The new show ‘Extreme Couponing’ on TLC has gotten a lot of attention lately, and I admit, I have watched a few episodes.

Extreme Couponing features individuals that are ‘gifted’ at the art of getting a good deal at the grocery store.  No, not a good deal, but an unbelievable deal.  I saw one shopper have a retail cost of $1800 for her items  at the grocery store, and it was reduced to $103 after sales and coupons.  Many others on the show have had similar success on their shopping trips.  However, not all purchases seem to make any sense.  For example, one woman bought 62 bottles of mustard, and her husband muttered ‘but I don’t even like mustard’.

How much mustard can one family use?

We are a family of 5, and we use maybe 2 bottles of mustard a year.  Not to mention that when I do buy mustard, I always have a coupon and I buy it on sale, so it costs about a nickel.  I have never run out of mustard, and I don’t have to worry about storing 61 bottles of mustard somewhere.

On the other hand, I do stockpile some items.

If  I can buy an item for next to nothing (usually because I have a coupon and it is on sale), I will buy as many of that item as possible, within reason.  Ideally, I only buy as much of that item as we will use until it goes on sale again.  If the item is totally free, I will get as many as possible and donate what I won’t use.  However, I refuse to buy just because I can.  There are a lot of people out there that really need to get their groceries at a low price, and I can’t justify grabbing every last bottle of something when I don’t need it.  Plus, I don’t have unlimited storage space, and if I am not going to use something, it is still a waste of money no matter how cheap it is.

Savvy Shopping, Or Hoarding?

When you see inside the homes of these extreme couponers, you will notice that shower stalls are stuffed floor to ceiling with toilet paper products, kids have toiletries stored under their beds, etc.  Every spare inch of many of these homes are used like a pantry. One family had hundreds of boxes of cereal stored on shelves.  Who can eat that much cereal?  Instead of making room and shelving these items, these people should  keep what can be reasonably eaten before the expiration date, and immediately take the rest to a food bank. 

Many of the shoppers on Extreme Couponing are absolutely obsessed with grocery shopping, and couponing takes up a big part of their lives.  Some people even involve  their friends in their obsession.  I saw one episode of Extreme Couponing where a woman had to call and ask 5 of her friends to come up to the store early on a Saturday morning because she misunderstood the terms of a ‘spend 50 dollars, get 10 dollars back’ deal.  Each friend had to come up to the store and represent a fifty dollar transaction so the couponer could receive the ten dollar rebate.   I don’t know about you, but I don’t think I could ask my friends to get out of bed at 7:00 am on the weekend so I could save ten bucks.

Watching these episodes makes me wonder how much money these people could make if they put an equal amount of time, energy and planning into a job or home-based business.  Saving money is great, but when so much effort (and space) is put into such an endeavor, it may not be as worthwhile as it seems.

My Approach To Grocery Shopping

Saving money is great and so is having food on hand.  However, I don’t think saving money has to be a full-time job.  I follow a more balanced approach to grocery shopping, which I developed when I became a stay at home mom.  Since I was not actively earning money, I felt my job was to stretch my husband’s paycheck as far as it could go.   The following are my tips for grocery shopping:

1. Pay attention to prices.  If you don’t know what an item normally costs, you won’t know a good deal when you see it.
2. Pay attention to sales cycles.  Learn how often items you usually buy go on sale.
3. Scour the weekly grocery store ads
4. Do not assume that an item on display is actually on sale.  Quite often, the items at the end-caps are displayed that way to trick you into thinking they are on sale!
5. Be willing to shop at more than one store.  For instance, I buy a lot of  health/beauty items at CVS because they have a lot of great deals.   I have saved a ton of money buying many items at CVS instead of at the grocery store.  Again, you gotta know your prices.
6. Clip coupons, but only for items that you would normally buy.  If a Sunday paper comes out that has a lot of coupons that you would use, go buy a couple extra copies of that paper to get the more coupons.
7. If possible, do not be brand-loyal.
8. Look at the per ounce price of items when you shop.  Bigger is not always better.  Also, if you buy a smaller item and use a coupon, it may cost next to nothing.
9. Combine store sales with coupons.
10. Stockpile items that are a great deal.  Buy as many of that item as you will use until the next time it normally goes on sale.

