The Mom Crowd

Last Friday I shared my grocery shopping philosophy and I wanted to know how you shopped and budgeted for groceries. We had a great discussion in the comments.

Amelia asked if everyone includes household items like cleaning supplies and diapers in your grocery budget.  Most everyone that commented does include all household items in the grocery budget. There was also a discussion on whether or not gas should be included. I like to keep our gas separate, so I can track my spending better.

Heidi asked if anyone had any experience using a Food Saver (a vacuum sealing kit). Trina thinks that as long as you put the effort behind it and remember what you have in the freezer then they really do save you money.

How much should you spend on groceries?

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Now that I am a stay-at-home-mom and I don’t generate a paycheck anymore, I feel like the way I contribute financially to my family is by managing the budget. The biggest budget items that I have control over is our Grocery and Dining spending.

Before I go to the grocery store I create a list, because I will completely forget it all while I am constantly trying to keep my toddler entertained and seated in the cart. To make my grocery list I first check the sale ads online. Then from there I think up 4 to 5 meals based on what is on sale, what we already have on hand, and what we feel like eating. Then I make sure that any ingredients I need are on the list.

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Okay, I know times are tough (are you tired of hearing that?) and we are all looking for ways to be frugal and save money.  I have come across a few things that I love so I thought I’d share–from one mom to another .

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Happy New Year!

“Marilla, isn’t it nice to think that tomorrow is a new day with no mistakes in it yet?”
-    Anne of Green Gables

I am sure by the time you have read this on New Year’s Day that you may have made a mistake or two. It’s okay. But there is still time to work on the year and save us from paying Stupid Tax with our finances. Making some clear financial goals for your family will empower you to feel in control of your money. Money is fluid and needs to be told where to where to go. Otherwise it just runs through your fingers like water.

There are several bloggers who are bold enough to share with the world their financial goals. One of Heather’s goals at Dime Savin’ Diva is opening a Christmas Club Account. 

“Open Christmas Club account for Christmas money. This would be in addition to our savings and debt snowball, and our goal is a minimum of $40 monthly.”

I would love to save all year for Christmas. Rather than squeaking it out of our budget in December. Really, Christmas isn’t a surprise. It comes at the same time every year!

Tiffanie at We Like Money wants to pay off two credit cards and get her total credit card debt under $10,000.  My husband and I paid off our cards in order of the smallest amount up. While we were paying them off I called to have the APR lowered. They weren’t very kind to me and it gave me more motivation to get them out of my life. Paying off credit cards is an awesome goal.

Megan at Counting My Pennies wants to “Save at least half of this year’s “extra” paychecks plus half of any work-related bonus checks.” If you get paid bi-weekly and base your budget on two paychecks a month, then a few months a year you get paid a third time in the month. Saving money from these “extra” checks is a great idea.

Frugal Babe is saving $200 a month into their car savings account. I know this is something that we are going to need to do soon, if I want to buy a Sequoia in cash. How awesome will it be to walk into a dealership with cash in hand and haggle? No arguing over APR rates while hoping you get a good “deal.” Frugal Babe is also saving for solar panels!

I’ve Paid For This Twice Already… is working on Student Loan Debt. She shares some great advice about their efforts, “As long as we keep focused on moving forward.” I agree! We just need to stay focused and moving forward in our goals even if we mess up.

Here are 14 goals that I came up with that may help you pick your financial goals for 2009!

1. Make a plan to pay X amount of dollars per month towards your debt all year. Stick to it!

2. No Insufficient Fund (NSFs) charges for 2009.

3. Start an Education Savings Account (ESA) for each child.

4. Track your spending for 3 months using Quicken or Mint.com.

5. Create a written budget before the 1st of the month and list it in priority order to get paid.

6. Create a Christmas fund and put at least X amount of dollars a month into it.

7. Have a monthly budget meeting with your spouse before the first of the month.

8. Only use a cash system for groceries, dining, and clothing.

9. Change your W-4 if you are expecting a large return, then you can bring more money home each month.

10. Create a Love Folder before the end of March.

11. Read a financial book such as: The Millionaire Next Door, The Wealthy Barber, Richest Man in Babylon, Your Money or Your Life, Dave Ramsey’s Total Money Maker Over or Financial Peace Revisited.

