Tuesday, October 26, 2010

Creating a Budget



Are you wondering where your money goes every month?  Creating a budget may not sound like the most exciting thing in the world to do, but it is vital in keeping your financial house in order. Before you begin to create your budget it is important to realize that in order to be successful you have to provide as much detailed information as possible. Ultimately, the end result will be able to show where your money is coming from, how much is there and where it is all going.
  • Gather every financial statement you can. This includes bank statements, investment accounts, recent utility bills and any information regarding a source of income or expense. The key for this process is to create a monthly average so the more information you can dig up the better.
  • Record all of your sources of income. If you are self-employed or have any outside sources of income be sure to record these as well. If your income is in the form of a regular paycheck where taxes are automatically deducted then using the net income, or take home pay, amount is fine. Record this total income as a monthly amount.
  • Create a list of monthly expenses. Write down a list of all the expected expenses you plan on incurring over the course of a month. This includes a mortgage payment, car payments, auto insurance, groceries, utilities, entertainment, dry cleaning, auto insurance, retirement or college savings and essentially everything you spend money on.
  • Break expenses into two categories: fixed and variable. Fixed expenses are those that stay relatively the same each month and are required parts of your way of living. They included expenses such as your mortgage or rent, car payments, cable and/or internet service, trash pickup, credit card payments and so on. These expenses for the most part are essential yet not likely to change in the budget. Variable expenses are the type that will change from month to month and include items such as groceries, gasoline, entertainment, eating out and gifts to name a few. This category will be important when making adjustments.
  • Total your monthly income and monthly expenses. If your end result shows more income than expenses you are off to a good start. This means you can prioritize this excess to areas of your budget such as retirement savings or paying more on credit cards to eliminate that debt faster. If you are showing a higher expense column than income it means some changes will have to be made.
  • Make adjustments to expenses. If you have accurately identified and listed all of your expenses the ultimate goal would be to have your income and expense columns to be equal. This means all of your income is accounted for and budgeted for a specific expense. If you are in a situation where expenses are higher than income you should look at your variable expenses to find areas to cut. Since these expenses are typically essential it should be easy to shave a few dollars in a few areas to bring you closer to your income.
  • Review your budget monthly. It is important to review your budget on a regular basis to make sure you are staying on track. After the first month take a minute to sit down and compare the actual expenses versus what you had created in the budget. This will show you where you did well and where you may need to improve.
Source:  Directly quoted from about.com, Jeremy Vohwinkle.  Article found here:  http://financialplan.about.com/od/budgetingyourmoney/ht/createbudget.htm

Here are some free budgeting tools I found for you online.  Now you have no excuse!  Decide which one fits your needs best and get to work managing your money!

http://www.kiplinger.com/tools/budget/ (electronic budget form)
http://financialplan.about.com/library/n_budget.htm (printable budget form)
http://www.betterbudgeting.com/budgetformsfree-basicbudgeting.htm (another printable budget form)
http://momsbudget.com/printables/householdbudgetprint.html (another printable budget form)
http://www.daveramsey.com/tools/budget-lite/ (quick 60 second online budget form)

Tuesday, October 19, 2010

Thrifty Christmas Ideas


It's that time of year to begin planning your Christmas.  Beginning early and planning ahead are the keys to being thrifty.  Here are some tried and true ideas to make your holiday a thrifty one!

1.  Make a list and narrow it down.  Determine the people you have to buy presents for.  Make a list.

2.  Create a gift budget.  Set a total limit, then divide it among people on your list.  When you shop, remember your budget for each individual and stick to it.

3.  Do an exchange.  This will really cut costs, especially if you have a large family or group of co-workers.  Instead of buying a bunch of gifts, you only have to buy one.  Our family does this and it's a huge de-stresser for us at Christmas.

4.  Make your own gifts.  Food items are always welcome, jar mixes, favorite quotes or photos framed (this is my new favorite gift), knitted/crocheted scarves and hats, photo slide shows, etc.  We had a friend who always made delicious treats and boxed them beautifully with tissue paper and decorated boxes.  They always seemed special because she put so much work into the presentation.

5.  Check out the thrift store and the dollar store.  Some people may cringe at this item but you might be surprised at the great gifts you can find there.  You may also find ways to package gifts with thrift store finds to make them unique and memorable. My friend found a beautiful bag at the thrift store and filled it with bath products.  Last year, I used Christmas ornaments from the dollar store and created star-themed gifts based on them.     

6.  Create home-made coupons for things like babysitting, yard work, car washes, massages.  I love receiving these (especially from my kids) and redeeming them when I most need the service.

7.  Make recipe books or recipe cards.  One of my all-time favorite gifts was a book my sister compiled of favorite family recipes.  It contains all my Mom's best recipes and adds my siblings most-loved recipes.  I use it all the time!  You can focus on a theme like chocolate recipes for a chocolate lover, for example.

8.  Give hobby-based presents.  Think about the hobbies of the person you are giving to:  sheet music for a musician, a plant for a gardener, golf balls for a golfer, scrapbook supplies for the scrapper, books for a reader, etc.  A well thought-out gift often has much more meaning than an expensive one.

9.  For kids, try making a dress-up box or trunk.  It doesn't need new clothes in it; instead, look for unique costume items at thrift stores or even in your own closets or attic.  One of our favorite family activities is letting the kids go to town in our dress-ups.  They come up with all kinds of unique costumes.  Some of their favorite items include a siblings' old cheerleader outfit, our Grandma's psychedelic 70s clothes, a black silky shirt with diamond buttons which becomes a pirate shirt, a slinky dress with belt, etc.  This gift encourages creativity and ensures hours of fun. 

