Savin' money with coupons

Now that we have that matter out of the way, I’m happy to report that I saved $12 on groceries this week. Not Earth shattering, I know, given all the Crazy Coupon Ladies and Extreme Couponers out there. But notable, I believe, because I thought I gave up grocery store coupons when I started eating healthy. I do most of my grocery shopping these days at Whole Foods and Trader Joe’s, where I insist I can still eat on a budget that works for me. But I know I spend a lot more each month on groceries than the average person.

I used to clip coupons religiously. But when I started shopping at specialty stores, I noticed a lot of the grocery coupons no longer applied to the brands I was buying. Instead of shopping for Kellogg’s cereals, Jenny O’Turkey, Kraft Singles, and Healthy Choice Entrees, my dietary staples became brands I’d never heard of: Amy’s, Kashi, Eden Organic, Natural Oven, and lots of store brands. My coupon usage plunged so low I stopped clipping.

And so it’s been for years.

Until the other day at Target, when I was annoyingly held up by a woman with about 30 coupons. At that moment, annoyance turned into curiosity. What was she using coupons to buy? Who  uses coupons at Target? Um, apparently SMART people do. We recently discovered that Target carries a small but increasing inventory of the same brands that Whole Foods does, only cheaper. I remembered that many of the “natural” and “organic” brands had been bought by major national companies in recent years, companies that loved to coupon.

Fill up a big cart! Not this tiny one!

When I got home that night, I opened up my Sunday paper and grabbed the circulars. To my surprise, I found a few coupons for my brands: Garden of Eatin tortilla chips, Sargento cheese, and Tazo Tea. I also clipped coupons for many of the non-grocery items we use (paper towels, toothbrushes… although you can usually find cheaper alternatives for those even without coupons). Encouraged, I also printed out my coupon from Kalona Organicsthat I got on Twitter and checked Amy’s online. No coupons were up that day, but I’ll check back (and I know that if you write and ask  them for coupons, they will send them to you).

Later that night, we checked out the shopper circular at Whole Foods for more of our brands. Score! We found coupons for Clif bars, soups, more tea, vitamins, and yogurt. Then, at Jewel, we used a $2 off your purchase coupon we’d saved from the previous week. By the time we finished shopping, we had shaved $12 off our bill for two weeks of food, all by shopping the brands I was going to buy anyway.

I know, $12 is NO BIG DEAL. I could have done more to save. But, I live in a tiny apartment with a kitchenette the size of a closet, so buying even two of the same item doesn’t work for me (I can never buy anything in bulk). And $10-$12 every two weeks can add up, especially if I can find more coupons and amplify that to $20 per trip. I think with more frequent clipping, I can do it.

I’m off to a good start. Plus, I just found a $10 Target gift card in my wallet, and it has no expiration date. I know where I’m getting my Kashi stuff next week.

The post A Coupon Rediscovery appeared first on The Budgeting Babe.

Yesterday I was falling on the side of buying property. I was browsing on Trulia, and noticed that a huge group of single-family homes are now available for less than $200,000 in nearby suburbs. Many of these properties are short sales and foreclosures, and a number have recently dropped significantly in price. If I put down 20 percent on one such house, which I could do, we could be paying less monthly for a mortgage than we do for our rent.  That got me going. I started thinking about reducing my retirement contributions between now and April to give myself a quick infusion of cash for closing costs, home improvements, etc. I mentioned to man-friend that even if he moved elsewhere, I wouldn’t go automatically; he’d need to spend six months to see if it was a good fit, which would give me time to see the place if I bought it. I wouldn’t care about making money on the sale, if I could sell it for the same price as I bought it, that would be fine; it’s just the cost of living. So, yesterday I was humming along with this plan in my head, looking forward to April, when my apartment lease is up.

But then last night as I was talking to my home-owning brother, he asked about taxes, fees, and points, and basically said I needed to factor a whole bunch of other costs into my monthly mortgage bill and into the initial payment. All of which I knew, I was just blissfully sort of ignoring at the moment.

