Confessions of a cheap skate

Actually, I just looked up the definition of "cheap skate" and it says someone who is stingy and miserly. I may or may not fit that description, depending on the day.

Maybe I'm more of a penny pincher?

Maybe somewhere in-between?

Anyway, I confess. I want good deals, I don't want to waste things and I get a little crabby when this doesn't happen. Holy cow, I am a cheap skate.

Here's some examples:

1. I started using foam soap after my third child was potty trained. Tired of wasting SO MUCH soap.

2. I make my own laundry soap, window cleaner, and wood polish.

3. Although I love to support local grocery stores and usually purchase produce and meat there, I almost refuse to by items such as medicine, bags of candy or toiletries anywhere but Wal-Mart or Amazon.

4. Speaking of Amazon, I send a lot of energy getting the best deals on toilet paper and diapers.

5. I have a yearly budget spreadsheet, a monthly budget spreadsheet and Quicken (computer program that I use instead of a checkbook register). I enter each expense or income into each of these. (Note: This DOES NOT mean I keep my budget. It means that I know where every penny goes.) This insane way of keeping track of everything really does help me to know how much I need to put in savings or if we are going to be able to add a new bill or not long term.) Click HERE for a post on finances.

6. I wash my plastic baggies at least once so I can reuse them, with the exception of baggies that contained raw meat.

7. I print almost everything out on fast speed and gray scale.

8. I save almost EVERY piece of clothing from my older kids, even jeans with holes. This has helped me keep my clothing budget low as we have continued to have children.

9. I often shop at thrift stores, mostly for jeans for my kids. I love finding a name brand pair of jeans for $3 or $4!!

10. I purchase generic brands as a general rule. There are a few exceptions that I buy name brands like, corn syrup, hot dogs, bacon... and I'm sure there are a few more but I can't think of any.

OK, I'll finish this off. I could probably go on forever. Here's one more and I have paid a severe price because of this one.

11. Expired foods don't scare me. Lots of foods, especially canned items, can be consumed long after their printed expiration date. There is even a cool website with more realistic shelf life estimates (click HERE). BUT, recently this got the best of me.

Short version: We use a lot of sour cream, but for some reason we had a container that was expired. I had used it only a few days before after smelling it and looking for any sign that it had turned without a problem. Then one day I added it to a taco (luckily no one else in the house wanted any that night) and I had food poisoning within a few hours and was sicker than I have ever been. Not cool.

But will that scare me into throwing away food that is past it's date? No way!

I will, however, be more careful, especially with dairy products.

There you are. My confession and a glimpse into my strange way of thinking.

Please share anything you do that might be similar so I won't feel so alone. :)

Are you in post-holiday financial shock?

OK, so it's January again and we made it through another holiday season. Most of us will have a little bit (or a lot) of credit card debt to pay off now. My husband and I went through YEARS of constant credit card debt when we were first married and the last few years we have not kept a balance on our card...except for in December. I planned and saved but not enough. So this is my plan for the coming year. Maybe these things will help for you too.

1. Save! The average American spends about $750 a year on Christmas gifts, holiday foods and decorations. I know exactly how much I spent this year, so I am going to have that much saved by December of this year (hopefully!). Having your emergency savings available can be good too. We have 3 birthdays and our anniversary in November and December and so I need to remember to be extra prepared.

2. Make a list of people you normally give to and ideas for them. It may seem early to think about but it can help. For example, I know which family we have in each of our family exchanges this coming year so if I see something interesting sometime this year, I can snag it early and set it aside. I usually make a list in a notebook, but this year I am going to make an Excel spreadsheet. I will also be able to note on the spreadsheet where I stashed the gift. (Like the Lego set in my closet that I picked up for half off the day after Christmas.) Also, if you have ideas for gifts, you can watch for sales throughout the year. Sales during the holidays are great, but there are lots of chances to save money throughout the year.

3. Set a budget. Having a set amount in mind can help you to avoid over-spending. Just remember to be realistic.

4. Track what you spend. If you didn't track what you spent this last Christmas, find a way to track what you spend during the holidays this year. You can use software like Quicken, an Excel spreadsheet or just notes in a notebook. Whatever works for you. Tracking can also help with over-spending because you can see where all your money is going.

5. If you don't already do so, ask your family to do a family exchange. My husband has 8 siblings and I have 4, so it would not be economic for any of us to buy something for everyone. We each have an exchange so we buy gifts for one of his siblings and their family and one of my siblings and their family. This makes if easier financially as well as a lot of fun because you can focus on one family and make it special.

Any other ideas???