12. Reduce fixed expenses by 10% per month. Look at your mobile phone bill or cable options, shop around insurances, save on electricity in your house by weather stripping, etc.

13. Create a Giving Fund and give to causes that you believe in.

14. Attend Financial Peace University class or a Dave Ramsey Live Event.

Hopefully a few of these will give you a jump-start in your goal planning. My husband and I will be finalizing our goals soon. One of our goals is to finish our last debt item, Sallie Mae. Although, I am not sure she will be completely gone at the end of this year, but we can set a goal to have that debt to a certain number and take chunks off of it. I also have a goal to stick to our cash system and not to slip up with our debit card.

Let’s start 2009 financially fit! It is a new year with no mistakes in it… yet!

Are you setting any financial goals this year?

We all show our family that we love them in different ways. Another way that you can show your love for them is to show them that you care about them even after you are gone. The hard reality is that we are all going to leave this earth and we don’t know when. I have a friend whose husband unexpectedly passed when they were 27 years old and she had 3 month old twins to take care of. It doesn’t matter what stage of life you are in, you need to be prepared.

Each person makes their own decision how to prepare for the end from an emotional and spiritual aspect, but here are some practical steps to be prepared from a financial and administrative perspective.

1. Have a will.

Even if you don’t think you have a lot of assets, you need to have a will because you don’t want the State to dictate what happens to your property after you are gone. You have the opportunity now to take that responsibility. It will save your family a lot of time and grief knowing your wishes, because getting an estate in order after someone has passed can take a lot of time.  You may be surprised by how many possessions you own after completing a will.

It is good to discuss whom will care for your children if something should happen to both parents. It is certainly a hard decision and there are many factors to consider. I know one couple who does not tell anyone who the “godparents” are, because it isn’t a family member and they don’t want to hurt anyone’s feelings. This is one decision I DO NOT want left up to the State’s probate laws.

Myth: I have to go through a lawyer to get a will.
Fact: Right now you can download a state specific will from USLegalForms.com for $20. Then all you have to do is fill it out and have it notarized.

2. Have Term Life Insurance.

If someone depends on your income then it is best to take out a policy for 8 – 10 times your income. Then once the life insurance money has been issued, your family can invest the money in a good growth stock mutual fund and if it earns at least a 10% return, you can live off of the interest. Then the lost income is replaced.  Since I am a Stay at Home Mom, this gives me an enormous amount of peace knowing that I will be okay for money if something should happen to my husband.

For Stay at Home Moms a policy should be for about $250,000 to $400,000, because a mom’s work is valued at about $40,000 a year. (Although, it feels like it should be more!) The idea is that if something happens to the mother, then the father can afford a Nanny or Child Care while he continues to working.

Don’t assume you have life insurance through your work. Find out the details of any life insurance plan you or your spouse has through work.

Term Life Insurance is not that expensive. You can go to ZanderIns.com for a quote. Depending on your age and how much coverage you want it can be $30 to $55 a month.

Myth: Whole Life Insurance is a great idea, because I can invest my money at the same time.
Fact:  The truth is that the return on investments in a whole life policy are horrible and it is better to put that money in a mutual fund. Also, there is not a guarantee that your beneficiaries will receive the savings upon your death. For more information about Whole Life Insurance go here.

3. Make plans for your estate.

Making a will and planning for your estate go hand in hand.  Estate planning will allow you to decide who will get your house, cars, or anything else you want. Also, if you give your house as an inheritance to your kids, then you can avoid a high rate of gift tax. On daveramsey.com “The federal government allows someone to die and leave in their estate $2 million without any estate taxes. An individual can only give another individual $12,000 before getting gift-taxed out the ear unless they claim it as part of their estate before they die.”  You can read more about this here under the question “Is Inheritance The Way To Go?”

The estate planning process is also where you will set up any trusts that you want to leave for your kids. You can even make stipulations on whatever specific areas you want. You can specify the age that they get it and how much or that it be used to pay for college.

Myth: Estate planning is only for rich people.
Fact:  The truth is that you may be surprised by how much you have. You need to make plans for the term life insurance money or if you own a home.

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