Thursday, October 7, 2010

Getting out of Debt: A How-to Guide


Is debt weighing you down?  There is hope!  It takes time, hard work, effort and persistence but you CAN get out of debt.  Here is a helpful step-by-step guide to help you pay down debt and move toward a debt-free future.  Make up your mind to put a plan into place and don't give up until you are debt-free. 

In order to get out of debt you must do the following:

1. Create a budget and track how you spend your money.  A good household budget starts with an honest assessment of your monthly expenses. Use this budget worksheet to jot down all of your regularly occurring expenses, including any money that you spend on eating out, hobbies or other forms of entertainment. Fill in all of the fields that pertain to you, and ignore the ones that don't. Have expenses that aren't included on the form? There's room to add those in under the "Other" category.

2.  Set budget goals and find ways to lower your monthly expenses.  For example, do you need your car?  Can you ride the bus?  Do you need cable/satellite/netflix when you can find free tv and movies on the internet?  Try brownbagging your lunches at work and cooking from scratch! Little changes can make a big difference in your budget.  For money saving ideas, see these links: 

http://thrivingandthrifty.blogspot.com/2010/10/ways-to-lower-your-monthly-expenses.html

http://thrivingandthrifty.blogspot.com/2010/10/practice-thrift-and-frugality.html

3.  If cutting expenses still does not allow you to put money toward eliminating debt, look for other ways to make money.  Can someone else in the family contribute financially?  Can you take on a part-time or second job?  A paper route? 

4.  Create a debt elimination plan.  The following commitments are vital to this plan:
  • You must commit to stick to your budget.
  • You must commit to not use credit to purchase anything until your debt is eliminated.
  • You must commit to using at least 50% of increases in income to pay down your debt.
A Debt Elimination Calendar will help you eliminate debt.  Mark off several columns on a piece of paper.  In the first column, write the name of the month.  At the top of the next column, write the name of the creditor you want to pay off first.  It may be the debt with the highest interest rate, or the earliest pay-off date.  List the monthly payment for that creditor until the loan is repaid as shown below.  At the top of the next column, record the name of the second creditor you want to repay and list the minimum payment due each month.  After you have repaid your first creditor, add the amount of that monthly payment to your next payment to the second creditor.  In the example below, notice that the family finished making monthly payments on their credit card.  They then added $110 to the department store's $70 payment, creating a new payment of $180.  Continue this process until all debts are repaid.  

Sample Debt Elimination Calendar

Month
Credit Card
Depart. Store
Dentist
Auto Loan
Education Loan
January
110
70
50
235
75
February
110
70
50
235
75
March
110
70
50
235
75
April
110
70
50
235
75
May
PAID
180
50
235
75
June

180
50
235
75
July

180
50
235
75
August

PAID
230
235
75
September


230
235
75
October


PAID
465
75
November



465
75
December



PAID
540


Understanding Credit Card Debt


Are you in credit card debt and only making the monthly minimum payment on your credit cards?  If so, you will be paying a lot more than your original balance and your payments will last for a long time.  


This chart shows how much you'll pay and how long it will take to become debt free if you pay a 2 percent monthly minimum payment on your credit card.  Note that even with interest as low as 12% on a $1,000.00 debt, you'll end up paying an additional $373.00 in interest and it will take you 5.7 years to pay it off.  With higher interest rates, the payments last longer and you'll pay more. 


Consider paying just a little more toward your debt with the highest interest each month and you'll save significant time and money.  This chart shows that with as little as an additional $10 payment per month, you will pay much less interest and will pay for a much shorter duration. 



Minimum Payment Comparison Chart  $1,000 Credit Card Balance

Interest Rate
12%
13%
14%
15%
16%
17%
18%
19%
20%
Total if you pay monthly minimum (2%)
$1,373
$1,425
$1,482
$1,546
$1,620
$1,704
$1,804
$1,924
$2,073
Years to pay off the loan
5.7
6
6.2
6.4
6.75
7
7.5
8
8.6
Total if you pay monthly minimum plus $10 each month
$1,208
$1,231
$1,255
$1,280
$1,308
$1,336
$1,367
$1,400
$1,435
Years to pay off the loan
3.3
3.42
3.5
3.57
3.63
3.7
3.8
3.9
4
By paying $10 more each month, you save this amount
$165
$194
$227
$266
$312
$368
$437
$524
$638

Source:  National Endowment for Financial Education

Wednesday, October 6, 2010

Where to Begin? Calculating Your Net Worth

Have you ever wondered how to begin managing your money?  The first step is to calculate your net worth. This is an eye opening exercise and will give you a good picture of your financial standing.  After you have determined your net worth, you can set some goals to improve your financial future.  Here is a step-by-step guide to help you do so:

 1.  Add the sum of all your assets: 
  • Cash and Cash Equivalents:  Cash, Money in your bank account, savings accounts, etc.
  • Real Property:  Market values of owned real estate, automobiles and other personal property
  • Investments:  CDs, Stocks/Bonds, Mutual Funds 
  • Retirement Accounts:  IRA, Vested Pension Fund, 401K
  •  Any other asset not mentioned above
2.  Subtract what you owe on the following liabilities:
  • Mortgage
  • Other Debt:  Home Improvement Loans, 2nd Mortgages, Student Loans, Car Loans, Credit Cards
  • Owed Taxes:  Federal, State, Local
  • Contractual Obligations:  Tuition, Leases
3.  Net Value of Assets minus Net Value of Liabilities equals your Net Worth. 

