I love the fresh produce of summer. In Florida, colorful fruits and veggies start pouring into our supermarkets early, and then we get the benefit of the northern growing seasons well into the scorching summer months when our gardens take a break. I am easily drawn to the colors and smells of the produce department and roadside stands, and nothing makes me happier to come home with bags of the good stuff. I can practically feel the health surging through my body just looking at the antioxidant-packed bounty.
And then this happens.
"John, why haven't you guys been eating the pears?" John replies, "We have pears?"
I was mesmerized in the produce department at Publix a few weeks ago, ready to buy a cartload of the good stuff, when it finally dawned on me that we don't always eat everything I buy. Actually, we often weren't eating half of it. We had the beginnings of a very expensive compost pile. I stopped and surveyed the market stand trying to determine why this was happening.
Aren't produce markets beautiful? All of the shiny apples piled high in their bins, arranged so neatly. Who wouldn't want a big, bushy pineapple, especially when it's surrounded by colorful mangoes. The yummy harvest goes into the cute little bags to be weighed, then goes home to...
the black hole that is the refrigerator.
Yes, like a coconut falling from a tree, the realization hit me that the allure of these delicacies of nature is their beauty, and hiding them in the fridge behind the cottage cheese is an insult to them, and much worse, it keeps us from enjoying them. I took action that day when I returned home, and our produce eating has improved tremendously.
1. I did a refrigerator remodel. I ditched the stuff that needed to go, and cleared out the produce bin. I pushed the grains and nuts to the back where they could still be seen but not interfere with more perishable things in the front, and I moved all of the bottle things to the door. I put organizers into the drawer so that I could wash the apples and store them in an open container so that they would be ready to be eaten at any time. Once the apples were corralled, the other fruits and veggies organized themselves neatly around them. No produce bags or boxes, just a bin of fresh stuff ready to be grabbed and eaten at any time.
2. I did a grocery list remodel. I realized that I would habitually buy lots of short-life produce, such as berries, and very little of anything that would last until my next shopping day. We would force-feed ourselves the perishable stuff for two days, and then we were out of fresh food for the week. I examine our grocery list every week now to assure that I have a week's worth of edible goodies, and we eat them accordingly.
3. I stopped buying so much produce in the first place. This is contrary to my earlier grocery shopping posts, but I have decided that certain fresh food can be purchased multiple times a week so that it isn't reduced to compost. I still budget for it, though, and I make sure that the money is in the cash envelope when it's time to replenish the produce bin.
We want to enjoy our food, not just scramble to get it eaten so that it doesn't spoil. Do you have any pointers for making the most of the summer harvest?
Showing posts with label Finances. Show all posts
Showing posts with label Finances. Show all posts
Tuesday, June 15, 2010
Wednesday, May 26, 2010
Financial Fun: Support local agriculture!
My son and I just had the most fun ten minutes we've had in a while, and it only cost us $5.50.
On a whim, I drove us down the road to a building I had seen but never visited, lured only by the gigantic "HONEY" sign on the front. Once I convinced him to get out of the car, we stepped into a little room no larger than a walk-in closet, and we were greeted by a wall of honey containers in several shapes and sizes. In the middle of the room was a large box with a hole in it that read, "Honor System, Since 1937." There were posters on the walls with pictures of bees and honey combs, and lots of information about how honey is made. I picked up a 12 oz. bear-shaped bottle of honey with a price sticker that read $4.00, but my son reached for a larger bear. I inspected the bottle--it was 24 oz. for $5.50. Sometimes my math is a little slow, but the value of the larger bottle was pretty obvious! We counted out dollar bills and coins, put them into the slot on the box, and drove home with my son cradling the bear in his car seat. We conversed the entire way home about the many things we could do with our Florida Orange Blossom honey. As soon as we opened the door to the kitchen, he ran to the refrigerator, pulled out some plain yogurt and started creating his lunch. Now he's waiting for Daddy to get home so he can share with him our new honey and the story of where we found it.
So, for $5.50 my son learned about the honey making process, learned to count money, found excitement in cooking, and will practice his story-telling skills a little later today. Also, that $5.50 went straight to a family that has owned the "HONEY" building for several decades and sets an example of trusting our fellow human beings. And we got a cute bear full of delicious honey as a parting gift. I think that is quite the value for my money!
Friday morning we will go to a local blueberry farm to pick blueberries for a final time this season, and we will make jam with those berries for Father's Day gifts. When we travel this summer, we will spend most of our adventure time finding local farms where we can visit animals and find delicious produce and other farm goods. All of this will be priced considerably lower than other forms of entertainment, and the benefits, well, are just too numerous to mention!
Your challenge for the day--seek out local agriculture, and pay your farmers a visit! If you need help, this website has a comprehensive list of U-Pick farms all over the country. You'll be saving yourself entertainment dollars and possibly grocery dollars, and you'll be helping the local economy. More than that, though, you'll be giving your little ones experiences they will treasure forever!
If you know of a local (to you!) farm that is great to visit, leave it in the comment section!
On a whim, I drove us down the road to a building I had seen but never visited, lured only by the gigantic "HONEY" sign on the front. Once I convinced him to get out of the car, we stepped into a little room no larger than a walk-in closet, and we were greeted by a wall of honey containers in several shapes and sizes. In the middle of the room was a large box with a hole in it that read, "Honor System, Since 1937." There were posters on the walls with pictures of bees and honey combs, and lots of information about how honey is made. I picked up a 12 oz. bear-shaped bottle of honey with a price sticker that read $4.00, but my son reached for a larger bear. I inspected the bottle--it was 24 oz. for $5.50. Sometimes my math is a little slow, but the value of the larger bottle was pretty obvious! We counted out dollar bills and coins, put them into the slot on the box, and drove home with my son cradling the bear in his car seat. We conversed the entire way home about the many things we could do with our Florida Orange Blossom honey. As soon as we opened the door to the kitchen, he ran to the refrigerator, pulled out some plain yogurt and started creating his lunch. Now he's waiting for Daddy to get home so he can share with him our new honey and the story of where we found it.
So, for $5.50 my son learned about the honey making process, learned to count money, found excitement in cooking, and will practice his story-telling skills a little later today. Also, that $5.50 went straight to a family that has owned the "HONEY" building for several decades and sets an example of trusting our fellow human beings. And we got a cute bear full of delicious honey as a parting gift. I think that is quite the value for my money!
Friday morning we will go to a local blueberry farm to pick blueberries for a final time this season, and we will make jam with those berries for Father's Day gifts. When we travel this summer, we will spend most of our adventure time finding local farms where we can visit animals and find delicious produce and other farm goods. All of this will be priced considerably lower than other forms of entertainment, and the benefits, well, are just too numerous to mention!