As you can see, it takes time to become an expert shopper.  You have to learn prices, figure out which stores offer the best deals on certain items, and more.  However, the tips provided above allow for a balanced approach to grocery shopping.  No, you won’t save 95 percent at the grocery store, but you also won’t have to treat your house like a giant pantry.  Also, your friends will still like you and won’t avoid your phone calls.  :)

So, do you use coupons?  How much do you usually save at the grocery store?  I have been off my game for a little while now, but ordinarily, I save between 45 and 55 percent.  Even though I am not saving as much as some others, I am still happy with what I am able to bring home from the grocery store for the money.  Also, if you are or know an extreme shopper, I would love to hear about it in the comment section!

I recently received an email from Holly, who has a some questions about tracking spending, and covering expenses as they occur:

I’m atempting to really focus on budgeting better this  year.  I have not really successfully tried a great method on paper/computer — alot of it has just been in my head over the years.  (which is not the best method of course!)

I have several worksheets for monthly budgeting that I’m going to try. The place I get stuck is what next, after  I’ve gotten the basic budget for the month, then how do I do the nitty, gritty of tracking all the spending and reconciling it all together at the end of the month?   It seems like it could be so tedious.

I’m also at a bad place where I’m currently using most of my current month income to pay last months bills (i.e. I put it all on my credit card and then pay off the credit card the next month.  I do however pay my bill completely off, so I’m not in cc debt)  I would like to get to a place where I am using the current month’s money to  buy current.  (if that makes sense)

Any advice you have would be great.

First off, let me congratulate you on paying your credit card balance in full every month.  That in itself is a great accomplishment.

OK, so let’s break down your questions one-by-one.  I am not addressing budgeting as it sounds like you have a plan for that.

1. Tracking Spending. One of the best tips I can offer to reduce the tediousness of tracking spending is to reduce the amount of transactions you have!  That being said, I asked some of my PF blogging friends which software they prefer so I could get a variety of opinions.  The most common responses I got were Mint.com if you want to track online (it’s free), or to use a software program like Quicken.  It depends on what you want to do with the information.  If you are just looking to categorize your spending, you could do it yourself in an Excel spreadsheet.  Whatever you decide, I would recommend updating your information daily.  I think that recording expenses frequently will make you feel the pain of spending more since you are reminding yourself every single day what you are spending your money on.  Plus, it would be quite a chore if you recorded all your expenses at the end of the month.  You might find yourself rushing through inputting the data instead of truly ‘listening’ to the information if you do it all at once.  Remember, you are not recording just for the sake of recording.  You are tracking expenses so you can learn something.   The software you use is not what is important.  You could scratch your expenditures on a rock if you wanted. What matters is how you interpret the data, what you learn from the data, and the plan that arises from the data.  You can have the fanciest software in the world at your disposal.  If you just mechanically enter your expenses and walk away, your financial situation will not improve one bit, even though you are ‘working hard’ at tracking your spending.
2. Paying ‘behind’. I do not think you are alone in that you are paying for your spending from last month with this month’s paycheck.  Some people avoid this issues by paying for everything with cash.  That way, they will not make any purchases that they cannot pay for that minute.   However, you are paying your credit card bill in full each month, and hopefully getting some sort of cash back or reward points for using your credit card.  (Side note:  do not ever use a credit card with an annual fee.  There are plenty of  ’free’ cards that offer awesome rewards.)  If you were not putting your expenses on your credit card, would you be able to pay for your purchases with cash?  Or do you have a very small buffer in your checking account either because you plain do not have the money, or you don’t want your money to sit in a non-interest bearing account?  If you are using your credit card to only buy pure necessities, then keep using that card.  However, if you think you might be picking up extras off the shelf  because you don’t have to worry about having the cash in your wallet, then you might want to consider going to an all-cash system.