Here is a link to a simple worksheet which will help you easily calculate your net worth:  http://www.financialliteracymonth.com/30Steps/Step8.aspx

Saturday, October 2, 2010

Practice Thrift and Frugality


Here are some ideas to help you "practice thrift and frugality."

  • Buy things used. Many things at our house were either free (from the side of the road or something someone was going to throw out) or purchased from a newspaper ad, a garage sale, a thrift store or e-bay and they're just like new but were a fraction of the cost of new items.

  • Eat out less. Making food from scratch is the cheapest way to go. Even if you buy pre-packaged food or easy prep meals at the grocery store, they will almost always cost less than buying even the most inexpensive meals from a restaurant.

  • Find free entertainment and recreation. The library is a marvelous resource with books, movies and fun programs for kids and book clubs for adults. Borrow books and movies from your friends (just remember to return them.) Form your own book groups, exercise groups and sports teams. Get out old instruments you played as a teenager and form a musical ensemble, find a tennis partner and play at the free tennis courts around town. Form playgroups for your children. Explore local parks.

  • Use your skills/talents to barter for other services. My mom used to barter piano lessons for dental checkups. I know someone who does taxes for dance lessons. Talk to your friends and neighbors. You might be surprised what hidden talents and skills they have to share.

  • Don't window shop. Make a list and stick to it. I often find myself at a store purchasing things I didn't realize I "needed" until I saw them. Don't go shopping just to look at things. Most people don't have the discipline to look and not buy. They end up spending money or make themselves miserable wanting what they can't have.

  • Throw away your catalogs before you look at them. If you don't see it, you won't need it.

  • Stay healthy. Exercise, eat right and you will save lots of money in health care costs.

  • Drink water. Forget soft drinks and juice. Stick to nature's best thirst quencher and you'll have more pennies in your pocket.

  • Cook large amounts of food in advance and freeze it. This allows you to save money by buying food in bulk, fills your freezer full of convenience food and will save you the cost of going out or buying prepackaged food. I can't tell you what a lifesaver it was having a freezer full of pre-made meals after I had twins. I probably would have had the pizza and Chinese restaurants' numbers memorized had I not taken the time to prepare meals in advance that I could just pop in the oven.

  • Maintain the things you have. Change your car's oil, rotate tires, change your furnace filters, fix leaky faucets, repair ripped clothing, etc. All these things will save you a great deal of money over time.

  • Sell things you don't use anymore. My friend took her kids' clothes from last year and sold them on e-bay for a hefty $600.00 (and she only has two kids.) You'd be surprised what people will buy from you if you make the effort to sell them. Go through each room in your house and decide if you really need items there. You'll be amazed at how many things you'll find to sell.

  • Eat less meat. It's expensive and there are lots of delicious meals that don't require meat.

  • Wash your clothes less frequently. Many clothes can be worn more than once and still be clean.

  • Consider your housing situation. Smaller is often better. You may not need all the house you have now. Plus smaller means less cleaning, right?

  • Save on transportation--take a bus, use mass transit, ride a bike, carpool, telecommute or only keep one car. If you get creative, you may find ways to save money.

  • Turn down your thermostat in the winter, and raise it in the summer. I'm not saying be uncomfortable, simply adjust it slightly so it's almost unnoticeable. You'll be surprised how much you can lower your energy bills by wearing warmer clothing in the house in the winter and keeping it slightly warmer in the summer.

  • Try designating a spending-free day or spending-free weekend on a regular basis. Cut out all incidental spending for a day or weekend. If you do this consistently over time, you'll soon have more money to rub together.

  • Use cash to purchase things. On average, people spend 30% more when they use a credit card instead of cash.

  • When you get unexpected money or a windfall, don't spend it on something extravagant or unnecessary! If at all possible, save it.

Ways to Lower Your Monthly Expenses


We are facing challenging economic times. Finding ways to reduce your monthly expenses will help you better utilize the financial resources you have so you can save money for a rainy day. Here are some ideas to trim your monthly expenses:
Automobile
Automobiles are money pits - they constantly go down in value, devour fuel by the gallon, and often require all manner of repairs and maintenance work. How can we reduce the cost of automobiles in our monthly budget?

Buy used vehicles People with normal incomes cannot afford new cars. New cars lose 60% of their value in the first four years. Save your money and pay cash for a used car. You will pay thousands of extra dollars over the life of a car loan.

Use public transportation If you have an option that enables you to ride to regular destinations (such as work, the store, or a shopping center) instead of using your automobile, you can save quite a bit of money on gas and maintenance by just dropping a few coins on the bus or the rail system and leaving the car at home (or parking it at a station).

Sell an automobile If an automobile is sitting in your driveway or garage and isn’t used, consider selling it. If nothing else, the insurance expense will go away, and if you can use the money from the sale to pay it off or, better yet, pocket some of the money, even better.

Carpool If you have an opportunity to share a ride to and from work with someone else, that not only significantly reduces wear and tear on your car and gas expenses, it enables you to use any carpooling lanes on the commute, which almost always save time when commuting.

Keep the tires on your automobiles inflated properly Once a month, stop by a local gas station that offers free air and check the air pressure in your car tires, then fill each one to the maximum recommended amount as stated in your manual. This improves gas mileage by one percent for every two PSI of air you are able to add to your tires.

Energy
We all face a continual onslaught of energy costs, especially as we use more and more electronic devices. Luckily, technology has brought us a few effective ways to reduce costs as well.