Your challenge for the day--seek out local agriculture, and pay your farmers a visit! If you need help, this website has a comprehensive list of U-Pick farms all over the country. You'll be saving yourself entertainment dollars and possibly grocery dollars, and you'll be helping the local economy. More than that, though, you'll be giving your little ones experiences they will treasure forever!
If you know of a local (to you!) farm that is great to visit, leave it in the comment section!
Tuesday, May 4, 2010
Financial Fun: A Healthy Budget
Not too long ago I started having some health issues that made me rethink the way I live-- especially the way I eat. In misguided attempts to save money, I was feeding myself and my family food that was sub-par as far as health goes. It has taken a while, but I have found that it is still possible to provide healthy meals in our household, even though we are on a strict budget. I have a budget of $300 a month ($350 a month when there are five shopping days).
- I had to sacrifice junk to get the good food we need. We may not have "fun" foods like chips and soda, but we have a produce drawer full of colorful fruits and veggies, and a freezer full of lean meats. Our pantry is full of good stuff, too.
- I have "magic numbers" when I shop. Teresa taught me this a while ago--she only buys produce when it is $1 a pound or less. This saves money, and most of the time the produce at that price is what is seasonally and locally available, which makes it even better. I will go a few cents over, but that's it. The same goes for meat. I know I can get fresh chicken tenderloins at Sam's Club for $2.17 a pound, and I won't pay more at the grocery store. If necessary, I buy lots at SC and freeze it so that we always have lean meat for meals. This week boneless, skinless chicken breasts are $1.99 a pound at Publix, so that is certainly an acceptable purchase.
- I stock up on dry goods and other non-perishables only when they are on sale. I can buy whole grain pasta at two boxes for $1.39 about every six weeks. I buy it then and only then, and I buy enough to make it to the next sale.
- I create a detailed shopping list before I go to the store so that I know exactly how much I'm spending ahead of time. If I'm over budget, I edit the list. I keep a running total on my calculator at the store to be sure I'm not surprised at the check out. I only spend the money budgeted for that trip. Period.
- I weigh the produce before it goes into the cart. If I don't weigh it, I won't know how much it will cost.
- I don't meal plan, but I do have a plan for what I buy so that I know it will be eaten. For example, not one person in my household eats carrots or celery regularly. I don't buy them anymore. I used to because they're "healthy," but that only served to enrich the compost pile. If I buy an ingredient we're not accustomed to having, I make a plan for it's use before it comes home.
- Ready for the paradox? I buy the best. I never want a meal in this house to be a disappointment compared to an unhealthy meal. Spending a few bucks more on good food that will be eaten is much better than spending a few less bucks on food we will avoid until it needs to be thrown away. Like carrots and celery. :)
- I ensure that what I buy will be eaten. More on budget friendly kitchen organization next week. :)
Tuesday, April 20, 2010
Financial Fun: Any questions? Comments?
Next Tuesday we will talk about eating healthily on a budget, but today I am recovering from a weekend trip and I need to take a little break! Please take today as your day to question and comment on anything financial, and we can all join in the conversation. Thanks for your understanding!
Tuesday, April 13, 2010
Financial Fun Part 5: Dear MM--Can you help me lower my grocery bills?
This week, let's tackle a question from a reader:
Dear Motley Moms,
My family eats pretty much the same meals every week, and I buy pretty much the same thing at the grocery store every week. I buy what we need whether it is on sale or not, and it seems like we are spending too much money that way. Do you have any suggestions on how to lower our grocery bills? Thank you!
Dear Reader:
I have good news for you--you have a way of shopping that is prime for saving money with a few tweaks to your weekly routine! By doing what is called "stockpiling" (buying ingredients and foods you use often in larger quantities when they are on sale) and remodeling your grocery list a bit you should be able to lower your bills! Here's what I suggest:
1. Make a list of all of the meals and snacks your family eats and the ingredients necessary to make them. If you have more than enough favorites for a week, that's great! You will be able to take advantage of sales!
2. Divide that list into three categories: 1)Extremely perishable (like milk) 2) Somewhat perishable (foods with longer expiration dates--cheese for example) and 3) Storable (pastas, jarred sauces, canned veggies, etc.)
3. BEFORE you go shopping, find the sale circular for the store where you shop. These days, finding those online is the way to go if you'd rather not go into the store. Also, you may receive an ad with your newspaper subscription.
4. This is where your routine changes--rather than deciding what YOU want to eat that week, your ad decides for you. If there is a great deal on chicken that week, you choose to eat your famous chicken dish. If the beef is not on sale, sorry, but no steaks that week. Make your meal plan based on the sales, then add those items to your grocery list.
5. Next, scour the ad for foods you use frequently. For example, I use a ton of cannellini beans. If they are on sale for a very low price, I buy 10+ cans that week. Then, I don't buy them again until they go on sale again. Period.
Shopping this way allows you to eventually spend less on storables. There will be weeks where you only buy fresh perishable foods because you have everything else you need! A word of caution, though--be careful not to overspend the budget on stockpiling, and never buy more than you can store. Trust me on that one. ;)
If you have any advice for this situation, let's hear it! Send me any other grocery questions you may have, too. Next week we'll talk about eating healthily on a budget. This is something I'm dealing with right now, so I look forward to hearing your comments! Have a great week!
Dear Motley Moms,
My family eats pretty much the same meals every week, and I buy pretty much the same thing at the grocery store every week. I buy what we need whether it is on sale or not, and it seems like we are spending too much money that way. Do you have any suggestions on how to lower our grocery bills? Thank you!
Dear Reader:
I have good news for you--you have a way of shopping that is prime for saving money with a few tweaks to your weekly routine! By doing what is called "stockpiling" (buying ingredients and foods you use often in larger quantities when they are on sale) and remodeling your grocery list a bit you should be able to lower your bills! Here's what I suggest:
1. Make a list of all of the meals and snacks your family eats and the ingredients necessary to make them. If you have more than enough favorites for a week, that's great! You will be able to take advantage of sales!
2. Divide that list into three categories: 1)Extremely perishable (like milk) 2) Somewhat perishable (foods with longer expiration dates--cheese for example) and 3) Storable (pastas, jarred sauces, canned veggies, etc.)
3. BEFORE you go shopping, find the sale circular for the store where you shop. These days, finding those online is the way to go if you'd rather not go into the store. Also, you may receive an ad with your newspaper subscription.
4. This is where your routine changes--rather than deciding what YOU want to eat that week, your ad decides for you. If there is a great deal on chicken that week, you choose to eat your famous chicken dish. If the beef is not on sale, sorry, but no steaks that week. Make your meal plan based on the sales, then add those items to your grocery list.
5. Next, scour the ad for foods you use frequently. For example, I use a ton of cannellini beans. If they are on sale for a very low price, I buy 10+ cans that week. Then, I don't buy them again until they go on sale again. Period.