My overall advice would be this:  Track your spending as it happens, and really think about the expenses you have.  Even involve a friend if you feel that will make you more accountable.  Think of a friend that would shake their head if you told them you spent a hundred dollars on another pair of boots instead of one that would say “Sweet, can I borrow them?”.   Is there a friend that might want to start tracking their spending too?   You could make it  a competition to see who can save the most, or whatever, and have celebrations for success!   Anyway, hopefully tracking the spending will stop you from spending somewhat.  Keep that extra money you gain each month in your checking account until you have enough to cover the next month’s expenses.  It may take awhile, but hopefully each month you will be motivated to make that buffer greater and greater until you finally achieve that goal.

Once the goal of saving a month’s worth of expenses is accomplished, think of a new goal and put your savings toward that.  There are plenty of online savings accounts you can open where you state a goal you have in mind (like vacation), and you can deposit money into that account at any time.  (I use Smarty Pig for this purpose.)  Come up with goals for saving so you always have something in the back of your mind that you want to accomplish with your money, instead of spending it on things you see day-to-day at the store without even noticing.  It is so rewarding when you see those savings balances increase each month.  Or, if you find it more motivating, deposit money in the account each week.  Whatever makes you happy.

However, if you are already spending the bare bones amount each month, then all you can really do if you want that buffer of not ‘paying behind’ is to put a sum of money in your checking account (if you have it saved somewhere) to give you that peace of mind of having enough to cover your current month’s bills.  Just don’t use it as a license to overspend.

Regardless of your how much you do or don’t have saved, here are some money saving tips you can use to try to make each paycheck last a little longer:

1. Be careful at the grocery store.  Most things go on sale at some point.  Buy items when they are on sale and stock up on enough to hold you over until the next sale.  Yes, that does mean that some weeks your grocery bill may be higher, but your food will last you much longer.  Never pay full price for vitamins or toiletries as CVS has fantastic sales on these items every single week.  For example, I rarely pay more than 50 cents for a tube of Crest toothpaste.  Get to know what is a good price for staple items and take advantage when you can get a mega-deal.  Buy fruit that is in-season, as the cost of winter produce can really affect your grocery bill.
2. Plan your meals ahead of time, and base at least some of them on what is on sale at the grocery store.   This will hopefully keep you from eating out, and will most likely be healthier for your diet.
3. Many people hate to do this, but clipping coupons can be very effective, especially when they are combined with store sales.  Regardless, do NOT enter Kohl’s, Bed Bath and Beyond, etc without a coupon in hand.  If you find yourself at Kohl’s and you don’t have the coupon, tell them you left it at home and quite often they will give you the 15% off anyway (assuming you have a Kohl’s charge card).
4. Eliminate empty calories from your diet.  They harm your body and your pocketbook.
5. Since gas has gotten quite expensive, combine errands to reduce the extra miles put on your car and the amount of money wasted on gas.
6. If you have a programmable thermostat, read the instructions and use it.  If you don’t have one, install one.

It sounds like you are on a great path toward gaining some financial security.  You are trying to put a plan in place, and really want to evaluate your spending.  You already do not have credit card debt, which really puts you ahead of the game.  (Side note: If people do have debt, it is good to use a debt snowball spreadsheet or something to keep a close eye on debt elimination progress and goals.  Also, know where your credit score falls in the FICO credit score range and make sure you clear up any inaccuracies on your credit report.)  Now, I think it would be great if you set some attainable, quantifiable financial goals and really worked toward them.

I would love if you checked back in and let us know how you are doing.  Feel free to email any further questions, and hopefully this post addressed the concerns you had.

Readers, what advice would you give to Holly?

