Maintaining Your Financial Plan During the Holidays

In less than three weeks, it will again be time to usher in a new year. With the holiday and celebration prep in overdrive, it’s easy to let your financial planning fall to the wayside.

When you can hardly keep up with your event plans, family demands, and holiday shopping, how can you possibly also manage your bottom line and keep sight of your financial goals?

If we let the retailers decide the answer to this, each and every one of us would have busted budgets and dwindling savings. We’d be awash with beautiful packages, delectable dinners, and Martha Stewart-worthy shindigs, but we’d also be stressed out about January’s credit card bills.

We’d be spending blindly, as visions of smiling family members opening multiple gift boxes danced in our heads. Some of us may even resort to my favorite game from years ago, Balance Transfer Roulette, in order to pay for the annual influx of holiday spending.

But there is hope! It may not be the easiest choice, but keeping sight of your financial goals and being mindful of your budget is possible during any time of the year. Some of the ways you can maintain your financial plan during the holidays include:

 Review your budget

Your budget is not a set-it-and-forget-it entity; especially during the holidays. Open that Mint.com page, click on the month’s Excel worksheet, and look over the budget you drew up at the beginning of the month. You didn’t make a budget for this month or your holiday spending?! Grab a napkin, a receipt; whatever you have lying in front of you right now that you can write on–chicken scratch works quite well as long as you know where your money is going.

Re-assess your budget

Have you over-spent on gifts for family but have wiggle room in another category? Move around the numbers to make them work for you–just remember that what goes out MUST match what’s coming in to ensure a balanced, healthy bottom line. Bonus points if you’ve already saved a dedicated amount for the holidays–use this money before dipping into monthly cash flow!

Post reminders

So you’ve reviewed your budget and find that you have $50 left to spend on food for your holiday party? Grab a post-it and write “$50″ on it and put it somewhere you’ll see it. Or set a Google alert for later in the week when you know you’ll be shopping. Having reminders of what you have to work with will help to avoid the head-in-the-sand approach.  Speaking of….

Remember, you are not an ostrich!

Technically, ostriches do not stick their head in the sand; when they sense danger and cannot run away, they simply flop down and remain still. Now is not the time to stick your head in the sand; you need to be aware of what you’re spending and know when it’s time for you to “flop’ out of the buy, buy, buy game.

Make it a Cash-only month

It’s well documented that we spend more when swiping plastic. Force yourself to count out the greenbacks–you’ll curb your spending in no time when you’re holding an empty wallet.

Consider gift-giving alternatives

Heartfelt, sentimental gifts, even if homemade or written, are far more memorable and appreciated by their recipients. Sure, a love letter may not have the same initial appeal as an iPad for a gadget-obsessed techie, but I promise that letter will be saved far longer than the next Apple upgrade.

Use coupons and gift cards

Stretch your dollar even further by combining coupons & gift cards with store sales. Capitalize on those last-minute Black Friday-esque sales and complete your shopping for a fraction of the cost.

Cut-back wherever possible

Do you host a big dinner only to find that your guests typically fill up on the hors d’oeuvres? Host an appetizer & drink event–nobody will notice the difference when well-fed and surrounded by friends and family. Your wallet (and waistline!) will thank you. Also, consider giving a family gift rather than individual gifts. Or, institute a spending limit for the entire family and see where creativity more than makes up for big spending.

If you should still find yourself struggling to balance your budget or find that money is tight and you’ve exhausted your options, consider the following:  If you have a relationship with someone that is close enough to inspire gift-giving, there should be no reason why you can’t have a candid conversation about your financial situation.

There are literally tons of meaningful ways to celebrate the holiday without spending money you don’t have. In the end, remember what the season should really be about: spending time with loved ones and creating memories to last a life-time. Nowhere does it say that you must spend in order to do this….

How do you maintain your financial plan during the holidays?

   

My Ode to Black Friday

Dear Black Friday,

Oh, the tormented, love-hate relationship we’ve built over the past 10 years since I first met you. You’ve helped me save massive amounts of money, but you’ve also shown me a darker side of my fellow humans…

I’ve witnessed grown women crying over pots & pans, I’ve seen fist-fights spawn over the last Harry Potter DVD in the bin, and I’ve laughed while teenagers leap over each other to secure their coveted Wii games. I’ve also dragged a 32″ TV behind me through a Target because there were no more carts, forced my little sisters to ride in my hatchback along with a 55″ TV for the ‘rents (I sense a theme of television-related purchases in our various, sordid affairs), and I’ve cut in line when it came time for the doors of the mall to open (see the things you do to me?!).

But no matter the madness that ensues year after year, I will continue to proclaim my undying love for you when I again venture out into the depths of retail Hell this Friday. I will smile fondly as I save 60-90% off on the things already on my shopping list (I’m sorry, but I’m no longer tempted by your myriad of too-good-to-be-true impulse purchases). I will also celebrate my haul as I brag to my boyfriend and siblings about how much I saved this year. And I will ultimately be proud because your insanity will allow me to provide gifts to impoverished and needy families in my community because I can buy even more when those cute toddler outfits are a mere $2.97 and the reason why I brave the throngs of thirsty shoppers is really to be able to give even more back to those who need it most.