We also started talking about our family trip to Italy, which is supposed to happen in October, and costs for that.

All of which got me thinking, gosh, I probably need about $10K more in savings before I put down that 20 percent. I hate to admit it, but it’s true. I still think temporarily reducing my retirement contribution for a few months to give me more cash towards a home purchase is a good idea. Right now, it would probably take me 10 months to save an extra $10K. If I reduce my retirement funds down to 5 percent (from today’s ten percent), I could get there much quicker. My retirement funds are in a pretty good place for my age, and this plan does not involve taking anything out of the current investment, so I feel OK doing that. Plus I’m not spending that money on anything frivolous, or using it for daily living expenses. The other nice thing about waiting until I have an extra $10K is that it adds a few more months to B’s job hunt, which is a positive.

So that’s where I am today. Oy. I wish things were as simple as when my biggest care in the world was finding a great pair of black pants. When did things change so much?

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Tip 2. Put your friends on alert.
If you were trying to lose 10 lbs., you’d tell your girlfriends, right? You’d want them to know why you’ve suddenly gone vegan and are committed to running a 10K in two months. And you’d expect their full support.

Why shouldn’t savings goals be the same? The next time you’re out with friends, try this, “Ladies, I’m trying really hard to hit my savings goals this spring so I need to be extra budget conscious and I wanted you to know.” The point here is that you need them to stop pressuring you to go everywhere and do everything, and be supportive when you can’t. Once they know you’re on a budget, you might need to suggest cheap eats or free group activities (lazy day on the beach, anyone?); true friends will glady join you.

And lest you think this tip only applies to single gals – mommies, I’ve seen the admissions fees for amusement parks and they ain’t pretty. Get creative; sometimes a hike at the local state park fuels the imagination as much as a well-engineered roller coaster.

Tip 3. Do it automatically.
If you read my blog regularly, this should be burned into your brain by now: Pay yourself first. Use direct deposit to make sure your savings account and 401k get a portion of your salary before you ever see it. Spring or winter, this is always a smart strategy.

Tip 3. Travel frugally this spring.
Flights are cheap again! Surely that’s reason to celebrate. Unfortunately, many people won’t be able to take advantage of the low fares due to the economy. But if your wanderlust calls (and trust me, mine usually does during the spring), save some extra cash by cashing on a friend’s couch. You can read about my couch-crashing experience here.

Staycations are, of course, another option. But I find those don’t quite quench the thirst to travel. The point is to experience new things in new places, which is hard to do in your own ‘hood.

Tip 4. Coupon it up.
I recently heard that couponing web sites were the #1 fastest growing on the web last quarter. Makes sense, right? But coupons are for more than just groceries. I’ve noticed major retailers like REI, J.Crew and Anne Taylor Loft offering great discounts and incentives through coupons lately. To take advantage, be sure to visit your favorite store’s web site before you shop there, and also sign up for the mailing list and twitter feed.

Tip 5. Read everyone you can.
Let’s say you wanted to start training for a race. Wouldn’t you visit some well-respected running/swimming/biking sites to find a training schedule, information on injuries, nutrition tips and motivation information? Well, think of reaching your savings goals just like you might training your body to get in shape: You need coaching, and you need a lot of it.

I won’t pretend to have all the answers, but I think you can learn a lot during the rainy days this spring by reading some well-respected PF divas and dudes like Jean Chatzky , Suze Orman and Dave Ramsey, as well as financial web sites like Kiplinger.com and Money Magazine . Finally, be sure to check out my “Best PF Bloggers” to find other PF blogs to add to your reading list. Good, sound advice is really lurking around every corner if you know where to look. You can be a savvy saver in no time this spring.