I usually don’t spend a whole lot of money, and I try to stretch what we have as far as possible.  I thought I would just share some of the everyday things I do around the house to save money.

1. When drying laundry, I rip my Bounce sheet in half.  I found that half a sheet works just as well as a whole sheet, so the box lasts twice as long.  As a side note, I did try eliminating laundry sheets altogether by using 3 tennis balls in the dryer.  That worked ok, but wasn’t worth the savings.  I know some people also use less laundry soap or dishwasher detergent, but I have not gotten that brave yet.
2. I try not to water the lawn/plants if I can help it.  But, when we are in a dry spell, I do all watering late in the evening.  That way, more water gets to the plants and less dries up in the sun.
3. This is more of an annual thing, but I try to plan a year in advance and take advantage of my husband’s corporate health-care account.  This especially is important when I know a major expense will be coming up, like braces.  So I always communicate with our family’s doctors and dentists to try and predict when expenses may come up.  Unfortunately, this year my son will need his wisdom teeth removed, which kind of hit me by surprise.  That is a thousand dollar expense that I do not have covered in our health care account for this year.
4. I blabber on and on about this, but I always combine sales and coupons when grocery shopping.  I also will not go into Kohl’s or other stores that always issue discounts unless I have a coupon in-hand.
5. Almost all my books are obtained at the library, or with a gift card.  If I buy a new book, I read it fast and then sell it used on Amazon.  (Unless it is a book that I decide to loan out to a friend/family.)  I also take advantage of ‘Friends of Library’ sales and buy books for 50 cents or a dollar.
6. I adjust the house thermostat when I am leaving for longer than an hour.  I do have a programmable thermostat that is set for times I know I will be gone everyday.  But I also adjust it manually for times that are not programmed in.
7. I covered this in a post yesterday, but I don’t buy soft drinks at sit-down restaurants, unless it is a special occasion.  I also never buy alcohol at a restaurant either.
8. Almost all my bill paying is automatic, which eliminates the chance of getting hit with late fees.

What are some of the clever things you do to save some money around the house? Please share!

Well, I am home from vacation, but I am still not back in the swing of things.  Therefore, I am going to cheat and ‘rerun’ a post from way back in the beginning of my blog.  (OK, not that long ago, March.  However, I am sure this post will be new to most, if not all, of you.)

I was out to lunch with a friend at a local chain restaurant the other day and  I started discussing how much soft drinks cost these days.  I then picked up the menu to prove my point and the prices were not listed on the menu!  I was aghast.  When the waitress came to take our order, I asked how much soft drinks cost and she did not even know.  She later came back and said soft drinks cost $2.39.   If that isn’t bad enough, you can add in the 6 percent Michigan tax plus 20 percent tip, and that watered-down soft drink now costs you an even $3.00.  I can think of a lot of beverages I would enjoy more for that price.  Or, I could go to my local Kroger and buy a couple of 2 liter bottles for the same amount of money.  Of course, those would be hard to smuggle in my purse and discretely pour at a restaurant…

So next time you are out to eat, take a look at the menu before you order a beverage.  If the price isn’t there, you know it is an amount you won’t want to pay.  If the price IS there, you probably won’t want to pay that amount either.  (Unless the drink is offered in a decorative plastic cup with a twisty straw and you can convince the server you are 10 and under.)  Besides, what are you really gaining from that drink anyway besides a bunch of empty calories (or Nutrasweet), and a small dose of caffeine?

Have a great day!

My grocery savings had gotten away from me.   However, this weekend, I was a saving machine once again.

I am back…

So what happened that hindered my savings?  Life!  High School Baseball, middle school soccer, middle school baseball, travel soccer, end of school events, banquets, etc.   I am exhausted just thinking about it.

But now, life is back to normal.  It is better than normal now that I think about it.   It is fantastic to eat a grilled dinner outside in the breeze.  What makes it even better, is eating an inexpensive meal outside in the breeze.

