In the budgeting world, organics are a hot topic. I’m lucky enough to be able to afford them, despite being a one-income household. I shop almost exclusively at Whole Foods and Trader Joe’s, and it shows in my monthly budget. I spend more on groceries and restaurants each month than any other one expense (aside from rent). It’s a conscious decision that I feel good about. I like knowing that no added hormones or antibiotics are in my food. I appreciate that my meat isn’t washed with ammonias and bleaches, and that my vegetables aren’t sprayed with harmful chemicals. I’m skeptical that animals are treated better by organic farmers, but I hope it’s true. I also hope that the farmers are using sustainable methods that are better for the planet. Of course, it’s impossible to know without actually visiting or seeing the farm where the food comes from, which I would like to do someday.

Given that background, then, I wasn’t surprised to see the conditions of “big food” farms featured on the movie I watched last night, “Food, Inc.” (2008). I posted on Facebook that I was watching the movie, and one of my cousins – also in a single-income household, but with four kids and a wife in school – replied, saying in his area the difference between a dozen regular eggs and cage-free eggs is more than $2.00. Multiply this cost difference to an entire shopping trip for a family of six, and you can see why organics are such a hot topic.  One of my co-workers calls Whole Foods “Whole Paycheck.” Most average, working families would have to significantly increase their food budgets to afford organics.  For a lot of folks, that’s simply not an option due to income. For others, it would require a complete change in priorities. Would you be willing to give up car payment number two in order to afford organic groceries every month?

Admittedly I’ve not done the math to figure out the cost difference between buying organic vs. buying regular. But others have. One woman estimated buying organics resulted in a 37 percent increase in her grocery bill. Another study claims that people who consistently buy organics and other healthy foods spend 20 percent more than those who buy less nutritious foods. So as a concerned budgeter, how can I be such a big fan of foods that cost more? Even with all that I like about organics, isn’t a 20 to 37 percent decrease in my biggest monthly expense an easy way to grow my net worth and increase my savings for a home?  Shouldn’t I be solely focused on the bottom line?

For me, the answer is easy. It’s a matter of priorities. Yes, I want to grow my net worth and save for a home. But not at the expense of my health. If that means I have to have less home, car, or “things” to support my food choices, I’m OK with that. I know that my genetics aren’t great; preventable food-related diseases run deep on both sides of my family – heart disease, high cholesterol, stroke, diabetes, cancer – so the choices I make today could potentially save me health care costs in the long run. It’s an intensely personal choice. But it’s one that is worthwhile to think about if you’re in your 20′s – and before you start having kids – because the farther along you go buying cheaper calories, the more difficult it will be to make the switch in the long run.

I don’t know if I’ll always be able to afford organic groceries. If I were to lose my job, this is unfortunately one of the first choices I’d have to reconsider after all the easy decisions like cable and DVR. I feel pretty strongly that when I have kids, they’ll be eating organic foods, but it’s impossible to know whether my budget will be able to afford feeding extra mouths organically on a budget.

The benefit of budgeting, and constantly re-budgeting and evaluating your expenses, is that it gives you the freedom to make such lifestyle choices. If you want to buy organics, you have the option to build it in and ask yourself: what’s more important – cable TV or nutrition? If you’re looking solely at the bottom line, though, with no other context or consideration for long-term costs, I’d encourage you to read up on the subject and make an informed decision.

The post My Biggest Monthly Expense appeared first on The Budgeting Babe.

Usually.

Lately, my impromptu projects seems to get bigger — there was the $500 DIY wardrobe from IKEA that I bought on a whim, an “on the fly” trip to visit my cousin at her university and a reorganizing of my apartment that had to be done NOW. But the biggest project I’ve taken on recently has been training for a triathlon. I’ve committed to be in the gym five to six days per week for a total of 10 weeks leading up to the main event, and it’s left my blog unattended to, my apartment a mess, my friends upset because I’m never out and my work schedule in shambles. It’s a mess.

But truth be told, I feel amazing. I have five weeks of training left, and I’m already in better shape than I’ve been in for the past two years, I’m sleeping well and I’m less stressed. (Yay me!)

I do feel guilty about neglecting my life outside the gym, but not enough to apologize for prioritizing my fitness above the cleanliness of my apartment or trying to leave the office with enough time to workout. We all make choices, and sometimes the best choice for me means that some other areas of my life won’t be picture perfect; I’ve got to be OK with that.

One area that shouldn’t be neglected during busy periods is finance. It’s easy to forget about when you’re preoccupied… I haven’t looked at my accounts in weeks. But the problem with neglecting finances is that, unlike your harmless laundry pile, neglected finances could actually hurt you. If you miss even one credit card or mortgage payment, your credit rating could drop — leaving you with a lot more problems and less time to tackle your next big challenge.

I logged onto all my accounts today for my May check-in (which I’ll share tomorrow), and was surprised to see how tight I cut my payments to due dates this month — within days. I also forgot to make a student loan payment in April .. Yikes! (Luckily, I’m ahead of the student loan repayment schedule so I’m not in default.)

