Spending to Save Money...

Well we got a new car. (ducking and hiding behind a chair)

I know, I know, people are probably saying that we are crazy for doing this, but looking at the numbers it make sense. The sad part is that the lease cost and the cost of gas (as this car is far more fuel efficient then our current one) is cheaper then what we paid in gas alone last year.

Plus, the lease cost is tax deductible for us, so there will be even better money saving opportunities come tax time.

It is definitely hard to give up our family friendly SUV, but the kids are young and a few years of cutting back financially will really help us out.

I guess 100K in debt really forces you to make some hard decisions.

Save Money Through Your Mail...

I came across a great website a few weeks ago for getting coupons (there is no shame in using coupons). It's called www.save.ca and has helped me save a few extra dollars. The site lists coupons for a bunch of name brand products, and all you do is click on the ones you are interested in and the company will ship you a sheet (or more) of the coupons you want for FREE!!! Granted a printable option may be better, but I am always nervous about redeeming coupons I print myself.

The only catch is that the site asks that you redeem your coupons (usually about 60 days), and if you don't redeem a decent amount of the ones you order they reserve the right to cut you off.

Happy shopping!!

Use the points, Luke...

In a follow up to my menu planning post from last week, I wanted to address a subject that is near and dear to my heart: supermarket credit card reward points!!

I'm sure everyone has encountered/or has a credit card that has points to be used for free groceries/merchandise at your local supermarket (which of course no longer just includes food, but electronics, home items, cosmetics, and sometimes clothes). I have one of these cards, and although I am trying to decrease my debt, I often funnel my grocery purchases onto this card and then transfer the money when I get home. (I can manage this for groceries, but no other purchases in my life - go figure)

So what is the best way to maximize the use said points? Through conversation with the flesh and blood people in my life, I have come up with the following methods:

More Santa, Less Scrooge: This concept is to save up your points all year and use them at Christmas time. You can use them to eliminate the extra cost of holiday baking, appetizers, and other food costs, as well as actually buy gifts (video games, DVD's, boxes of chocolates, etc.)

Use them or Lose them: Not the most strategic method, but many people simply use their points for groceries as soon as they get to a redemption point providing several little budget boosters throughout the year. I ask the question though, does the $10 savings actually get recognized somewhere else, or does it get lost in the shuffle?

Budget Overdraft: This is the method I use personally. I budget $250 bi-weekly for groceries, but sometimes this is just not enough. We have all had those weeks where you run out of shampoo, toilet paper, toothpaste, and detergent at the same time, or you were so diligent with incorporating the food in your freezer to your meal plan that you have to buy more meat- which can be costly. For the times that I go under budget I simply charge the groceries (and pay when I get home), for the day I go over budget I redeem points to bring me down to the my budgeted level of $250. This helps me from ever going over budget on groceries.

Whatever you choose, if you are paying for rewards on a credit card make sure you use them, and use them wisely!!

I plan, therefore I save...

Menu Planning. This has been a long time recommendation to save money at the grocery store, yet it can be quite time consuming and often frustrating when best laid plans don't quite work out. Well although I haven't quite got everything together, anytime I get my menu plans on track it has saved me time and money. Here are a few points:

• Remember to take inventory: One of my biggest past mistakes is not taking inventory of what I had in the fridge/freezer/pantry and just assuming I knew what was there. Many times I have returned home with a great menu, just to find that someone has eaten a main ingredient I thought I had on hand, or you buy something you already have (that is why I have three containers of parmesan cheese!) The key here, actually take the time to look and write it down. Use the list to help come up with your menu for the month, and stroke items off as they are incorporated into your schedule.

• Use a calendar format: Enter all your menu choices into the days of the week on a calendar. You don't have to stick withtuna casserole on Monday just because you wrote it in there (I usually don't serve my meals in the order I write them), but it helps to incorporate your plans and time constraints into your planning. Is Wednesday a busy night? - plan a quick meal for that day. More time on weekends? - plan something requiring more preparation. This will reduce the amount of tiem you will eat out as your menu options available at home don't fit in with your lifestyle. Also, in a calendar you can incorporate any dinners out so that you don't overbuy.

• Book in Non-Perishables: In my world an impromtu dinner invitation is the case more often than not. Unfortunately, this reeks havoc on my menu plan (and my budget) as I find that I tend to throw out a lot of rotten food as I do not get to my recipe in time, and often times have to rebuy ingredients. To avoid this, I always book in one completely Non-Perishable (and quick) item per week (read: frozen pizza). If an invitation arises I simply skip the pizza altogether and incorporate it into another week down the road. At first I tried just booking a tentative blank day, but I found that if we didn't have short notice dinner plans we would simply take that day to get take out or go to a restaurant, often on a credit card for a ridiculous amount.

