You may not believe that clipping those coupons or buying in bulk does much. In that case, I would be obligated to disagree. And if you happen to live alone, or with only one person, the savings can be quite noticeable. For example, if you buy trash bags in bulk, they will sit and sit for months and months before they run out.
Initially, more does cost more. --But if you took a calculator with you on your next shopping trip, and compared price per unit in bulk versus smaller sizes, you'd see the difference. The difference is small-scale. Then multiply that difference over the course of a year, I'm sure you'd go for the bulk.
Growing up, my home was always busy and we were always running out of something all the time. Why, because as I mentioned before, my mother almost always left behind the coupons I cut out, and she rarely bought anything but food in bulk. So me being me, I expanded greatly on the idea of buying in bulk.
It's one of the first things I did once I ventured out into the world, even when I lived alone. I buy everything I can in bulk, that means trash bags, paper products and soap. That also means family size chicken and beef, $10 packs of cheese singles, dry foods such as rice, oatmeal and noodles, and even bread. Yes bread.
Bread is one of those things people make a point to buy by the loaf, fearing that dreaded M-word. But completely by accident, since my two kids eat a lot of sandwiches and toast, I found out that I could buy four loaves at once. Now you're thinking, don't the waiting three loaves get moldy? The answer to that would be no. --Shocking, I know.
The trick is to freeze them. Yes, freeze, hopefully you have room for this. As you get to the last two or four slices, take a new loaf from the freezer to thaw on it's own. Better still, it could take up to three weeks of sitting out before the formally frozen bread starts to mold, even during the summer. Now, I have to warn you, it does taste a bit different, but not by much. Most people don't notice the taste until you tell them it's been frozen, unless they eat plain bread. I also freeze the cheese and butter, I put one pack of cheese and one stick of butter in the fridge, and sit one stick out, since we use entirely too much to begin with.
As far as coupons, yes, it can be a daunting experience, if you hate cutting them out, as with the coins mentioned before, find someone who likes to do it. If you keep them in good order, even if you don't deal with the process of rebates, you still can save on average anywhere from $10 -30 per shopping trip, maybe more. I'm sure an hour going through the Sunday paper or online is worth the savings. And remember to only cut out what you normally use, otherwise you're wasting time or end up adding to your grocery bill.
Also, buying store brand products can easily cut your bill, I'm not saying buy everything store brand, we all have our favorites. But things like canned goods, bread, milk and juices are perfect for this. I rarely buy name brand canned goods, except for tomato soup. --Bet you can guess which one! But there is one staple that this doesn't apply to, and that's dish detergent. I've found that in general, cheap detergent is not worth the savings.
Till next time....
Wednesday, April 30, 2008
Monday, April 28, 2008
A Penny A Day Keeps The Bill Collector Away
Ah, so we've made it to entry number two. Actually, I was going to skip today, but, obviously, someone somewhere out in computerland is reading this, so here I am. Anyway, to the subject at hand. Budgeting, my best friend, where would I be without you? --Oh yeah, living on the street!
There's something I neglected to mention in the last blog, another reason why I have to budget is because I have a notoriously bad memory. My mother used to say, "If your head wasn't screwed on, you'd lose that too." --I suppose she's right. Anyway, where were we?
Budgeting is basically a requirement in life, if you don't like financial surprises and don't want to kick yourself in the butt later. Doesn't matter if you make $20,000 or $20,000,000 a year, the difference in zeroes are of no consequence. Any kind of savings has value. Hence, a major rule, avoid fees whenever possible. Sometimes they can't be avoided, and you must cough up the cash. But consider this, if you budget, meaning pay your bills on time whenever possible, if not, early, those two or ten dollars stay in your pocket where they belong.
Then imagine something else. --Say for example there were no checking accounts, no internet, no credit or debit cards, and every transaction you had to make was cash only? Then, on top of that, the bill collector personally came to your door and all your bills had to be paid to him, AND there was only one company? --And Mr. Bill Payment Guy says, "By the way, since you didn't pay us last week, you owe us the total bill and an extra twenty-five dollars to keep all of your services."
Okay, so that's a little on the extreme side, point made. In reality, we often willingly chuck over extra money all the time without a second thought, mainly because it's on paper, and we know we can pay it later. The weight of it doesn't really sink in as much as it would in my hypothetical situation or if it had to be paid in cash. Many times, we don't pay our bills on time or pay partial amounts so we can go out Saturday night, and wonder where those extra bucks went so fast, that's where. It goes into the pockets of multimillion and multibillion dollar companies, which only amounts as a few cents to them.
