30 Days of Thinking

I don't know about you, but sometimes I get a really big list of wants- expensive wants.  Well, instead of taking out the credit card and running to the store, I take out a 3x5 card and write them. Then I prioritize what I want first, search for good deals, and just plain wait.

I recently learned there is a thing called the 30 day challenge.  When you find something you "just got to have" you write it down and wait 30 days.  If you still want it- and have the money- then buy it.

I had five expensive (more than $50) things I wanted a few months back.  I knew we could not afford them all. So I wrote them down with about how much they would cost depending.

Printer $80 on sale
Carpet cleaner $90 on sale
specific preschool curriculum $190 for 2 yrs)
food dehydrator 60-100+ on sale
freezer 200+

Here is what happen:

 I had already waited a long time for a printer- ours stopped working.  Instead my awesome husband spent some time fixing it.  Instead of $80 we spent $13.

Carpet cleaner- Wait, all I want to do is clean a chair.  I will ask around and find one I can borrow.

Preschool lessons- Um, I graduated in Early Childhood Development. I know how to write my own lesson plans.  Bought a $4 book with activity ideas specific to the curriculum I liked.

Food dehydrator- still want, but it is the beginning of spring. I don't need it yet.  It can wait.

Freezer.  It was a long wait to get a second freezer!  I had a month to look at reviews, prices, space in our apartment, etc.  Yup, it's got ordered as soon as possible!

Giving myself some time to think about my wants saved us hundreds of dollars. Doing it with small items helps too!

What ideas do you have to save money?

Savings With a Goal in Mind

I read an interesting article in the news that made me look at savings in a different way.

lhttp://www.deseretnews.com/article/865618681/Bucket-list-budgeting-How-to-squirrel-away-money-for-fun-things.html

I have always been a saver.  I like the security, say when for a year you need to use a part of your savings every month just to get by. (Cough cough)

Anyway, I realized savings with out a goal for that savings can be hard.  What's the point?  That is reason I love to save- my goals.  Perhaps it is not a trip to Italy, but my goals are a nice emergency savings, retirement, and owning a home.

Things like retirement can be very far away. In the article, it talks about saving for short term goals (within 5 years) as well.  For example, my 5 year financial bucket list includes a nice trip, new(er) car, and a large down payment on a house. That is why I am so excited this year about savings!  Our emergency fund is back up where we want it to be so every penny we save from here on out goes to fulfilling our financial dreams.

What kind of things do you want to save for?  How do you plan on increasing your savings?

The Gift

I know I already posted a video, but I really like this one as well.

I heard on the news that over the Thanksgiving weekend Americans spent over 2 billion dollars on online and store purchases. (I contributed to that.)  Anyway, I think we sometimes get so caught up in the getting and giving of stuff that we lose sight of what is most important.  

Christmas should be a time of truly caring for and loving others- not just a list of items to be obtained.

This season should be one of joy and peace and happiness. We are celebrating life and unconditional love.

God's gift to the world

Emergency Preparedness: Financial Reserve

Emergency Preparedness: Financial Reserve

Not all disasters are natural disasters or ones that effect entire neighborhoods.  Some just affect your family.  When hard times hit it is comforting to know you can pay your bills and feed your family.

Way back when I began this blog it was because we knew our money was going to be tight for a few months.  As it turned out we needed our finical reserve to stretch for more than a year.

I have heard the recommendation of putting 10% of your income into savings every month for emergencies.

Dave Ramsey suggest getting a 1,000 dollar emergency fund, paying off all debt, if you have any, and then building your savings to a 3-6 month fund.

When the financial storms come you will also be surprised at all the things you are able to cut out of your budget.  You are simply able to live on less.

I've know people that have been out of work for months.  What a comfort for those that have- and a nightmare for those who don't have- a financial reserve. And you avoid more debt.

This isn't something you build up in one month- it happens over the course of many months.  Being consistent and aware of your money is the key.

Savings is worth it.

Cost of Children

I always get upset when I read the estimated cost of raising children.  The numbers are outrageously high.  I always thought, " Are they surveying people who are buying designer clothes, new cars, and world vacations for their children?"