Tip 6. Use your tax refund wisely.
I’m torn here. I know it’s best for the economy if we all go out and spend our tax refunds, but I also know there are some who can afford to spend and others who cannot. So on this topic, I will say: the majority of my readers probably need to save their cash right now. If you have bad debt, don’t have a savings cushion and have an unstable job, you probably shouldn’t spend your tax refund on frivolous things. If you have a savings cushion, though, and a stable job, do the rest of us a favor and buy a refrigerator or a new computer or something. (Just remember to use coupons and get your money’s worth.)

Tip 7. Pick up a hobby.
OK, this is also recycled territory for me. But what better time to pick up a cheap, healthy outdoor hobby than spring? If you’re running every day (or walking or biking or playing volleyball or whatever), you’re not spending money. It’s that simple. Let the warm weather inspire you to a better waistline and bottom line.

Tip 8. Visit America Saves.
Here’s another great resource with zillions of things I haven’t even considered.

Tip 9. Walk everywhere.
It’s nice outside, so save money on gas by walking to pick up your groceries, library books, kids from school and anywhere else within a mile or two.

Tip 10. (For renters…) Move!
Spring is the best time for moving, with a dearth of apartments open and the weather relatively accommodating. If you can’t find wiggle room in your budget, even after making serious changes, you may need to find cheaper rent. Check your local listings to see what apartments are going for now and how much you can save. I’ve heard from a few people that it’s a good time due to so many people trying to downgrade their homes and condos (and in need of renters).

The post Super Smart Spring Saving Strategies, Part 2 appeared first on The Budgeting Babe.

Personally, I feel it’s my duty to take advantage of the beautiful weather … that concert I hate? Sure I’ll go! It’s too nice a day to waste in my apartment! Those ugly padded bike shorts? Throw ‘em in the cart! I’m bound to ride every other day in the lovely sun! We’re eating out again tonight? Well, if it’s al fresco, it’s a must! …The cycle enthusiastically goes on and on.

The spring spending cycle is good for business, but for those of us trying to reach our savings goals, a 70-degree day is enough to derail our monthly dining and entertainment budgets completely. So how can a fiscally responsible gal take advantage of the warmer weather without going for broke? Try a few of these smart saving strategies to start spring on the right foot.

Tip 1: Stop and think about it.
Let’s pretend it’s Saturday afternoon and you’re running to Target to pick up supplies and Rubbermaid bins for spring cleaning. While there, you spy your bff browsing cute new summer dresses. She invites you out to day drink and watch the NCAA games. You agree because, hell-o, it’s 65 out and sunny.

Two previously unnecessary dresses and $45 later, you’re off to the watering hole where you spend $50 on lunch and a few rounds of drinks. While there, you notice you’re late to meet a few friends for dinner, so you run home, change and take a $25 cab (it’s too late for a bus) to your $25 dinner, followed by another $40 on evening activities with the girls.

The next day, you know you had a great night, but your spending hangover leaves you feeling guilty and swearing off your friends for the next two weeks. When I was overspending, some variation of this scenario seemed to occur nearly every weekend in the spring and summer.

Sound familiar to you? Well, rest assured, I come bearing good news. While those of us on a budget can’t say yes to everything, it doesn’t mean we can’t have fun. In the scenario above, we could have made the following smart savings moves, had we stopped to think about them:

• Stayed away from shopping Target for cleaning supplies (the clothing racks are always too tempting)

• Told that friend at Target to watch the afternoon games at our house over home-made Margaritas

• Or, met that friend at the bar after we had lunch at home

• Looked at our watch often enough to know when we needed to leave in order to take the train to meet our other friends

• Had a glass of water between each drink out to cut down on the total cost of the night

• Done research ahead of time to find specials on dinner and drinks

At any point of the day in the scenario, we had the chance to think about the actions we were taking and make a good decision. But we were too swept up in the moment to notice it.

The next time you find yourself saying yes to unplanned activity just because it’s a nice day, stop and think for a minute. Ask yourself these questions:

1. How will this interfere with what I already planned to do today? Will it make me run late? Will I need to replan my travel or today’s budget?
2. Can I take one simple step to make today cheaper?
3. Do I need to drop everything and do it right now, or can I take 15 minutes to make some adjustments that will save me a few dollars?
4. Do I want to do this? How will I feel after I do this?

