Daily Preparedness

Sorry for the delay in completing our field trip–we have had one medical crisis after another!

It is off to the store; list, coupons, re-usable bags, thermal bag for frozen foods and our frugal wits about us! With your super-organized list you are going to come out a winner at the end of this race.

As you enter the store, check your list to see if you have prescriptions to drop off or pick up. Consider making the pharmacy your first stop, especially if you are dropping off a prescription. If you are picking one up, check to make sure it is ready. If it is ready, place the medications securely in your purse or return to your car to lock them in the trunk (unless they are heat sensitive!).

With your well organized shopping list, you are ready to fill that cart with bargains. When you are standing in front of the well organized shelves, keep in mind several tricks of those whose lives are dedicated to removing the maximum amount of cash from your budget.

Mark off items as you purchase them. If you are going to utilize a coupon, remove it from your coupon pile and place it in an envelope, a separate part of your clipboard or on top of your re-usable bags. One savvy shopper keeps a clip on her re-usable bags. As she picks up a coupon item, she attaches that coupon to the bag with the clip.

Generally, the most expensive, highly publicized brand will be at eye level. The cheaper brands, including house brands, tend to be lower or higher on the shelves. Remember to look up and down before deciding which to buy.

Scrutinize the small portion of the shelf price sticker that allows you to compare the cost of product per measurement. If your store doesn’t offer this option, go to a different store! Double check your coupons to be certain that you are truly saving money as compared to a different brand. Be extra cautious with laundry detergent as you need to compare the estimated number of loads a particular brand will do. Do NOT assume that the larger size is necessarily cheaper!

Wherever possible, purchase store brands. Remember the golden rule–the less prepared the item, the more you are likely to save.

Need items due to a special diet? Check the ingredients in the ‘regular’ aisles before heading to the speciality aisles. For instance, I needed dairy-free chocolate chips. In the ‘natural section’, the chips labeled in large print “Dairy-Free” were $10.50 a pound. GAG! Taking a few seconds to read the ingredients of the store brand dark chocolate chips in the ‘regular aisle’ revealed they were ‘dairy-free’ and less than $4 a pound.

Avoid money pits!

• Pre-packaged side dishes & entree mixes (5 to 10 times more $$$ than a dish you assemble yourself, plus more calories, fat & sodium), spaghetti sauce (2 to 6 times as much as homemade),
• Spice packets (10 to 30 times the cost of mixing your own)
• Single package snacks & treats (2 to 3 times more than bagging your own).
• Junk food in general, including fruit ‘roll-ups’ and ‘fruit snacks’ (which are really just well-named candy full of sugars and bad for little one’s teeth)!
• Power Bars, energy drinks and expensive trail mixes. Make your own trail mix from cereal, a few nuts, chocolate chips, dried fruits & miniature marshmallows for a fraction of the cost.
• Nearly anything packaged for children. Avoid paying extra to subsidize the marketing campaigns of this week’s favorite TV or movie kiddie-hero!

Check end caps for sale or special items. Likewise, check the area where the store places their ’scratch and dent’ items.

Stockpile items that you use frequently when they are deeply discounted. Remember, after holiday sales occur in grocery stores. The kids won’t really care if they are eating pink and red M&M’s in May!

Purchase all of your ‘dry goods’ first. This includes paper products, canned goods, packaged items–anything that does not require refrigeration.

Tempted by a ‘luxury food’ not on your list? Place it in a separate section of the cart so that you can review your decision before checking out.

Produce:

• Check your produce carefully to make certain it isn’t bruised, overly ripe or over-priced.
• Eat seasonally. Do you really need raspberries in the dead of winter?
• Remember cost per portion. If you purchase large apples and you don’t cut them in half for the little ones, they will probably waste a good portion of the apple.
• Consider the true cost of a few minutes of time. Those bags of salad? At least THREE times the cost of a few raw ingredients. Pre-cut stew vegetables? Probably more expensive than the meat you will purchase. Pre-cut celery, carrots, etc? Again, you are paying up to $40 an hour for someone to whack up a few vegetables. AND most are treated to keep them fresh.
• Whole vegetables will store longer, are less treated and more versatile.
• Treat your produce gently in your shopping cart!