Install CFLs Compact fluorescent light bulbs are receiving a big push right now and their advantages are great: a longer lifespan and significantly less electrical usage. Stick with the name brands for now, even at a premium - my entire house switched to GE CFLs more than a year ago and I have yet to replace a single one. A tip: when comparing bulbs, use the lumens number to compare bulbs, not the equivalent wattages - the lumens indicate the actual amount of light emitted by the bulb. Remember also that under normal usage (4 hours a day) and normal electrical rates ($0.10 per kilowatt hour), replacing a 75 watt bulb with a 20 watt CFL saves $0.66 per month. Multiply that by all the bulbs in your house to see how much you’ll save every month.

Install a programmable thermostat A programmable thermostat allows you to automatically alter the heating and cooling of your home when you’re not at home, when you’re asleep, and so on, saving significantly on your heating and cooling bills.

Unplug all unused electrical devices Are there any electrical devices around the house that stay plugged in, but that you rarely use? Most electric devices use a small amount of electricity constantly, a phantom charge. To eliminate that usage, unplug the items.

Utilize timers and power strips Along those lines, consider utilizing power strips and power timers to turn electrical devices on and off. A power strip with a switch on it, when turned off, blocks the phantom charge on those devices; a timer can automatically turn off the charge going to a power strip (or anything plugged into it) at a certain time each night. This is a great way to eliminate phantom charge on your home electronic equipment at night.

Install a blanket for your hot water heater and reduce the temperature In many homes, the hot water heater is a major energy drain; the water is kept hotter than most people ever use, plus the heat is constantly lost to the environment, meaning you have to burn more energy than ever to keep the water so hot. Solve both problems by dropping the temperature down to 125-130 degrees Fahrenheit (around 60 degress Celsius) and also installing a blanket on your water heater to keep in the heat - a blanket can pay for itself in about a year.

Air seal your home Air sealing your home can prevent drafts, which can often cause the loss of cool air in the summer and the loss of warm air in the winter, both of which can increase your housing costs. Here’s a great guide to this weekend project from the EERE.

Entertainment
Many people look at entertainment as the first thing to cut when trying to trim costs, but they often forget to look at the regular expenditures that slowly eat away at your financial foundation month in and month out. Here are some things to consider that you may have overlooked before.

Cancel club memberships Look at things like a health club, a country club, and so on. How often do you really use these services? If you’re using a gym membership less than once a week or a country club membership less than once a month, you’re likely throwing away money.

Reduce or eliminate your cable/satellite bill For many people, this advice is beyond the pale, but it’s worth looking at. Perhaps you could trim back on your premium channel selection and just go with basic cable, or perhaps you could even eliminate your cable bill entirely - it will also help with electricity costs because you won’t be watching television as much and you’ll suddenly find you have much more free time.

Look for inexpensive entertainment options Do you utilize the local library? Do you attend local community events like municipal band concerts and so on? Are you aware of local volunteer groups and organizations? Your community often offers many options for inexpensive or free entertainment of all kinds - you don’t have to have a big entertainment budget each month.

Strongly reduce or eliminate travel By being selective about what we travel to - and also open to inviting people to visiting us - we signifcantly cut down on travel expenses.

Cancel newspaper and magazine subscriptions If you get a magazine or newspaper in the mail but simply don’t read it, cancel that subscription when it comes up for renewal, no matter how much you “like” the magazine. An unread subscription is nothing more than expensive clutter.

Look at and consider reducing/eliminating other regular paid services Look at services like Netflix - are you really getting $19.95 a month out of these services? If not, just drop the service and look for other options, like a local rental store. What about satellite radio? If you use that but find yourself not using it or just sticking with the same things you listen to on regular radio (like NPR or top forty), then cancel the service.

Food
For many people it just seems more convenient to eat out, even though it’s incredibly expensive and not as much of a time saver as you might think. Consider these options.

Cook (and pack) your own meals at home When you cook at home, make plenty so that you can freeze some of it for future meals and, even better, take some of it as leftovers to work, drastically reducing the cost of the typical workplace lunch. Some people may shy away from leftovers, but you can make leftovers as good as the original.

Reduce or eliminate eating out or getting take-out Take-out and dining out can be a huge timesaver for a busy family, but the expense can be tremendous - and it often doesn’t save much time, either. Instead, look at other options for dining at home: prepare lots of meals at once and freeze them for easy cooking later, focus on simple recipes, and choose recipes that utilize the fresh produce in season in your area.

Buy nonperishable items in bulk Many people never even bother to look at some of the larger packages of nonperishable items - they think it’s just too much. Try looking at the cost per unit of all of the sizes and choose the one that’s the best deal; often, it is the big bulky package, but that just means you won’t be buying it again for a long time. Spread out over months and over a lot of items (think of all of the nonperishables in your home - food is just the beginning), this can add up to a lot of trimmed fat.

Start a garden Vegetable gardening is a splendid hobby that can often turn a profit if done well. Focus on vegetables that are easy to grow and produce abundant fruit, like tomatoes, and learn how to store the excess through such processes as canning. Opening up a jar of tomatoes in the winter that were grown by you in the summer and canned in the fall is a wonderful experience - and it can really help with trimming the food bill.

Buy generic Many products (not just food) are available in a store-brand or generic form for significantly less money - quite often with the name brand, you’re paying for their advertising budget with the higher cost. Look carefully at the ingredients in generic and name-brand products and if they’re the same, go with the generic one on a regular basis, which will consistently trim money from your shopping bill.

Insurance
We all have insurance to protect against the unexpected, but when we overpay for insurance, we leave ourselves vulnerable in a different way by stretching our budget too thin. Look into these options for ways to reduce your insurance premiums.