Your answer to the above questions will help you determine how quickly you can adapt to the change of plans in a budget-friendly way. Sometimes, the best way to save money is to stop and think about the choices you make to understand how they can affect your bottom line.

More coming on this topic tomorrow!

The post Super Smart Spring Saving Strategies, Part 1 appeared first on The Budgeting Babe.

Recipe for home-cooked dinner.
Bottle of wine.
SNL.
$3.50 1000-piece puzzle I bought at Target.
Plenty of texting and Facebooking with my best gals, who are also at home saving cash tonight.

Last night, B and I made pasta and rented Changeling, which wasn’t bad. After all, I haven’t seen movies in ages. Now’s as good a time as any to catch up. And apparently I’m not the only one.

According to ABC News, more of us are staying home on the weekends to save our dough.

I think that’s true; I’m spending less time on the social scene lately and more time visiting friends homes. Then again, that may just be winter in Chicago. We’ll see what happens come spring.

The post Is Staying In the New Going Out? appeared first on The Budgeting Babe.

So I was saddened, but not entirely surprised, to receive an e-mail with this lead:

“With economic pressures on the rise, consumers are looking for ways to tighten their belts while maintaining the best level of care they can for their pets. In the midst of the downturn, veterinarians around the country have observed a decline in visits and spending for recommended procedures.”

Luckily, the team at Merck/Merial have come up with a few tips to help pet owners get through tough times:

1. Be a Grooming DIYer: You might think clipping Miss Fancy’s toenails is as fun as a bad hair day, but grooming is really important in maintaining your pet’s health and condition. And, according to our friends at Merck/Merial, it’s a skill anyone can perform with practice.

An added bonus for taking an active role in your pet’s grooming is that you can identify problems early (e.g., bumps, lumps, changes in coat quality, etc.) that a groomer may not think to tell you about. Doing the grooming yourself can save as much as $400 to $1,000 per year, but to avoid a costly mistake be sure to use products, such as shampoos, that are designed for pets and not people. (Me: cleaning, clipping and combing are easy to do. Why not?)

2. Bulk Up: Resist the urge to buy pet food, heartworm and other preventatives in smaller quantities to cut immediate costs at the cash register. The reality is, as long as you’re mindful of expiration dates, buying in bulk is generally cheaper. (I need to check this one out. Wellness brand cat food is not cheap.)

3. Don’t Wait to Vaccinate or Medicate: Making sure your pet is current on recommended vaccinations will save you a bundle in the long run because you’ll help ward off preventable diseases. Vaccinations such as one that prevents rabies, for example, are particularly critical and may save your animal’s life. Similarly, routine medications such as heartworm preventives should be given every month. Skipping doses can be expensive, as treating heartworm costs as much as $800 – $1,000 (yikes!). In addition, treating the disease is risky and can be painful for your pet.

4. Spay and Save: For the average pet owner, spaying or neutering is a must. If you have a limited income, you may be able to save by taking advantage of low-cost clinics for these services. Keep in mind that spaying or neutering your pet can prevent the immediate expense of new pets in your family and the societal expense of unwanted pets being turned in to shelters. It also reduces the occurrence of some common diseases, such as breast cancer in pets.

5. An Ounce of Prevention: Prevent an unplanned, emergency vet visit this holiday by doing your part around the house. Many items that are a routine part of holiday celebrations could be toxic or harmful to your pet. Examples include:
– Mistletoe and even poinsettia, while beautiful, are highly toxic to dogs and cats
– Chocolate and macadamia nuts are toxic as well, and yeast-based bread dough can actually be fatal to your pet as it causes intestinal bloat
– Tinsel, if swallowed by a curious kitten or puppy, might cause intestinal blockage
Consult The Merck/Merial Manual for Pet Health for more in-depth guidance.