Shopping this way allows you to eventually spend less on storables. There will be weeks where you only buy fresh perishable foods because you have everything else you need! A word of caution, though--be careful not to overspend the budget on stockpiling, and never buy more than you can store. Trust me on that one. ;)
If you have any advice for this situation, let's hear it! Send me any other grocery questions you may have, too. Next week we'll talk about eating healthily on a budget. This is something I'm dealing with right now, so I look forward to hearing your comments! Have a great week!
Tuesday, April 6, 2010
Financial Fun Part 4: Back to Basics--Why bother?
I'm leaving the grocery store for a week to give us a chance to examine our motives, but I would like to head back there next week. I can ramble for hours about grocery shopping, so let's tailor the next article to what you want to know! Send me your questions or leave them in the comments at the bottom of today's post, and I or one of my Motley money-saving friends will respond!
Back to High School--Long Term and Short Term Goals
I was always so frustrated when he had to write down our goals in school. Who had time to think about the future? There was too much to do now, right? Well, it turns out that writing goals is actually quite beneficial, especially when it comes to personal finance.
I think I can safely say that we all want to be financially independent, but why? Why bother with all of this budgeting and saving? What does financial independence really mean? What does it look like for you?
For me, I can't wait to be able to give away money without a second thought. Major earthquake? Here's a thousand bucks. No, thank you, I don't want any cookies, but here's a hundred bucks for your troop. Your whole soccer team needs cleats and can't afford to buy them? Send me the team's sizes. Wouldn't that be amazing? Of course, I would also love to be financially set so that if the car stops running we can just write a check for another one, or if the grass in the yard stops growing (which it has, by the way--gotta love that Florida sand), we could just re-sod the whole thing and stop thinking about it.
Those are our long-term goals. Before you get the wrong impression of me, though, you should hear my totally selfish short-term goals. I have been salivating for months over a digital SLR camera--you know, the big ones with the fancy lenses. I had the money in my hand this Christmas that was enough to buy one, but instead we put the money into our savings account to help our emergency fund project. It was so hard to do that. I've always just bought things, which is why I'm paying so much attention to our spending now, by the way, so putting off my camera purchase was agonizing. Once the emergency fund was complete, my DSLR and an iPod went to the top of my "saving for" list.
Get a Visual
And, yes, we do have a list. When we started the emergency fund project, I took a piece of note paper and wrote our goal amount at the top. I taped it to the door of the computer desk under the saving envelope (the place where I put the extra cash I don't spend each month so it can go into our savings account). Each time we made a deposit, I wrote the amount and subtracted it from the total. It was exciting to see that number go down, to be able to see how long it would be before we would finish, and then to see what we could do to accelerate the progress. The day we made the final deposit my husband printed our account summary from the computer and taped it to the tally sheet. It was an awesome day!
Now that we have accomplished that goal, we desperately need another to keep our momentum from waning. I created a list of short and long-term savings projects and added them as a second page to our MASP. Every time we make a deposit I add in the amounts so that we can see where we stand. It's exciting to see those numbers rise and fall! It's good to win those little saving battles, too. Every time we fill an account we are closer to our larger goals.
Live Like No One Else
One of Dave Ramsey's favorite statements is "Live like no one else so that later you can live like no one else." Once those goals are set and the lists are posted, this is the key to success. But, what does it mean? It's different for everyone.
For us it means that we only eat in a restaurant if we have a gift card, and even then only on special occasions. I pack a cooler when we'll be out of the house at mealtime. I no longer go shopping "just to look"--I only enter a store with a list in hand and enough money to cover what's on the list. I only go to the grocery store once a week, and if we run out of something before the next trip, that's too bad. We are actually rationing milk this morning for that very reason. It means that I get to be a ninja money-saver in the grocery store. It means learning how to do things ourselves so that we don't have to pay others to do them. It also means knowing our limits so that we don't have to pay someone to come fix a mess we've made.
I realized a little while ago that indeed, some people were noticing our frugality. I noticed it because they seemed worried about us. It hit me that some people misunderstood our thriftiness--they thought we were broke! We have more cash right now than we have ever had at one time, but it looks like we're scraping every cent we can find! (Actually, I am--I'm obsessed with rolling coins!)
So, I love hearing your comments and anecdotes, but this week I want to hear how you live like no one else. Also, don't forget to send me your questions for the grocery saving Q&A! Have a great week!
Back to High School--Long Term and Short Term Goals
I was always so frustrated when he had to write down our goals in school. Who had time to think about the future? There was too much to do now, right? Well, it turns out that writing goals is actually quite beneficial, especially when it comes to personal finance.
I think I can safely say that we all want to be financially independent, but why? Why bother with all of this budgeting and saving? What does financial independence really mean? What does it look like for you?
For me, I can't wait to be able to give away money without a second thought. Major earthquake? Here's a thousand bucks. No, thank you, I don't want any cookies, but here's a hundred bucks for your troop. Your whole soccer team needs cleats and can't afford to buy them? Send me the team's sizes. Wouldn't that be amazing? Of course, I would also love to be financially set so that if the car stops running we can just write a check for another one, or if the grass in the yard stops growing (which it has, by the way--gotta love that Florida sand), we could just re-sod the whole thing and stop thinking about it.
Those are our long-term goals. Before you get the wrong impression of me, though, you should hear my totally selfish short-term goals. I have been salivating for months over a digital SLR camera--you know, the big ones with the fancy lenses. I had the money in my hand this Christmas that was enough to buy one, but instead we put the money into our savings account to help our emergency fund project. It was so hard to do that. I've always just bought things, which is why I'm paying so much attention to our spending now, by the way, so putting off my camera purchase was agonizing. Once the emergency fund was complete, my DSLR and an iPod went to the top of my "saving for" list.
Get a Visual
And, yes, we do have a list. When we started the emergency fund project, I took a piece of note paper and wrote our goal amount at the top. I taped it to the door of the computer desk under the saving envelope (the place where I put the extra cash I don't spend each month so it can go into our savings account). Each time we made a deposit, I wrote the amount and subtracted it from the total. It was exciting to see that number go down, to be able to see how long it would be before we would finish, and then to see what we could do to accelerate the progress. The day we made the final deposit my husband printed our account summary from the computer and taped it to the tally sheet. It was an awesome day!
Now that we have accomplished that goal, we desperately need another to keep our momentum from waning. I created a list of short and long-term savings projects and added them as a second page to our MASP. Every time we make a deposit I add in the amounts so that we can see where we stand. It's exciting to see those numbers rise and fall! It's good to win those little saving battles, too. Every time we fill an account we are closer to our larger goals.
Live Like No One Else
One of Dave Ramsey's favorite statements is "Live like no one else so that later you can live like no one else." Once those goals are set and the lists are posted, this is the key to success. But, what does it mean? It's different for everyone.