I went grocery shopping on Sunday and I was in heaven.  So much produce was on sale.  I just love summer.  Plus, since life had settled down somewhat, I was able to remove expired coupons and get all my new coupons back in order.  Savings were occurring left and right; up and down every aisle.

My grocery receipt - sorry about the quality. It got crinkled.

Reference the photo of my receipt.  It shows I saved $95.71, which actually was $97.71 because I also received a $2 off coupon for my next visit.  I did not meet my goal of saving 50 percent, but I still did pretty well.  (I ended up spending $132.)  The reason I didn’t meet my goal was I had to buy some food for Father’s Day dinner that was not on sale- I couldn’t deprive my husband his meal, and also I had to buy some detergent/toiletries that I can never get down to half price.  However, I won’t need more Tide for a month, or Cascade, or a lot of other things.  My stockpile is coming back to life!  Not to mention I need a lot of food to feed 3 kids that are home all day now.

For those that have been reading for awhile, you know I love to purchase items when I have a coupon for that item and it is also on sale.  I try to buy as many of an item that will last me until the next time it is on sale.  In essense, I never want to pay full price for anything, ever.   Another tip I would like to introduce is to be creative with your meal planning.  Integrate in-season produce and sales items into your menu.  Have a purpose for those sales items, don’t just buy them because they are cheap.  For instance, raspberries, blackberries, and strawberries were on super-sale this week.  Buy a bunch of berries and make a nice berry-salad as a side dish for dinner.  Berries are incredibly healthy, and they are usually only in season a short period of time.  Liven up tired-old breakfast with some yogurt covered with berries, or add some berries to your plain Cheerios.  Not only is it inexpensive, but it adds variety to your menu.  Another thing I like to do is freeze inexpensive strawberries (just wash, cut off the caps, drain,  layer them on a cookie sheet till frozen, then place in a bag) and use them in smoothies.  It is a lot cheaper to make your own frozen strawberries than to buy them in the winter at the store.

I know that for many people, it can be difficult to find time to dig through coupons and look through circulars.  Heck, I enjoy it and I got out of the habit for a month or so.  However, for those that have the time and patience, it can be one of the easiest and most rewarding ways to save money.  I actually enjoy grocery shopping when I know I am getting healthy items at a low price.  Plus, when you are planning meals ahead of time, you are more likely to eat at home, which is always good.

I will leave you with some tips for managing and shopping with your coupons.

1. Find a way to organize your coupons that works for you.  I have mine categorized by groups such as ‘frozen foods’, ‘breakfast items’, ‘canned goods’, etc.  Some people use a big binder to store their coupons.  I just use a coupon holder that folds and fits in my purse.
2. Each week, try to remove expired coupons and file new ones.  The more you look at your coupons, the more you know what you have.  Then, when you see the sales circulars, you will easily recognize what will be a really good deal if you know you have coupons for certain items.
3. Make a list of what you need each week based on sales/coupons, along with what you really need that unfortunately is not on sale.  Still carry  your coupon holder with you because you never know what will be on secret sale.  If you have multiple coupons for an item and it is being sold at a great price, buy as many as you have coupons for.
4. Collect your expired coupons and those from your friends and send them to military families overseas.  Military bases can use coupons for 6 months past the expiration date, and what an easy way to help those that protect our country!  The best way to send these coupons is to use a USPS priority rate envelope and cram in as many coupons as you can.  (Shipping cost is $4.95, regardless of weight.)  For more information, visit the Overseas Coupon Program website.

I hope you now feel even a little motivated to work toward saving on your grocery budget.  It really is not that hard to do once you get the hang of it.

Happy Summer!

I recognize the title to today’s post may seem a little contradictory.  Save money/spend money?  Well, I am a big believer in spending some money now to save money in the future.