• Keep a copy of your calendars: One of my biggest vices with menu planning is compiling the menu items. Sure, the standards are always at the top of my mind, but I always try to do at least one new recipe on a bi-weekly basis. Problem is: I find great recipes, use them once, then forget about them. Keeping your old calendars or a compiling a spreadsheet with what recipes worked will help with the planning time. On any winners, I also write the cookbook it came from to save time later.

Overall, menu planning is a great way to save time at the grocery store, decrease your stress during the week as you always know what could be for dinner and that you have what you need, and it decreases the chance that you will waste your food budget on incomplete or unneccessary food purchases.

Present Maximizer Tip...

While chatting with someone the other day they had indicated that they had recently pulled their annual Present trick to maximize what they had received for Christmas. The plot goes like this (works best on clothing):

- Take any presents that were received with a gift receipt. Find out if the item has recently gone on sale after Christmas.

- Return the gift.

- Repurchase it back at the new lower price and use the store credit you are issued to buy additional items at the same store.

Voila!!! Now you have your presents back and a bunch of new things too!

(Beware - I have heard that some stores are picky and will not put returns back on the shelf until the end of the day, meaning you will not be able to buy back your gift if it is not currently in stock)

Debtserious 1, Boxing Day 0...

So I did go shopping for boxing day, but guess what- I spent a whopping $50, and I did it in cash!! Trust me, as a seasoned shopper, it was tough since there were some really good deals the likes that I haven't seen in recent years. Woohooo!

However, as an observation I noted was that this "recession" has really gotten to people. The shops were completely dead. I guess it's a sign of the times.

Deck the malls...

Christmas shopping is finished!!!!!! And not only do I get the joy of knowing that I am done, I also came within my gift budget!!! That means I did not spend any money more than I had put away for Christmas.

I have been trying to budget for Christmas for years and this is the first time I managed to pull it off. I think it is because I started my gift budget at the begining of the year and accruing the funds every month, which caused me to think ahead for Christmas instead of trying to come up with the ideas (and funds) in October.

I definitely think that the gift budget project will continue for 2009.

Maximizing Christmas...

I know it is barely Halloween, but once the candy has been collected people's minds turn to Christmas. My thought is, with a bit of forethought and proactive discussion, one can truly make Christmas work without blowing your budget or increasing debt by reducing your expenditures and planning what gifts you will receive.

Yes, I am sure this post will be rubbing some people the wrong way, but the fact is many people like help with their Christmas shopping, and just because it is better to give than receive really doesn't mean that you won't be receiving in reality. Taking advantage of this fact could help with your debt issues.

Giving - I love Christmas! My favorite part is shopping (especially for kids), but let's be honest this racks up huge dollars. If you have the guts to be honest with your family and friends, let them know of your position and let them know you will need to scale back this year. If your family is receptive, some scale back options could be; pulling names to reduce the amount of gifts to buy, setting spending limits, agreeing to only homemade gifts (needs some creativity, but can be huge savings while still being thoughtful), or maybe do some volunteering as a family instead of gifts.

Receiving - Here is the touchy part. No one should ever expect gifts, or be able to dictate what people buy them, but sometimes providing some input could help you out instead of getting yet another reindeer sweatshirt. If people ask for your input, give it!! I can guarantee that almost everyone you know and love would rather spend money on something you really want then to find out that you don't really like their gifts. If they haven't asked for input, be up front and make suggestions, just remember they may not necessarily follow your suggestions, and if you have asked to scale back Christmas (as in above) don't expect much in return (if anything).

However, if you have a project you are working on and can't really afford, your kids need items for school or new clothes, or there are things that you need from around the home, why not take advantage of this opportunity to keep your life at an even keel and avoid further debt.

Here are some tips to make it easy on everyone:

Know your audience: I don't know your Grandma, but you do. Make sure you know if they would be receptive to "suggestions." Sometimes you just have to deal with a new pair of footie pyjamas because the tradition is more important to that person. Some people may also be offended by you making suggestions on your own gifts. Determine whether your audience will be more welcoming to more generalized comments (ie. they think they came up with the idea themselves) or more directed conversation.

Know their limit: Granted circumstances change from year to year, but we can generally gauge what people's spending limits are based on the gifts we have received in the past. Obviously, don't ask for a new water heater from Auntie Beatrice if she generally only spends $25. Make suggestions based on the limit, or indicate that contributing towards a bigger project may be the most beneficial for your life right now.

Remember that you may not be the only one in financial crisis: Just because your parents normally drop a mint on you at Christmas time does not mean that they can or are willing to do it every year. The economy is rocky and their retirement may not be as stable as once thought. Bear in mind that they may be pinching those pennnies just as hard as you are, even if it doesn't show.