So as I view your sexy, over-commercialized ads on 2011blackfridayads.com, I’ll make my list, and I’ll check it twice. Here’s to hoping that the memories we create this year will be filled more with holiday cheer and less with stories of people being trampled and crushed at Wal-Mart.

Yours through thick and nerve-shattering thin,
The Happy Homeowner
 

19 Easy Changes You Can Make to Cut Your Grocery Bill

Has the rising cost of food eaten a chunk of your grocery budget? Do you find yourself paring down your list in an effort to compensate for the latest food price increase?

If you do, you’re not alone! According to the USDA’s Cost of Food at Home analysis, the average monthly cost for a family of four on their “moderate-cost plan” has risen by more than $174 in the past five years.  $174 per month to feed your family the same types of food you’ve been purchasing all along. Take into consideration that this figure is for a family that includes a couple who are 19-50 years old and two children between the ages of 6 and 11. We all know that teenagers can eat a family out of house and home, so imagine the increase for families with children who are between 12 and 18!!

But there is hope! With a few simple changes, you CAN save money on food and once again reclaim control of your grocery budget. Here are some of my favorite ways to make easy changes that cut your grocery bill. The best part of this list? You can put these steps into action immediately!

While Grocery Shopping:
  • Eat a snack before you shop. Studies show that people who grocery shop on an empty stomach make more impulse purchases and buy more convenience foods. Unfortunately, convenience = more money at the grocery store, so don’t leave home without a full stomach.
  • Make–and use–a list. It may be difficult at first, but meal planning will save you time, energy, and money in the long-run. Plan a week of meals at a time and base your grocery list on what is needed for these meals. If it’s not on the list, it’s not in your cart!
  • Buy the store brand. “Generic” food has come a long way. Gone are the days of the plain, black and white labels clustered in their own row in the grocery store. Today’s store brands are of top quality and taste. Plus, your grocery dollar goes much, much further. One caveat to this would be if you can purchase the national brand at a better price using coupons….
  • Use coupons! No, I’m not advocating any Extreme Couponing madness here. If you have access to the Sunday paper or the Internet, savings are just a snip or click away.
  • Buy what’s on sale. Matching coupons to weekly sales is a surefire way to slash your grocery bill. Unfortunately, not all of us have the time or patience to do so. Instead, figure out your list and then buy the sale version of whatever you actually need. Need flour for those cookies? If you’re a die-hard Gold Medal fan but Pillsbury is on sale this week, buy the Pillsbury (even better if you have a coupon for it, too)!
  • Buy your meat on sale. This deserves its own bullet point because meat is often the most expensive food item you’re throwing into your cart. When you see a great sale, that is the time to stock up on chicken and the like. Just follow my tips below for food storage so you’re not throwing it out in 6 months without using/eating it.
  • Buy in-season. There’s a reason why those blueberries are 50-60% less in the summer than winter–they are in-season! Sustainable Table has a great search function where you can find what’s currently in-season in your state.
  • If you don’t need it and won’t use it, don’t buy it! Don’t get suckered into spending more money on random products because they are on sale or part of a store’s “amazing deals.” Even if it’s a BOGO deal, think long and hard before throwing it in your cart. If you don’t usually use it and don’t need it for your meal plan, you’ll most likely just end up throwing it–and the $$ you spent on it–away when it expires.
  • Skip the individual serving-sized products. Sure, those individual packets of Goldfish are cute and convenient, but as I’ve already covered, convenience = money when it comes to your grocery dollar. You are far better off purchasing a large container of Goldfish and making your own smaller servings using sandwich bags. This also applies to fruits and veggies–peel & chop your own and revel in your savings!
 At Home:
  • Store your food correctly. If you store your food correctly, you save money and can virtually eliminate the need to throw things out because they are expired or rotten. Rotate your stock of canned goods and non-perishables in your pantry, fridge, and freezer. Clearly label all packages that you put in the freezer–include 2 dates: the day you put it in the freezer and the day it will expire. 
  • Eat or freeze your food BEFORE it spoils. If you open your crisper and find produce that is just about to turn to the dark side, cut it up and pop it in the freezer. I do this with pretty much all of the produce I purchase–it can become the base for homemade soups, stocks, smoothies, etc. If you find yourself consistently putting food in the freezer in an effort to not let it spoil, take a close look at what you are buying and cut back.
  • Shop your pantry before the store. Challenge yourself to use what’s already in your pantry BEFORE deciding it’s time to grocery shop. Sites like MyRecipes.com have features where you can simply enter what you have and recipes that use those items will be generated. 
  • Become a 2-Batch cook. Double your frugal recipes and freeze the other half. You’ll certainly enjoy having dinner prepped when it’s been a long, hard day, and you’ll reap a greater financial benefit if you follow the steps above when shopping for said ingredients!
  • Brown bag it. Leftovers make an excellent lunch, so make sure to remember them in the morning! You can also save leftovers for weekend brunch or omelet fixings, so the leftover phenomenon extends far greater than work-day lunches.
  • Go meat-free. You don’t have to become a vegetarian to cut your grocery bills, but going meat-free a few times per week will save both money and your waistline. Find creative recipes to make healthy, periodic, meat-free eating a way of life in your home.
  • Try new proteins. Decided to go meat-free? Great! Now open your recipe box up to the possibilities of legumes, tofu, beans, and eggs. These items cost far less than meat and have an immense impact on your health (think lower weight, lower cholesterol, lower blood pressure).
  • Use frozen, dried, or canned. Have a love of black beans? Buy them dried and save yourself about 40%. Love smoothies but hate the cost of fresh fruit? Buy frozen fruit and save at least 25% most of the time. Love to spice up your recipes? Dried spices command a far lower price, but can replicate most flavors of the fresh versions.
  • Sow some seeds. That’s right, start (and maintain) your own garden! If I can have a thriving, urban potted garden on my back porch, anyone can because I used to be a self-proclaimed Black Thumb of all things living. A few quick Google searches and Home Depot brochures have helped me amass the skills to grow my own herbs, tomatoes, peppers, strawberries, and squash. The up-front investment for seeds and soil pales in comparison to the amount I’ve saved by growing my own.
 DIY Cooking:
What else would you add to this list? What do you do to save money while grocery shopping?
    