Dairy department.

• Avoid the budget killers–little portions, ‘kiddie’ foods and high prices. Want Junior to eat yogurt? Great! Buy a larger container without the cutesy wrapping and save up to half!
• Look for unadvertised specials, seasonal close-outs and short-shelf-date sales. Know what type of sticker your store uses to highlight these items.
• Group your cold items together, beginning with dairy. During warm weather, put cold & frozen items in your thermal bag.

Meat department:

• Check first for mark downs! If you find an unexpected bargain, think of what you might need to serve with it. Add those items to your list & purchase them as you head to frozen foods.
• Place your meat in a thermal bag separate from the dairy & frozen foods.
• All meat should be placed in the lowest part of the cart away from fresh foods. Packages should ideally be handled with paper towels and placed in plastic bags.
• Compare the cost per pound for ‘family packs’ vs. smaller portions. You can save big by breaking down a family pack into meal-sized portions.
• Don’t buy a more expensive cut of meat than you need! If you are marinating a steak, you can purchase a less expensive cut.
• Consider replacing chicken breasts with thighs.
• Be certain that you aren’t paying for water or ‘flavor enhancers’ instead of meat. In many stores, chicken meat is infused with15% or more fluid. That fluid may be water or ‘flavorings’ (and who knows that means? Chemicals, most likely)
• REMEMBER, cost per serving!
• Meat department budget busters include pre-formed hamburger patties, gourmet cuts of meat, pre-marinated meats, ‘oven ready’ entrees and pre-cooked items.

Freezer department:

• Avoid Wallet Drains: Frozen entrees, ‘lean meals’ (translation: ‘You pay more, we give you less’), kiddie food, breakfast items (I once compared the cost of toaster waffles to the real thing–25 times the cost of a fresh waffle!), individual ice cream treats and gourmet ice creams are certain to sink your solvency ship.
• Protect your purchases. Add frozen foods to your cold items in the thermal bag.
• Maximize the smart choices, which can include plain vegetables (those microwave bags & veggies with sauce–RIP OFF!), plain fruits, juices (not juice blends which are primarily sweeteners), some pie crusts, some frozen doughs, some french fries and frozen pizzas for nights that you are caught without dinner.

Before getting in line:

• Review your list to be certain that everything is crossed off.
• Did you buy a cut of meat at a discount? Do you have everything you need to cook it?
• Have you picked up that prescription you dropped off?
• Look with a critical eye at any impulse items you added to the cart. Did you buy them because of an ad you saw? Were you just tempted due to fatigue or hunger? Do you really need it? Can you afford it? If in doubt, hand it back to the cashier.
• Keep your eye on the prize. All of those candy bars, little goodies, gadgets and magazines are placed there to tempt you out of your money! Focus on the task at hand and get out of that store with your budget intact.

Check Out Carefully:

• Hand the cashier your re-usable bags and coupons. The coupons should be left out where you can see them–they are the same as cash and you don’t want the cashier completing your purchase before deducting them.
• If the store has a loyality program that gives you sale prices, utilize it. If you don’t want a record of your purchases (though it can be useful for returns and recalls), simply use a different name.
• As you place items on the belt, keep raw meat away from other foods. Keep cold and frozen foods together. Have these items bagged into your thermal containers.
• Watch the prices as they are scanned–especially clearance & deeply discounted items. The percentage of errors in some stores is criminal. If in doubt of a price being rung up, ask. Many stores will give you the item for free if it rings up incorrectly. If you have a large number of deeply discounted items, keep them towards the end of your order so that you will be sure to have finished unloading your cart when they are rung up. Never hesitate to ask the cashier to price check an item.
• If you pay off your balances every month, consider using a credit card that offers cash back based on your purchases. With many of these cards (which you should NEVER pay an annual fee for), the rate of return is higher on groceries than other items.

You did it–all you have to do is pay, pat yourself on the back for the money you saved and load the car to drive home.

Oops…load the car carefully.