For us it means that we only eat in a restaurant if we have a gift card, and even then only on special occasions. I pack a cooler when we'll be out of the house at mealtime. I no longer go shopping "just to look"--I only enter a store with a list in hand and enough money to cover what's on the list. I only go to the grocery store once a week, and if we run out of something before the next trip, that's too bad. We are actually rationing milk this morning for that very reason. It means that I get to be a ninja money-saver in the grocery store. It means learning how to do things ourselves so that we don't have to pay others to do them. It also means knowing our limits so that we don't have to pay someone to come fix a mess we've made.
I realized a little while ago that indeed, some people were noticing our frugality. I noticed it because they seemed worried about us. It hit me that some people misunderstood our thriftiness--they thought we were broke! We have more cash right now than we have ever had at one time, but it looks like we're scraping every cent we can find! (Actually, I am--I'm obsessed with rolling coins!)
So, I love hearing your comments and anecdotes, but this week I want to hear how you live like no one else. Also, don't forget to send me your questions for the grocery saving Q&A! Have a great week!
Tuesday, March 30, 2010
Financial Fun Part 3B: Deal or No Deal?
First of all:
Creeeeeeeeek, thud, click!
That was the sound of the vault closing on our emergency fund! We did it! :) We actually went $1.05 over our goal! It feels so good to know that we have a safety net, and now we can work towards a new financial goal. Yay!
Next, for those of you who have been commenting on these financial articles, I want you to know that I have been getting lots of feedback from our readers, and not only do they appreciate that we're discussing this, but they really appreciate your comments! There isn't a "one size fits all" equation to managing expenses, and your different experiences are giving our readers a wonderful sampler of ideas, so thank you, and keep it up!
Now, back to the grocery store!
Deal or No Deal?
I was flipping through a magazine one day where I found an article about saving money at the grocery store. I'm a bit obsessed with the topic, so I started reading. The advice was pretty typical, but one particular blurb caught my eye. The author compared the unit prices of small containers of yogurt to a 32 oz. tub of yogurt and recommended that customers purchase the larger size to save money per ounce. Sounds reasonable, right?
You are the expert when it comes to your family.
I have bought the large tubs of yogurt. I have also thrown those tubs away, unopened, when they passed their expiration dates. My family just doesn't eat yogurt if they have to scoop it out of a tub. They eat a ton of yogurt, however, if it's in the ready-to-go cups. In our house, I leave room on the grocery list for cups of yogurt and I cut back in other areas to make up for it.
Bigger isn't always better.
Of course, usually the larger the quantity or volume, the less we pay per ounce. That's the lure of the big box stores and warehouse clubs. For things we tend to use lots of, like say, olive oil, it's a great deal to buy it that way. The trouble though, is that if we spend our monthly grocery budget to buy enough toilet paper to last a year, what do we use to buy food?
When my husband and I started cracking down on our food budget when we went to one income, my solution was to only buy what we needed for the week when I went to the store. It drove me crazy to only buy a small box when a month's worth of the same product was so much cheaper per unit, but it was a good exercise for me. We stayed within budget, and we always had what we needed. Unfortunately, I took a wrong turn in my "frugality" which led to some very expensive months.
Couponer gone wild!
When I really became a "power couponer" I started taking advantage of all kinds of deals because they were, well, deals. I would find an amazing price on something that we had never really tried, and I would buy a cartload of it. I would come home with twenty boxes of diet granola bars (they were only a dollar a box!) and very little else to eat. Guess what? We didn't eat the granola bars either. At least the food bank was happy that month. McDonald's was tickled, too.
Pioneer Woman I am not.
My next craze was to buy things like dried beans and the non-boil-in-the-bag rice. They are MUCH cheaper than their easy-to-prepare counterparts. Guess what? It doesn't matter how little they cost if you never cook them, and it especially doesn't matter if they are inedible when you do. It's all wasted money, and then it's worse when the replacement costs of canned beans and Minute Rice figure into the equation.
Return to Center
I'm still a couponer, but now I only "stock up" on foods that 1) my family will eat and 2) are healthy for them to eat. I only buy foods that I know how to prepare because there's no point to storing something for a year and then throwing it away when it expires. (Just a note--I actually have learned how to cook beans and rice from scratch now, and I do it often. I do have Minute Rice and canned beans in the pantry, however, just in case.)
What am I saying?
When I make my grocery list, I do all of the things I mentioned last week, but I do keep in mind our non-negotiables (like yogurt in a cup) and I work around those. I find other areas to cut or to economize (like buying store brand brown rice instead of Uncle Ben's). I budget each month for a trip to Sam's to buy olive oil and nuts, and I keep that money separate from our weekly grocery money. Even then, we only spend 10% of our income on food (the recommended percentage is 5-15%, so I feel pretty good about that).
YOU are the captain of your grocery-buying ship, and you know your family better than anyone else. Don't be swayed by the siren songs of "good deals" and clever packaging! :)
So...this week, I would love to hear about your financial successes--did you lower your bills this week? Spend less at the grocery store? Complete your MASP? Fully fund an emergency fund?;) Let's celebrate together! Also, have you ever bought something ridiculous in the name of a "good deal?" What are your grocery buying rules? Let's talk!
Creeeeeeeeek, thud, click!
That was the sound of the vault closing on our emergency fund! We did it! :) We actually went $1.05 over our goal! It feels so good to know that we have a safety net, and now we can work towards a new financial goal. Yay!
Next, for those of you who have been commenting on these financial articles, I want you to know that I have been getting lots of feedback from our readers, and not only do they appreciate that we're discussing this, but they really appreciate your comments! There isn't a "one size fits all" equation to managing expenses, and your different experiences are giving our readers a wonderful sampler of ideas, so thank you, and keep it up!
Now, back to the grocery store!
Deal or No Deal?
I was flipping through a magazine one day where I found an article about saving money at the grocery store. I'm a bit obsessed with the topic, so I started reading. The advice was pretty typical, but one particular blurb caught my eye. The author compared the unit prices of small containers of yogurt to a 32 oz. tub of yogurt and recommended that customers purchase the larger size to save money per ounce. Sounds reasonable, right?
You are the expert when it comes to your family.
I have bought the large tubs of yogurt. I have also thrown those tubs away, unopened, when they passed their expiration dates. My family just doesn't eat yogurt if they have to scoop it out of a tub. They eat a ton of yogurt, however, if it's in the ready-to-go cups. In our house, I leave room on the grocery list for cups of yogurt and I cut back in other areas to make up for it.
Bigger isn't always better.
Of course, usually the larger the quantity or volume, the less we pay per ounce. That's the lure of the big box stores and warehouse clubs. For things we tend to use lots of, like say, olive oil, it's a great deal to buy it that way. The trouble though, is that if we spend our monthly grocery budget to buy enough toilet paper to last a year, what do we use to buy food?
