Working hard and barely making ends meet

Diamond Member Joined: Dec 28 2005 Posts: 4654

Mrs. Bissli - I don't care if I pay full price.

Just like I didn't care (and was happy) to get my kids each a snack pack of Bamba on Sunday at the supermarket. Nice day out, we walked there, and I wanted to get them something to nosh on the for way home in the stroller. With some nutritional content. Each snack bag was 55 cents, more than twice as much as same size of potato chips, and more per ounce than the larger bag of Bamba. So my shitta is definately not to not buy non-frugal things. My shitta is to shop within the budget. So the $1.10 I spent fit in and I was happy to buy it. It doesn't bother me that there were cheaper options.

amother, I can address your points, but things just got busy here. I'll try to address them later, iy"H.

Active Poster Joined: Jan 31 2010 Posts: 93

Just wanted to say thanks Tova! I've adopted some of your suggestions already since I've been on my save craze. Would love to hear more ideas Smile

Diamond Member Joined: Dec 28 2005 Posts: 4654

Thanks.

OK - some more thoughts/ clarifications and to answer amother:

My suggestions are targeted to exactly the demographic of couples/families (generally younger and/or just starting out) who have income and (relatively) low expenses and therefore an ability to save, but find at the end of the month that they don't know where all that extra money went. They are not in the red, or credit card debt, but are just not saving what they should be, and are letting that short time period of the highest ability to save slip through their fingers like sand.

Fixed expenses - rent/mortgage, utilities (OK - not totally fixed, but easy enough to average), insurance, gas are what they are. Variable expenses - food, toiletries, etc. are where the change needs to happen. I attempt to make the variable expenses fixed.

I don't want peaks and valleys (or to see effects of buying on sale over a long term period, as amother suggested) BECAUSE IT IMPEDES MY ABILITY TO SAVE *NOW.* If I'm spending that extra $50 this week to stock up on the fish (to use my earlier example) then I can't put that into savings this month, and that's worth more to me than paying the full price of $2 extra per week.

So by fixing my food costs, come what may, to (for example) $100/week or $400/month, I make it a non-negotiable fixed cost and income above all my fixed determinable expenses goes into savings. [Of course, there are things that come up - emergency car repairs, etc. I have my money market savings (where a portion of that monthly amount I am saving goes) to go to for that, but I'm not going to put it into the monthly budget because, please G-d, they don't happen that often.]

As another practical matter, as Mrs. Bissli somewhat alluded to, I'm sure plenty of us had the experience of stocking up on sale of an item we thought would be consumed and it either fell out of favor, or spoiled, etc. If that happens, you didn't save a penny (and in fact, lost the entire cost of the product). I find I can most best meet our needs (and not spend on things we don't end up using) by anticipating it on a week-by-week basis.

Again, I am not against taking advantage of sales. Love it in fact. But, not at the expense of my ability to save.

Moderator Joined: Sep 30 2009 Posts: 1359 Location: NY

I have the stocking up on sale built into my budget, so that I CAN get those savings in the long run. This takes a lot of discipline - you plan your menu around what is on sale and what you have from other weeks. In the beginning when you are building up stocks of things it can be very tough but now I have almost everything I need (except fresh produce) stocked in the house and I replenish when there are sales. My food spending is very constant from week to week.

However - you need to beware of "good deals" that are not such good deals. For instance buying that huge bamba package might be cheap but you are likely to eat more of it faster than you would with the small bags, making you go out and buy another bag. Do not buy something you have no use for because it is on sale. (This is a particular pitfall for Costco shoppers. Would you really be buying 2 lbs. of chips otherwise?)
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Diamond Member Joined: Dec 28 2005 Posts: 4654

Mrs. Bissli, it's a different approach. It may not be for everyone. It's just something out there.

Also, I want to stress that I DON'T stress about spending or savings. I don't try to pinch pennies or count pennies, but I find it fun to work within my budget and save. I literally enjoy the grocery shopping now.

And I certainly don't scrimp or whatever on simcha costs (I had my son's upsherin invitations and benchers printed by a professional printer) - I don't have to worry about going over any budget on those because those non-regular things I don't budget for! They are not in my regular calculation of costs, so when simchas come, b'ezras Hashem, if gifts from family members don't cover costs we would just spend less.

Tova - I've noticed that most of the items I need go on sale pretty frequently. So what I do is, say the fish is now $4 a loaf, I will buy 2 or 3 of them. Not 12 - because then I end up overspending now, and as you say - I don't underspend in the future. But 2 or 3 makes me get it at a budget price without overloading right now. And sooner or later they go on sale again, so I don't need to go overboard.

BTW BJ's (competitor of Costco) offered me a free 2-month trial. I went down and being a math major, I figured out that by shopping sale items at Shoprite, I get a better deal (plus it's closer to my house). Yes, those large size packages are not that much cheaper. I did the math on Luvs diapers - I did not save much per diaper buying at BJ's, even with an in-store coupon. Ditto for advil, Betty Crocker snacks, and even paper goodsl. If I would spend on membership, I for sure would not save much.

The biggest place I save is buying sale clothes. I only buy at the end of the season, at 60-70% off.
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Chayalle

Posted: Thu, Nov 04 2010, 11:24 am Post subject:

what tova said is true with bigger ticket items, a coat is on sale at gap. is it worth it? do I have the money for a coat in the budget this week? if yes then its worth it if not I am really not saving all that much if example the 20$ would make me under budget that week. this concept helps me think things through instead of seeing sale wow I can save money on something I need. am I really saving?

it does pay to put money away for things that you need when you know that there are going to be sales. then you can get really good clothes for a lot less.

