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!

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!

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!

So Long, Farewell

Auf Wiedersehen, Goodbye

I hate quiting almost anything except diets, of course. In fact, I had to quit my high school job at Claire's twice. The first time, my boss talked me out of it.

Sadly, my time at Motley Moms has come to an end. I would really like to sugar-coat this by saying, this is just a break; but the truth is, it is time for me to move on. My wonderful little boy keeps me busy in ways that are quite different than what most typical families face. I hope to find a place to share my stories with other special needs families.

I wish you all the best of luck, and please keep in touch on Facebook or via email! I am so glad our paths have crossed.

Love, Pam

Siblings

I am excited to announce that My Hubby and I handed in our paperwork for our reapplication for adoption! We have had the paperwork since November and FINALLY finished it! It is A LOT harder to work on paperwork when you have a 2 year old running around! : )

Now we have to wait for our background checks to get back to the agency and we will be matched up with a social worker(SW). We just have to meet with the SW once to update our homestudy and we will be on the waiting list!

I have a cute story about the process so far:

I had some of the paperwork sitting on the table while our Little King was eating lunch. "What's that?" he says pointing to the paperwork.

"Oh that is paper to help us get you a sibling." I tell him

"Ohhhhhhhh.... sibbing!" He says.

"Do you want a sister?" I ask

"Ohhhhh Sister!" he says

"Or do you want a Brother?" I ask

"No, no... no brother!" He tells me.

Hmmmmmmmm do I take the advice of my two year old and go on the girl list?!?

We get to choose if we want a boy or a girl, which sounds great except that it is a REALLY hard decision! I mean I am choosing if my son has a brother or a sister and that means I am choosing if my son does NOT have a brother or a sister. It is a hard choice. I loved having a sister to share a room with, but I also loved have brothers too!

Later I asked him the same questions about a brother or a sister and his reply was: "No brother, no sister!" (which I think is the more honest answer!)

I hope all you Motley Moms in Florida are having fun with Karly this week... I am not going to lie to you...I am jealous!

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!

L-Dub

I think I've posted before about how when I graduated from college I wanted nothing more than to get out of Lake Wales. I did, too, for a month, before I was offered a job here I couldn't pass up. I was never able to "get out," and then I met my soon-to-be husband and the rest, as they say, is history. Now, though, I love Lake Wales, and I thought this week I'd share with you some of the things I like about this small town in central Florida.

1. Orange blossoms - Yes, they make me sneeze, but they smell heavenly. I especially love driving around in 75-degree sunny weather in February and March with the windows down, smelling these gorgeous flowers.

2. Sandhill cranes - I regularly see them feeding in my yard, which delights my boys to no end.

3. Oranges on the road - I love to try to run them over. They make a fabulous "squish."

4. Plant City strawberries

5. the Lake Wales Art Show

6. Fat Boy's Barbecue - no ambiance, iffy service, but the food is cheap and the sweet tea can't be beat!

7. Circle of Friends - A ministry in our town for mentally handicapped citizens. I am amazed that this organization exists and thrives in such a small town.

8. The Care Center

9. MOPS - We have a very accepting group here, which, I have learned, isn't true everywhere.

10. Bok Tower Gardens

Any more I've forgotten?