When my husband and I started cracking down on our food budget when we went to one income, my solution was to only buy what we needed for the week when I went to the store. It drove me crazy to only buy a small box when a month's worth of the same product was so much cheaper per unit, but it was a good exercise for me. We stayed within budget, and we always had what we needed. Unfortunately, I took a wrong turn in my "frugality" which led to some very expensive months.
Couponer gone wild!
When I really became a "power couponer" I started taking advantage of all kinds of deals because they were, well, deals. I would find an amazing price on something that we had never really tried, and I would buy a cartload of it. I would come home with twenty boxes of diet granola bars (they were only a dollar a box!) and very little else to eat. Guess what? We didn't eat the granola bars either. At least the food bank was happy that month. McDonald's was tickled, too.
Pioneer Woman I am not.
My next craze was to buy things like dried beans and the non-boil-in-the-bag rice. They are MUCH cheaper than their easy-to-prepare counterparts. Guess what? It doesn't matter how little they cost if you never cook them, and it especially doesn't matter if they are inedible when you do. It's all wasted money, and then it's worse when the replacement costs of canned beans and Minute Rice figure into the equation.
Return to Center
I'm still a couponer, but now I only "stock up" on foods that 1) my family will eat and 2) are healthy for them to eat. I only buy foods that I know how to prepare because there's no point to storing something for a year and then throwing it away when it expires. (Just a note--I actually have learned how to cook beans and rice from scratch now, and I do it often. I do have Minute Rice and canned beans in the pantry, however, just in case.)
What am I saying?
When I make my grocery list, I do all of the things I mentioned last week, but I do keep in mind our non-negotiables (like yogurt in a cup) and I work around those. I find other areas to cut or to economize (like buying store brand brown rice instead of Uncle Ben's). I budget each month for a trip to Sam's to buy olive oil and nuts, and I keep that money separate from our weekly grocery money. Even then, we only spend 10% of our income on food (the recommended percentage is 5-15%, so I feel pretty good about that).
YOU are the captain of your grocery-buying ship, and you know your family better than anyone else. Don't be swayed by the siren songs of "good deals" and clever packaging! :)
So...this week, I would love to hear about your financial successes--did you lower your bills this week? Spend less at the grocery store? Complete your MASP? Fully fund an emergency fund?;) Let's celebrate together! Also, have you ever bought something ridiculous in the name of a "good deal?" What are your grocery buying rules? Let's talk!
Sunday, March 28, 2010
Give SHARE a Try!
Just thought I'd do a quick post about the SHARE program, since it is one of the main things that is helping us cut our grocery bills in half. When we pick up our food boxes once a month, we go ahead and order our food for the following month. One trip and we have enough meat for a month and enough produce for a couple of weeks. I spend around $50 on SHARE boxes and SHARE select items each month, plus about $300 a month at the grocery store.
Who can participate in SHARE? "Everyone and anyone is welcome to participate in SHARE. There are no income requirements, just a desire to make a positive difference in the world." (from the SHARE homepage)
Our March food box is chock full of good stuff. I'm so excited about planning meals and not having to grocery shop for them! Check out the menu:
March Basic Package $18.00
March Distribution Day is Saturday, 3/27/10
1 lb. Lightly Dusted Chicken Breast Strips
1 lb. Bone in Ham Steaks
10 oz. Deli Sliced Black Forest Ham
1 lb. Ground Beef 85/15
1.35 lbs. Split Chicken Breasts
Plus a Produce Pack!
1- 2.5 lb. Bag Potatoes
1 Head Romaine Lettuce
1 Bag Carrots
1 Stalk Celery
4 Sweet Potatoes
1 Bag Radishes
5 Oranges
4 Apples
We ordered 2 basic packages, which come with the produce packs, plus an additional produce pack. It's a LOT of food!
Here is a preview of April's menu, available now to order through our local SHARE host site. I'm especially excited about getting frozen blueberries for $1.70/lb from the Select menu in April. I see blueberry smoothies in our future menus!
When you go to sign up and put in your order, be sure to bring cash. It is the only accepted form of payment.
I would highly recommend you give the SHARE program a try if you're interested in cutting your grocery bill and willing to design your menus around the basic frozen meats and fresh produce in the box!
Who can participate in SHARE? "Everyone and anyone is welcome to participate in SHARE. There are no income requirements, just a desire to make a positive difference in the world." (from the SHARE homepage)
Our March food box is chock full of good stuff. I'm so excited about planning meals and not having to grocery shop for them! Check out the menu:
March Basic Package $18.00
March Distribution Day is Saturday, 3/27/10
1 lb. Lightly Dusted Chicken Breast Strips
1 lb. Bone in Ham Steaks
10 oz. Deli Sliced Black Forest Ham
1 lb. Ground Beef 85/15
1.35 lbs. Split Chicken Breasts
Plus a Produce Pack!
1- 2.5 lb. Bag Potatoes
1 Head Romaine Lettuce
1 Bag Carrots
1 Stalk Celery
4 Sweet Potatoes
1 Bag Radishes
5 Oranges
4 Apples
We ordered 2 basic packages, which come with the produce packs, plus an additional produce pack. It's a LOT of food!
Here is a preview of April's menu, available now to order through our local SHARE host site. I'm especially excited about getting frozen blueberries for $1.70/lb from the Select menu in April. I see blueberry smoothies in our future menus!
When you go to sign up and put in your order, be sure to bring cash. It is the only accepted form of payment.
I would highly recommend you give the SHARE program a try if you're interested in cutting your grocery bill and willing to design your menus around the basic frozen meats and fresh produce in the box!
Tuesday, March 23, 2010
Financial Fun Part 3: Grocery Shopping--How low can you go?
When my husband and I married, we both worked and we spent lots of money on food. We went to the grocery store and spent $100 easily each trip and we still went to restaurants several nights a week. We threw away produce like crazy because we didn't eat it, and our donations to the food bank were pretty amazing. When we decided to go to one salary, I was charged with finding ways to cut the budget so I went to coupons to save money. I wasted tons of money. I didn't know how to use them effectively, and I bought random "stuff" in the name of "a good deal."
I eventually became a "couponer"--sort of like one of those people you see on TV--but before that I learned how to take on the grocery store and leave with money in my pocket, and that is the conversation I would like to start today. How do we save money on food without clipping coupons?
Time for a little introspection
Ask yourself a few questions:
1. Do you throw away large amounts of produce, meat, or dairy each week because you aren't able to consume what you have?
2. Do you have expired food in your pantry that you never got around to eating?
3. Do you dread seeing how much the "damage" is when you get to the cash register at the store?
Getting ready--do a little math
How much do you actually spend on food? Write down your best estimate. According to many financial experts, the food budget (including grocery shopping and restaurants) should be 5-15% of your total income. Take a minute to calculate how much of your income that would be. How do those numbers compare to what you actually spend? You may want to set a goal of lowering your grocery receipts to put you into the correct percentage range, and if you already spend in that range you may want to try to go even lower still.