Comparison Shop for homeowner and auto insurance If you haven’t shopped around for homeowner and auto insurance lately, now’s a good time to get a few quotes, especially if your credit is strong. If you can save a substantial amount and maintain your current coverage, it’s well worth switching to another provider, but give your current one a chance to match.

Switch to term life insurance If you’re paying for whole life insurance or universal life insurance, look strongly at a term package instead. The cost per year will be significantly cheaper and at the end of the term, your life insurance needs will likely be far less than they are right now.

Raise your deductibles If you’re paying a large premium in order to have a small deductible, you might want to consider switching that, particularly if your claims are infrequent. Raising your deductible can often significantly reduce your annual premiums, easing the monthly strain on your bills.

Other
There are many other areas of your budget that can also afford a bit of fat trimmed from them. Let’s look at a few more possibilities for lowering your regular expenses.

Reduce or eliminate your cell phone bill Ask yourself how much you really use your cell phone; if it’s not all that much, look at perhaps getting a prepaid phone with a small number of minutes on it for those emergency situations when you actually use it. If you do use it a lot, look at the features you’re paying for on your bill and see if you can trim any of those.

Reduce or eliminate organized child activities Look for activities that your child is sincerely interested in (if you don’t know, ask them what they really like) and focus on those while cutting back on the rest.

Eliminate services (housecleaning, landscaping, etc.) If you hire out household services to others, consider trimming back or eliminating them. Instead, put aside some time each week to do them yourself - not only will you save money, but you’ll find that many activities can get the whole family involved (like housecleaning).

Shop Garage Sales and Thrift Stores You can find great deals on clothing, children's toys and household items at garage sales and thrift stores. Rather than buying a new bike for our son when we discovered his new bike was too big for him to ride without training wheels, we found a perfect-sized bike for $5.00 at a garage sale. Now he can ride his used bike sans training wheels and will grow into his nice new bike eventually. We often find name brand childrens' clothing at garage sales for ridiculousy low prices.

Strongly reduce or eliminate clothes shopping I have a close friend who insists on having a significant monthly clothes budget. I challenged her to trim her spending in half and instead focus more on looking for bargains - and she’s never looked back. If you need to dress well for work, don’t let that slide, but putting in some effort to look for a bargain can often pay huge dividends. Even better - have a moratorium on shopping for new clothes until you really need something new.

Reduce grooming expenses Instead of having your hair cut and styled weekly, cut back to every other week. If you have your nails done twice a month, cut back to monthly, or have manicure parties where you do it at home with your friends instead. If you buy expensive shampoos, look at lower cost options. It doesn’t have to cost a truckload to keep up appearances.

Move to a less expensive area Many people leave this option out when looking at trimming their budget, but if you can find work in another area, it may be worth considering. Look around at other areas of the country where you can find employment, see what your salary would be there, and look at the housing costs. Quite often, you’ll find yourself significantly ahead by looking at areas like Minneapolis rather than areas like San Francisco, even at a significantly lower salary.

Clean out your house and sell your stuff
If you aren't using that old set of golf clubs in your basement, sell them. Hold a garage sale or sell them on e-bay. You might be surprised at the money you can add to your budget when you sell unwanted or unnecessary items.

Using even a few of these options can really open up some breathing room in a budget, enabling you to break free of debt and chase your dreams.

Source: Most of this is quoted from an article by Trent found at http://www.thesimpledollar.com/ with a few of my ideas injected as well as those of Dave Ramsey http://www.daveramsey.com/etc/cms/why_buy_a_used_car_5153.htmlc

Save Money on Food by Planning Menus


Menu planning is a simple way to live within a food budget and saves the aggravation of planning meals everyday. It effectively utilizes food storage, canned goods, home canned items, frozen food, fresh food, garden fruits, vegetables and herbs. You may also want to plan for a few quick meals (i.e. frozen prepared meals) as well.

You may use this guide when planning meals for one week, two weeks or a month.


YOU WILL NEED:
  • A calendar or clipboard for meal lists
  • A Notebook to write down favorite meals, ingredients and shopping lists
  • If you clip coupons, a place to keep them near your grocery lists
STEP 1:
  • Make a list of favorite meals
  • Keep in mind seasonal produce and holiday favorites
STEP 2:
  • List the ingredients with the meals
STEP 3:
  • Check freezer and storage for what you have already and check off the ingredients from your list. *If you have an item, use it first. Can't think how you can use it? Look online for a new recipe.
STEP 4:
  • Make a grocery list
  • Items that are not checked off are your main shopping items. If doing this for a month, you will need 2 shopping lists. 1 for the beginning of the month and one for mid-month.
STEP 5:
  • Place meals on calendar or place list of meals on a clipboard to check them off as you use them. Calendars are easier.
TIPS:
  • Place meals with the freshest ingredients immediately after shopping days, so they are not wasted.
  • Remember preparation times. Don't make a dish that takes an hour on a day you know you are busy.
  • Try new recipes on days you have the time.
  • Remember leftover nights, too.
  • Remember times you will be eating out for functions or family outings.
  • There is nothing wrong with soup and sandwich nights on busy sports, church or school function days.
STEP 6: (For super busy people: small or large families apply)
  • Pre-make a few meals and freeze them. Then you will have a fast healthy meal.
  • For smaller families, make a meal into two or three meals.
STEP 7: USING THE MENU
  • If you don't use a meal on your calendar, underline it.
  • Write unused meal in the next month, or in your notebook to remind yourself you still have that available.
  • Always keep back-up dinners not on your list (ex. Frozen pizzas, burgers for the grill or breakfast for dinner.)
  • Remember if you are using a back-up meal, underline the one you have on the calendar and place accordingly.
Make this fun for the whole family!
You will:
  • Eat healthier foods,
  • Rotate Food Storage
  • Save Time
  • Save money!!!
Start today!
Source: Christine Schwent

101 Ways to Stretch Your Food Dollars


Food prices are going up. But here are lots of ways — 101 of them — to shave off pennies, dimes and dollars from your food costs. 