Here is an awesome article by Linda and Richard Eyre that puts it in better words than I ever could.  They even point out in the long run a child may actually save a couple money.


http://www.deseretnews.com/article/865585372/Does-a-child-really-cost-that-much

Blown Budgets

In May I discovered two things that ruin a well kept budget really quick.
Moving- Expensive
Being Sick- Who wants to keep a budget?

Try being sick while moving.  I bet your only goal would be survival.

If someone is looking at just beginning a budget or starting to keep one again you only need to google budget to find a million sites with budget sheets and tips.

My suggestions:
Find something that works for you.
Keep it simple- The easier it is to work with, the more likely someone is to stick with it. Some people like computer programs or apps they can have on their phone.  I just use Excel. Some go good old fasion route of paper and pencil.

I based my budget off of this temple
Family Budget Worksheet


Here is a great pamphlet on spending money wisely:
One For the Money

Money Moment-Credit Card Interest

  

I love the convenience of a credit card.* It is so much more convenient to swipe the card when getting gas than to go inside to pay.  Online shopping is another one of those things.  Yes, I use a credit card.  However, I have never paid interest.

When I use my card, it goes on the budget as money spent for the month.  Before the month ends I go to the bank's convenient online banking website and pay the card off in full.  A credit card is a tool to help save time at the register not an excuse to spend more money than you make in a month.

*If your card is constantly pounding interest out of you, I suggest switching to a debit card.  For either card, make sure the money is in your account before you run off and spend!

Costco- A Big Price Tag

It was a warm Saturday afternoon as I pushed my over-sized cart at a snails
pace behind a rather plump woman.  As I tracked up and down the over crowded aisle searching for a hidden item- if it was even there at all- I kept an eye out for a much needed store employee as this endless maze of products was unfamiliar to me.  They must have all been working the cash registers with Disneyland sized lines in front of  them, because all I found were other small vendors within this mass of a store.

My parents were elsewhere in the store shopping. I am an adult, and I needed my parents to come with me so I could get into this store. That is because they have this lovely thing called "a membership". How backwards I always thought.  Yeah, let me pay you so that I can go shop and give you even more money!  Yet, here we were fighting the crowd for "an incredible deal", you'd think it was Santa's workshop.

Now I have a confession, Costco may save you more money than the membership, and since I was there, I must have thought it was worth going. I now have enough garbage bags to last my family for years and I was thrilled at the price of string cheese.  That being said, bulk is not always better and it often comes with a hefty price tag.

With only nine items in my cart, the bill totaled well over a hundred dollars! That was practically our entire food budget for the month. Lucky for us it wasn't all food, therefore we weren't going to be stuck eating string cheese for every meal. I did however learn much from my shopping experience.

• Stores that require a memberships take a certain amount of purchases before the membership has paid for itself and you actually begin saving money. Living on scratch, I buy very little. I'm not even sure a membership would ever pay for itself much less save money.
• As I wandered the store I noticed the bulk items were all name brands (except a few select Kirkland items). A little math, a knowledge of generic prices items at other stores, I discovered buying in bulk, while cheaper than the small name brands in the stores, was not cheaper than the generic brands.
• Impulse buyers beware! I buy things that are not on my list, I admit it. Difference is at a regular store the items are like $1-$3.  At a bulk store like Costco, that impulse buy is going to cost you more like $15.  Ouch, and then you wonder how you grocery bill got to be so high.
• If it will go bad, the price you pay is for wasted food.  I walked by the fresh fruit, but honestly, we don't need 8 pounds of strawberries.  It would be cheaper to buy 2 pounds, that I know we will eat then pay more money for food that will go bad.  In that regard, the "good deal" becomes 3 times more expensive than the smaller package.
• Similarly, will you really eat it? Look at expiration dates.  You have to buy a lot, will you use all of the syrup, mac and cheese, or yogurt before it expires? If you don't eat mac and cheese very often, don't buy it in bulk, you'll end up overpaying for the portion you actually did eat.
• Be prepared for a big price tag. If you really will go through 50 pounds of flour, five dozen eggs, or 60 string cheeses before it expires, be prepared for a big price tag.  You pay a lot up front, so hopefully you will not have to go to the store very often.  
• They also only accept American Express credit cards.  I don't know if you have to get credit card to have a membership, or if you can pay always pay with a check or debit- certainly you don't want to walk around the store with hundreds of dollars in cash.  Be leery of getting another credit card, it invites more opportunity for debt and lowers your credit score- something to keep in mind if you are going to be making a big purchase (like a house) in the near future.
• For those that like to use credit, make sure your don't rack up a bill that you can't pay off. Wasting money though interest is worse than having to buy your way into a store in the first place.

