneurs that would be willing to participate in volume purchasing.

Outsource. No, not to India, but to a local third-party vendor that can supply services. Instead of hiring a fulltime staffer to manage payroll, look for an independent person or company. You’ll save on labor costs. Companies such as E-chx provide payroll processing for small businesses.

Get a free energy audit. Utility costs can account for a huge chunk of expenditures. Organizations like the Small Business Energy Alliance offer free energy audits and will replace old energy guzzling lighting with new efficient bulbs for free. Visit Sbeaonline.com for more information.

Barter, haggle, and trade. See how much in-house work you can get done without using cash. Trade services with other companies. For instance, you can offer to take care of another company’s bookkeeping if they’ll do graphic design work. Try posting your services online at Websites such as Partnerup.com, a social network for small business owners. Once again, look into your local chamber of commerce for events and meetings that will help you meet other entrepreneurs willing to trade services.

Come back next Wednesday for more cost cutting tips and check out the Cutting Edge blog for more on maximizing your dollar this Halloween. Plus, share your own tips.