Moral of the story? Take care of yourself, but don’t let your finances fall by the wayside. If you have to adjust your priorities, it’s better to stop watching America’s Next Top Model than stop paying your bills. Better yet, get an online service like Quicken or Mint to e-mail you (at a working e-mail address) when your bills are due, or set up all your accounts for automatic bill pay. Then, you won’t have to worry about stopping to smell the flowers, er, pay your bills.

The post Don’t Forget Your Finances, but Don’t Let Them Slow You Down! appeared first on The Budgeting Babe.

In my early 20’s, I used to spend time fretting about living paycheck to paycheck, how my relationship might be affected by career decisions and where to invest my money. What to wear and where to go were always important decisions, as was how I spent my money in general. But as I grew and learned more about my finances and myself, I felt more and more in control of my future and more relaxed and confident about where I was headed.

Lately, though, I find my thoughts drifting off in other directions, into places where I have less control. I’m anxious about my parents’ finances during their imminent retirement and, though they are still young and relatively healthy, their health care once they retire. I’ve learned how to save my money, but I can’t figure out how to balance my needs for a stable future with the need to invest and take a risk. I worry that I’m putting my career (and B’s journey to find one) ahead of my desire to have a family. Things are going well, but now that I’ve spent so much time working to get “here,” a whole new set of worries has replaced what I thought would be the time when I enjoy the fruits of my labor.

I imagine that many of you have dealt with the same set of worries. Any advice you can share about how you deal with the nagging questions and find balance among your priorities would be much appreciated!

The post 29 and Holding… appeared first on The Budgeting Babe.

However, at the beginning of this year, I pledged to focus on the positive, saying, “Tears do not become me.” So to round out 2008, it’s time to take a look at the good things that happened to me this year. And I think you should, too. It may have been a better year than you noticed.

Vacations galore. This year, to recharge my batteries, I went on my first ski trip, traveled to Houston with my mom, visited Elko, Nevada and camped in the Ruby Mountains, hiked and kayaked on the sparkling Puget Sound in Washington State in the San Juan Islands, checked out Park City and Salt Lake City, Utah, and took a fishing trip with my dad, brothers and uncles in UP Michigan. (Not to mention a staycation in November!) Amazing. And none were taken on credit — they were all carefully planned for and budgeted far in advance. You don’t need to stay at fancy resorts and high-priced hotels to experience the world. You just need a willingness to explore and step out of your comfort zone every once in a while. Cabins, tents and spare couches can take you just as far as any AmEx card.

A HUGE promotion. After more than seven years with my company, I earned a ginormous promotion to vice president this year. This was an important step for me in the industry and though it hasn’t been an easy transition, I’m excited about my prospects for the future. Since I’m talking about my career, I’ll also note that I attended a very cool women’s leadership program at the Kellogg School of Management that was incredibly enriching and valuable. Even with promotions, it’s important for me to continue learning at every step of my career.

The opportunity to give back. Soul nourishment isn’t just about getting away from it all, giving back to the community helps a gal feel special, too. This year, I raised funds for the Chicago Police Department Memorial Foundation by participating in a run, where I raised $325 (my first fundraising run ever). I also donated $110 $210 to Chicago Children’s Memorial Hospital, gave lots of gifts to family members I love, sponsored a free book giveaway on my blog and donated blood to LifeSource.

A first for me. I got a frickin’ drivers’ license this year! This was an even bigger deal for me than the promotion. Both me and my dad cried at the DMV (yep, we really did). I wish I had the picture he took with his cell phone to post here. It’s hilarious.

Great publicity.. I had some truly wonderful exposure this year for the blog – including the CBS Evening News with Katie Couric and US News and World Report. If I were my client right now, I’d be so jazzed.

Marvelous money. I managed to make all my finance goals this year, those being:
- Got my down payment account to $30,000
- Got my student loans down to $2,500
- Increased my 401k contribution to 10% (and kept it there)
- Did not take on any additional debt

Healthy, happy… My parents, though both had recent surgeries, and my brothers are healthy. B’s family is healthy. B made it through his surgery and is getting healthy. And that equals one happy me.

Wow, I’ve had so many bright spots this year that I can’t believe how much I’ve focused on the negative and neurotic. True, it wasn’t all highs – the PR industry’s instability affected my job and my career mindset, B was laid off, my 401k tanked, I was sick often and couldn’t do much to keep myself in shape and there were most definitely some relationship issues early in the year… but ultimately, I think I’ve really let the headlines get to me. In fact, before I started writing this, I was sitting around my apartment feeling stuck in slow motion about my life and my future. Hard to believe when I see how far I’ve come in 12 months.

When I look back on 2008, I hope I’ll remember the positive and not the negative, be thankful for the amazing people who touched my life and forever remember the experiences I afforded myself (how’s that for a high-school yearbook signature?).

How ’bout you? What positive things happened this year that you may have missed in looking back on 2008?

The post A Fond Farewell to A Crazy Year… 2008 in Review appeared first on The Budgeting Babe.