• Keep those frozen and cold things together.
• Keep heavy items down low. You don’t want a can of beans whacking you in the back of your head.
• Don’t obstruct the view. You need to be able to see out of your car.
• Drive cautiously, especially in the parking lot which is a haven for accidents.

• Don’t make other stops on your way home unless the outside temperature is below freezing and your cold items will stay cold!

Congratulations! You may have just saved 30% or more off of your grocery bill. If you followed all of the rules, avoided those money pits, shopped from a list and chose wisely, your savings will exceed 60% over the foolish shopper.

Next time: X-Treme Grocery Shopping puts the groceries away!

We’ve all heard it–have a 30-day supply of cash on hand in liquid assets, six months of expenses in the bank or investments and a retirement account. Then, save for the extras and emergencies of life–new appliances, emergency repairs, vacations, cars, a bigger home. Why a 30-day cushion of cash? Investments are great and can form the foundation of a life long financial plan. But, most investments are not ‘liquid’ and their value (as we have recently seen) can vary drastically. Investments are for future planning, while your 30-day cushion is for immediate needs should your income be drastically reduced or even disappear. The average period of unemployment is 30 to 90 days, though that window is growing. Unemployment payments will not completely make up your lost salary and may not start for several weeks. That interim period of no income does not mean that your daily expenses stop.

Have you ever carefully analyzed exactly how much cash you need to have if tomorrow your income stopped? Do you know exactly how much money you need in readily accessible ‘liquid’ assets that you need to prevent foreclosure, repossession, loss of utilities, insurance cancellation, etc? What is a ‘liquid’ asset anyway?

First, a ‘liquid’ asset, for the purposes of this discussion, is cash that is safely stored (as in an insured savings or checking account) that you can access during any normal business day without paying an early cancellation penalty, applying to withdraw it or having to wait for a check to be mailed to you. Ideally, it is money held in a local, government insured bank or credit union. Having it in an insured institution that allows you to write a check against it or use a debit card is even better!

Second, how much cash do you have to have to meet your obligations in any given month? For this discussion, that does not include discretionary income such as eating out, shopping for anything but the bare necessities or entertainment.

Don’t know how much you need to have on hand? Pull out your last few bank statements and credit card slips. Write down all absolutely necessary payments. This should include your mortgage, any automobile loans, student loans or other loans that must be paid monthly. (Hint–the less debt you have, the fewer items will be on your list and that is a ‘good thing’.) Don’t forget insurance premiums for car, health, homeowners, medications, medical co-payments, etc. Now look for payments that are made for the previous month and are necessary to maintain. This category would include utilities, phone, average credit card bills, etc. As you write that list, which could you cancel and not owe for the previous month? In this category is often internet access, TV, etc as they bill you for the coming month not the previous month. Don’t forget garbage collection fees, HOA fees, car registrations & inspections coming due, as well as tuition payments. Finally, look at items that would require you to have cash, but might be more flexible in the amounts. This would include gas and transportation costs to get to work and food items. Also look at which payments could be suspended for a month or two without penalty.

Once you have your list with the amount of money needed, carefully examine it to see which items could be trimmed now. Ask yourself a few pointed questions, such as: Are you spending too much? Do you have your food storage in order? If you have food storage, your grocery bill is gone! Are your cars and home well maintained so that you won’t be hit with repair bills? How do your credit card statements look? Review them very carefully and analyze how you are spending your money. What items could you cut back on now?

Now that you have your list and your amounts, add it all up. This is your goal for a 30-Day supply of money that is readily accessible to you. Do you have it in the bank? If you do–hooray! One more goal completed! Of course, you will want to build on that reserve to surpass the 30-Day goal. The more ‘cushion’ you have, the longer you can safely remain solvent.

If you don’t have a 30-Day supply of cash, it is time to seriously tighten that belt and work towards meeting the goal. How can you do that? Look back at those bank and credit card statements. Look at them harshly. What can you cut out right now? Do you pay for items with cash? Do you know how much you spend?