Financial Emergency Fund

 

Image courtesy of U.S. Department of the Treasury

Having some cash on hand is an important part of any Emergency Plan. In case of an emergency that causes ATMs or credit card machines to go down, you will need cash to get yourself gas, food, transportation, etc.

Remember to have a variety of money, mostly smaller amounts because you never know if someone will be able to make change.

You may want to have a few hundred dollars in your Emergency Binder as well as some in your car.

In addition to having emergency cash, saving at least $1000 in a checking or savings account can help you have peace of mind in the event that you need new tires or another unexpected event. 

We recently were able to travel to Washington state to be with family after my husband's uncle passed away. This is the first trip in which we have not had to go into credit card debt. Of course, now we have to build up our savings. That is frustrating sometimes. But our kids were able to see their grandparents, 3 great-grandparents and lots of aunts, uncles and cousins who they may not have ever met otherwise.

It is recommended that we have 3-months of our family income in savings. But remember, just do one thing at a time.

So...let's review:

1. Have $100-200 CASH in your home and/or car. (Remember to have small increments: $1, $5, $10 and $20.)

2. Build up $1000 in checking or savings. (Or in cash, if you prefer.)

3. Save 3 months worth of your family income. (Make a goal, keep your budget and don't get discouraged!)

Teaching Children About Money

Money can be a touchy subject. Too little makes life hard. Too much can be a trial as well. Relationships can be pushed to the limit when finances are mismanaged.

It is so important to teach our children the importance of managing their money. I recently read an article, Teaching Gap: 83% of Teens Don't Know How to Manage Money and it made me wonder.

Whether the numbers in the article are accurate, I believe that finance is another subject that parents are expecting their children to pick up elsewhere. A Personal Finance class in high school is good enough, right?

Ha. I don't know about you, but learning the correct way to write a check was helpful but did not teach me anything about MANAGING money. Maybe we talked about budgeting, I don't remember. My point is this: Parents need to take responsibility for their own children and teach them. Period.

If principles of money management such as budgeting and saving money, are taught from a young age how much better off would that high schooler be? And what an advantage it would be to them as they become adults!

I want my kids to grow up knowing that money doesn't just magically appear but is earned through hard work. For this reason, I personally do not give my kids an allowance. Maybe that will change when they actually need money (my kids are all under 7). Right now, they earn money by doing extra chores around the house.

Even when your kids are learning the "hard work" principle, the saving idea may be lost to them. I recently heard a mom tell about her daughter who just graduated from high school and is moving out of the state to go to college. She said that although she had been working for 3 years at varies jobs, her daughter didn't have a penny saved for college.

I am not here to judge her. I had very little money saved for college. One big regret about my teenage years is that I didn't learn how to save and I helped my boyfriend (now husband) spend just about every penny he earned as well. We had a grand time going out to eat, buying clothing and books, you name it.

Sorry. Ranting.

We just can't assume that by having a job and working hard, our kids will know how to take care of their wages.

If we as parents could take seriously the responsibility of teaching our own children principles of managing money, they will...someday...thank us for our work. Remember, teaching in the home is often by example and with comments, not big lectures.

Here are some of the principles that are crucial to good money management:

Earning through work
Budgeting
Discerning need vs. wants
Saving
Giving to charity
Positive communication about money


OK, now I'll get off my soapbox. (One of them, anyway.)

Smart Shopping

When you're on a strict budget (which we all should be) then it's important to get as much out of a dollar as possible, right? One way you can stretch that dollar is to be a smart shopper.

Here are some tips:

1. Know what things cost. For example: Once I bought a case of 24 cans of pineapple for $.99 a can, and then saw that the were $.92 a can at Wal-Mart. Not the end of the world, but I might not have bought the whole case. (Side note: Today I saw pineapple at Wal-Mart for $1.00 a can! For the cheap stuff! Hopefully that will go back down soon.)

There's a lot to keep track of so make a list and keep it in your purse or wallet, so if you see an unexpected sale you can decide whether or not it is REALLY a good deal. On your list, you may want to use the price per ounce for comparison since some items are packaged in different quantities.

Click HERE for more information on Case Lot sales and a price comparison sheet created by Prepared LDS Family. (The prices reflect stores in Northern Utah, but you'll get the idea.)

2. Stock-up price. When something that you want to have in your storage is pretty low, you might call it the Stock-up price. It means: Get a bunch! For example: When ground beef goes on sale for less than $2 per lb, I get at least 10 lbs and then I package them into small portions and use for a while.

Note: To keep your storage replenished, replace items used as you go. Sometimes it's hard to pay more than your stock-up price, but buying a few items a week to keep up with your storage is less traumatic to your bank account.