So let’s talk for a minute about what it means to be a Budgeting Babe. I asked this question in September during my first-ever giveaway and got some amazing responses. But until now, I’ve never really spent the time to come up with a list of characteristics (other than those that described myself in 2006 — one of my favorite posts). So tonight, as winter snow blankets the Chicago area and I have a few seconds for some quiet introspection while curled up on my couch, it’s the perfect time to contemplate some of the attitudes and attributes that may describe parts of Team Budgeting Babe. Here’s my attempt. Not all of these will apply to you, but some of them may be universal…

– Until recently for some of us, a few years ago for others, spending money was far more important than saving it. If you asked us what our 401k looked like, we’d probably laugh and say something like, “I don’t even know what that is!” Then we’d secretly fret that we were falling seriously behind, but rationalize it by saying we don’t make enough to save anything. (Insert pouty face here.)

– Now, contrary to our initial spendy ways, we’re focused on making our savings goals.

– We’re career women (or trying to be); our jobs are part of what defines us, and we’re OK with that. Nope, more than OK… we really like it. (But sometimes we wish we worked a few less hours.)

– But we also like to have fun, live in the moment and enjoy life to its fullest. That doesn’t mean going out like Lindsey Lohan every night, but it does mean a full social calendar – from nights out with the girls to family gatherings to volunteer work to just plain ol’ galavanting around.

– We’re travelers, because nothing makes you really appreciate what you have until you see how everyone else lives. And because after all that work and serious social activity, a girl’s gotta unwind sometimes.

– Having nice things is far less important than living each day for the experience.

– We don’t spend more than we make (anymore) and don’t use credit for frivolous purchases (anymore).

– We read, we watch movies, we see shows, we love music and we totally get the online world.

– US Weekly may not be required reading, but gosh is it fun after browsing depressing financial news on NYTimes.com or WallStreetJournalOnline.com.

– We’re workin’ on our fitness… Health and well-being are top priorities for us. (And yet, why is there never enough time to make it to the gym during the week?)

– Though we really want to learn about our finances, sometimes financial books can be pretty intimidating and frankly kind of boring. Still we try to slog through PF literature.

– We’re OK talking openly about our finances, and we wish our best ladyfriends were, too.

– We’re total suckers for sales.

– We’re still (groan) paying off student loans.

– But we avoid going into major debt.

– We may not have the best apartment/home/condo on the block, but we don’t spend much time in it anyway.

– Buyers remorse? Not quite sure if that describes the feeling of running back to the store to return what was destined to be your “new favorite thing” less than 24 hours after you bought it.

– We’re learning to speak our minds and share our knowledge.

The post What Makes a Budgeting Babe? appeared first on The Budgeting Babe.

I have a few thoughts on this:
1) The message is getting across…with mixed results. I read retail is tanking right now, and household savings are up. Smart for the millions worried about loosing their jobs or struggling to make mortgage payments, but not good for those who work in retail. It’s crazy how unintended effects can happen even when people have the best of intentions.

2) With so many experts talking budgeting, it’s hard for me personally to feel inspired to write about budgeting. I actually feel budget-fatigued. Not in the sense that I don’t want to follow a budget, but more that I am tired of reading about the same theme: Entertain on a Dime! Dressin’ for Recession! Smart Shopping Strategies! Ugh. Familiar territory, right?

So what’s a budgeting babe to do when feeling frustrated and uninspired about personal finance? I’ve gone back to basics to try and learn a little more about some new topics, I’ve started thinking about the cause of my frustration and I’ve started to spend time on some new creative outlets. After all, the point of having a budget isn’t to stress more about how you’re spending and saving money; it’s to free up your anxiety about being broke so you can live a more fulfilling and enjoyable life.

++++ Back to basics. I’m reading two books about personal finance, but not about the usual stuff. It’s slow-going, but I’m reading a book about the economy called “Common Cents,” which is more of an Econ 101 book, and I’m actually getting past the first few chapters of “Home Buying for Dummies,” because hey, eventually my downpayment fund is going to be spent.

++++ Thinking about causes. You know, I honestly thought I would be further ahead by now. I wanted to buy a place in July 08, but I didn’t. I wanted to buy a place in April 09, but now it’s looking like that’s not smart idea either. I continue to save, but not to see the results. While my accounts are looking good, it’s not reflected in my daily life. I’m still living like an entry level employee, and socking away money every month. Only it’s not enough. After 4 years of savings, the financial crisis has put the breaks on my spending plans.

I’m not going to go out and spend my downpayment or anything drastic like that. But I’ve got to come up with a way to feel like I’m growing in my life without moving to the next step I’ve been working towards just yet.

++++ Creative development. This weekend, I ran the wardrobe and make-up on my brother’s movie set for his art school project, and coordinated a dance scene under his direction. Working on the set, seeing his creative vision come to life and being a part of it, was totally fun and tapped into an area of interest I had forgotten. I was tired when it was done, but I felt creatively refreshed. I realized that life can’t be all seriousness, cubicles, numbers, fluorescent lighting and finances. I personally need to live in color and explore interests outside of the daily grid in order to have a distraction every now and again. And it doesn’t have to be expensive.

Speaking of creative pursuits, I’m off to go work on my weekend wardrobe and bedazzle my Halloween costume; I’ll be sporting a sequined rhythmic gymnast outfit at Friday’s Yelp Party and can’t wait to see how it turns out.

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