Some of the areas I am willing to pay for now, to save financial pain later is the following:

1. Stockpiling groceries: When we remodeled our kitchen, I made sure there was room for my stockpiling habit.  So, we have a pantry area with shelves that I can store all my extra groceries.  Keep in mind, I am obviously not stockpiling perishables.  However, if baked beans are on a great sale and I have coupons, I will buy as much as I can so I don’t have to pay full price in the future.  Ideally, I buy as many of an item as I will use until the next sale comes along.  This does not mean I buy items I don’t need!!  There are certain things I know I will go through a lot of, so I might as well buy it while its cheap.  Salsa is an example of this.  Every 6 weeks or so, Salsa is buy one, get one free at our local store.  We go through Salsa like water in our house, so it makes sense for me to buy 12 jars.  The only time I will get something I don’t normally use is if it is free, or close to free.  I then usually donate it.
2. Services (for example, lawn fertilizing):  I pay for services up front in one lump sum if they offer a discount, which most of them do.   I do the same for the kid’s braces.  Always ask for a discount if there isn’t one already offered on a service, especially if you are going to pay in cash.  Doesn’t hurt to try.
3. Gifts: I shop for Christmas all year long.  For instance, my daughter loves craft items.  I clip those Michael’s coupons in the paper and buy things throughout the year and hide them.  You can really save on gifts if you do not wait until just before the event.  Plus, you can usually put more thought into the gift when you have more time instead of just buying something because you have to.
4. Dental work: Who doesn’t hate the dentist?  Well, I don’t mean ‘who doesn’t personally hate their dentist’, my dentist is actually a pretty nice guy.  However, my teeth apparently are covered in a sponge-like material instead of enamel as my teeth still get cavities at the drop of a hat (or the bite of a cracker).  Since my teeth are so soft, I actually have dental cleanings every 4 months (my idea, not my dentist’s) to try to catch problems before they get too far.  That means one of those cleanings each year are my financial responsibility.  However, it is worth it to me because I cannot stand the financial or physical pain for dental work.  Has this strategy prevented extra dental work?  I have no idea.  But, I feel better with this plan, so it is worth it to me.   So even if you hate going to the dentist, you really need to bite the bullet and go in for a checkup a couple times a year.
5. Health Physicals: This one is a no-brainer.  Catch any physical issues that may be lurking as soon as possible to save years of pain and expense.  This includes eye exams too (which I  recognize I am late for, now that I think about it…)
6. Auto Maintenance: Car getting up in miles?  If you have a trusted mechanic, get that car checked out.  Not only can auto repairs be expensive, but you do not want to be stuck in a broken-down vehicle on the side of the road.  However, do not go overboard with this.  Schedule maintenance based on the Manufacturer’s guidelines, not that of the dealer that is trying to make more money off of you.  (For further reading regarding car maintenance, check out this article at MSN Money Central titled ‘20 Ways You Waste Money On Your Car‘.)
7. Healthy Food: I am not one of those people that requires everything be organic before I eat it (think Kate Gosselin…).  However, I am a proponent of eating healthy foods that require preparation, as opposed to cheaper, convenience foods.   For example, I know salmon is generally expensive.  However, I prepare it frequently because of the positive benefits it has for my body.  Over time, hopefully healthy eating will keep me out of the doctor’s office.
8. Mortgages: When interest rates were dropping and we decided to refinance our mortgage, we evaluated the cost of a 30 year mortgage versus a 15 year mortgage for the same loan amount.  The difference was only a few hundred dollars a month, and we would be out of debt in half the time.   So, we went with the 15 year mortgage.   Plus, the interest rate was lower on a 15 year mortgage than a 30 year.  If you are thinking of buying a home or refinancing, consider a shorter mortgage term.  Try to consider only homes you can afford to buy on a 10 or 15 year mortgage.  You will be very happy you did when you make that final payment!
9. Contribute to a Health Care Account: Do your best to estimate your outflow for medical/dental expenses for the year and sign up for the health care account if your employer offers one.  Where else can you guaranteed make 25-33 percent (whatever your tax bracket is) on your investment?  Obviously, you have to be conservative when you select the amount to withhold since you lose what you don’t use.  But going back to braces, using our health care account saved us over 1,000 dollars.