Not every tip fits every situation. A vat-size container of salad dressing is cheaper per ounce, but not if it sits in a single person's fridge for months on end. Remember, the most expensive food you can buy is the food that goes to waste.

Before you go
1. For a week, track what your family actually spends on food. Don't forget to include work lunches, restaurant meals, vending-machine snacks and convenience store stops. These add up quickly.

2. Have a plan. Jot down simple dinner menus for the week, using the weekly grocery store ads so you can take advantage of what's on sale that week. Having a plan ends the 5 p.m. "what's for dinner?" plight.

3. Make a shopping list from your menu. Having the ingredients you need for the week eliminates extra trips to the supermarket, where more incidental items can end up in your grocery cart.

4. To save time, compile a basic shopping list of things you usually buy on a weekly basis, such as milk, lettuce, etc. Organize the list by the store layout and make lots of copies. Then each week it's just a matter of penciling in the extra ingredients from your menu.

5. Get out of the dinner rut. Check out cookbooks or magazines from the library or attend local cooking classes for new ideas.

6. For low-cost, nutritious recipe ideas, check the Food Stamp Nutrition Connection at recipefinder.nal.usda.gov. The recipes have cost-per-serving and nutrition data.

7. Consider making from scratch many of the things you usually buy in prepared form, such as brownies or salad dressing.

8. Time is a valuable resource. It's usually not worth the time (or gasoline) to hopscotch from store to store to save a few dollars.

9. Consider the advantages when you choose where to shop. Some stores offer credit cards with rebates, discounts on gasoline, special coupons and so on.

10. Club warehouses can save money, but be judicious. Can you use 18 cartons of yogurt at a time? Often you can find similar good buys and a better selection at a regular grocery store

11. Sometimes you're lured into buying things that lose their appeal and end up sitting on the shelf. To cure yourself of impulse shopping, every so often force yourself to make a meal out of those items in the cupboard.

12. Consider group strategies. A neighborhood group or extended family might save by buying in bulk directly from wholesalers and farmers.

Shopping
13. Try shopping with cash, taking only an allotted amount to the store.

14. Statistics indicate that people buy more when they are hungry or accompanied by others, especially children. (However, grocery shopping can be a good learning experience for kids; let them find all the coupon foods and comparison shop with you.)

15. Don't dawdle. The longer you're wandering through the store, the more chance of impulse buys.

16. Avoid convenience stores. They have higher prices and very few specials.

17. Guard against nonfood impulse buys that could end up in your cart, such as the latest DVD, perfumes or toiletries. Do you really need them?

18. Limit trips to the store. Multiple trips usually mean more incidental items added to the cart.

19. Try "catch-and-release" shopping with high-end items. Put that bottle of name-brand, extra-virgin olive oil in the cart, and while you finish the rest of your purchases, ask if it's something you can live without. Then before you check out, put it back on the shelf. After all, dreaming is free. (However, if you end up convincing yourself to buy these things, or you forget to put them back, this method isn't for you!)

Coupons
20. Use the coupon inserts in your Sunday newspaper ads.

21. To maximize coupon savings, use resources such as Pinchingyourpennies.com, the Grocery Guru at http://www.gurusdeals.com/, or Couponsense.com, which help you to coordinate coupons with sales at local grocery stores. By using the coupon with the sale price, you can get items for a fraction of the cost.

22. Multiply the savings. Some people take multiple Sunday newspaper subscriptions for the coupons, and you can also ask your neighbors or relatives for the coupons from their paper.

23. Check other sources for coupons: the "blinkies" in the red boxes on grocery store shelves, home mailers, "peelies" that are peeled off the product itself and printables off Web sites.

24. Be wise about coupons. Sometimes a brand name with a coupon is still more expensive than a generic brand. And resist buying things you may not use just because you have a coupon.

25. Some grocery stores match competitor coupons if you have the advertisement with you.

26. Organize your coupons so you can use them efficiently. A women uses a three-ring binder with clear photo pages or baseball card pockets. Others use a filing box and take out the coupons they will be using and clip them to their shopping list on their way to the grocery store.

27. Send in rebates. One women puts all the money she receives from rebates in a separate account, and she's now up to $200.

Cereals & baked goods
28. One reason people avoid buying cheaper bagged cereals is because they're hard to store and pour. Store them in a plastic pitcher with a pour spout.

29. Consider how much you can save by cooking whole grains for breakfast instead of cold breakfast cereal. Homer Cook of Layton said as a welfare volunteer, he helped a single mother of three cut her breakfast costs from $1,000 per year to $58 per year by cooking cracked wheat (based on Honeyville Grain prices).

30. Buy whole-grain cereals and breads. They're more filling, so you are satisfied with less. And they're better for you.

31. Go '90s retro and pull out your old bread machine. Besides bread, it can be used for rolls and pizza dough.

32. Make croutons or bread crumbs from day-old bread or hotdog buns. The crumbs can be seasoned and used as a "shake-and-bake" chicken coating.

33. Seek out day-old bread "thrift" stores. But be wary of the temptation to overbuy empty calorie items such as cupcakes, potato chips and doughnuts.