6. Brush Up: Proper dental care is an often-neglected component of the pet health regimen. Regular use of an inexpensive toothbrush and toothpaste designed for pets can delay or avoid a professional cleaning costing several hundred dollars. You also can purchase pet food designed to help eliminate tartar. (I buy tarter-preventing treats…yum!)
******

My friends at Merck/Merial note that more tips are available in their book, “The Merck/Merial Manual for Pet Health,” written with tips from more than 200 veterinarians. You can buy it for $15 at www.merckbooks.com and wherever books are sold.

Thanks for the info! What tips do you guys have for caring for pets on a budget? I would add to the above that spending time with your pets can keep them healthier and happier, and might actually stop you from spending all your time shopping.

The post Tips for Caring for Your Pet when Your Wallet’s Skinnier than your Skinny Jeans appeared first on The Budgeting Babe.

After my last post, a reader asked me to explain exactly how inflation is affecting my bank account. So I went back to pull the numbers, and analyzed my accounts during May 07, November 07 and May 08. I expected to find that expenses for ordinary things have gone up over the last few months. But on the contrary, I’ve been pretty good about adjusting my purchases to keep groceries and other staples at the same cost; for instance, we’ve made an effort to shop at Trader Joe’s more regularly vs. Whole Foods, and at the high-priced Whole Foods, we’ve cut back on the higher-priced items.

While I was rather impressed with my spending discipline, I knew there were more accounts to investigate.

Up next was my savings account – and that is most definitely hurting. First, the good news: I have managed to save nearly $15,000 towards my downpayment during the last twelve months! Now the bad news: During the last twelve months, my money market account has plunged from a 5.05 percent APY in May 07 to a 2.75 APY in May 08. It’s not even keeping up with inflation (which is currently at 4.2 percent), which sort of defeats the purpose of a savings account.

In fact, none of my accounts are keeping up with inflation. Not my bank savings account, not my money market account and not my 401K. In response to this statement, B said, somewhat sarcastically, that if my rates of return are above zero, the accounts still doing OK, and that the only people doing well right now are those who invest in commodities. I asked him if this meant I should invest in eggs and corn and cows. He laughed for a second, and then, more seriously said, “Well, if you open a brokerage account you can. Corn and gold are up right now.”

Unfortunately I don’t know how, or where, to open a brokerage account. Or if it’s a good idea. So I looked it up on google, and found that it’s pretty much just a standard investment account, which is not on my list of things to do with my downpayment funds.

It’s weird – I’m so close to where I want to be with that account, but it still feels so far away. I’m probably a year to 18 months away from buying a place — I have about $25,000 saved up right now — and I have a plan for the next twelve months that involves home buyer education and real estate market analysis. So I should feel good, or great, about my progress. But instead of feeling like my money’s doing well, I feel like my accounts aren’t working as hard as I am to help me reach my goals.

But given the economy, I guess everyone’s in the same boat. Maybe I should be happy that despite my savings accounts, I’m still managing to sock away money. Maybe I should also be happy that I haven’t lost any money, or any equity (since I don’t own a house). My net worth has steadily grown, despite the “market contraction.” All very positive things. So what’s bugging me?

I think the problem is that I feel helpless to do anything about the fact that my accounts aren’t keeping up. On the downpayment account, I shouldn’t move into higher risk, higher yield accounts, because I’m not planning on keeping money there five years or more. On the retirement account, a 1.9 percent rate of return is actually better than where my account was in November 07 (-4.5 percent). Truth be told, I wouldn’t want to make any bold moves in this economy; there’s too much uncertainty. And really, the difference between a 5.05 percent APY and a 2.75 percent APY probably only boils down to about $20 per month for me. So the best bet is to sit here and continue to save, like I always do.

I don’t know, maybe it is the weekend cold talking. Let me get a little better and tell you how I feel next week.

The post Frustration: My savings accounts aren’t keeping up appeared first on The Budgeting Babe.