Money Matters!

The past year the news has been filled with nothing but financial troubles for everyone. So many people have struggled and the effects of the economy have reached all walks of life. I have seen many people lose houses, jobs, and file for bankruptcy. My friend Emily's husband Ryan lost his job and was out of work for about five months. In the years that I have known Emily she has taught me many things but probably she has taught me to be more frugal. She pays attention and isn't wasteful. I was very impressed with how they handled being out of work. They had done all the things we all know we are supposed to do but always have an excuse as to why we don't.

I'm a good saver but I'm also a GREAT spender and I have learned to be better at budgeting and finding things for better prices. She has taught me to use the weekly ad that comes in the paper and for the past year I've read it every week and found one store to go to. I base it usually on which store has soda on sale since full price is a rip off but I'm getting better and learning to be more frugal. I asked Emily to write down her financial tips for me and I decided I would put them on my blog so if anyone else is interested they could learn also. My Mom is very frugal and my Grandma was ridiculously frugal but it skipped a generation with me. So I'm trying to be better and going through a tough economy has made me grateful for Wade's job and the stability that it offers. Along with working on my food storage I have tried to adopt some better money habits so I will feel better prepared for the unexpected.

*Money Smart Tips/Emily Bott

So…I don’t know if I’m “frugal”, but I rarely buy items that are regular price. I’m not a crazy money saver (with websites, coupons, etc.), but I do try to be money “smart” and am very aware of how and why I am spending money. Here are my tips:

1. Only spend money you have. Don’t get caught thinking “We can pay it off next month” or “We have to have this now, not later”. I can guarantee that you will spend that money more than one time. This does not work.

2. Use what you have before spending additional money (especially food).

3. Put some money in savings every month – you’ll want to have some liquid assets in addition to your investments. Even if you are trying to pay off debt, put a little away. You will like to see an account increasing instead of always decreasing, even if it’s only $20 per month.

4. Take advantage of money saving frequent shopper clubs. You may get extra coupons and notice of sales.

5. Watch for percentages off entire purchase coupons or days/times. If you can find something on sale + an additional percentage off = awesome deal.

6. Look at the ads and decide which store or stores you’ll go to. It’s not worth your time to run to a whole bunch of stores. I chose 1 or 2 stores that have the most of what I need for good prices, and then I go there.

7. Know what you are going to buy before you to go to the store and stick to it. This is smart even when clothes shopping. You may want to go grocery shopping more often, so you can stick right to your list, yet you feel like you are getting out of the house.

8. Decide how much you are willing to spend on an item and stick to it. Now matter how much money you do or don’t have, stick to it. For example, I try not to pay more than $10.00 for shirts for my boys or more than $20.00 on a dress for my daughter. I like less than $2.50 for a gallon on milk or a box of cereal. There are certain exceptions to this, but when you get one of these items for less, you feel good and if you don’t, you’re going to be more careful about your next purchase.

9. Plan for “unexpected” or “abnormal” expenses every month. There is always something – a trip, Holiday, Birthday or seasonal shopping. It might be as little as $50 - $100 but might be a lot more. Save and plan for this.

10. Buy your kids clothes at the end of season for the next year. You can save a ton and you are going to buy the clothes anyway. I especially like to look for higher prices items like, coats, pants, and sweaters. I bought a $50.00 kids winter coat for $15.00…can’t beat it.

11. Just because something is on “sale” doesn’t mean it is a good price. If you’re not sure, check on the regular price and other comparable items around it. Don’t buy 10 of something if you’re only saving $.10 per item. Not worth it.

12. Weigh the “I’m here now even though it’s a higher price” vs. “I know this is less expensive somewhere else” battle. It might be worth it to just buy it. But, if you don’t need it right now and will be at a different store soon, it might be worth the wait.

13. Watch for grocery store specials. They can be awesome.

14. You have to give yourself a little bit of “play” money to stay sane. When we didn’t have much extra money, we got $30 a month. It doesn’t sound like much, but if used wisely, can still bring you a lot of satisfaction.

I was raised in a home where saving money was a sport. It truly has been in my blood from a very young age and is exciting for me. Don’t feel like you’re missing out or compare yourself to others. Just spend what you have and make the most of it. Everyone has different tastes, but most styles can be achieved on any budget. Think about purchases before you make them. Get excited when you save money or get a good deal. Decide what your financial priorities are and how you are going to reach them. Make a plan. It is very rewarding and invigorating to see your bank account increase. Do your best and don’t get discouraged. If you change your mind about something, don’t be afraid to take it back. Make the choice to be money “smart” and be aware of how and why you are spending your money