34. Bake a batch of muffins from scratch for on-the-go breakfasts. Even if you use a mix, you'll still save over bakery prices.

Produce
35. Buy fruits and vegetables in season when they're cheaper and taste fresher. When compared to the price per pound of meat, cheese, chocolate, etc., they're a nutritional bargain.

36. If you're preparing a commercial meal kit (such as Hamburger Helper or a frozen pasta dinner), toss in a few more vegetables. Chopped bell peppers or celery, and frozen broccoli or peas add color, flavor and nutrition to what is usually a lot of starch, sauce and salt. They can also stretch the meal into more servings.

37. Ready-prepped veggies cost more but may be worth it if you actually use those peeled carrots or sliced mushrooms. A huge percentage of fresh produce goes to waste sitting in refrigerators.

38. A pound bag of chopped iceberg lettuce salad costs more (about $2) than a head of iceberg lettuce (approximately $1 per pound) that you clean and chop yourself. But if bagged salad greens keep you from buying restaurant salads, there's still a savings.

39. If lettuce prices are up, vary your veggies. Consider cabbage, spinach, carrot or broccoli salads.

40. Grow your favorite herbs year-round in your kitchen window. It's convenient to be able to cut a few sprigs as needed, and packets of fresh herbs can cost $1.50-$2 in grocery stores.

41. If you're not up to planting a garden, add a few strawberry or tomato plants to your flower beds. You have to weed and water them anyway. Or add a fruit tree to your back yard.

42. Yellow onions are often 40 cents to 50 cents less per pound than red (purple) onions.

43. When your favorite fresh vegetables are offseason, look for canned and frozen versions. Do the math and figure out which offers the best price per serving.

44. Beans are an inexpensive protein. Add them to tacos, casseroles, salads, etc., so you can use less meat.

45. Dried beans, per cooked serving, are often less than half the price of canned beans. But they take a lot of time to cook. Soak a batch overnight in your slow cooker on low heat, then portion and freeze for later use.

46. Vegetables frozen in butter sauce usually cost more than plain frozen vegetables, and they have more fat and calories.

47. Price fruits with an eye on the cost-per-edible serving. If you are buying by the pound, you are also paying for any inedible seeds and rinds.

48. When buying fresh greens by weight, be sure to shake off the excess water before you put them in your cart. Water hidden in between the leaves adds weight and raises the cost.

49. Serve a vegetable "medley" when you have small amounts of several different vegetables. Mix together and microwave, and top with a little cheese or a sprinkle of nuts.

Dairy
50. Unless you buy powdered milk in bulk for a price break, you won't save money over fresh milk. On a recent shopping trip, the Deseret News found that a box of generic-brand powdered milk that yields 31 cups of milk was $6.49. If you can buy fresh milk at $3 a gallon, you can get 32 cups for $6.

51. Buy a large container of yogurt and divide it into portions yourself. A 32-ounce container, at $2.79, yields four 8-ounce portions at 34 cents a serving. The same brand in single-serve containers was 50 cents each.

52. Milk fat costs. You can often save about 10 cents to 20 cents per gallon by dropping from 2 percent to 1 percent or skim.

53. If you use margarine instead of butter to cut costs, don't use anything less than 100 percent margarine for baking. The lower-fat spreads have water and fillers that bake up poorly (and when poured over popcorn turn it to mush). Real butter is approximately $4 per pound; 100 percent margarine (such as Nucoa) can be $1.50 to $2 per pound. Save the less-expensive spreads for your toast.

54. Consider home delivery of milk and bread. It costs more, but it might save on extra trips to the store.

55. There is no nutritional difference between brown and white eggs; it has more to do with the color of the hen. White eggs usually cost less.

56. Freeze butter to keep its fresh flavor. Grate it, frozen, over toast, baked potatoes, etc. for portion control.

57. Finely shred cheese when topping pizzas, grilled ham and cheese, etc. You'll use less.

Meat
58. Unless they're on special, breasts are the most expensive part of the chicken. Boneless, skinless thighs offer the same convenience for less, and dark meat is more moist and flavorful anyway.

59. Take a cue from restaurant chefs who can make a small portion of meat or chicken look plentiful. They slice it thinly and fan out the slices on top of a mound of rice or potatoes.

60. Tough cuts of meat are usually cheaper. Place a beef brisket in you slow cooker in the morning and by dinner time you'll have tender beef (and a tantalizing aroma in your kitchen).

61. Don't throw out your bacon drippings. Some suggestions from Every Day With Rachael Ray magazine: Stir it into grits, use in place of oil when popping popcorn, saute bread cubes in it for croutons, add to cornbread batter, add to barbecue sauce and brush on ribs or chicken while they're cooking.

62. Compare meat costs by servings, not pounds. Bony meats are cheaper per pound, but they yield less edible meat per pound.

63. Likewise, a large store-cooked rotisserie chicken at $6 is cheaper than buying a raw, 5-pound whole raw chicken at $1.30 per pound and cooking it at home. As a bonus, you can use the carcass and bits of meat on the bones to make chicken broth.

64. Although the price of eggs has nearly doubled in the past year, a $2 carton of eggs can still supply a protein-rich meal for a family of six. Scramble them with leftovers such as chopped ham, crumbled bacon, chopped peppers, onions and so on.

65. Buy ground beef in bulk quantities to get a better price. When you get home, divide meal-size portions in zip-lock bags and freeze.