Remember and Communicate your reasons: Don't forget why you are trying to plan your Christmas- Debt. This is not a kid in the candy store type mission, it is to try and keep your life in order. Be honest with your family and friends and they will be far more likely to be receptive then coming off like a greedy little child.

Good luck! I'm asking for drywall this year.

Big Wedding, small budget…

So I went to a wedding this weekend, and it was beautiful. Every detail was perfect. First thing I thought, “How much did that cost!!!”

Inspired by this I thought I would impart some words of wisdom I have done and collected regarding wedding money savers:

a.) DIY – One of the biggest money savers is doing things yourself. Can you shave off some cash by making your own favors, programs, etc. This can save you a ton over paying for the service. However, as I personally learned the hard way, make sure you evaluate ALL costs and know what the market would charge to do the same work. I decided to make my own invitations, very pretty, and very simple. After hours (and hours) or work, many botched invitations and wasted supplies, plus tools that I never originally budgeted for, I spent at least 50% more for my invitations then if I would have just paid for them to be done. Make sure you are actually saving money by doing it yourself.

b.) What Matters Most – Figure out what you care/or your guests may care about. If the cake is not a big deal to you, get Auntie Annie to make you one. It might not be perfection, but as long as it is more than presentable you can save a mint! Spend on things that are important to you (ie. Photos).

c.) Costuming – I bought my dress at a beautiful bridal shop, but instead of the $200 shoes and $150 tiara that did look fabulous, I went to the mall, bought $26 strappy white sandals at an end of season sale (which I have won numerous times since) and a $12.95 tiara that I bought at a costume jewelry store in the prom section. No one knew the difference, and they both looked just as lovely as the boutique items. Plus, I didn’t have to worry about losing anything expensive.

d.) Alterations – You might not want to risk the wedding dress, but find out what alterations to a bridesmaid’s dress would be if you paid someone else (other than the bridal store). I have seen people pay hundreds of dollars to have a hem sewn and the top taken in that would have cost half the price at a decent tailor elsewhere.

e.) Package Deals – If you are booking a venue that offers catering/dj services/etc. as part of the package, ask if you can bring in your own and how it will affect the price. In many cases the venue is actually overcharging you for these services, when you could book the same companies personally for a lower price. On a side note (mind you I have never tried this), don’t mention that you are booking services for a wedding until absolutely necessary or after you have received a confirmed price. Some companies will jack up their prices, just because people will pay anything for the wedding of their dreams.

f.) Music – Have your heart set on a string quartet? Call a local music school or university and many students will be willing to work for peanuts to get some playing time. Besides if you are going with traditional standards, most musicians can pull these items off.

g.) Liquor – A few tips here:
1.) Close your bar during dinner and speeches. Wine is generally cheaper and it will keep people from having a glass of wine and three vodka tonics at the table, and drinking none.
2.) Offer only wine, and non-alcoholic punch for cocktail hour. People drink wine slower so they will not be consuming as quickly (or as much). Besides slowing down your guests may keep your 3rd cousin from re-enacting Tom Cruise’s “Risky Business” slide later on in the evening.

h.) Photos – Try to get a photographer who will allow you develop your own photos. This can save a ton of money as you can get the pictures developed by a high end developer, and all of those other photos for family and friends you can go to a lower cost place to have them developed on mass. Besides a photo card developed at Walmart is often significantly cheaper than a traditional stationary thank you card, plus your guests get a professional shot of their very own.

i.) Flowers – This category can be ridiculously expensive for something that may or may not even last until last call. Here are a few cost-effective options:
1.) Remember a few bigger blooms can be just as (if not more) dramatic than a cluster of flowers. In many cases the individual stems may be more expensive, but you will need far less to get the same effect, thus saving money.
2.) Remember your vision and see what you can do yourself. A girlfriend of mine wanted a large cluster of roses for her bouquet, so instead of paying a fortune she went to a discount wholesaler (Costco), bought two dozen roses, pulled them together as tight as possible, wrapped the stems in elastic bands, and then covered the bands in thick craft store ribbon that matched her theme. Bridesmaid bouquets were done the same with only one dozen. She paid about $15 a dozen, much cheaper than a floral shop bouquet, and they were beautiful. (Pre-order your dozens if you are worried about availability)
3.) Is your church/venue having another wedding that day? Talk to the other couple and see if they would like to split on the decoration and/or alter flowers. You can either make this a great savings or get far more flower for your buck by being able to upgrade by staying within your budget. Be ready to compromise though.
4.) Keep your flower choices in season. Tulips in December – a little pricey.

Good luck and happy wedding!

Christmas in September...

My budget got a nice little reprieve this week My husband's family has decided to draw names for the kids for Christmas, which now means that instead of the regular eight children (not including my own) that I have to buy for, I now only have to shop for two! Plus, they decided to put a cap on the present cost to make it "fair." WooooooHooooo!