Posted: Thu, Nov 04 2010, 11:44 am Post subject:

Posted: Thu, Nov 04 2010, 11:55 am Post subject:

exactly! chayalle! there was a sale that I could use. it wasn't one that I planned on. I didn't get a paycheck yet. it was worth it but not worth it b/c I would be borrowing to save money. in the end I bought a landsend coat for 17$ when I had the money in the budget for it.

it also helps to buy ahead and not have a need for a certain item. dd's coat still fit her. if I didn't find anything it would make it through the winter.

I am sitting on my hands for a gymboree sale 30% off and gymbucks. and clothes for 10$ and less. I don't have the money now. but I know that there will be another sale with the same benefits later in the year. I will be putting money away for it

Diamond Member Joined: Dec 28 2005 Posts: 4654

I don�t think I responded as well as I would have liked to; that�s what I get for trying to shoot off a quick response when I am on hold with the IRS.

Basically, my original comment about not stocking up is directed to people who want guidance in not overspending on groceries. I just feel that the oft-given advice of �stock up when prices are low� can be detrimental sometimes. Obviously if someone can take advantage of sales and meet their spending and savings goals and needs that is wonderful! For me personally, I would rather spend $100/week on groceries (or less, but I don�t b�davka scrimp to try to make it on less) every single week and know that that is what I am spending. Around Yom Tov time I met that budget but excluded the roasts I bought as a special item. Before Pesach, a supermarket here had a great deal for $2.50/64 ounce bottle of Kedem grape juice. They typically have it before Succos and Pesach. We bought 2 cases � 12 bottles � and this will last us over a year. Other than that, I can�t think of anything I see that is such a great deal that I would want to spend more than my allotted grocery amount. Chicken cutlets, which we eat a lot of, goes down to about $3.49/$3.99 a pound, but that happens every few weeks so I just buy a family bag or two every few weeks and it stays within my allotted food budget.

It�s really just a method for turning otherwise variable costs into a fixed cost.

I used gefilta fish as an example (although Mrs. Bissli you are right that they can last in the freezer forever) because I was thinking about something that the sale price versus regular is an noticeable difference. The can of pineapple that is 20 cents cheaper is not that big of a deal � of course I look to take advantage and buy the cheapest brand, but I certainly won�t stock up for that.

But I never scrimp or deprive. I like to prepare generously and for everyone to feel they can have another piece of chicken comfortably. I certainly don�t have the attitude of �budget�s used up, now no more ______� for something that my family would know the difference, but if I can make a perfectly good supper from items I have on hand without buying more, they are none the wiser. Or if I can make a salad that cuts out high cost ingredients and instead just add in one special thing � I will do so and no one�s the wiser. I also seek out nice and pretty food presentation ideas.

I have a feeling that most people who like my ideas are looking for solutions to manage these costs, and most people who don�t agree with them already have their methods and spending in the place they want it. And that�s perfectly fine.

Platinum Member Joined: Nov 01 2009 Posts: 8202

Tova, I think I understand your method.

You have $100 per week to spend. You can buy steaks and then eat rice the rest of the time or you can buy a variety of food, regular or sale price, to fit into that $100. You don't go over that $100.

If you stock up on something, that will make your budget go over but is only worth it IF that's the amount you'll reduce your budget in future weeks. But its harder to change your mindset from $100 to $94 to keep in mind the roll of gefilte fish, so paying the extra $2/week is actually keeping you on budget. Even though you might be spending more on one item, you are more likely to maintain your budget, which is what is important overall.

Did I understand that right?

I think that's a good system for many, many people. It could also work monthly with the same principle, which would allow you to stock up a little more on sale prices but maintain the same philosophy.
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Diamond Member Joined: Dec 28 2005 Posts: 4654

Yes yes yes, saw. Spot on!

Platinum Member Joined: Aug 12 2007 Posts: 20496

Having lived in the U.S. within our means, and now in Israel within our means, I'd like to share something I have learned, by living here: JUST. STOP. BUYING. Every budget suggestion coming from Americans starts with "buy". I'd like to suggest: don't buy. Anything. Unless you absolutely need it. From groceries to clothing to toys, books and games, Americans like to "buy to save", which in the long run ends up costing more money than you wanted to spend/were able to spend. If you treat buying as an activity for a rainy Sunday, it's going to cost you. So, decide not to buy, then decide what you need and get it.
Just my two cents worth.
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Diamond Member Joined: Dec 28 2005 Posts: 4654

Actually, Tamiri, I totally agree with you. And I don't think I was advocating "buying to save" - l'hefech. In fact, I personally would not buy a winter coat on sale for next year. For 2 reasons. First is that for the past couple of years I have gotten my kids terrific winter coats second hand at a consignment shop for $5-6. And this year, both still fit wonderfully (although if I was BUYING again this year I would have gotten the size up, the ones I have still fit decently). But that aside, I'd rather minimize my outlays this month and save the rest and worry about paying an extra $10 in a year from now. Or - true to life - my neighbor just loaned me several sweaters that her son outgrew (she has only one son and the rest girls so she has no immediate need). If I would have bought sweaters even on sale last year it would have been a waste.

Mrs. Bissli - I get a thumbs down for reading comprehension today. When I first read you post I thought you were saying that I am stressed (so I emphasized that I am not) and then I see you are just saying that I stressed something (as in emphasized). So some of my points seem out of left field.