I went on something of a cost cutting, money saving binge for most of 2009.

I found that the stock market crash really affected my spending habits during the first half of 2009, as well as motivated me to review every outgoing dollar in my monthly budget. I like to think I’m something of a value junkie, so I want to make absolutely certain I’m getting maximum value from every dollar spent.

In that regard, I guess you can say I’m Corporate America’s worst nightmare:

• I’m an educated consumer
• I’m highly motivated
• My goal was to save as much disposable income (e.g. their profit margin) as possible.

Since we’re closing in on the end of the year, I thought it would be fun to review some of my favorite frugal living substitutions and other money saving posts from the last year.

Best Money Saving and Frugal Living Tips from 2009

#1) Getting Actively Managed Mutual Funds for Free.

I became something of an index fund convert in 2009 mostly because I observed just how few people actually take the time to do their own research. If you’re not willing to do the research yourself, and since many mutual fund managers charge you anywhere from 3 to 20 times what a Plain Jane index fund will charge you, why not simply take what the market is giving you for minimal cost and be done with it. However, as an alternative, you could also try to find a clever way to get an actively managed (mutual or hedge) fund for free.

After all, if Warren Buffett is America’s most trusted investor… why wouldn’t you want him managing your money?

#2) Healthy Dishes from My Urban Garden for Less than a Buck.

Nothing beats farm fresh veggies, but if you don’t have a green thumb or don’t have a large backyard to start your own garden, a small container garden is definitely something you should look into. Having just a few densely seeded container with basic greens can save you big bucks over the long haul if you eat a lot of salads (like me).

#3) Restaurant Like Meals you can Make at Home for Half the Price.

Learning how to cook, or more accurately, learning how to cook well, has been a big money saver for me the last several years. I’ve actually gotten to a level where I prefer my own dishes to that of the standard middle to upper class restaurants in my area. One of the key components in expediting my learning curve has been cruising the foodie blogs for video recipes, so not only are you getting a standard protocol (biochemist jargon for a recipe), but you’re also getting an experienced cook’s or chef’s helpful hints to give you that little something extra.

#4) Giving MagicJack a Honest Try

Perhaps my favorite frugalhacker experiment of the year was switching to MagicJack.

I was paying Vonage around $300 per year for the same VoIP telephone service that MagicJack can deliver for $20. Sure, it’s a bare bones home telephone service so you should be prepared to lower your standards just a bit if you’re switching from a traditional landline, but the immense cost savings (1^st year savings $243/year, future years will be $280/year) is worth the limitations and the occasionally annoying sales pitch.

#5) Giving Up Soda.

I’ve been an avid soda drinker most of my life, so it was an extremely odd feeling for me to admit that that I’m one of those pro sin tax / fat tax commies who agree we should begin to tax America’s favorite sugary concoction since it is one of the primary agents responsible for the obesity epidemic.

So when I began to think how much soda I (formerly) consumed every year (2 to 3 per day totaling 750 to 1000 cans), then back calculate how much that total would amount to in potential dollars saved and calories I had to walk/jog/lift weights to burn off, it was a no brainer to jump off the soda bandwagon.

I still drink two or three Cokes or Sprite Zeros every month, so it’s not like I completely eliminated them from my expenses, but I imagine the liberated feeling I have now after giving up the mandatory Coke for breakfast is analogous to how a 20 year cigarette smoker must feel after kicking the nicotine habit or an alcoholic who doesn’t need that comfort drink just to feel at ease.

#6) I Haven’t Bought a Music CD in over 10 Years.

When I realized earlier this year that I had effectively given up CDs for so long, I couldn’t quite wrap my mind around it at first.

When you consider just how odd it is to go a decade without doing anything, it really makes you begin to stop and think about how powerful the Internet’s massive disintermediation effect has had — since MP3s trumped CDs –  and will continue to have, upon global business.

Then again, considering how much I rely upon free streaming music via the Internet  (Slacker.com and Lala.com are my personal favorites), it’s not surprising that CDs went from must have technology to the old standby.

#7) Giving a Gift Someone Actually Likes or Wants Immediately Doubles its Value.

This was probably one of more creative ways of tweaking my shopping habits this Christmas. Instead of the standard anticonsumerism argument (buy less, spend less, don’t buy, etc.), this concept involves getting the max “joy of giving” value out of giving a gift, as well as the recipient getting maximum value from whatever you gave them. When you add these two metrics together, they can equal double the cost of whatever you paid.

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