Learning to Say No, Slow Down, and Stop Buying

Last week, my Balance Journey story was featured on Blonde & Balanced.  As a segway back into my Confessions of  PF Blogger series, I’m posting it in it’s entirety here because it’s a fantastic synopsis of my on-going journey to financial freedom.  Enjoy!

Balance has not come easy for me. In fact, it is still something I consider to be a work in progress as my goals and interests are constantly evolving. Much like Amber, I have been on a personal improvement journey for many years, so I was instantly drawn to the opportunity to share some of my experiences.

I’ve been writing a series on my blog about my story of getting out of debt, and the process has allowed me to quickly surmise that I have achieved balance in three very large ways:

  1. I’ve learned the power of “No”.
  2. Material objects don’t determine my self-worth, credibility, or reputation.
  3. I’ve made a concerted effort to Just… Slow… Down….

The Power of “No”

Saying ‘no’ had always been difficult for me:

You want me to do your share of this project? Sure! You want me to spend money I don’t have at a fancy restaurant? Of course! A fancy vacation when I have over $10K in accumulated credit card debt? Yes!

In a nutshell, I lived most of my early adult life as other people’s doormat. I never quite understood the power of the word ‘no’, nor did I realize that using it would not immediately cast me off to some deserted island, forever lost in my poor decision to actually tell someone ‘no’. I was a people-pleaser and I was proud of it.

Or so I thought.

It took years before I finally managed to squeak out a real ‘no’. Boy, did that experience change my life! Now I consistently, respectfully, and happily tell people ‘no’ when I cannot do something or do not agree with a suggestion. Guess what? It didn’t cause me to lose my job, fight with relatives, or lose any friends.

Material Objects Don’t Determine Self-Worth, Credibility, or Reputation

I once had over $14,000 in credit card debt. I charged my way into oblivion by buying clothes, vacations, concert tickets, and other frivolous items. If I had a bad day, I shopped. If I saw something I liked but couldn’t afford it, I charged it. I foolishly believed that if only I had that shirt or went on that vacation, people would like me more.

My epiphany came one day while on a shopping spree and charging yet another needless item. Why was I buying these things? I had NO IDEA! I didn’t need them, and, quite frankly, I didn’t really even want them. So I politely explained to the sales associate that I had changed my mind, left the store, and never looked back.

I paid off every penny of that debt in one year. I replaced the need to buy with the satisfaction of friendships and relationships built on mutual interests such as running and conversations that focused on goals and dreams. I felt alive for the first time in my life and I didn’t have to rely on my credit cards to provide that genuine happiness.

Just… Slow… Down…

At one point in my debt-payoff frenzy, I was working six jobs. Yes, six! I was the little (crazy) train that could—I could work all of these jobs, go to grad school, have a social life, run marathons, and so on.

Riiiiiiiight.

While I kept up a frenetic pace for about a year and a half, I finally had a breakthrough (breakdown?) when I realized I had scheduled myself to work 28 days straight, with finals week thrown in the mix.

Hello, Superman called and he wants his cape back!

I quickly realized that if I kept this pace of life, my life would, in fact, pass me by. I promptly re-assessed my goals, re-adjusted my timelines, and slowly began eliminating my random jobs and side gigs. A few years later, I purchased my first home and since have fallen in love with a more “domestic” lifestyle.

Now I make sure to tame my workload and I don’t take on anything that won’t enhance my life in more ways than one. I seek out entire days where I can simply just be and revel in the small joys in life. After all, if we’re not truly enjoying our life, are we really living?

So there you have it—my balance journey! If you should find yourself over-committed, debt-ridden, or down-trodden, just take a moment to breathe, re-adjust, and chart a new course. You are the owner of your balance journey, your happiness, your destiny. Life really is what you make of it and I’m in the camp of making it the best f’in life possible.