If you have no idea how much you spend, carry a little notebook, a 3×5 card or piece of paper with you for a few weeks. Write down every single purchase you make. Write down every donation you make. Simply put, write down where every single penny you have goes. No cheating, no fabricating, no rounding up, no guesstimating, no saying, ‘that pack of gum doesn’t matter’ and no stopping your normal spending habits just to make the paper look good. Don’t fail to write down online shopping, picking up dinner on the way home, that fast food lunch — nothing can be skipped! At the end of your record keeping period, look at where your money goes. Nearly everyone’s budget has some form of excess in it. There is almost always room for economizing–even if it is only the $5 per week video rental.

A recent edition of Reader’s Digest included an article about a spending-free month tackled by a writer, his wife and son. Their experiences are enlightening and encouraging to anyone who wishes to curtail their spending. Check it out at: rd.com.

Other writers have suggested having ‘no-spend’ weeks or even a day at a time. Just remember, that those pennies add up to dollars and those dollars can add up to financial security. The simple act of saving your change daily can add up to surprising amounts of money. My 8-year-old grandson, Max, recently collected all of the spare change he could find in his house. The family was moving out of town and as they cleaned, Max put all of the change lying around in his bank. He had remembered the many times I had told him about pennies adding up and the words of Benjamin Franklin, “A penny saved is a penny earned.” While visiting me just before moving, we began rolling his ’stash.’ Our first rolling session with just the contents of his piggy bank totaled $109. He thought he had about $30. With this stately sum, he was motivated to go home and dig a bit further for more change. He looked in every nook and cranny of the house, raided every junk drawer, and checked under every cushion of every seat in the house. He brought his second round of change in a plastic bag. I asked him to guess how much he had and he estimated $25. As we rolled and rolled more coins, his eyes got bigger and bigger. He had collected an additional $35. The simple act of rounding up change netted him the princely sum of $144.

On a grander scale, a friend’s father collected his spare change for several years in a large glass vase that sat in the corner of his bedroom. When the vase was full, he began rolling his change while watching football. After several trips to the bank, he had added over $11,000 to his bank account.

However you choose to save, give yourself the financial cushion of at least a 30-Day supply of cash that will cover your necessary expenditures. And if you really don’t think you need to save those lose coins, I know an 8-year-old that will gladly keep them!

No matter what your income level, stretching your hard earned dollars is a wise move. Why spend more than you need to? Smart spenders know that there are bargains everywhere. Small savings quickly add up to large numbers of dollars that YOU get to KEEP! Think of it as a game, a hunt for the best price on everything you buy. And the trophy? More money in YOUR bank account!

Many of these topics are covered in depth under their own heading in other articles, but here is a quick review of basic things we all spend money on:

Price comparison and Price Matching: Many retailers will match the advertised price on items. You can save yourself time, gas and money by pre-shopping the weekly sales flyers for items you wish to purchase. Consolidate your list and see if one store carries all of the items. Simply take the flyers from multiple retailers into one location, head for customer service with your chosen items and ask for a price adjustment.

Online shopping & comparisons. The internet provides all of us a portal to quick and painless price comparisons. Most grocery stores and major retailers post their weekly flyers on their website. Many will give you the option of being notified via email when a new flyer is available. If you find an online price cheaper than the brick and mortar store, ask that they match the price. If they can’t, many will order the item for you at the internet price and have it shipped to the store for free. Also, be certain to ‘google’ any item you are shopping for. Check all of the results for the best price. If you call the supplier directly, you may be able to get an even better price! There are price comparison search engines, but these do not always give the broadest possible results. Also remember that many of the results at the top of ‘google’ or the side bar results are sponsored links–the company has paid to have the top spot so these may not be the best deal.

Out of stock? When a store is out of stock on a sale item, ask if they could possibly substitute another item. Many will offer you the next higher priced product at the sale price. And do NOT forget to ask for a raincheck. You can then wait to purchase the item (up to the expiration of the raincheck) at the sale price.

Gas guzzling your wallet? Of course, you will consolidate your errands and keep your car maintained so that you get the best gas mileage. Before you go out to fill up your tank, use one of the many online gas comparison sites such as www.gaspricewatch.com. Some local radio stations are offering a similar service. Do remember though that driving too far out of your way to save a few pennies at the pump is most likely costing you money.

