Budget Checkup

It's January, time for a fresh start, a couple of weeks ago my husband and I sat down and reevaluated our budget. So far following the Dave Ramsey method for 1 year has allowed us to pay off my car loan, save for my travel, save to pay for car insurance in 1 payment instead of monthly, save for birthday and Christmas gifts so we don't have to go into debt at the holidays, save $1000 in a cash emergency fund, and now we are throwing huge sums of money at my remaining student loan and expect to be debt free by summer or sooner!!!

Did you feel like you came up short on money or even had to go into debt these holidays? Hate that feeling? Take a cue from Megan and I. We are using variations on a tried and true method - budget! Megan can weigh in on her process if she'd like, but here is what we are doing.

How much do you want to spend on gifts for each person on your list next holiday season? Add that up, divide by 12. This number is what you have to save each month in order to have enough for your gifts in December. Delightfully easy. This is the method we use for everything. Car insurance is due every 6 months so we divide the premium by 6 and that is how much we need to save each month.

There are lots of free tools online. We have been winning with Dave Ramsey, there are other schools of thought out there too. The bottom line is assign every dollar to something - food, gas, rent, mortgage, loan, travel, etc.etc.etc. I don't actually use the Dave Ramsey forms linked above, but use a basic spreadsheet. You should try a few of the options on for size to see what fits your math brain and budgeting needs best.

6 Ways We Save Money in the Kitchen & Recipe Ideas

My husband and I love to cook. We only eat out a couple times a month if that. It saves sooo much money. Our biggest challenge is I get bored with the same foods all the time (and have slowly converted my husband's tastes over the last 5 years) so we have had to purchase many exotic spices to make up for not having access to all of the ethnic markets and restaurants I grew accustomed to when I lived in Boston.

In ambitious weeks we plan 3 recipes in the beginning of the week and purchase whatever ingredients we need. We eat most of our left overs (a huge money saver) so 3 recipes is plenty for 2 people for a week. In less ambitious weeks we turn to the pantry for spices and beans/tomatoes/grains and to the freezer for protein. That's when the wide selection of spices comes in handy. Maybe we have a hankering for Thai or Indian - we have lots of cookbooks, so we'll see what we have on hand and use the necessary spices to round out the dish vs. the recipe.

How we save money in the kitchen:

1. We buy generic canned goods or whatever is on sale the cheapest every time. We are not loyal to food brands and that saves us money. 
2. We keep several types of beans, tomatoes and grains on hand at all times for last minute meals.
3. We buy meats and fish on sale and always look for the cheapest prices. Freezers are your friend because sometimes buying lots at once is your best deal. If we had room we would definitely buy a deep freezer, but our apartment is way too small so we make do with the fridge. 
4. We have lots of cookbooks that we buy second hand for a couple of dollars and use the internet to find recipes. 
5. We eat leftovers for lunch and throughout the week. 
6. We invested in some hard to come by spices (which last a long time) and supplement with bulk spices from the bulk foods store and store them in dollar store or thrifted containers. This gives us lots of versatility in the kitchen - we can prepare chicken or ground beef 100 ways without it getting boring! 

I also use the interwebs as a source for recipes. I've started saving ones I like or really want to make because I think I will like them on my pinterest page.

Here's the pinterest link if you would like to browse my recipe box. I promise you won't be disappointed.

10 Tips for Winning at Being Frugal

"Got my mind on my money and my money on my mind." - Youngbloodz

Yup, I just quoted old school rap lyrics. That's how we roll around here. Anyway...my last post was a long winded essay on why budgeting is worth your time. I thought since we've been at it for over half a year now, I'd share with you some of our best tips for being frugal and making your money work for you. The art of telling every penny where to go (in my pocket of course..."find a penny, pick it up, then all day you'll have good luck" and an extra penny!).

1. Generic brand food actually tastes the same on the majority of products. Try it, you'll be surprised and save a bunch of money on your grocery bill. I avoid generic tuna, am picky about hotdogs, prefer real maple syrup (or at least some large % mix) and have a couple of brand name cereals I really like (because I make a serious midday meal out of cereal...I need it to stick to my bones longer...and I'm picky). That said, we buy pretty much everything else generic. In fact, we are lucky to live near a store that sells SOOO many products in bulk bins, we save a ton of money shopping there and just store in our own containers.