How low can you go?
Lowering your food bills is like doing the Limbo. We don't start out two inches from the floor and expect success. Start where you are, then gradually lower your budget until you are spending what you want while still comfortably feeding your family.
Time to shop! Well, in a minute.
Now that we have a goal, it's time to plan to save. Here's what I suggest:
1. Pick a store, and shop there. Choose "your" grocery store based on where you believe you get the best deals overall, how practical it is to shop there, how much you like the staff there, etc. At one time I store "hopped" to get all of the good deals, and I tired of that pretty quickly. My bills are actually much lower now that I only shop at one store, Publix. Only shopping at this one store (one location, too) has allowed me to develop a friendly relationship with the staff as well, which means they are more likely to help me if I need assistance.
2. It's been said a hundred times already, but do not go into that store without a list. Also, estimate how much what is on the list will cost you. Would we buy a house without knowing how much it was going to cost until closing? A car? A car should only cost 10-15% of our income, roughly the same amount as food. If the cash register total is a constant surprise, that's like going to a car dealership, picking out the car we think we want, then going to the front desk and saying, "I'll take it! How much do you want for it?" If it's your first time estimating on your shopping list, estimate high so that the only surprise will be a pleasant one. As you continue to do this your estimates will be more specific and the process will be easier.
2b. I won't go into much detail, but treat your list with care. It's good to have a plan for everything you will buy, and be realistic about what you plan to purchase. Will your family actually eat it? Do you know how to cook it? Do you have time this week to actually cook it and eat it? Can it be frozen if necessary? Is your freezer big enough to hold it? (There is an awesome deal on frozen pizza this week at Publix, but I'm going to restrain myself because my freezer is just too small to hold them.)
3. Take the following to the store: Your list, a writing utensil (I've used a crayon before because it was the only thing in my purse!), a calculator, and your method of payment. As you shop, cross off the list what you buy, make note of any prices you may have mis-estimated, and keep a running total of how much you are spending. Be aware of how much money you have with you if you are paying in cash. Only buy what is on your list. (I do make an exception for milk, bread, and eggs. I am always forgetting to put them on the list, and they are necessary.) If you see something you would like to try, put it on the list for the next trip and include the price. Now you have something to look forward to! ;)
4. Wanna go hard core? Only take the amount you plan to spend in cash, and take no other forms of payment. It takes attention and calculation on your part, but those chocolate bars are nowhere near as tempting when you think you may be short at the cash register if you buy them. When I do this, I actually end up taking things off my list that I don't really need just so that I can stay under budget. It's a challenge, but it's kind of fun, too.
Afraid of getting strange looks from other customers? According to Thomas J. Stanley in his book The Millionaire Next Door, the majority of millionaires in this country are self-made, first generation millionaires who got that way by living well below their means. Seizing control of grocery bills is propelling your family toward unprecedented wealth. The next time someone gives you a funny look at the grocery store because you are actually paying attention to what you're buying, look at that person's overflowing cart of "stuff," smile sympathetically, and think to yourself, "You poor thing. You probably paid WAY too much for your car, too."
Next week let's stay in the grocery store. We'll play Deal or No Deal and tackle a few money-saving myths. Until then, let's hear your tips for how you have lowered your grocery bills!
I eventually became a "couponer"--sort of like one of those people you see on TV--but before that I learned how to take on the grocery store and leave with money in my pocket, and that is the conversation I would like to start today. How do we save money on food without clipping coupons?
Time for a little introspection
Ask yourself a few questions:
1. Do you throw away large amounts of produce, meat, or dairy each week because you aren't able to consume what you have?
2. Do you have expired food in your pantry that you never got around to eating?
3. Do you dread seeing how much the "damage" is when you get to the cash register at the store?
Getting ready--do a little math
How much do you actually spend on food? Write down your best estimate. According to many financial experts, the food budget (including grocery shopping and restaurants) should be 5-15% of your total income. Take a minute to calculate how much of your income that would be. How do those numbers compare to what you actually spend? You may want to set a goal of lowering your grocery receipts to put you into the correct percentage range, and if you already spend in that range you may want to try to go even lower still.
How low can you go?
Lowering your food bills is like doing the Limbo. We don't start out two inches from the floor and expect success. Start where you are, then gradually lower your budget until you are spending what you want while still comfortably feeding your family.
Time to shop! Well, in a minute.
Now that we have a goal, it's time to plan to save. Here's what I suggest:
1. Pick a store, and shop there. Choose "your" grocery store based on where you believe you get the best deals overall, how practical it is to shop there, how much you like the staff there, etc. At one time I store "hopped" to get all of the good deals, and I tired of that pretty quickly. My bills are actually much lower now that I only shop at one store, Publix. Only shopping at this one store (one location, too) has allowed me to develop a friendly relationship with the staff as well, which means they are more likely to help me if I need assistance.
2. It's been said a hundred times already, but do not go into that store without a list. Also, estimate how much what is on the list will cost you. Would we buy a house without knowing how much it was going to cost until closing? A car? A car should only cost 10-15% of our income, roughly the same amount as food. If the cash register total is a constant surprise, that's like going to a car dealership, picking out the car we think we want, then going to the front desk and saying, "I'll take it! How much do you want for it?" If it's your first time estimating on your shopping list, estimate high so that the only surprise will be a pleasant one. As you continue to do this your estimates will be more specific and the process will be easier.
2b. I won't go into much detail, but treat your list with care. It's good to have a plan for everything you will buy, and be realistic about what you plan to purchase. Will your family actually eat it? Do you know how to cook it? Do you have time this week to actually cook it and eat it? Can it be frozen if necessary? Is your freezer big enough to hold it? (There is an awesome deal on frozen pizza this week at Publix, but I'm going to restrain myself because my freezer is just too small to hold them.)
3. Take the following to the store: Your list, a writing utensil (I've used a crayon before because it was the only thing in my purse!), a calculator, and your method of payment. As you shop, cross off the list what you buy, make note of any prices you may have mis-estimated, and keep a running total of how much you are spending. Be aware of how much money you have with you if you are paying in cash. Only buy what is on your list. (I do make an exception for milk, bread, and eggs. I am always forgetting to put them on the list, and they are necessary.) If you see something you would like to try, put it on the list for the next trip and include the price. Now you have something to look forward to! ;)
4. Wanna go hard core? Only take the amount you plan to spend in cash, and take no other forms of payment. It takes attention and calculation on your part, but those chocolate bars are nowhere near as tempting when you think you may be short at the cash register if you buy them. When I do this, I actually end up taking things off my list that I don't really need just so that I can stay under budget. It's a challenge, but it's kind of fun, too.