Insurance. Periodically review your insurance coverage and cost on your home, health and auto. Everyone needs insurance, but a quick call to your agent or competitors may save you BIG. If you find a quote cheaper than you are currently paying and are happy with your insurance company, ask them if they can meet the competitor’s price. Also, update your insurance if you add safety features to your home such as an alarm system or enhanced fire detection system. These can reduce your premiums. Be certain to read the fine print on any policy so that you know what you are covered for! Definitely avoid unknown or little known companies. There are LOTS of insurance frauds out there. Don’t forget to accept the offers from banks and credit unions for free small life or disability insurance. Don’t feel pressured to ‘add to’ these policies, but accept the freebies. Keep a copy of the ID card, policy info, etc in your ‘What If’ Notebook.

Cars. Whether buying or selling, check your emotions at the door. People that buy cars emotionally are prone to overpay and over-regret later. A little bit of research ahead of time can save you BIG! Do some online research into cost guides such as edmunds.com (though many of the prices listed do not account for economic downturns, markets glutted, etc) for the average cost of the car you are looking for. Research recalls, maintenance costs AND insurance costs as you decide which vehicle to buy. Compare warranties–what they cover and for how long. Once you have decided between one or more possible cars, search online for ‘internet pricing’ from dealers in your area. NEVER, NEVER, EVER fall victim to the common scam of ‘the car is in Portugal or another state, but in pristine condition….send me cash and I’ll send you the car’. Everyday, people fall victim to this one! Don’t buy a car you can’t drive where you want to (within reason) and have checked by a mechanic you trust. If looking for a new car (usually an unwise step), at least see if you can’t get a fleet or ‘direct’ price via the wholesale department. Be certain that any warranty information you given is in writing and matches what the salesman tells you. Research is your friend–use it wisely!

Watch That Cashier! We all make mistakes and so do automated cash registers!! Researchers believe that a good percentage of cash registers are not accurately portraying sales and clearance prices. The average consumer is over-charged thousands of dollars in a lifetime. When you pick up clearance items, double check the price. At the register, be certain you can see the price being rung up. If it is incorrect, notify the cashier. Also remember that most grocery stores will give you the item free if it rings up incorrectly. Before you leave the store, at least glance over your receipt. If you notice a discrepancy, head straight to customer service.

Eating Out/Calling In. If you eat out or enjoy carry out food, always watch for coupons. For those that dine out a great deal, consider investing in an ‘Entertainment Book’, which is full of buy one/get one free coupons. Before calling in an order for delivery or carry out, check online for internet specials or printable coupons. When you place an order on the phone for delivery or carry out, ask about specials. When you see a coupon, cut it out and stick it in your Entertainment Book or on the frig. Don’t forget, too, about early bird specials, happy hour specials and other ’special’ times at your favorite restaurants.

Clearance Zones. Learn where your favorite retailers place their ‘clearance zones’. Nearly every major retailer has a set mark down timetable and area they place items marked down. As you go through the store, zip past these areas and keep your eyes peeled for bargains. For instance, Target uses end caps at the opposite end of aisles from the ‘main aisle’. Items with a price ending in a ‘4′ are usually at the end of the mark down cycle and will not be marked down further. At Sam’s Club, an item with a price ending in a ‘1′ is usually at the end of the cycle. Also look for end of season items drastically reduced–especially items that can be utilized for other purposes. For instance, I pick up Christmas gift sets at 90% off that contain flashlights, mini tool kits, pasta and other food items. At Sam’s, they cleared out ‘holiday’ pasta packaged in Rubbermaid canisters. The canisters normally retail for about $6 each and contained 8 pounds of pasta. Worth about $8. My cost? $3.01. My savings? $10.99. Post-holiday sales are also a great place to stock up on plastic totes. Check Target after Halloween and you may pick up orange totes for 90% off.

As you go about your daily life, incorporate the concept of wise spending and watch the savings add up!!