Then there's another related item of wasted cash, change, --that's right, change. By now, you've probably figured I'm one of those people who pick change up off the ground. And ding-ding-ding, that's right, I sure do! Long as it's not laying in something no more gross than mud, I will pick it up. Call me crazy if you want to, but change still spends.
I find it nearly every time I take a walk, regardless if I've walked the same route numerous times. People actually throwing it on the ground is a major pet-peeve of mine. Yes, change can be cumbersome, noisy, ugly and even frustrating to search for at the bottom of your purse or center console. --But it is money every day of the week.
So let's say you can't stand the sight of it. Okay, get an opaque jar or tin to throw it in, and when you want to get rid of it, just throw it in the jar. When it gets full, don't even bother, have your kids roll it up for you. Don't have kids, or they're not old enough? Find someone else to roll them up for you, or if you're lucky enough, maybe there's a counting machine at your bank. There are very few that still have these machines, but some do.
Maybe you're thinking, "I'll take it to Coinstar." --Nope, not a good idea. Why? Because they charge you like 7% and most of them require you to spend it online. Guess what? Most people don't, and that's what they're betting on, that's how they profit. Simply find someone who'll do it for you, out of five people, probably less, you'll find someone willing to do it for the fun of it. Yes, I said fun, some people are like me, and actually like counting money, even if it's not theirs.
Yeah it sounds like a hassle, but it's not. Why do I know this, because I was a waitress for two years, ( apparently not upscale ). I hated taking a load of change whenever I made deposits at the bank since back then I didn't have the time or patience. So, I started throwing my change into a big plastic novelty Pepsi bottle.
Then, whenever it looked like I had over $30, I'd roll them up all at once, and deposit them along with my check and tips. Funny thing is, before doing that, I'd never realized that it was that much. I had devalued it simply because it was change. Then I learned small amounts can add up quite quickly, same with earning interest. And I'm willing to bet that the haves pay much more attention to the small cents then the have nots.
Till next time...
There's something I neglected to mention in the last blog, another reason why I have to budget is because I have a notoriously bad memory. My mother used to say, "If your head wasn't screwed on, you'd lose that too." --I suppose she's right. Anyway, where were we?
Budgeting is basically a requirement in life, if you don't like financial surprises and don't want to kick yourself in the butt later. Doesn't matter if you make $20,000 or $20,000,000 a year, the difference in zeroes are of no consequence. Any kind of savings has value. Hence, a major rule, avoid fees whenever possible. Sometimes they can't be avoided, and you must cough up the cash. But consider this, if you budget, meaning pay your bills on time whenever possible, if not, early, those two or ten dollars stay in your pocket where they belong.
Then imagine something else. --Say for example there were no checking accounts, no internet, no credit or debit cards, and every transaction you had to make was cash only? Then, on top of that, the bill collector personally came to your door and all your bills had to be paid to him, AND there was only one company? --And Mr. Bill Payment Guy says, "By the way, since you didn't pay us last week, you owe us the total bill and an extra twenty-five dollars to keep all of your services."
Okay, so that's a little on the extreme side, point made. In reality, we often willingly chuck over extra money all the time without a second thought, mainly because it's on paper, and we know we can pay it later. The weight of it doesn't really sink in as much as it would in my hypothetical situation or if it had to be paid in cash. Many times, we don't pay our bills on time or pay partial amounts so we can go out Saturday night, and wonder where those extra bucks went so fast, that's where. It goes into the pockets of multimillion and multibillion dollar companies, which only amounts as a few cents to them.
Then there's another related item of wasted cash, change, --that's right, change. By now, you've probably figured I'm one of those people who pick change up off the ground. And ding-ding-ding, that's right, I sure do! Long as it's not laying in something no more gross than mud, I will pick it up. Call me crazy if you want to, but change still spends.
I find it nearly every time I take a walk, regardless if I've walked the same route numerous times. People actually throwing it on the ground is a major pet-peeve of mine. Yes, change can be cumbersome, noisy, ugly and even frustrating to search for at the bottom of your purse or center console. --But it is money every day of the week.
So let's say you can't stand the sight of it. Okay, get an opaque jar or tin to throw it in, and when you want to get rid of it, just throw it in the jar. When it gets full, don't even bother, have your kids roll it up for you. Don't have kids, or they're not old enough? Find someone else to roll them up for you, or if you're lucky enough, maybe there's a counting machine at your bank. There are very few that still have these machines, but some do.