Afraid of getting strange looks from other customers? According to Thomas J. Stanley in his book The Millionaire Next Door, the majority of millionaires in this country are self-made, first generation millionaires who got that way by living well below their means. Seizing control of grocery bills is propelling your family toward unprecedented wealth. The next time someone gives you a funny look at the grocery store because you are actually paying attention to what you're buying, look at that person's overflowing cart of "stuff," smile sympathetically, and think to yourself, "You poor thing. You probably paid WAY too much for your car, too."
Next week let's stay in the grocery store. We'll play Deal or No Deal and tackle a few money-saving myths. Until then, let's hear your tips for how you have lowered your grocery bills!
Tuesday, March 16, 2010
Financial Fun Part 2: Cash on the Barrel and the Saving Game
Since we were married, my husband and I have tried different methods of spending for our household. For a while, we put all of our purchases on our Discover Card and then we paid our bill at the end of each month. In theory, it's a fine idea, but we have a little problem--we don't mind spending money if we can't see it disappearing. Our credit card bills climbed each month as we threw lunches with the office and cupcake sprinkles onto our plastic, and we finally decided that we just couldn't go on that way and expect to achieve our financial goals.
So, our solution is a cash budget for our monthly spending. We were, as always, inspired by Dave Ramsey's envelope system, but over time we have personalized it to fit our family. The following document shows the categories of our envelopes, and they are taken directly from our MASP:
Our Envelope System
This is what I did:
1. I created the system using a coupon organizer, envelopes from the bank, and some paper clips. Each envelope is labeled with an item from the MASP.
2. I arrange the envelopes into sections that make sense to me, and that is not always how they are organized on the MASP. For example, in my organizer I put our Sunday School offering and church dinner money into the same section because they are both paid at church.
3. Each month after I have set the monthly spending plan I total the amount of cash I need (Excel does this for me nicely) and write myself a check for the exact amount.
4. (This is where I may lose some of you, but I promise this is not hard at all.) I make a list of the bills I need. For a category that needs $35, I write down 1-$20, 1-$10, 1-$5. I do this for each category and then tally the amount of each bill at the end. I give this list to the teller when I cash my check. (I have cashed my check both inside the bank and out, and they have NEVER said a word about my list, by the way. When I asked them, they said lots of people do it.) All in all, if you can count money, this step will take about five minutes.
4b. I actually organize each folder by bills. Our grocery budget is $50 per week (not a typo, by the way) and I include $100 for "stocking up" on good deals along the way. I have one $50 bill for each week, and I keep the "stocking up" money paper-clipped together in the same envelope so that it doesn't get confused.
5. Each envelope is sacred and used ONLY for it's intended purpose. If I run out of gardening money, too bad. I will have to budget more wisely next month. Also, once the money is gone it is gone for the month. We do not allow extra purchases to be charged.
**Just a note, we don't use the cash system to pay for gas. It's too hard with a little one in the car, so we pay at the pump with our debit card.
Now, these are the little games I play to save more money:
1. I don't spend change. If I receive coins as change after a purchase I keep them separate from the envelopes and put them in a jar when I get home. Each month we roll our coins and deposit them into savings.
2. I taped an envelope to the door on our computer desk and labeled it "Extra Savings." Until January each month I paid for a cardio kickboxing class. Because of childcare issues I can no longer go to this class, but because we were doing fine spending the money I decided to keep it in the budget. When I fill my envelopes each month I just put that money into the savings envelope in order to entice me to save even more.
3. Each week, if I don't spend the entire amount allotted for groceries I put the leftover bills in the savings envelope. I do this for everything except the clothing category because I consider that to be more of a savings envelope for those purchases. This practice unleashes the competitive spirit in me, and by the end of the month I have managed to save about $100-$200 above our initial savings deposit.
Many financial experts agree that the best way to build wealth is to spend less than you make. Even though I don't bring a formal salary into our household, I can still see our emergency fund filling each month thanks, in part, to my vigilance over the cash budget. It's exciting!
What works for you? Any questions, comments? Let's keep the financial conversation going so we can all win!
Next week, let's save money at the grocery store without clipping coupons!
So, our solution is a cash budget for our monthly spending. We were, as always, inspired by Dave Ramsey's envelope system, but over time we have personalized it to fit our family. The following document shows the categories of our envelopes, and they are taken directly from our MASP:
Our Envelope System
This is what I did:
1. I created the system using a coupon organizer, envelopes from the bank, and some paper clips. Each envelope is labeled with an item from the MASP.
2. I arrange the envelopes into sections that make sense to me, and that is not always how they are organized on the MASP. For example, in my organizer I put our Sunday School offering and church dinner money into the same section because they are both paid at church.
3. Each month after I have set the monthly spending plan I total the amount of cash I need (Excel does this for me nicely) and write myself a check for the exact amount.
4. (This is where I may lose some of you, but I promise this is not hard at all.) I make a list of the bills I need. For a category that needs $35, I write down 1-$20, 1-$10, 1-$5. I do this for each category and then tally the amount of each bill at the end. I give this list to the teller when I cash my check. (I have cashed my check both inside the bank and out, and they have NEVER said a word about my list, by the way. When I asked them, they said lots of people do it.) All in all, if you can count money, this step will take about five minutes.
4b. I actually organize each folder by bills. Our grocery budget is $50 per week (not a typo, by the way) and I include $100 for "stocking up" on good deals along the way. I have one $50 bill for each week, and I keep the "stocking up" money paper-clipped together in the same envelope so that it doesn't get confused.
5. Each envelope is sacred and used ONLY for it's intended purpose. If I run out of gardening money, too bad. I will have to budget more wisely next month. Also, once the money is gone it is gone for the month. We do not allow extra purchases to be charged.
**Just a note, we don't use the cash system to pay for gas. It's too hard with a little one in the car, so we pay at the pump with our debit card.
Now, these are the little games I play to save more money:
1. I don't spend change. If I receive coins as change after a purchase I keep them separate from the envelopes and put them in a jar when I get home. Each month we roll our coins and deposit them into savings.
2. I taped an envelope to the door on our computer desk and labeled it "Extra Savings." Until January each month I paid for a cardio kickboxing class. Because of childcare issues I can no longer go to this class, but because we were doing fine spending the money I decided to keep it in the budget. When I fill my envelopes each month I just put that money into the savings envelope in order to entice me to save even more.
3. Each week, if I don't spend the entire amount allotted for groceries I put the leftover bills in the savings envelope. I do this for everything except the clothing category because I consider that to be more of a savings envelope for those purchases. This practice unleashes the competitive spirit in me, and by the end of the month I have managed to save about $100-$200 above our initial savings deposit.
