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Archive for March, 2007

Rebuilding My Grocery Store Price-Book

March 27th, 2007

NCN

I am going to the grocery store today and I have decided to rebuild my grocery store price-book. I have recently begun to lose weight and I now enjoy eating healthy foods. My old grocery store price-book is outdated and filled with food prices for unhealthy junk food. Here’s my method for buying groceries.

Update – I’ve created a free grocery store price book for you to download and print.

1. I shop at two grocery stores and a local “dollar” store.

2. I keep a grocery price-book. I list the items that I buy on a regular basis, and I write down the price of those items EVERY time I go shopping.

3. Whenever I find an item at its “rock-bottom” price, I buy it in bulk.

4. I buy generic foods.

5. I use coupons, but only for items that I would “buy anyway”.

6. Kroger, our local grocery store, and my favorite, doubles coupons up to .50. So, if I have a coupon below .50, I use it at Kroger.

7. If I have to make a choice between a healthy food and a “good price”, I NOW choose the healthy food. In other words, I eat apples EVERY DAY. So, I am going to buy apples, no matter what their cost. Still, I try to shop around and buy the lowest-cost apples, but I am going to buy apples, period.

8. Healthier foods are more expensive (generally speaking) than unhealthy foods, but I have found that I can still eat well and live on a grocery budget.

9. I do not make a grocery list. I keep my grocer price-book and I stock-up or avoid, depending on the data in front of me.

10. Inflation is real. I don’t care what anyone says, or what the fed does, or does not do, my old grocery price-book clearly shows that food prices have gone up, in some cases dramatically, over the past 2 years.

11. Water is free. I have no need for sodas. Still, I am a soda-addict. So, I just avoid that aisle.

12. I shop on Tuesdays. Why? I like Tuesdays. Tuesday is my favorite day of the week. I don’t know why, but it always has been, and I assume, it always will be.

13. I prefer to shop alone and I wear my iPod and catchup on my favorite podcasts. (May I suggest one of my favorites, The Overnightscape?)

14. I use the calculator feature on my cellphone. I like to know the per ounce or per item price of a good.

15. I can spend about 3 hours in a grocery store. Seriously, I actually enjoy shopping for groceries. My wife, on the other hand, HATES the grocery store. Since I’m an awesome 21st century husband, I do the grocery shopping.

16. I pay cash for my groceries.

17. I keep my receipts and I glance over them after I get to my car. I’m not a jerk or a psycho. I’ll let a few pennies slide. As much as I like to save money, life is too short to kill myself over a couple of pennies. Plus, for all you frugal shoppers our there, it is NEVER a good idea to ‘burn bridges’ between yourself and a local store manager. Trust me, there will come a day when a good relationship trumps that 32 cents you feel you’re owed. Breathe in, breathe out.

18. I hate rebates.

19. I love rebates.

Posted in Frugality

10 Comments »

$48000 Goal: 3 Months In (An Update)

March 25th, 2007

NCN

I began 2007 with a goal of saving 60% of my gross income ($48,000).

(On this blog, whenever I say “my” I am referring to “household” income.)

So far, I have fully funded my daughter’s ESA for 2006 and 2007, fully funded my Roth IRA for 2006, and fully funded my wife’s Roth IRA for 2006.

(In order to fully fund both Roth IRAs before April 2007, I “dipped” into my ING Direct Savings Account. I am now aggressively “paying myself back”.)

If I plan to live without borrowing money, I have to save a considerable amount of money. I need to have savings for major purchases that will occur in the next few years AND I need to save as much as I can in my retirement accounts. Remember, I don’t plan to borrow money EVER.

Here is a chart detailing my progress thus far:

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If you subtract $16000 (my pre-tax retirement contributions) from $48000 (my total ’savings’ goal for 2007) you get $32,000. I have “saved” $13000 of the $32000 in various types of accounts. If you add back the $5000 that I owe myself, you get a total of $8000 saved in 2007. $8000 is 1/4 of the way to $32000, so I am RIGHT ON TRACK! I will be focusing on TWO things in the next few months. I need to put $5000 back into my ING Direct Account, and I need to fund my son’s 2006 ESA, BEFORE April 17, 2007. I will likely withdraw $1000 from my Brokerage Account and then withdraw an additional $1000 from next week’s paycheck.