Beware when people advertise "great deals" for the whole store. Remember, they are making money somehow.

Best Newlywed Financial Advice

Live Off of One Income

It Can Be Done

The best financial advice for newlyweds was not something I was given at my own wedding; it was something I overheard while at a friend's reception years prior.
An old man told the newlywed couple, "While you're both working and before the children come, live off of one income."

I love that advice, not only are you saving a whole lot of cash (assuming you both are working) but if something happens, such as a job loss, it is not a financial strain on the marriage.

MY husband and I place great emphasis on family and believe children thrive best in a traditional family setting.  Before our first child was born we lived off of the one income rule. When our baby was born and I became a stay at home mother, we were already living on one income, therefore, we endured no hardship at the loss of my income.  Then came my husband's last semester in college (the one that prompted the starting of this blog) and the uncertainty of a job after.  We were and still are very grateful for the savings we built up in our first years of marriage.

If you are newly married (or will be soon) avoid excessive debt, you don't need a house, a new car, or whatever else people may tell you, you need to prepare for the uncertainties that certainly will come your way.  Live off of one income and enjoy the savings safety net.

Pay Yourself- Splurging Can Be Okay

Pay Yourself                 

I'm not talking about saving 10% of your income, which is great advice and should be a money moment in an of itself, I'm talking about giving yourself some play money.

Splurging in small increments actually helps you budget your money better- it takes away the feeling of scarcity or the "burden" of saving. Saving without play can lead to a "budget burst" or an unplanned shopping spree that you may regret later.  However, allowing yourself to spend a little fun money each month is not only good for your budget it is good for your mental health.  In studies psychologists have found that small, frequent, splurges actually make people happier than infrequent large purchases. (Journal of Consumer Psychology: If Money Doesn't Make You Happy, Then You Probably Aren't Spending It Right, by Dunn, Gilbert and Wilson)

I am a budget fanatic, I calculate everything we spend from the dollar movie we rented to the groceries or gas in the car. But, every month my husband and I budget what we call Personal Money, or fun money; just a small amount of money that we can do whatever we want with. This is one area we use cash for. It works like this, if you have the cash, you can buy what you want, if you don't spend all your personal money, more for next month. Lucky you.  Having fun money set aside makes going out to eat or buying a new toy recreation instead of a budget strain.  Fun money keeps the rest of the budget in check.  So pay yourself, even if it is just a little.

Money Moment- ATM Fees

Welcome to Money Moments. This first idea came after someone mentioned they needed to run to an ATM before paying me for babysitting.  I sure hope it was a free one.

I don't believe in wasting money.  Paying a machine to give me my money- no goods, no service- is wasting money.  The average ATM fee is more than $2.00.  The average withdrawal is $60 per a transaction. That's over 3% in fees just to get the money!

Stopping by the bank is worth it to me.  (There are also free ATM's.) A little planning ahead can prevent your money from being wasted and keep more of it in your pocket.

Happy Saving!

Thrift Stores

When looking for seasonal clothes for growing children, secondhand stores can save you a lot of money.

My growing toddler needed a coat- since she outgrew last years.  I went to the store to find one on sale- $30! At fifty percent off.  No way, not for a coat that she was going to wear for only one season before outgrowing it by next winter.

To the local thrift store.  Coat, Jacket, and shoes- for a total of $2.40.  A little washing and a lot of saving!

Spending is Not Saving

Just a small soap box moment.  I went to a seminar on "How to Save on Groceries" last Wednesday.  Coupons- which I rarely use.  Guess I can try them and see if they can lower my already low grocery bill- can't beat homemade.

Anyway, soap box- The presenter made the comment, "The more you spend the more you save."  NO!  The more you spend the more you spend!  With the "spend so you can save" philosophy you can "save" yourself right into a whole lot of debt if you're not careful.  Let's define some money terms: Getting paid to do work is called Earning, keeping your money is called Saving, giving it away- even for a "great deal"- is called Spending.  We do all three, but one is not to be confused as another.  That is all.