Managing Your Money

Managing Your Money

"She considers a field and buys it; from her profits she plants a vineyard." Proverbs 31:16

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Save Money at the Grocery Store

Do you enjoy grocery shopping or do you put it off for as long as possible? When I finally take time to buy food, it seems like I end up spending so much that I remember why I didn't want to go in the first place! Follow these tips for keeping your grocery costs low.

Before you go to the store, check your pantry and freezer. How many meals could you pull together if you bought just one or two more ingredients?
Shop from a prepared list. Buy what you need and avoid spontaneous purchases that bust your budget.
Know your store. When do they stock? When do they mark down high-ticket items like meat? What is their store brand? Where are their reduced items? What are this week's loss leaders ?
Take advantage of coupons, but only on things that you already use.
Price match. Be aware of what things cost.
Evaluate if buying in bulk would be cost-effective for you. Will you consume the entire product before the expiration date? Do you have room to store it in the meantime?
In-season fruits and veggies cost less than out-of-season specialty foods. Consider buying extra and freezing for later in the year.
Try a store brand product for a while and see if your family notices. Many stores offer a money-back guarantee if you don't like their brand as well.
Compare units for best value. For example, sometimes two 1-pound bags of carrots cost less than one 2-pound bag, so shop smart.
Choose convenience products only when you need the convenience.
Shop for non-food items like cleaning products and makeup at discount stores; they usually cost more at a grocery store.

In general, the fewer trips you make to the store, the less money, time, and energy you'll spend.

Make a Manageable Spending Plan

Although the word "budget" is not politically correct in today's "I want it now" credit-overrun society, your financial health depends on having one. Larry Burkett, co-founder of Crown Financial Ministries, defined a budget as "telling your money where to go instead of asking where it went." Dave Ramsey, author of The Total Money Makeover, says to give every dollar a name.

Here's why you need a plan for your money, regardless of what you call it. First of all, an effective spending plan shows you how much to spend and how much to save. Secondly, it gives you peace of mind because it puts you in charge of your money. Finally, it helps prepare you for life's unexpected calamities. Ramsey teaches that sticking to a written money plan will also eliminate many money fights and add a deeper level of unity to your marriage.

Desperate housewives hemorrhage money--it just oozes out of their pockets and they're not quite sure where it went. If we choose a life of delight instead of one of desperation, we must get control of our finances. An effective budget should fit your life and must keep you accountable if it's going to work. What's the best way to make a plan that you can stick to?

Establish where you are right now. Keep a diary of expenses for a few weeks and compare actual monthly expenses with monthly income. You may be surprised to learn that you're spending $250 a month eating out in addition to $400 on groceries.
Determine your monthly net spendable income--what you take home after giving, taxes, and other deductions.
Divide your expenses into categories. List regular (rent, daycare, car note) and periodic (insurance, real estate taxes) expenditures, and savings. We've found that using more categories makes it easier to track expenses and target our progress.
Assign a monthly spending limit to each category. Crown recommends that expenses for housing (including utilities, insurance, and maintenance), auto (including insurance and repairs), and food (groceries and eating out) not exceed 70% of net spendable income. Subtract your regular bills from this income amount. Don't forget to include a monthly amount for periodic expenses. Then subtract reasonable limits for necessities like groceries, gas, and clothing. If there's any money left over, fill splurge categories like nails, cell phone, and entertainment. If the money ran out on paper before you got through all your categories, it will surely run out in real life too, so decide where to cut back.

Give yourself a few months to get comfortable with this process. If you are finding that you have more money left over in one category, or you are always running short in another area, shift your amounts around. You will also need to tweak the budget anytime your expenses or income change. In our homes, we've learned that managing our money this way doesn't feel like bondage because it does fit our lifestyle. Furthermore, the budget holds us accountable, so we are free to accomplish our financial goals according to our family's priorities.

10 Smart Moves for Stretching a Tight Budget

1. Stay out of stores! There are more important things for us to do than spend all of our extra time and money shopping. When is it okay to shop? When you have a need and the cash to pay for that need.

2. Split meals at restaurants and order kids' meals when possible.

3. Don't buy more than you need.

4. Return impulse buys if you don't use them soon after they are brought home. Make note of the "return-by" date and repackage the item so it stays in new condition. Put the sack back in your vehicle and file the receipt back in your wallet so you can make a hassle-free return the next time you're in that store.

5. Buy generic gifts in bulk. If you find a great deal on an item that would make a thoughtful gift, buy several and store them away for later.

6. Use coupons and carry them with you. Maximize a coupon's value at the grocery store by redeeming the coupon for an item on sale.

7. Price match as much as possible. Many stores are doing this now, so save yourself some time and gas by taking the advertised special to a convenient location to make your purchase.

8. Make sure you really owe it before you pay it. Verify any unexpected charges or unusually high fees before you send money. People on both sides of a bill can make math mistakes. Caution could also protect you from a potential scam.

9. Remember that convenience always costs more. Planning ahead will usually save you more money in the long run.

10. Be honest. When the cashier at the grocery store returns more change than she was supposed to, it is not God"s way of blessing you. It's a great opportunity to take the moral high road and protect the company you're doing business with. Besides, taking money that's not yours is stealing!

If you have other ideas how to stretch a tight budget, send me an e-mail. I'd love to hear from you!