Many financial experts agree that the best way to build wealth is to spend less than you make. Even though I don't bring a formal salary into our household, I can still see our emergency fund filling each month thanks, in part, to my vigilance over the cash budget. It's exciting!
What works for you? Any questions, comments? Let's keep the financial conversation going so we can all win!
Next week, let's save money at the grocery store without clipping coupons!
Tuesday, March 9, 2010
Financial Fun Part 1: The MASP
Today I am going to start a series of posts about managing home finance. I am a devoted fan of Dave Ramsey, so most of what I tell you is what I have learned from him and others like him such as Larry Burkett and Thomas J. Stanley. I'm just going to tell you what is working for us, and I invite you to share your own successes. Hopefully through a friendly and helpful discussion we can help everyone reach the financial goals that are specific to each of us.
Our current financial goal is to put 3-6 months of expenses into an Emergency Fund Savings Account, so we are focusing on saving money. Creating a cash flow plan (AKA a "budget") has truly helped us use our money more wisely and we have been able to find extra money every month to put towards our goal. We call it our Monthly Allocated Spending Plan, and for the sake of typing I will refer to it as our MASP from this point onward.
Google Doc of Our MASP
We started our financial renovation with a MASP from the appendix of The Total Money Makeover. It was a great start, but over the months we have been able to modify that document and now we are saving more than ever, we have money for what we need, and we rarely feel like we have to pass by something we really want. (You should know that we have modified our approach to purchasing also, but I will discuss that in a later post!)
The main thing that has helped me manage our MASP is including the recommended percentages for each spending category. I put the recommended percentage next to the category, and because I use Excel for our MASP I created a formula for each category to calculate the percentage of the amount we are actually spending. This has truly helped me to see if we have any overweight categories--for example, our utility expenses are usually high due to a couple factors, one of which is the amount we spend on TV, Internet, and Phone. Since it's so obvious that these are issues when I see the percentages, this is something we will definitely tackle when our contracts are up this summer.
This is my monthly strategy:
1. Determine as accurate a picture of our income as possible, including salary, travel reimbursement, etc.
2. In our family, we do choose to tithe, so before anything else is paid we deduct the tithe amount.
3. We put at least 10% of our net income each month into savings, so I start with that figure. As I calculate down the list I add as much to that as I find.
4. Next is housing and utilities. The mortgage does not change, but utility bills can change drastically in our area due to the crazy weather, so my plan of attack there is to always budget for the highest utility bill we have ever received (that is the second reason our percentage is high in that category). Again, our goal is to save, so not only are we prepared for the worst case scenario of energy bills, but when our bill is not as high (which is most of the time) we are able to deposit the difference into savings. I think you'll see that I use the tricking-myself-into-saving approach quite a bit!
5. Next, I check my calendar. My calendar is my all-time necessary tool for giving our money names. I look for meetings, appointments, fees that are due, the number of grocery shopping days in the month, the number of Wednesday night church dinners, the number of Sundays for our son's offering...all of those expenses are recorded at the beginning of the month so that on that last Tuesday of a five-Tuesday month we aren't struggling to find grocery money.
6. Last month I realized that I was spending money every month on certain things, but I wasn't specifically allocating money for them. I added Gardening and Newspapers to my list, and now I'm not digging through the change jar to buy fertilizer and papers!
7. For what is left of the month, I consider the other categories like entertainment and clothing. This month is Spring Break, so I have added more to our entertainment budget than usual. At the beginning of the school year I will need more money for clothing. Again, I keep all of these allotments within the suggested percentages.
8. Finally I identify any expenses that can be paid in cash, and I highlight those in yellow. I write myself a check for these, and I put the money into our envelope system to be used as needed throughout the month. I will go into detail next week on managing and really working the cash envelope system.
Budgeting is just giving money a purpose and a name, and it has truly helped us to put our funds where they need to go. I hope this helps!
Our current financial goal is to put 3-6 months of expenses into an Emergency Fund Savings Account, so we are focusing on saving money. Creating a cash flow plan (AKA a "budget") has truly helped us use our money more wisely and we have been able to find extra money every month to put towards our goal. We call it our Monthly Allocated Spending Plan, and for the sake of typing I will refer to it as our MASP from this point onward.
Google Doc of Our MASP
We started our financial renovation with a MASP from the appendix of The Total Money Makeover. It was a great start, but over the months we have been able to modify that document and now we are saving more than ever, we have money for what we need, and we rarely feel like we have to pass by something we really want. (You should know that we have modified our approach to purchasing also, but I will discuss that in a later post!)
The main thing that has helped me manage our MASP is including the recommended percentages for each spending category. I put the recommended percentage next to the category, and because I use Excel for our MASP I created a formula for each category to calculate the percentage of the amount we are actually spending. This has truly helped me to see if we have any overweight categories--for example, our utility expenses are usually high due to a couple factors, one of which is the amount we spend on TV, Internet, and Phone. Since it's so obvious that these are issues when I see the percentages, this is something we will definitely tackle when our contracts are up this summer.
This is my monthly strategy:
1. Determine as accurate a picture of our income as possible, including salary, travel reimbursement, etc.
2. In our family, we do choose to tithe, so before anything else is paid we deduct the tithe amount.
3. We put at least 10% of our net income each month into savings, so I start with that figure. As I calculate down the list I add as much to that as I find.
4. Next is housing and utilities. The mortgage does not change, but utility bills can change drastically in our area due to the crazy weather, so my plan of attack there is to always budget for the highest utility bill we have ever received (that is the second reason our percentage is high in that category). Again, our goal is to save, so not only are we prepared for the worst case scenario of energy bills, but when our bill is not as high (which is most of the time) we are able to deposit the difference into savings. I think you'll see that I use the tricking-myself-into-saving approach quite a bit!
5. Next, I check my calendar. My calendar is my all-time necessary tool for giving our money names. I look for meetings, appointments, fees that are due, the number of grocery shopping days in the month, the number of Wednesday night church dinners, the number of Sundays for our son's offering...all of those expenses are recorded at the beginning of the month so that on that last Tuesday of a five-Tuesday month we aren't struggling to find grocery money.
6. Last month I realized that I was spending money every month on certain things, but I wasn't specifically allocating money for them. I added Gardening and Newspapers to my list, and now I'm not digging through the change jar to buy fertilizer and papers!
7. For what is left of the month, I consider the other categories like entertainment and clothing. This month is Spring Break, so I have added more to our entertainment budget than usual. At the beginning of the school year I will need more money for clothing. Again, I keep all of these allotments within the suggested percentages.
8. Finally I identify any expenses that can be paid in cash, and I highlight those in yellow. I write myself a check for these, and I put the money into our envelope system to be used as needed throughout the month. I will go into detail next week on managing and really working the cash envelope system.
Budgeting is just giving money a purpose and a name, and it has truly helped us to put our funds where they need to go. I hope this helps!
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