Just a word to all of you who are wondering about whether or not it pays to “pay attention to your finances”. The definitive answer, from my experience, is YES!

Posted in $48000, Retirement, Savings

5 Comments »

NCN Reaches The FINAL FOUR!

March 24th, 2007

NCN

Free Money Finance has been running a “March Madness” style tournament, pitting personal finance bloggers against one another in a battle to the DEATH! (OK, maybe not to the “death”… but it would be cool to win!) My post, Avoid 10 Common Debt Reduction Mistakes, has made it to the final four. My competition, Five Cent Nickel, is a great blogger, and a good friend. Still, I’d like to crush him beneath my boot! Seriously, check out the Final Four posts over at Free Money Finance, and, if you like it, leave a comment at FMF to vote for my post.

Posted in Site Information

3 Comments »

Fixing My Finances: 10 Lessons I’ve Learned (Part 2)

March 22nd, 2007

NCN

This post is part 2 of the “Fixing My Finances” series. Part 1, Fixing My Finances: Lessons I’ve Learned, click here.

There are times when a numbered list is the best way to communicate a series of interconnected points. So, I present 10 (of the many) lessons that I’ve learned over the past two years.

1. I need a specific plan and a specific goal. I do not work well with “generalizations”. I set a specific goal with a specific date for completion, and create a plan (budget) with specific guidelines.

2. I am motivated by the emotional impact of achieving a goal. While I enjoy considering the “math” behind certain financial decisions, I am motivated by the “rush” that I receive when I actually do something.

3. I enjoy the peace that comes from being debt free. While I know that I could use a credit card for monthly expenses, I enjoy my cash-only experience.

4. I will spend money (unnecessarily) when I feel tired, angry, or frustrated. Whenever I purchase an item to meet an emotional need, I inevitably end up feeling worse.

5. I have learned to surround myself with people who are “pulling” for me and not “pushing” against me. I need lots and lots of “at-a-boys” and “way-to-gos”. It is OK to be proud whenever you accomplish a task.

6. I should never up-size, go-large, or up-grade a meal. I am always full about 2/3 of the way into any meal, and when I up-size a meal, I feel compelled to eat every last mouthful. I should not put myself in a position where I feel guilty for “not eating”.

7. I know less about “finance” than most people who write about finance. But, I think that I have (at least) a little understanding of the “personal” side of personal finance. 95% of people (in my opinion) are motivated by their emotions (fears and hopes). If I can couple my emotional responses together with the knowledge that I am gaining, I can change my future (and my children’s futures).

8. I am a much harder worker than I ever realized. Before, I was working for someone. Now, I’m working for “my future”. I still have the same job, but now I have new motivations, desires, goals, plans, and dreams.

9. I wasted SO many years and I worry that I have waited too long to “turn my ship around…” I hope that I am saving enough, investing enough, and learning enough.

10. I am extremely blessed to have a wife who trusts me, supports me, corrects me, prays for me, and believes in me. A budget is just a peace of paper. Real, meaningful change takes place in the soul, the heart, the spirit, and the mind.

If you have changed you financial future (or are in the process of doing so) feel free to share the lessons that you have learned. Leave a comment and you might just inspire someone else!

Posted in Money Management

7 Comments »

Wow, That Was Fast! Georgia Income Tax Refund Received

March 22nd, 2007

NCN

Seven days ago, I filed my federal and state income taxes.

Expecting refunds, I chose to have them directly deposited to my ING Direct account. I logged in this morning, and I have ALREADY received my state income tax refund. The state of Georgia Department of Revenue is “on the ball”! Both of my refunds will be deposited into my recently depleted Emergency Fund.

My Georgia income tax refund was less than $50. Last year, my refund took about three weeks to process, so you can imagine how shocked I was to see my 2006 refund processed so quickly. It would be interesting to get a look “behind-the-scenes” and see exactly how they process the thousands of returns they receive.

I wonder how long it will take for the IRS to process my refund. (As a side note: Don’t we have enough smart people in this country so that we could simplify this entire process? Why does our tax code have to be so complex / complicated?)

Posted in Taxes

5 Comments »