So overall, it may be good to have a little extra in your budget to be proactive about certain items in your life instead of having a bare-bones budget that only covers the bare minimum.  However, if you are living paycheck to paycheck and only buying necessities, I recognize that may not be possible.

What other areas are you willing to pay more for now in hopes of spending less later?

Since my kids were born, I have mostly been a stay-at-home mom (SAHM).  When at least one of the kids was still at home, I felt like I was ‘contributing’, as I was busy with him all day long.  However, when my youngest child went off to school full-time, I kind of felt like I was ‘in-between’.  I was still a mom, but for 7 hours a day, there was not a whole lot of mom responsibilities going on.  It was then that my role shifted – to ‘Mom Who is Also the  Ultimate Money Manager’.  (That’s my own made-up title.)

I have always run the family finances, but with the kids at school, I had more time to really focus on the household money.   I learned how to grocery shop wisely.  Once I really started paying attention to what products actually cost, I knew when to take advantage of a sale and stock up.  I would say that by becoming more familiar with prices and combining sales with coupons, I cut my grocery bill by 40 percent.  Plus, we had more food in the house, ironically enough.

In addition to grocery savings, there are many things that you, as Ultimate Money Manager, can do to reduce your monthly costs:

1. Look at the cable bill.   Can any ‘add-ons’ be cut?  Another thing I do every 6 months is I call my cable supplier and tell them that I can get cheaper service elsewhere.  (Which is true.)  They then always cut my bill by 20 dollars a month, and it is a 6 month deal.  It has worked every single time.
2. Evaluate the age of your car and what type of insurance you need for it.  A new car and a 10 year old car have different insurance needs
3. Do you even need a home phone?  If you do, consider bundling it with your TV/Internet service if it is available in your area.
4. Inspect your credit card bill every  month.  Several times a year, I am double charged for something.  Last year I was charged twice for a kayaking trip we took on vacation.  Catching that snafu saved us 140 dollars.
5. Don’t spend what you don’t have.  Who wants to waste the money they earn on interest payments?   Next time you want to make a purchase that will end up as a credit card balance, picture yourself taking the  money you would pay in interest and putting it through a paper shredder.  Whether you pay it to a credit card company or shred it, the net effect is the same- you no longer have that money.
6. Pay close attention to when bills are due and create a system for payments.  The only thing I hate more than wasting money on interest is spending money on late fees.  Always, always, always pay your bills on time.

So if you do not work outside the home, instead of feeling guilty about not bringing in a paycheck (like I did), focus your attention on making your household money last.  The list provided above is just the beginning.  Over time, watching your money becomes part of your life.  You will hate buying anything that is not on sale.  You will laugh when you see displays at the store that try to make you think those products on sale, but you will know better.  Your brand loyalty on certain items may go out the window.  You will find you are not making as many impulse buys on clothes, food, anything.  Once you truly commit to stretching that dollar, your spending habits and mindset completely change.

As always, if you have any exciting ways that you save money every month, please leave a comment so everyone can benefit!

One of my goals in life is to help everyone reduce their debt, even if just a little.

For years I think Americans have spent freely.  If you overspent, you could always just take out a home equity loan to help pay off debt.  Unfortunately, many people ended up with a home equity loan and newly maxed-out credit cards, because their spending habits never changed.

I think part of the reason people have so much debt is because money used to be so available.  Salaries were larger, companies gave out more bonuses, and loans were easy to obtain.  Therefore, people were more conditioned to spend.  However, easy money is no longer readily available to many Americans.  Credit has tightened and many people have lost their jobs or taken a cut in pay.  Many of the jobs that are available are generally at a lower wage, and college graduates are struggling to find employment.  For the young people just starting out, this new economy will be a huge lesson and will hopefully help shape conservative spending habits for a lifetime.  However,  those that enjoyed stock market rallies and large bonuses may need to really evaluate the ‘new’ economy and their own personal spending habits.