Canned goods
66. Big cans are often cheaper, but not always. Check the price per unit guide on the grocery shelf, which shows the cost per ounce. Also, consider how you use the product. If you buy a big can of tomato sauce, use a little and end up wasting the rest, you're better off buying the small can in the first place.

67. What to do with the last of the jam or jelly jar: Pour in some milk, refrigerate for a little while to loosen the jam stuck to the jar sides, and shake into a flavored drink.

68. Generic brands can save money. But try one can first before you invest in a whole case to make sure it appeals to your family.

69. Stockpile pantry items you normally use, such as spaghetti sauce or pasta, when they're on sale. Keep a list of quick-fix possibilities on the inside of your cupboard door, such as spaghetti, meatball sub sandwiches, baked tortellini, etc.

Snacks70. Invest in a popcorn popper. You can make 10 times as much popcorn for the same price as microwave popcorn. A three-pack box of microwave popcorn yields about 10 1/2 cups of popcorn for $2 to $3, depending on the brand. A $1.99 bag of regular popcorn yields 113 cups. You'll have to add you own butter and salt, but you have more control over the amounts.

71. When making s'mores, instead of buying chocolate bars and graham crackers, place the marshmallow between two chocolate-striped cookies. A package of Keebler Fudge Shoppe cookies is approximately $3 and makes 15 s'mores. You'd spend at least that much money on chocolate bars alone.

72. Break the soda pop habit. If you normally drink a can per day, at 50 cents per can, you could pocket more than $180 a year.

73. Every time you have a few leftover strawberries, peach slices, etc., store them in the same zip-lock bag in the freezer. Then every so often, whir them all together in the blender for a smoothie snack.

74. If you like the look of designer bottled water, buy it once and keep refilling with tap water, which is free. Many bottled waters cost more per gallon than gasoline.

75. Use food as a reward sparingly. Make treats more significant by using them only for special occasions. With obesity on the rise, most people don't need them on a regular basis.

76. Nip nighttime snacks. Go to bed a half-hour early and keep yourself from wanting a handful of chips while watching David Letterman. Your waistline will thank you.

Storage
77. Keep an eye on your pantry inventory so you use up all the pancake mix or corn syrup before buying more.

78. Oil goes rancid fairly quickly. Unless you use it often, buy in small quantities or refrigerate after using.

79. Post a "must use" list on the fridge to remind yourself of the half-empty can of pineapple, three hot dogs, etc. that will go bad quickly.

80. Label leftovers with date and contents before putting them in the freezer. You'll actually use these things instead of having mystery containers stuck in the back of the freezer.

81. Use and rotate your food storage. If you aren't using it, it is basically a waste of space and money. Rule of thumb: Store what you use and use what you store.

In the kitchen
82. Use smaller plates. Studies show that when people are served on larger plates, they take larger servings, whether they're really hungry or not.

83. One night a week have leftover night. Pull out all the leftovers from other meals — the half-cup of spaghetti sauce, the slices of ham or stray chicken breast, the chunk of cheese, the corn or peas. Bake some potatoes and let everyone pick the leftovers for toppings.

84. Pack a lunch for the next day from dinner leftovers instead of eating out.

85. Use meals to stretch your entertainment dollars. Go on a picnic in a park or get out the Dutch oven pots, have a hot dog roast or go fishing and then cook your catch.

86. When serving buffet-style, put the low-cost items, such as salad or rolls, at the beginning of the line and the most expensive item — meat — near the end.

87. Have meatless Monday meals.

88. Homemade soups are a good way to use leftover meat and vegetables. Their liquid content also makes them more satisfying.

89. Pasta or rice can also stretch small amounts of food into a meal. Throw in chopped pepper, ribbons of spinach or basil, chopped tomatoes or chicken or ham.

90. Instead of serving fruit punch or juice at meals, use a pitcher of ice water with a few lemon or lime slices floating on top.

91. Use small appliances, such as the microwave, slow-cooker and electric frying pan; they use less energy than a stovetop.

92. Use the dishwasher only when completely full. Washing dishes by hand can cost more than one load in the dishwasher. Let the dishes air-dry rather than using the "dry" cycle.

93. Don't open the oven door to preview baking food. Each time you open it, the temperature drops by 25-50 degrees. It takes longer to cook your food and adds to your energy bill.

Dining out
94. Use your gift certificates soon after getting them. Many have expiration dates.

95. Use frequent-diners' cards. Some restaurants offer punch cards — if you buy 10 meals, the next one is free. For a family of six, it takes only two visits to earn a free meal.

96. Go out to lunch when entree prices are often a dollar or two less than dinner.

97. If a full-course dinner comes with soup, salad, drink and dessert, it's only a great buy if you really want (or need) all that. You may be satisfied ordering an a la carte entree without the extras. Ditto combo meals in fast-food restaurants.

98. Guard against up-sell, when you're asked if you want guacamole with your taco or extra cheese for the fondue. If it costs extra, you might not want it that much.

99. At fast-food restaurants, order a kids' meal for yourself (if there's no age limit). Most of the time, you're getting a more appropriate portion of food (and a toy to boot!).

100. Watch beverage costs. Alcoholic drinks can double your tab, but even soft drinks can add $10 to $15 to the bill for a family of six. Water is a healthier choice anyway. Be sure to specify "tap" water, some restaurants may bring you bottled water at $3 or $4 per bottle.

101. If you feel you can't afford to tip, choose a fast-food or fast-casual eatery where tipping isn't expected. In sit-down restaurants, servers' salaries are less than minimum wage. Tips make up the difference.

Source:  Written by Valerie Phillips, Deseret News
Published: Wednesday, April 16, 2008 12:12 a.m. MDT