Maybe you're thinking, "I'll take it to Coinstar." --Nope, not a good idea. Why? Because they charge you like 7% and most of them require you to spend it online. Guess what? Most people don't, and that's what they're betting on, that's how they profit. Simply find someone who'll do it for you, out of five people, probably less, you'll find someone willing to do it for the fun of it. Yes, I said fun, some people are like me, and actually like counting money, even if it's not theirs.
Yeah it sounds like a hassle, but it's not. Why do I know this, because I was a waitress for two years, ( apparently not upscale ). I hated taking a load of change whenever I made deposits at the bank since back then I didn't have the time or patience. So, I started throwing my change into a big plastic novelty Pepsi bottle.
Then, whenever it looked like I had over $30, I'd roll them up all at once, and deposit them along with my check and tips. Funny thing is, before doing that, I'd never realized that it was that much. I had devalued it simply because it was change. Then I learned small amounts can add up quite quickly, same with earning interest. And I'm willing to bet that the haves pay much more attention to the small cents then the have nots.
Till next time...
Sunday, April 27, 2008
First Post
Well, for starters, I know nearly all the applications of good budgeting. I was a born budgeteer, that's right, budgeteer, make it part of your vocabulary. I watched my mother struggle to raise us, all the while out-right refusing to write out a budget, and leaving coupons I cut out for her on the kitchen table. So naturally, that was the one of the first things I set out to do once I moved out.
Also, that fact that I was good with numbers helped a great deal. Even as a kid, I liked counting money, even if it wasn't mine. It seems to me, for many people, the reason or excuse for not budgeting is because they hate math. Why even associate your hard-earned cash with bad experiences in school? --Especially in today's economy, when a small mistake could mean the difference between having just enough money in your bank account to tide you over, or owing the bank, let's say $150 and counting until you can off-set it?
I've over drafted before, and the experience was a lot less enjoyable than a picnic. So where do you begin? Well, first, being fearful of owing the bank could be a great motivator over the fear of numbers. Second, there are those out there that always seem to earn more than their bills and usual expenses, but still fall short. So, I'll start there.
Budgeting, in general is easier than it seems. If you are lucky enough to make more than the total of your bills and usual expenses, but still fall short, this first blog is especially for you. This may be common sense to many, but still for some, there may be a click that just wasn't there before.
1. Add up all your monthly bills that are the same every month; car payments, housing etc.
2. Then the bills which tend to change month to month, use the highest amount, that you can recall over the last year, or if you happen to save everything, go find it now. Or you can always use the average between the highest and lowest. Also, don't forget to include average grocery bills, fuel( which you may have to raise each month ) and the like.
3. Subtract everything from your net earnings, now what do you have left? The next step is very important, and that is where most people mess up.
4. Let's say you started off with $3000 after taxes, and after the bills you're left with $600, what do you do? The answer is NOT to run out and spend it, at least not all of it. Put half that into a savings account. 10% is what you want to shoot for, if you can do more, more power to you. Sure, there's a $700 outfit and shoes or suit that you've been eyeballing for a week, but really, once you've worn it a few times, the novelty is sure to wear off. You'll thank me later.
5. The half that goes into your pocket, divide it among the weeks in the month as your weekly or biweekly stipend.
6. But here's the trick, when you actually write out or key out your budget, every week, the amount you set out for yourself should be listed first. That way, you're paying yourself first, even capitalize for your ego. Also, try to make your budget out over 3 or more months, that way, you get a real idea of where you are. And please, please, please, if you over-spend somewhere, just take that out of your stipend. Why pay the electric company EXTRA money when you don't have to?
Week of Apr 25
Ex: Balance $ 55
Check +1500
1555
Me - 75
1480
rent - 700
780
groc - 75
705
gas - 75
630
So that was kind of a crappy example, but you get the point. I noticed it's easier to do if you start your budget according to payday, or a day or two after rather than say Sunday or Monday. Also, if at the end of the month there is more left over, take only half, and put the other half into your savings account. That way, you're really paying yourself instead of the drive-thru or nail shop. Then, once your account holds enough to earn interest, get it changed over or into something that will make your money work for you. I don't know much about the stock market, and currently, I personally wouldn't take my chances. But there are interest bearing savings accounts, Money Market Accounts ( checking accounts that bear interest ) and CD's ( certificates of deposit ), it's not much, but free money is free money.
And whatever you do, leave it be, the more money you have staved away, the better, a penny saved is truly a penny earned. Most people who touch their savings accounts never put it back, and for everyday that money is not there, you are losing interest on it. Also, this can be a life -saver should something unexpected happen, such as car trouble or the washing machine gives out on you. I know there are many people out there that don't have these options and don't have enough to cover the bills. I will get to that, I'm just covering the above since I was in a similar financial situation, and fluffed it up.