So, my goal for anyone reading this is to sit down for an hour or whatever time it takes and really think about their spending habits.  What does spending really do for you?  Does having that new expensive pair of shoes really provide long-lasting happiness?  Do you ever feel regret your purchases after going on a shopping trip?  For some, shopping is a way to deal with personal loss, or just having a bad day.  If you fall into that category, you need to find a new outlet.

Overall, having a lot of debt is like walking around with giant weights on your shoulders.  Envision how reducing that debt a little at a time is like having small chunks of that weight crumbling off of you.  There is nothing positive that comes from debt.  Debt is a bummer; it causes you to spend even more because of high interest rates, debt may cause arguments about money with your spouse, debt may prevent you from purchasing things your really need, etc.  On the flip side,  do you ever hear about people arguing because they don’t have any debt?   Do you ever see someone feeling down because they are debt free?  Never!  You too can have the weight of debt off your shoulders.   But you have to commit to being debt-free with every decision you make.

Here are just a few suggestions to help save you some money and get rid of some of that debt:

1. Reevaluate your car/homeowner insurance. If you have policies with different companies, call around and see what kind of deal you can get by having multiple policies with the same insurer.   Also, evaluate how much you really need to insure your home for.   Many home prices have plummeted in recent years.   Buy enough coverage needed to cover the true value of your home, not what it was worth 5 years ago when you originally took out the policy. In addition, think about increasing the deductible on your policy.   Decide if it is worth it to  pay less every month for your insurance at the risk of having to pay a larger deductible if something does go wrong.
2. Plan your meals (lunch and dinner) a week ahead of time and take advantage of grocery store sales.  Try to go one week without eating any meals out and see what it does to your bottom line.   Even if you find you aren’t saving money (which I would find shocking), you will at least be eating healthier, which is always good.
3. Give yourself a pre-determined amount of money on Sunday to be used for the entire week, and do not use your credit card for anything except emergencies.  Make it a small but realistic amount.  (I recognize you still need to fill that gas tank.)  At the end of the week, evaluate if that made a difference in how you spent your money.  Did you realize you didn’t make impulse purchases that you may have made before when you had that plastic credit card available?
4. Quit smoking!  The positives to that option are numerous, not to mention the money you will save.

The ways to reduce your spending are endless.  The trick is to find the balance of enjoying your life while still being fiscally responsible.
Please feel free to provide comments on creative ways you reduced your debt.

For years when I was grocery shopping, I assumed that the bigger the box, the better the deal.

However, I was wrong, at least in some cases.

One of the great pieces of information provided at the grocery store is the ‘per ounce’ cost that is printed on the product tags attached to the shelves by each item.  I love it when they calculate and display it for sale items too.  The grocers must think we never look at these tags based on the pricing schemes I see at the store sometimes.

Just this past week I was at my local grocery store and I compared the per ounce price of the 64 and 96 ounce cartons of  Tropicana orange juice (neither size was on sale).  Surprisingly, the per ounce price was MORE on the 96 ounce orange juice, which is the opposite of what we have come to expect.  The same was also true on 2 types of cereals I looked at.  In the next aisle, I stopped to look at the giant box of Bisquick, which you would think would be a good deal compared to the smaller sizes.  I was shocked at how much more expensive the big box was on an ounce-for-ounce basis compared to the smaller box.  To take advantage of this, purchase that smaller item when it goes on sale and combine it with any coupons you have.   In that situation, you can buy that item for practically nothing.  If you have multiple coupons or it is a really good deal, buy several and stock up!

I do still think that in many cases, the larger version of the product is still the better deal.  However, take a look before you put that giant jar of spaghetti sauce or whatever in your cart.  Maybe that smaller version is actually cheaper, and it also takes up less space in your cabinet.