Don't get me wrong I LOVE Christmas! And this is actually a little bit upsetting, as Christmas shopping, especially for children, is probably the best part. Every year my husband and I go to Toys R Us and spend hours trying out all the toys and deciding what to buy. It really makes you never want to grow up (if you ever really do).

However, this is a nice break on my tight budget. Plus, the money I save can go on my debt, or to the unexpected Christmas expenses that always seem to creep up, no matter how prepared you think you are!!

Beware - Month 1 credit card bills are coming!!

The windfall trifecta...

So have you ever been fortunate enough to go to your mailbox and have an unannounced cheque show up! Cha-ching - you may be thinking, but what do you do with money that you were not expecting? It could be a rebate from your insurance company, a gift from Auntie Erna, or whatever, but sometimes luck changes and you get a little break (or a big break). How to deal with the money is what I call "The Windfall Trifecta." This is a way to keep you happy without just blowing the money. Basically allocate all windfalls (no matter the size) into 3 components.

a.) Debt - If you have debt you should put some money on there. Unless you are in dire straits putting the whole windfall is likely unsatisfying as you will feel like it never really happened. Especially for gift money. However, we must remember to give our debt monkey a little extra and loosen up our debt load a bit.

b.) Savings - Debt or no debt, save some of that money. Even if only $5 put that little gold nugget into a high interest savings account for a rainy day. It may not seem like much, but a few $5 allocations with a decent interest rate could amount to an emergency car repair very quickly. Plus, think how nice it will feel not to charge something unexpected.

If you have no debt, you can either double up the savings component or split between savings accounts (ie. emergency fund and your vacation fund)

c.) Spend it!! - Yeah, you heard me. Even a cup of Starbucks can really make your day if you have been diligent with your debt repayment plan. Besides, you only live once and if you put every cent away you'll never enjoy yourself. Grant yourself a little pleasure and it will take you much further and recharge your batteries for the uphill debt fight.

Note: Just because there are three categories does not mean that you need to split the money 3 ways. If you are drowning in your debt, it may be worth it put 75% or more on your debt, with a much lower amount allocated to savings and spending. A good key concept for windfall success - the spending amount should never be higher than any of the other two categories.

If your windfall is particularly big, remember to take the time to assess what you really need/want in the spending category. When you are dealing with bigger bucks, making wiser decisions will relieve some future cash strain while still feeling satisfying.

Cards to pay off - 3
Extra earned this month - $100 - Yep I did it, and with hardly a day to spare!!! The remaining $31 dollars came from a combination of my change jar, money in purses/wallets I hadn't used for a while (a whopping $17.43), and I returned an item that I had charged on my credit card (item was actually $21, but I figured that one was a stretch so I will only take credit for the remaining amount needed for September).

Note: Getting my mitts on $100 was really hard. I will definitely have to get creative in the next few months.

"Budget Wins"...

As I mentioned yesterday there are a few ways I know to increase your "Budget Wins" in your gift budget:

Shop off season: Since you will have an influx of "gift money" year round you can start buying before your events and holidays come up. For instance a great end of season sale in March could have some great discounts on sweaters, outerwear, sports equipment (hockey, snowboarding), or other fun gifts such as sleds. These items will likely cost you more in November/December, but your dollar will go much further when they are on sale earlier in the year. Note: Watch out for buying items that are too "trendy." They may be out of style by the time they are given thus making them undesirable.

Buy in bulk: Many stores (especially for children's clothing) offer discounts if you buy 2 or more of the same/similar items. When buying a gift, think ahead to who else you may need to shop for in the future. Could you pick up a great hoodie for a discount now, instead of overspending later on in the year and receive a discount.

Be creative: If you know events are coming up you can use your own talents to reduce the cost of gifts and increase your "wins." Knowing that a friend would be having a baby in 6 months I used some of the yarn I had lying around (from other discarded projects) and made a beautiful baby blanket. Coupled with a $7 plush toy, the gift was well received and I was $23 underbudget. Use whatever talents you have to come up with great gifts (services are always welcome) and save money.

Get to the point(s): Remember all of those points cards/frequent shopper cards you have filling up your wallet, check those balances. Many point programs can be used to buy merchandise or gift certificates that you can use to buy your gifts, without costing you a dime!! Don't worry if you don't have enough for the full amount, many programs will let you pay the difference in cash which can reduce what you would pay for an item, or get a much better gift for a much cheaper price.

These ideas should help to reduce your expenses on gifts within the year and avoid untimely events from ruining your cash flow. Take the extra money and put it on your debts or buy something you need. Plus, actively keeping tabs on your gift spending will make it easier to be more organized. Afterall, I am 75% done my Christmas shopping already.

Stats - no change - but my eBay auctions are up tomorrow -wish me luck!!!

Coming up tomorrow: My Husband, My "Client"