My only excuse is that I was young, and knew no one who could guide me in the right direction. I had money, while everyone else around me made me into their personal bank. --And not that it was a lot either. I was living 'above' my financial means in a sense only because I knew how to finagle and pinch pennies where needed. I lived middle class, but I was actually just below the poverty line, didn't even have a credit card at the time.
Just so you know, and understand where I was so you don't make the same mistakes and take a dive because you think you have it all together. I was hanging by a thread that broke.
To be continued...
Also, that fact that I was good with numbers helped a great deal. Even as a kid, I liked counting money, even if it wasn't mine. It seems to me, for many people, the reason or excuse for not budgeting is because they hate math. Why even associate your hard-earned cash with bad experiences in school? --Especially in today's economy, when a small mistake could mean the difference between having just enough money in your bank account to tide you over, or owing the bank, let's say $150 and counting until you can off-set it?
I've over drafted before, and the experience was a lot less enjoyable than a picnic. So where do you begin? Well, first, being fearful of owing the bank could be a great motivator over the fear of numbers. Second, there are those out there that always seem to earn more than their bills and usual expenses, but still fall short. So, I'll start there.
Budgeting, in general is easier than it seems. If you are lucky enough to make more than the total of your bills and usual expenses, but still fall short, this first blog is especially for you. This may be common sense to many, but still for some, there may be a click that just wasn't there before.
1. Add up all your monthly bills that are the same every month; car payments, housing etc.
2. Then the bills which tend to change month to month, use the highest amount, that you can recall over the last year, or if you happen to save everything, go find it now. Or you can always use the average between the highest and lowest. Also, don't forget to include average grocery bills, fuel( which you may have to raise each month ) and the like.
3. Subtract everything from your net earnings, now what do you have left? The next step is very important, and that is where most people mess up.
4. Let's say you started off with $3000 after taxes, and after the bills you're left with $600, what do you do? The answer is NOT to run out and spend it, at least not all of it. Put half that into a savings account. 10% is what you want to shoot for, if you can do more, more power to you. Sure, there's a $700 outfit and shoes or suit that you've been eyeballing for a week, but really, once you've worn it a few times, the novelty is sure to wear off. You'll thank me later.
5. The half that goes into your pocket, divide it among the weeks in the month as your weekly or biweekly stipend.
6. But here's the trick, when you actually write out or key out your budget, every week, the amount you set out for yourself should be listed first. That way, you're paying yourself first, even capitalize for your ego. Also, try to make your budget out over 3 or more months, that way, you get a real idea of where you are. And please, please, please, if you over-spend somewhere, just take that out of your stipend. Why pay the electric company EXTRA money when you don't have to?
Week of Apr 25
Ex: Balance $ 55
Check +1500
1555
Me - 75
1480
rent - 700
780
groc - 75
705
gas - 75
630
So that was kind of a crappy example, but you get the point. I noticed it's easier to do if you start your budget according to payday, or a day or two after rather than say Sunday or Monday. Also, if at the end of the month there is more left over, take only half, and put the other half into your savings account. That way, you're really paying yourself instead of the drive-thru or nail shop. Then, once your account holds enough to earn interest, get it changed over or into something that will make your money work for you. I don't know much about the stock market, and currently, I personally wouldn't take my chances. But there are interest bearing savings accounts, Money Market Accounts ( checking accounts that bear interest ) and CD's ( certificates of deposit ), it's not much, but free money is free money.
And whatever you do, leave it be, the more money you have staved away, the better, a penny saved is truly a penny earned. Most people who touch their savings accounts never put it back, and for everyday that money is not there, you are losing interest on it. Also, this can be a life -saver should something unexpected happen, such as car trouble or the washing machine gives out on you. I know there are many people out there that don't have these options and don't have enough to cover the bills. I will get to that, I'm just covering the above since I was in a similar financial situation, and fluffed it up.
My only excuse is that I was young, and knew no one who could guide me in the right direction. I had money, while everyone else around me made me into their personal bank. --And not that it was a lot either. I was living 'above' my financial means in a sense only because I knew how to finagle and pinch pennies where needed. I lived middle class, but I was actually just below the poverty line, didn't even have a credit card at the time.
Just so you know, and understand where I was so you don't make the same mistakes and take a dive because you think you have it all together. I was hanging by a thread that broke.
To be continued...
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