3. Pay attention to sales. Every week, our two local grocery stores come out with an ad of their weekly sales. Grocery Smarts is a website that matches grocery ads with coupons...

4. Use coupons. A few years ago, I did the whole 4 Sunday paper thing so I could get 4 sets of coupons. With the price of the papers and all the literal PAPER I ended up with, I decided that it wasn't for me. BUT I do save the coupons that I get with my ads in the mail, and I use online coupons that I find through Grocery Smarts or another site called Freebies 2 Deals.

5. Use a list...and stick to it! This can be even easier when you have your meals for the week (or more) planned before heading to the store. If you know what you're making the next few days, you can make a more efficient shopping list, hopefully eliminating those last minute trips to the store.

Click HERE for more information on couponing.

Click HERE for some great tips on quick shopping.

Debt

“Those who structure their standard of living to allow a little surplus, control their circumstances. Those who spend a little more than they earn are controlled by their circumstances. They are in bondage” (N. Eldon Tanner).

First of all here some simple, yet important points:

-Avoid Debt. In the world we live in, this might seem impossible. Obviously debt from buying a modest home and car is understandable. Sometimes student loans are also unavoidable. Other debt should be avoided when possible.
-Distinguish between Needs and Wants. This is also a hard one in a world that tells us to do what makes us feel good. When making financial decisions though, especially big purchases, it is crucial to decide if it is a necessity or not.
-Use a Budget. See previous post: Financial Self-Reliance.
-Build a Reserve. Even if it's $5 per paycheck, having a little cash on hand is important!
-Teach Family Members. This culture of buy now, pay later has got to stop somewhere. If we can teach our children, other family members, friends, etc. how to live within their means, the next generation will be much better off.
(Taken from All Safely Gathered In pamphlet.)

OK, but what if you are already in debt?

Use a budget! Track your expenses.

Once you know how much you have going where, you can make a plan to eliminate the debt as fast as possible.

Dave Ramsey has a lot of information on getting out of debt. Click HERE for more info. One of the things he talks about is the snowball plan. Check it out!

Also, HERE is a debt planner from CNN.com. This one shows you how much interest you will pay if you only make minimum payments without snowballing. It's crazy how much interest you end up paying!

My husband and I started our marriage in debt. I had a student loan and he had medical bills. Not the best way to start out. We ended up getting into come credit card debt the first few years too. So basically what I'm saying is, that I have dealt with this issue for the last 10 years. Not cool. BUT when we were finally free of the credit card debt, you would NOT believe the relief we felt. It is indescribable! So much better than having stuff.

So take my word...get out and stay out!

Financial Self-Reliance

This is the single most important part of becoming self-reliant. Don't you agree? The more comfortable we feel financially, the more prepared we are for the other aspects of our lives. Education, organization, food storage...all of these things are much easier when we working to be financially secure.

Remember, being financially secure doesn't mean you have loads of extra cash. The goal is to know where your money is going to better help you make wise decisions with your money, meeting your obligations and saving a little.

Note: I am no financial expert, that's for sure. But we can work on this together.

The first step to becoming financially self-reliant is using a BUDGET. A budget helps you to plan and track your income and expenses. If you are anything like me, you have started this processes several times and failed. Sometimes it's too hard to see that you don't have enough to cover everything so you just give up. It happens, I know, but it doesn't make sense. No matter how MUCH you have, it is necessary to TRACK your income expenses. The last few years I have been much better at tracking our expenses, and I can tell you, it makes a HUGE difference!

There are so many ways to do a budget:

-Online "checkbooks" like Mint.com
-Financial software like Quicken (which I use and love but you have to buy the program.)
-Spreadsheets on Excel (I use two: Long term and a year's worth of monthly budgets.)
-Or just a notebook or checkbook that you write everything in. Click HERE for Dave Ramsey's Quickie Budget.

You can see what your budget SHOULD be by going to THIS page on Dave Ramsey's site and entering your income. It is very interesting to see how much it says you should budget in the different categories listed.

Once you have a method of budgeting, you can decide what is realistic for you to budget for food storage and emergency preparedness. It will help you to distinguish between WANTS and NEEDS and to use some self-control when it comes to spending.

"All of us are responsible to provide for ourselves and our families in both temporal and spiritual ways. To provide providently, we must practice the principles of provident living: joyfully living within our means, being content with what we have, avoiding excessive debt, and diligently saving and preparing for rainy-day emergencies. When we live providently, we can provide for ourselves and our families and also follow the Savior’s example to serve and bless others" Robert D. Hales, Becoming Provident Providers Temporally and Spiritually.

Next post: Water