2. Math is your friend. When you are shopping always compare price per unit of measurement. You are looking for the best ratio of most unit of measurement for lowest price. Some stores post this on the labels on the shelves. If they don't, do a rough estimate in your head. Does math hurt? Use a calculator (your phone probably has one).

3. Sell anything you can part with and you really don't need. When you start evaluating things, how often you use them, if you use them, if you are tired of them, if they are valuable, if you can easily replace them etc. you will start to realize you can live without a lot of the stuff you've been dragging around for years. My husband and I are constantly selling stuff. It is really satisfying to get a little money for something that is no longer useful to you and taking up space. Especially in a small apartment with no storage. Have a yard sale, list in the online classifieds. Post it on your facebook. Easy! We just made $150 at a yard sale this weekend and still have lots of stuff left to sell. Use this money to pay off debt! Good way to get the snowball rolling.

4. Cook! Making meals at home will save you so much money. It's also healthier and a good way to have some family time without everyone realizing that's what's going on :) . We go out to eat maybe once or twice a month. It comes out of our regular food budget and means that we get to buy that much less in groceries if we eat out. Also, bringing your own food for lunch is a huge way to save money! Leftovers reheat really well, cut down on waste, and are an easy way to have a healthy, filling lunch.

5. Look for free entertainment. We save so much on entertainment by looking for things that are going on for free. Our local art museum offers a free admission night once a week. Many museums do; check out their websites. Summer is a great time for free music and outside festivals. We have been going to as many of these as possible. We also try to get out and just enjoy the small things more too. An outing to feed the ducks? Sitting outside at the local coffee shop people watching?

6. Volunteer. You may be surprised that volunteering will actually save you money. It is entertaining, it is social, it feels good. And in some instances, if you volunteer for an event, for example a music festival, you can get free admission. My husband and I volunteered for the local folk festival. I will be doing site cleanup and he will be bartending and we will save $100 on the event!

7. Follow your budget. Don't cheat yourself. Once you have spent your valuable time, energy and brain cells on planning a budget, stick to it. This seems obvious, but it can be harder than it sounds. Don't forget to budget in some blow money for yourself. It helps. We each get $25 a month to spend on anything we want, no questions asked. My husband has a hard time limiting himself on this, but I feel like I am doing really well and sometimes have extra money left at the end of the month to roll into the next month.

8. Use envelopes with cash to manage things like food, entertainment, gas and your blow funds. We have noticed a huge difference in the months we used the envelope/cash system vs. the months we used debit. We let $1000 walk away one month using debit because we told ourselves "oh we're fine, there is plenty in the bank account." Sure there is plenty in the bank account, but on our digital budget spreadsheet, that money is actually being saved for things like the dentist, medicine and gifts. In a sense, we were stealing from our own savings. Sad.

9. Talk about money! Many people we know with money problems and debt hate money. They are angry about it, they don't want to talk about it. Once you allow yourself to get past that, and openly talk about it with your partner, your family, your friends, whomever. It is a lot easier to feel in control of your money, your expenses, your debt and your savings. Yes, we still argue about money, but I will say our conversations are much more productive and we are mostly on the same page.

10. Shop thrift shops and yard sales. This is a frugal, budget conscience person's best friend. In many instances "gently used will do". We buy as much as we can second hand right now. Of course we'd love to buy new, but on our just above poverty line income, we can't afford new on most things. I find name brand, designer clothing all the time. Watch for holes/snags/stains/general wear and tear but otherwise you can often win at thrift shops for clothes. We also buy a lot of kitchen items at thrift shops - dishes mostly. Pots and pans we buy new because the non-stick stuff does wear out. It is amazing what soap and water can do. Facebook has lots of local buy/sell groups. Search for your town name & buy/sell/yard sale/garage sale etc. Also shop online classifieds like craigslist. Plug your nose, dive in and you will be surprised and impressed at the treasures you will find. I have found Coach, Bottega Veneta and Gucci among other brands at thrift shops. Treasures people and more pennies in your pocket!   

Have some more tips not mentioned here? We would love to hear them. Please share in the comments!